Overview

* Orion Q2 2025 net sales fall 2.2% yr/yr, missing analyst expectations, per LSEG data

* Adjusted EPS for Q2 misses estimates

* Adjusted EBITDA beats expectations

* Co plans to discontinue production of three to five carbon black lines at multiple facilities

Outlook

* Orion revises 2025 Adjusted EBITDA guidance to $270 mln - $290 mln

* Company reaffirms 2025 free cash flow guidance at $40 mln - $70 mln

* Orion sees no recovery in industrial end markets in 2025

Result Drivers

* OIL PRICE IMPACT - Lower oil prices primarily drove a 2.2% decrease in net sales

* SPECIALTY SEGMENT DECLINE - Specialty Carbon Black segment volume fell due to lower demand in EMEA and Americas

* RUBBER SEGMENT GROWTH - Rubber Carbon Black segment volume rose due to higher demand in Asia Pacific and Americas

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $466.40 $470 mln

mln (4

Analysts

)

Q2 Miss $0.32 $0.34 (5

Adjusted Analysts

EPS )

Q2 EPS $0.16

Q2 Net $9 mln

Income

Q2 Beat $68.80 $68.20

Adjusted mln mln (4

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the specialty chemicals peer group is "buy"

* Wall Street's median 12-month price target for Orion SA ( OEC ) is $15.00, about 35.3% above its August 5 closing price of $9.71

* The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)