Orion Engineered Carbons Q4 Earnings Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy OEC?
Source: seekingalpha
- Disappointing Earnings: Orion reported a Q4 non-GAAP EPS of -$0.34, missing expectations by $0.26, indicating pressure on profitability that may affect investor confidence.
- Revenue Decline: The company posted net sales of $411.7 million for Q4, a 5% year-over-year decline driven by a 4% drop in volume and a 6% decrease in price, reflecting weak market demand and the pass-through effect of lower oil prices.
- Currency Impact: Despite the overall revenue decline, favorable foreign currency translation partially offset the sales drop, demonstrating some resilience in the company's international market presence.
- Future Guidance: Orion has established a full-year 2026 Adjusted EBITDA guidance range of $160 million to $200 million and a free cash flow guidance range of $25 million to $50 million, indicating a cautiously optimistic outlook for future financial performance.
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Analyst Views on OEC
Wall Street analysts forecast OEC stock price to fall
4 Analyst Rating
1 Buy
1 Hold
2 Sell
Hold
Current: 6.990
Low
5.00
Averages
6.63
High
10.00
Current: 6.990
Low
5.00
Averages
6.63
High
10.00
About OEC
Orion Engineered Carbons S.A. is a producer of carbon black. The Company operates through two segments: Specialty Carbon Black and Rubber Carbon Black. The Specialty Carbon Black segment is engaged in the production of specialty carbon black. The Rubber Carbon Black segment is involved in the production of rubber carbon black. As of December 31, 2016, it operated a diversified carbon black business with over 280 specialty carbon black grades and approximately 80 rubber carbon black grades. Carbon black is used as a pigment and as a performance additive in coatings, polymers, printing and special applications (specialty carbon black), and in the reinforcement of rubber in tires and mechanical rubber goods (rubber carbon black). As of December 31, 2016, it operated a global platform of 13 production facilities in Europe, North and South America, Asia and South Africa and three sales companies, as well as one jointly-owned production plant in Germany.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Orion Engineered Carbons Q4 Earnings Analysis
- Disappointing Earnings: Orion reported a Q4 non-GAAP EPS of -$0.34, missing expectations by $0.26, indicating pressure on profitability that may affect investor confidence.
- Revenue Decline: The company posted net sales of $411.7 million for Q4, a 5% year-over-year decline driven by a 4% drop in volume and a 6% decrease in price, reflecting weak market demand and the pass-through effect of lower oil prices.
- Currency Impact: Despite the overall revenue decline, favorable foreign currency translation partially offset the sales drop, demonstrating some resilience in the company's international market presence.
- Future Guidance: Orion has established a full-year 2026 Adjusted EBITDA guidance range of $160 million to $200 million and a free cash flow guidance range of $25 million to $50 million, indicating a cautiously optimistic outlook for future financial performance.
See More
Orion S.A. Reports 2025 Financials: 4% Decline in Net Sales
- Sales Performance Decline: Orion S.A. reported net sales of $1.8 billion for 2025, a 4% decrease year-over-year, primarily due to a 7% drop in prices from lower oil prices, despite a 2% increase in volume, indicating pressure from soft market demand.
- Significant Financial Loss: The company reported a net loss of $70 million, including an $81 million goodwill impairment charge in Q3, with Adjusted EBITDA at $248 million, reflecting challenges in profitability amid macroeconomic uncertainties.
- Strong Cash Flow Performance: Despite financial pressures, Orion generated $216 million in operating cash flow and $55 million in free cash flow for 2025, demonstrating efforts in optimizing capital expenditures and inventory management.
- Cautious Future Outlook: The company anticipates 2026 Adjusted EBITDA guidance between $160 million and $200 million, reflecting a cautious stance on market recovery, particularly against the backdrop of surging tire imports and soft demand.
See More
Orion S.A. to Participate in Investor Conferences
- Investor Conference Schedule: Orion S.A. will participate in the NYSE Investor Access Day Series on March 5 and Loop Capital Markets' 7th Annual Investor Conference on March 9, showcasing its active engagement and transparency in the industry.
- Executive Attendance: CEO Corning Painter, CFO Jon Puckett, and VP of Investor Relations Chris Kapsch will attend both virtual events, indicating the company's commitment to investor communication and aiming to bolster market confidence.
- Industry Leadership: Orion S.A. is a leading global supplier of carbon black, operating 15 production plants and 4 innovation centers, enabling it to provide a diverse range of high-performance applications tailored to customer specifications, further solidifying its market leadership.
- Sustainability Commitment: The company is dedicated to delivering sustainable solutions through a deep understanding of customer needs, demonstrating its strategic significance in innovation and environmental responsibility, aligning with current market demands for sustainable products.
