HOUSTON--(BUSINESS WIRE)--Orion S.A. (NYSE: OEC), a global specialty chemicals company, today announced participation in upcoming investor conferences. Orion will attend the: New York Stock Exchange (NYSE) Investor Access Day Series (Virtual) – Materials Sector on Thursday, March 5. Loop Capital Markets' 7th Annual Investor Conference (Virtual) on Monday, March 9. Participating in both the NYSE and Loop Capital events will be CEO Corning Painter, Chief Financial Officer Jon Puckett and Vice Pre. ...

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Core Insights - The global Carbon Black Market is projected to grow from USD 26.17 Billion in 2025 to USD 38.54 Billion by 2033, with a CAGR of 4.97% from 2026 to 2033 [1][16] - The U.S. carbon black market is estimated at USD 10.22 Billion in 2025, expected to reach USD 14.82 Billion by 2033, growing at a CAGR of 4.77% [2][16] Market Drivers - The automotive industry's demand for carbon black, particularly in tire manufacturing, is a significant growth driver, as carbon black enhances tire performance, durability, and wear resistance [4][10] - The rise in electric vehicle (EV) production indirectly boosts the carbon black market, as EVs require high-performance materials [4] Market Segmentation - By Type: Furnace Black leads the market with a 40.24% share in 2025, while Acetylene Black is the fastest-growing segment with a CAGR of 7.80% [6] - By Grade: Standard Grade dominates with a 60.20% market share in 2025, and Specialty Grade is the fastest-growing segment with a CAGR of 6.85% [7] - By Application: The Tire segment holds a 67.80% share in 2025, with Plastics being the fastest-growing segment at a CAGR of 7.60% [8] - By End-User: The Automotive sector leads with a 64.30% share in 2025, while Electronics is the fastest-growing segment with a CAGR of 7.90% [9] Regional Insights - The Asia Pacific region is the largest market, accounting for over 54.20% of revenue in 2025, driven by high demand from automotive OEMs and tire manufacturing [10] - The Middle East and Africa are projected to grow at the fastest CAGR of 7.00%, fueled by industrialization and increasing automotive production [10] Major Players - Key players in the carbon black market include Cabot Corporation, Birla Carbon, Orion Engineered Carbons S.A., and Tokai Carbon Co., Ltd. [5][12] Recent Developments - Birla Carbon introduced Continua™, a sustainable carbonaceous material derived from post-consumer tires, enhancing sustainability in the industry [13] - Tokai Carbon Co., Ltd. collaborated with Bridgestone to develop eco Carbon Black from end-of-life tires, contributing to a circular economy [13]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 was approximately $58 million, slightly better than previous expectations but still below targets [6][17] - Revenue decreased by 3% year-over-year despite a 5% increase in volumes, primarily due to lower oil prices affecting contractual pass-throughs [17] - Gross profit declined by 20% compared to the previous year, driven by lower demand in key regions and adverse fixed cost absorption [17][18] Business Line Data and Key Metrics Changes - In the rubber segment, volumes increased by 7%, but revenue decreased due to oil-related pass-throughs and adverse geographic mix [18] - Specialty segment saw year-over-year and sequential volume gains, but improvements were skewed towards lower-margin applications [19] Market Data and Key Metrics Changes - Tire production in the U.S. is down approximately 29%, with a 20% decline across Europe, and closer to 35% in Western Europe [5] - Truck and bus tire imports surged over 50% year-over-year in July, indicating potential pre-tariff stockpiling [11] Company Strategy and Development Direction - The company is focusing on self-help actions to improve structural costs and overall competitiveness, aiming for positive free cash flow despite current headwinds [5][15] - Actions include rationalizing underperforming production lines and optimizing the production network to enhance competitiveness [13][15] Management's Comments on Operating Environment and Future Outlook - Management noted soft demand in key markets due to global industrial activity malaise, impacting specialty end markets [5] - There are signs of potential demand recovery, but the company is not counting on it and is taking proactive measures [5][23] Other Important Information - A non-cash goodwill impairment charge of $81 million was recorded during the quarter [19] - The company expects full-year free cash flow in the range of $25 million to $40 million [20][22] Q&A Session Summary Question: Expectations for Q4 volumes and contract negotiations for 2026 - Management expects longer seasonal shutdowns and inventory management in Q4, with contract negotiations for next year behind schedule [24][25] Question: Impact of the Laporte plant on volumes and earnings in 2026 - The Laporte plant is expected to have a negative impact on volumes and earnings in 2026 due to startup costs [26] Question: Potential for earnings improvement in 2026 with sustained import tire pressure - Earnings improvement will depend on the outcome of negotiations and the efficiency projects being implemented [27] Question: Thoughts on industrial rebound in 2026 or 2027 - A rebound would require a return to pre-COVID conditions with strong demand from OEMs and normalized trade flows [30] Question: Are tire importers receiving government support? - The Section 232 tariffs are not sufficient to completely price out imported tires, and the market dynamics are shifting towards tier two brands [32][33]

