Core Insights - Orion S.A. reported a full year 2025 net sales of $1.8 billion, a 4% decrease from the previous year, driven by a 7% decline in price and a 5% decline in volume, with a net loss of $70 million [1][2][5] - The company faced challenges from high levels of lower-tier tire imports and soft demand in key industrial markets, particularly in the second half of 2025 [1][2] - Orion implemented cost rationalization and inventory reduction measures to mitigate financial pressures, achieving an adjusted EBITDA of $248 million for the year [1][2] Financial Performance - Full Year 2025: - Net sales: $1,806.7 million, down from $1,877.5 million in 2024 [2][5] - Adjusted EBITDA: $248 million, down from $302.2 million in 2024 [2][5] - Net loss: $70.1 million compared to a profit of $44.2 million in 2024 [2][5] - Free cash flow: $55 million, an improvement from a negative $43 million in 2024 [2][5] - Fourth Quarter 2025: - Net sales: $411.7 million, a 5% decline year-over-year [1][2] - Adjusted EBITDA: $55 million, down from $61.7 million in Q4 2024 [2][5] - Net loss: $21.1 million compared to a profit of $17.2 million in Q4 2024 [2][5] Segment Performance - Specialty Carbon Black: - Full year net sales decreased by 4% due to lower demand and the pass-through effect of lower oil prices [2] - Adjusted EBITDA decreased by 14% year-over-year [2] - Rubber Carbon Black: - Full year net sales decreased by 3%, primarily due to lower oil prices, despite a 4% increase in volume [2] - Adjusted EBITDA decreased by 20% year-over-year, impacted by unfavorable regional mix [2] Operational Highlights - The company generated $69 million in cash from working capital in 2025, contributing to positive free cash flow [1][2] - Orion was awarded a Platinum rating by EcoVadis, placing it in the 99th percentile of assessed companies [1] - The company improved plant reliability by 200 basis points in 2025, enhancing operational efficiency [1] Outlook - For 2026, Orion established an adjusted EBITDA guidance range of $160 million to $200 million and a free cash flow guidance range of $25 million to $50 million [2] - The company anticipates subdued operating rates from key customers and a lack of pronounced demand recovery in the near term [2]