Austin, Dec. 06, 2025 (GLOBE NEWSWIRE) -- According to SNS Insider, The Carbon Black Market Size is estimated at USD 26.17 Billion in 2025 and is expected to reach USD 38.54 Billion by 2033 and grow at a CAGR of 4.97% over the forecast period 2026-2033. Due to its widespread use in the automobile industry, especially in the production of tires, the Carbon Black Market analysis was conducted. Carbon black is most commonly used in tires as a reinforcing filler that improves performance, durability, and wear r ...

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]

Core Points - Orion S.A. announced a preliminary unaudited financial update for its fiscal third quarter ending September 30, 2025 [1] - The company adjusted its full year 2025 guidance [1] - Actual third quarter 2025 results will be released after market close on November 4, 2025 [1] - A conference call is scheduled for November 5, 2025, at 8:30 a.m. (ET) [1]

Financial Data and Key Metrics Changes - The adjusted EBITDA for Q2 was $69 million, aligning with expectations despite demand headwinds, with overall volumes up 3% year over year but down over 4.5% sequentially [6][24] - Gross profit per ton improved sequentially due to better operating performance, although total profitability was down year over year due to adverse geographic and product mix [24][25] Business Line Data and Key Metrics Changes - The Rubber business saw a 7% increase in volumes year over year and a 4% increase in adjusted EBITDA, driven by contract outcomes, though impacted by import-related headwinds [25] - Specialty volumes decreased by 8% year over year and 6% sequentially, primarily due to soft demand and customer hesitancy related to tariff uncertainties [27] Market Data and Key Metrics Changes - The surge in tire imports into the U.S. was attributed to customers trying to beat tariff deadlines, which negatively affected local tire manufacturing rates and demand [7][15] - The company expects improved Rubber segment demand starting late this year or early next year as tariffs normalize tire imports [9][10] Company Strategy and Development Direction - The company is shifting capital allocation priorities towards debt reduction over share repurchases in the near term [14][30] - Self-help initiatives are underway to improve productivity and lower costs, with a focus on driving free cash flow improvement [21][32] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about demand recovery due to the new tariff paradigm expected to benefit the company in late 2025 or early 2026 [33] - The company is not complacent and is focused on positioning itself for greater earnings power despite the challenging backdrop [32] Other Important Information - The CFO, Jeff Gleich, will retire in the fourth quarter, and a formal search for a successor has begun [5] - The company has committed $7 billion to $8 billion in capital for tire production capacity expansion in North America over the next four years [18] Q&A Session Summary Question: Earnings step up in the second half of the year - Management indicated that volume growth would not significantly increase sequentially, with cost actions expected to benefit in the second half [36][38] Question: Cash balance and levers to hit targets - Management discussed working capital levers, including inventory reduction, with expectations for more opportunities in Q4 [39][40] Question: Tariff impacts and production location expectations - Management does not expect production to revert more to Mexico than the U.S. and noted that the tariff situation remains complex [44][47] Question: Q4 expectations and seasonal trends - Management suggested a possibility of a stronger Q4 due to tariff certainty but emphasized uncertainty [49] Question: Structural versus temporary import impacts - Management acknowledged a price gap between imported and domestic tires, with tariffs helping to close that gap [51][52] Question: Incremental tariff impacts from recent announcements - Management highlighted the significance of the 25% automotive tariff and its implications for imported carbon black from India [55]