Financial Performance - Q3 2025 - Adjusted EBITDA decreased by 28% year-over-year to approximately $57.7 million, primarily due to soft volumes in key regions, adverse fixed cost absorption variances, and inventory revaluation [5, 24] - Net sales decreased by 2.7% year-over-year to $450.9 million [24] - Gross profit decreased by 20.4% year-over-year to $85.6 million [24] - Adjusted net income decreased by 40.5% year-over-year to $16.3 million [24] Segment Performance - Q3 2025 - Rubber Carbon Black: Adjusted EBITDA decreased by 31.8% year-over-year to $36.1 million, with volume gains in APAC and South America [28, 31] - Specialty Carbon Black: Adjusted EBITDA decreased by 20.6% year-over-year to $21.6 million, with overall volumes modestly higher but predominantly into lower value markets [33, 35] Key Factors and Challenges - Tire imports into the U.S. remain a challenge, with tariffs of 25% on imported replacement tires [6, 15] - Macroeconomic conditions remain difficult, impacting end market recovery [5, 19] - The company is over-indexed to Western markets and premium tire makers, which are most impacted by import levels [6] Outlook and Strategy - Revised full-year 2025 Adjusted EBITDA guidance to $220 million - $235 million and Adjusted EPS to $0.80 - $0.95 per share [40] - The company expects positive free cash flow for 2025, revised to +$25 million - $40 million [38, 40] - The company is intensifying its focus on cash flow generation through cost actions and working capital management [18, 19]

Core Insights - Orion (OEC) reported quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.36 per share, and down from $0.47 per share a year ago, representing an earnings surprise of -19.44% [1] - The company posted revenues of $450.9 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.22%, but down from $463.4 million year-over-year [2] - Orion shares have declined approximately 66.4% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $451.51 million, and for the current fiscal year, it is $1.15 on revenues of $1.85 billion [7] - The estimate revisions trend for Orion was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Chemical - Specialty industry, to which Orion belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - For the three months ended September 30, 2025, net sales decreased by $12.5 million, or 2.7%, year over year to $450.9 million, primarily due to lower oil prices and unfavorable product mix [108]. - Gross profit for the three months ended September 30, 2025 was $85.6 million, a decrease of $21.9 million, or 20.4%, compared to $107.5 million in the same period of 2024 [104]. - Adjusted EBITDA for the three months ended September 30, 2025 was $57.7 million, a decrease of $22.4 million, or 28.0%, compared to $80.1 million in the same period of 2024 [107]. - Net income (loss) for the three months ended September 30, 2025 was $(67.1) million, compared to $(20.2) million in the same period of 2024, representing a decline of $46.9 million [107]. - Comprehensive loss for Q3 2025 increased by $47.3 million year over year to $67.4 million, with net loss decreasing by $46.9 million [122]. - Adjusted EBITDA for the nine months ended September 30, 2025 decreased by $47.8 million, or 19.9%, year over year to $192.7 million, mainly due to lower volume in the Specialty Carbon Black segment [140]. - Gross profit for the nine months ended September 30, 2025 decreased by $57.4 million, or 16.9%, year over year to $282.1 million, driven by unfavorable product mix and raw material cost timing [130]. Expenses and Costs - Selling, general and administrative expenses for the three months ended September 30, 2025 were $57.5 million, a decrease of $0.4 million, or 0.7%, compared to $57.9 million in the same period of 2024 [104]. - Cost of sales for Q3 2025 increased by $9.4 million, or 2.6%, year over year to $365.3 million, driven by higher volume and fixed costs [110]. - Selling, general and administrative expenses for Q3 2025 decreased by $0.4 million, or 0.7%, year over year to $57.5 million, mainly due to lower distribution costs [112]. - Interest and other financial expense, net for the three months ended September 30, 2025 was $14.4 million, a decrease of $1.5 million, or 9.4%, compared to $15.9 million in the same period of 2024 [107]. - Research and development costs for the three months ended September 30, 2025 were $6.9 million, slightly down from $7.0 million in the same period of 2024 [104]. Impairments and Losses - Goodwill impairment for the three months ended September 30, 2025 was $80.8 million, with no comparable amount in the same period of 2024 [104]. - The company reported a loss due to misappropriation of assets of $(7.3) million for the three months ended September 30, 2025, compared to a recovery of $60.7 million in the same period of 2024, representing a decline of $68.0 million [104]. - A non-cash goodwill impairment charge of $80.8 million was recognized in Q3 2025 due to decreased trading prices and demand impacts from low-value tire imports [118][135]. Sales and Volume - Volume for the three months ended September 30, 2025 increased by 12.3 kmt, year over year, to 237.5 kmt, primarily due to higher shipments in both segments [108]. - Net sales for the nine months ended September 30, 2025 decreased by $48.3 million, or 3.3%, year over year to $1,395.0 million, primarily due to lower oil prices [128]. - Net sales for the nine months ended September 30, 2025 decreased by $28.2 million, or 3.0%, year over year to $916.2 million, mainly due to the pass-through of lower oil prices [152]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2025 was $122.9 million, reflecting significant changes in working capital [158]. - Net cash used in investing activities for the nine months ended September 30, 2025 amounted to $112.3 million, primarily for safety, maintenance, and growth investments [159]. - As of September 30, 2025, total liquidity was $249.2 million, including cash and equivalents of $51.3 million and $165.8 million availability under the revolving credit facility [169]. - The company plans to finance capital expenditures with cash generated from operating activities and existing debt capacity, with no material commitments outside ordinary business [175]. - The company had a stock buyback of $24.8 million during the nine months ended September 30, 2025, partially offsetting outflows from scheduled debt repayments and dividend distributions [163]. - The company anticipates that future operating cash flows and existing credit facilities will be sufficient to finance planned capital expenditures and address working capital needs [168]. Risks and Legal Proceedings - The company is involved in various legal proceedings, including product liability and employment-related claims, which may materially affect operating results and cash flow in specific periods [187]. - There have been no material changes to the risk factors associated with the business as previously disclosed in the Annual Report for the year ended December 31, 2024 [189]. - The company faces risks related to financial leverage, including the restrictive effects of covenants in debt instruments and potential downgrades by credit rating agencies [186]. - The company is subject to fluctuations in foreign currency exchange rates and interest rates, which may impact financial performance [186]. - The company must manage the adequacy of its insurance coverage and potential impairments or write-offs of certain assets [186]. - The ability to pay dividends on common stock at historical rates is uncertain due to various financial risks [186]. - The company is exposed to risks associated with recruiting and retaining key management and personnel, which could affect operational stability [186]. - The company must navigate changes in international and local economic conditions, including inflation or deflation, which may disrupt operations [186]. - The company is subject to changes in European Union regulations that could impact its ability to market and sell products [186]. - The company has ongoing challenges related to protecting its intellectual property rights and managing tax obligations [186].

