Orion Engineered Carbons(US:OEC)2025-08-06 20:35PART I Item 1. Financial Statements and Supplementary Data (Unaudited) This section presents Orion S.A.'s unaudited condensed consolidated financial statements, including statements of operations, comprehensive income, balance sheets, cash flows, and changes in stockholders' equity, along with detailed notes providing context on accounting policies, financial instruments, debt, segment information, and other financial disclosures Condensed Consolidated Statements of Operations | Metric (In millions, except per share) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------: | :--------------------------: | :--------------------------: | :--------------------------: | | Net sales | $466.4 | $477.0 | $944.1 | $979.9 | | Gross profit | $98.4 | $109.8 | $196.5 | $232.0 | | Income from operations | $32.1 | $41.6 | $63.3 | $94.4 | | Interest and other financial expense, net | $19.1 | $12.2 | $32.8 | $24.9 | | Net income | $9.0 | $20.5 | $18.1 | $47.2 | | Basic EPS | $0.16 | $0.35 | $0.32 | $0.81 | | Diluted EPS | $0.16 | $0.35 | $0.32 | $0.80 | Condensed Consolidated Statements of Comprehensive Income | Metric (In millions) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------- | :--------------------------: | :--------------------------: | :--------------------------: | :--------------------------: | | Net income | $9.0 | $20.5 | $18.1 | $47.2 | | Foreign currency translation adjustments | $(2.6) | $(8.3) | $— | $(14.7) | | Net losses on derivatives | $(2.0) | $(1.2) | $(3.5) | $(1.7) | | Other comprehensive loss | $(4.7) | $(9.4) | $(3.7) | $(16.2) | | Comprehensive income | $4.3 | $11.1 | $14.4 | $31.0 | Condensed Consolidated Balance Sheets | Metric (In millions) | June 30, 2025 | December 31, 2024 | | :------------------- | :-----------: | :---------------: | | Total current assets | $682.5 | $613.3 | | Total non-current assets | $1,342.4 | $1,244.0 | | Total assets | $2,024.9 | $1,857.3 | | Total current liabilities | $620.8 | $516.7 | | Total non-current liabilities | $937.6 | $865.7 | | Total liabilities and stockholders' equity | $2,024.9 | $1,857.3 | | Total stockholders' equity | $466.5 | $474.9 | Condensed Consolidated Statements of Cash Flows | Metric (In millions) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------- | :--------------------------: | :--------------------------: | | Net cash provided by operating activities | $54.1 | $61.7 | | Net cash used in investing activities | $(71.4) | $(87.8) | | Net cash provided by financing activities | $14.0 | $23.5 | | Decrease in cash, cash equivalents and restricted cash | $(3.3) | $(2.6) | | Cash and cash equivalents at the end of the period | $42.6 | $34.2 | Condensed Consolidated Statements of Changes in Stockholders' Equity | Metric (In millions) | Balance at January 1, 2025 | Balance at June 30, 2025 | Balance at January 1, 2024 | Balance at June 30, 2024 | | :------------------- | :------------------------: | :----------------------: | :------------------------: | :----------------------: | | Total Stockholders' Equity | $474.9 | $466.5 | $478.5 | $503.9 | | Net income (6 months) | $18.1 | $18.1 | $47.2 | $47.2 | | Repurchases of Common stock (6 months) | $(24.8) | $(24.8) | $(6.8) | $(6.8) | | Dividends paid (6 months) | $(3.5) | $(3.5) | $(3.6) | $(3.6) | Notes to the Condensed Consolidated Financial Statements (Unaudited) This section provides detailed disclosures on the company's accounting policies, financial instruments, debt, employee benefits, income taxes, commitments, contingencies, and segment information, offering context to the condensed financial statements Note A. Organization, Description of the Business and Summary of Significant Accounting Policies - Orion S.A.'s unaudited Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP and Article 10 of Regulation S-X, and should be read in conjunction with the Annual Report on Form 10-K for the year ended December 31, 202427 - The company adopted ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures, on January 1, 2025, which did not materially impact the Consolidated Financial Statements but will require additional disclosures in the 2025 Annual Report on Form 10-K2930 - The company is evaluating ASU 2024-03 and ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures, effective for fiscal years beginning after December 15, 2026, which will require additional disclosures but are not expected to materially impact the Consolidated Financial Statements313233 Note B. Accounts Receivable | Metric (In millions) | June 30, 2025 | December 31, 2024 | | :------------------- | :-----------: | :---------------: | | Accounts receivable, net | $270.0 | $211.9 | | Expected credit losses | $(1.3) | $(1.2) | - Gross receivables sold through factoring facilities were $125.7 million for the three months ended June 30, 2025 (vs. $110.8 million in 2024) and $228.2 million for the six months ended June 30, 2025 (vs. $218.4 million in 2024) Losses on receivables sold were approximately $1.4 million and $2.6 million for the three and six months ended June 30, 2025, respectively3435 Note C. Inventories | Metric (In millions) | June 30, 2025 | December 31, 2024 | | :------------------- | :-----------: | :---------------: | | Raw materials, consumables and supplies, net | $103.8 | $103.8 | | Work in process | $— | $0.1 | | Finished goods, net | $181.9 | $186.5 | | Inventories, net | $285.7 | $290.4 | Note D. Debt and Other Obligations | Metric (In millions) | June 30, 2025 | December 31, 2024 | | :------------------- | :-----------: | :---------------: | | Current portion of long-term debt and other financial liabilities | $342.