Orion S.A. (OEC) Market Cap
Orion S.A. has a market capitalization of —.
No quote data available.
CEO: Corning F. Painter
Sector: Basic Materials
Industry: Chemicals - Specialty
IPO Date: 2014-07-25
Website: http://www.orioncarbons.com
Orion S.A. (OEC) - Company Information
Market Cap: -|Sector: Basic Materials
Company Profile
Orion S.A., together with its subsidiaries, engages in the manufacture and sale of carbon black products. The company operates in two segments, Specialty Carbon Black and Rubber Carbon Black. It offers post-treated specialty carbon black grades for coatings and printing applications, as well as high purity carbon black grades for the fiber industry; and conductive carbon black grades for batteries, polymers, and coatings. The company also provides rubber carbon black products for tires, such as high-reinforcing grades and semi-reinforcing grades under the ECORAX brand, as well as for mechanical rubber goods end users, including automotive production, construction, as well as certain food, consumer, and medical applications. It operates in the United States, Brazil, rest of the Americas, Germany, South Africa, Italy, Spain, Czech republic, Poland, Italy, Turkey, France, Rest of EMEA, China, the Republic of Korea, and rest of Asia. The company was formerly known as Orion Engineered Carbons S.A. and changed its name to Orion S.A. in June 2023. Orion S.A. was founded in 1862 and is headquartered in Senningerberg, Luxembourg.
Analyst Sentiment
From 4 Active Polls
1Y Forecast: $6.38
▲ +0.0% Potential Upside
Consensus Target Metrics
Low Bound
$5
Median
$6
High Bound
$8
Average
$6
Price & Moving Averages
🎯 Wall Street Analyst Intelligence Report
1-Year structural target targets, chart projections, and sentiment maps.
Consensus Trend Projection
Trailing closures vs. 12-month metrics map.
Analyst Vote Distribution
Aggregate institutional coverage sentiment weights.
Sentiment volume allocation data unavailable.
Historical valuation matrix unavailable.
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📊 AI Financial Analysis
Powered by StockMarketInfo"OEC reported Q1’26 revenue of $459.5M and net income of -$9.9M (EPS -$0.18), with profitability deteriorating sharply versus the prior quarter. On a QoQ basis, revenue declined to $459.5M from $411.7M in Q4’25 (+11.6% QoQ), while net income worsened from -$21.1M to -$9.9M (improvement of losses). However, the YoY comparison is more concerning: revenue fell from $477.7M in Q1’25 to $459.5M in Q1’26 (-3.8% YoY) and net income declined from +$9.1M to -$9.9M (down ~202% YoY). Margins contracted across the period: gross margin eased to 17.2% from 20.5% in Q1’25, and net margin turned negative at -2.2% versus +1.9% a year ago. Operating cash flow in Q1’26 was -$12.4M and free cash flow was -$12.4M, reversing the strong cash generation seen in Q4’25 (+$92.9M operating cash flow). Balance-sheet resilience looks mixed: total assets were $1.93B, equity was stable at ~$380M, but leverage remains elevated with total debt of $351.2M and net debt of ~$300.7M. Shareholder returns are muted and risk-off: the stock is down -40.8% over 1 year (no >20% momentum). Dividend yield is ~0.3%, and the company repurchased shares (-$0.8M) while paying a small dividend (-$1.2M)."
Revenue Growth
Q1’26 revenue rose 11.6% QoQ (to $459.5M) but fell 3.8% YoY (from $477.7M in Q1’25), indicating a weakening underlying trend.
Profitability
Net income swung from +$9.1M in Q1’25 to -$9.9M in Q1’26 (down ~202% YoY). Net margin is -2.2% in Q1’26 vs +1.9% in Q1’25, and gross margin has compressed (17.2% vs 20.5%).
Cash Flow Quality
Q1’26 operating cash flow was -$12.4M (free cash flow -$12.4M), a reversal from Q4’25 when operating cash flow was +$92.9M. Dividend coverage appears weak during loss-making periods.
Leverage & Balance Sheet
Equity is comparatively stable at ~$379.5M (Q1’26) versus ~$384.6M (Q4’25), but leverage remains a concern; Q1’26 net debt is ~$300.7M.
Shareholder Returns
1-year performance is -40.8% (no strong momentum). Dividend yield is low (~0.3%) and buybacks were modest (-$0.8M). Total return tailwinds are limited.
Analyst Sentiment & Valuation
Current price ($6.94) sits below the consensus target ($5.88 implies the stock is above consensus), but the provided fair-value/valuation metrics are near $0.97 price-fair-value—suggesting high model dispersion. Without clearer upside from price targets, score is moderate.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Fundamentals Overview
OEC reported Q1 2026 adjusted EBITDA of $46M, beating internal expectations despite a slow early quarter, as March demand strengthened and persisted into April/May. The earnings story was mixed: Specialty improved (EBITDA up 7% YoY to $27M; volumes +3%; gross profit/ton $675 roughly flat sequentially) while Rubber deteriorated sharply (EBITDA down 53% YoY to $19M) driven primarily by the 2026 annual contract pricing reset, with regional mix and oil pass-through effects as supporting factors. Cash flow was pressured—free cash outflow of $48M, driven by $54M working-capital use tied to seasonality and oil volatility. Management raised full-year adjusted EBITDA guidance by $10M to $170M–$210M and guided free cash outflow $25M–$50M, assuming oil moderates to mid-80s in 2H 2026. Near-term visibility improves into Q2, but beyond that remains uncertain given the Middle East disruption’s potential to drive situational demand.
