Orion Engineered Carbons(OEC) - 2025 Q2 - Earnings Call Presentation

Financial Performance - Second quarter EBITDA was approximately $69 million, a sequential increase despite a roughly 5% decrease in volume[5] - Rubber segment volume increased by 3% year-over-year, driving overall portfolio resilience[23] - Specialty Carbon Black adjusted EBITDA decreased by 28.9% year-over-year to $19.9 million[29] - Adjusted net income was $18.2 million, with adjusted diluted EPS at $0.32[21] Market Trends and Outlook - Tariffs of 25% on Southeast Asian tires remain in effect, impacting replacement tires which constitute over half of the company's Rubber segment volume[13] - North American tire production capacity is expected to grow by approximately 53 million tires per year from 2025 to 2030, representing a 3.3% compound annual growth rate[16] - The company anticipates some benefit from tariffs later in 2025[43] Strategic Initiatives - The company is rationalizing 3-5 production lines to improve asset performance and reliability[19] - Capital expenditures are projected to be around $150 million[34] - Free cash flow guidance is reaffirmed at $40-$70 million for 2025[34]