Financial Performance - Preliminary Q3 2025 adjusted EBITDA is expected to be approximately $55 million[4] - Revised full year 2025 adjusted EBITDA guidance range is now $220-$235 million[4] - Third quarter results were negatively impacted by lower Western market Rubber volumes and oil price-driven inventory revaluation[2] Cash Flow and Debt Management - The company is focusing on generating free cash flow for debt reduction amid macroeconomic uncertainty[3] - Production levels have been tactically reduced to enhance free cash flow generation[3] - Orion anticipates positive free cash flow generation for the year despite reduced full year adjusted EBITDA expectations[3] Strategic Focus and Challenges - The strategic focus is shifting towards navigating a potentially prolonged lower industrial manufacturing backdrop[3] - Additional cost measures will be introduced to improve earnings progression and cash flow generation in 2026[3] - The company is addressing challenges from elevated imports affecting the Western tire industry manufacturing rates[3] Upcoming Events - A conference call to discuss actual Q3 results will be held on November 5, 2025[7]

Core Viewpoint - Orion S.A. (NYSE: OEC) has been a subject of debate regarding whether it represents a "value play or value trap" since its initial public offering in 2014 [1]. Group 1 - The stock has been under scrutiny for a couple of years, indicating ongoing concerns about its valuation and performance [1]. - The company has a history of fluctuating stock performance, which has contributed to the ongoing debate among investors [1]. Group 2 - The analyst has disclosed a beneficial long position in OEC shares, indicating a personal investment interest in the company [2]. - The analyst plans to exit their position in OEC within the week, suggesting a potential shift in sentiment regarding the stock [2].

Group 1 - U.S. stock futures are lower, with Dow futures falling more than 350 points [1] - Orion SA expects third-quarter adjusted EBITDA to be around $55 million and full-year adjusted EBITDA in the range of $220-$235 million, leading to an 18.6% drop in shares to $5.56 in pre-market trading [1] Group 2 - ENDRA Life Sciences Inc shares fell 19.4% to $6.54 after a previous 25% increase due to $4.9 million in funding commitments [4] - Canaan Inc shares tumbled 11.8% to $1.34 after a 39% jump, despite a maintained Buy rating and $4 price target from Rosenblatt analyst [4] - DBV Technologies SA shares fell 11.8% to $14.48 after gaining around 10% previously [4] - Nanobiotix SA shares tumbled 10.2% to $27.23 after a previous increase of over 28% [4] - Draganfly Inc shares dipped 9.4% to $12.47 after filing for a mixed shelf of up to $200 million [4] - Bitdeer Technologies Group shares fell 9% to $18.61 after a 15% gain [4] - Diginex Ltd shares fell 9% to $23.40 [4] - HIVE Digital Technologies shares dipped 8.1% to $6.21, despite a maintained Buy rating and $10 price target [4] - Oatly Group AB shares fell 7.8% to $13.29 after a 5% gain [4] - Bit Digital Inc shares declined 7.7% to $3.69 after a previous gain of over 6% [4] - Upexi Inc shares fell 7.7% to $5.98 [4] - Sharplink Gaming Inc shares declined 7.1% to $14.98 after adding 5% previously [4] - Nio Inc shares fell 5% to $6.82, influenced by new port fees affecting US-listed Chinese stocks [4] - Alibaba Group Holding Ltd shares declined 4% to $160.20, also impacted by new port fees [4]