Growth Catalysts
- Specialty demand improved meaningfully in March and persisted through April and into May
- Broad-based improvement across most Specialty end markets, lifting Specialty volumes ~3% YoY and Specialty adjusted EBITDA ~7% YoY
- Customer shift toward prudent, dependable, more local/regional suppliers amid extended supply-chain uncertainty
Business Development
- Price increases and surcharges implemented/working in the spot market in China, offsetting higher specialty feedstock costs in roughly half of the Specialty portfolio
- Tier 1 customer commitment to hold market share and rebuild, cited as supportive for the Rubber pricing environment heading into 2027
- Manufacturing technology improvements at Huaibei cited as enabling ramp of Specialty profit contribution in China
Financial Highlights
- Adjusted EBITDA of $46M in Q1 exceeded internal expectations despite a relatively slow start; demand progression improved during March
- Q1 adjusted EBITDA down YoY with essentially the entire bridge driven by the outcome of 2026 calendar pricing agreements in Rubber
- Specialty adjusted EBITDA improved 7% YoY to $27M; Specialty volumes up ~3% YoY; gross profit per ton $675 (roughly flat sequentially)
- Rubber adjusted EBITDA fell 53% YoY to $19M, attributed mainly to lower annual contract pricing plus adverse regional mix and oil-pass-through effects (oil down ~ $10/bbl YoY in Q1)
- Free cash outflow $48M in Q1, including working capital use of $54M from normal seasonality and higher oil-price volatility in March
- Net debt ended the quarter at $965M; net leverage ratio 4.2x (described as comfortably below credit agreement requirements)
- Full-year adjusted EBITDA guidance raised by $10M to $170M–$210M
- Full-year free cash outflow guided to $25M–$50M, assuming oil prices elevated through Q2 then moderating to mid-80s $/bbl in 2H 2026
- Second-half earnings split guided to ~50/50 due to timing of annual European emission credits shifting from Q2 to Q3
Capital Funding
- No buyback amounts mentioned in transcript
- Capital expenditures $36M in Q1; full-year CapEx expectation $90M (about $70M lower than 2025 per management)
- Liquidity nearly $200M at quarter end
- Operating cash use in Q1: $12M (after net working capital use and before/including stated CapEx effects); cash cadence expected to improve in 3Q and turn positive in 4Q
Strategy & Ops
- Operational agility: shuffle production/fulfillment capabilities across footprint to capture incremental opportunities at a premium
- Cost actions: additional efficiencies via operational excellence and incremental procurement savings; on track for $20M gross savings; already implemented headcount reductions
- Working capital optimization paths: inventories, supplier payment terms, and receivables to unlock at least $30M of cash over 2026
- Contractual pass-through mechanisms described as performing as expected; management cited spot pricing actions and surcharges to protect margin
- Technology execution: resolving technical challenges at Huaibei; ramping profit contribution as more of Specialty operates without contract cost pass-through terms
Market Outlook
- Late Q1 demand strength expected to persist through Q2; recovery in China expected to continue
- Visibility beyond Q2 limited due to unknown course/impact of Middle East conflict
- Updated full-year adjusted EBITDA guidance: $170M–$210M (raised by $10M)
- Cash flow cadence: 2Q expected consistent with 1Q; improvement in 3Q; positive in 4Q
- Guidance assumption for oil: remains elevated through Q2, moderates to mid-80s $/bbl in 2H 2026
- European Commission: definitive duties for Chinese passenger car/light truck tires into EU expected with proposed duties 30%–52% effective June 18; anti-subsidy investigation continues (noted as catalyst for 2H 2026 into 2027 demand setup)
Risks & Headwinds
- Limited visibility beyond Q2: course/impact of Middle East conflict not known; risk that demand strength is situational (prebuying/pricing-driven) rather than durable
- Rubber earnings sensitivity to annual pricing reset outcomes under 2026 calendar pricing agreements; Q1 bridge largely pricing-driven
- Working capital volatility: higher oil-price volatility contributed to Q1 working capital use ($54M)
- Specialty margins risk from input-cost movements requiring renewed price actions; management cited raising prices again in May due to natural gas movement in Europe
- Region-specific exposure: negative implication for Asia ex China relying on Middle East-derived petroleum derivatives (South Korea highlighted as negative for near-term activity)
Q&A: Analyst Interest
- Order strength sustainability vs prebuying: Management divided Rubber (no meaningful inventory building; reflects tire output) versus Specialty (cautious interpretation; potential prebuying ahead of price increases). They emphasized direct customer ordering and that infrastructure-linked Specialty demand should be less affected by end-consumer supply-chain prebuying behavior.
- Rubber bridge drivers and pricing trajectory: Management stated the pricing impact was larger than expected, with volume also down in key Americas markets; better manufacturing vs last year helped but fixed-cost absorption still hurt when volumes were lower. For outlook, 2027 was characterized as better setup (fewer imports, supply-demand balance, Tier 1 market-share rebuild).
- Specialty margin protection alignment to cost movements: Management indicated they believe their pricing/surcharges should remain aligned with cost movements into 2Q, citing that they had to raise prices again in May due to natural gas price changes in Europe. They did not expect a structural 2Q headwind requiring later recovery.
Sentiment: MIXED
Note: This summary was synthesized by AI from the OEC Q1 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.