See More
Orion S.A. Achieves Record Safety Performance in 2025
- Outstanding Safety Record: Orion S.A. achieved a Total Recordable Incidence Rate (TRIR) of 0.18 in 2025, significantly lower than the chemical manufacturing industry's average of 1.6, demonstrating the company's exceptional performance in employee safety and reinforcing its leadership position in the sector.
- Significant Reduction in Injuries: With only three employee injuries reported globally, this success highlights the effectiveness of the company's safety management, as CEO Corning Painter noted that this achievement reflects strong operational discipline, with a commitment to further advancements in safety.
- International Safety Recognition: Orion received 10 safety awards from the International Carbon Black Association, with eight plants earning Gold Awards, indicating that the company has set a benchmark for employee health and safety in the industry, thereby enhancing its competitive edge.
- Commitment to Continuous Improvement: The ongoing manufacturing excellence initiatives implemented across Orion's 15 plants not only elevate safety standards but also lay a solid foundation for future business growth, ensuring the company's innovation and sustainability in the carbon black industry.
See More
Orion S.A. (NYSE:OEC) Schedules Q4 2025 Earnings Release and Conference Call
- Earnings Release Schedule: Orion S.A. will release its Q4 2025 results before the market opens on February 17, 2026, reflecting the company's ongoing performance in the specialty chemicals sector.
- Conference Call Timing: Following the earnings release, Orion will hold a conference call at 8:30 AM (ET) the same day, providing investors with a direct communication opportunity with management to enhance transparency.
- Dial-in Information: The U.S. toll-free number is 1-877-407-4018, and the international number is 1-201-689-8471, ensuring global investor participation and improving interaction between the company and its investors.
- Webcast and Replay: The conference will be available via live and archived webcast on Orion's website, allowing investors who cannot attend in real-time to access the information, further enhancing the company's information disclosure convenience.
See More
JP Morgan Keeps Underweight Rating on Orion (OEC)
JP Morgan's Recommendation: On November 28, 2025, JP Morgan maintained an Underweight recommendation for Orion (NYSE:OEC), despite an average one-year price target of $9.44/share, suggesting an 86.09% upside from its closing price of $5.07/share.
Projected Revenue and EPS: Orion's projected annual revenue is estimated at $2,385 million, reflecting a 30.38% increase, with a projected non-GAAP EPS of 3.30.
Fund Sentiment: There are currently 372 funds reporting positions in Orion, a decrease of 41 (9.93%) from the previous quarter, with total shares owned by institutions down 2.34% to 63,295K shares.
Shareholder Activity: Notable shareholders like Pzena Investment Management and Divisar Capital Management have adjusted their holdings, with Pzena increasing its shares by 2.51% while others, like Brown Advisory, have significantly decreased their portfolio allocation in OEC.
See More
Orion Engineered Carbons Q4 Earnings Analysis
- Disappointing Earnings: Orion reported a Q4 non-GAAP EPS of -$0.34, missing expectations by $0.26, indicating pressure on profitability that may affect investor confidence.
- Revenue Decline: The company posted net sales of $411.7 million for Q4, a 5% year-over-year decline driven by a 4% drop in volume and a 6% decrease in price, reflecting weak market demand and the pass-through effect of lower oil prices.
- Currency Impact: Despite the overall revenue decline, favorable foreign currency translation partially offset the sales drop, demonstrating some resilience in the company's international market presence.
- Future Guidance: Orion has established a full-year 2026 Adjusted EBITDA guidance range of $160 million to $200 million and a free cash flow guidance range of $25 million to $50 million, indicating a cautiously optimistic outlook for future financial performance.
See More
Orion S.A. Reports 2025 Financials: 4% Decline in Net Sales
- Sales Performance Decline: Orion S.A. reported net sales of $1.8 billion for 2025, a 4% decrease year-over-year, primarily due to a 7% drop in prices from lower oil prices, despite a 2% increase in volume, indicating pressure from soft market demand.
- Significant Financial Loss: The company reported a net loss of $70 million, including an $81 million goodwill impairment charge in Q3, with Adjusted EBITDA at $248 million, reflecting challenges in profitability amid macroeconomic uncertainties.
- Strong Cash Flow Performance: Despite financial pressures, Orion generated $216 million in operating cash flow and $55 million in free cash flow for 2025, demonstrating efforts in optimizing capital expenditures and inventory management.
- Cautious Future Outlook: The company anticipates 2026 Adjusted EBITDA guidance between $160 million and $200 million, reflecting a cautious stance on market recovery, particularly against the backdrop of surging tire imports and soft demand.
See More
Orion S.A. to Participate in Investor Conferences
- Investor Conference Schedule: Orion S.A. will participate in the NYSE Investor Access Day Series on March 5 and Loop Capital Markets' 7th Annual Investor Conference on March 9, showcasing its active engagement and transparency in the industry.
- Executive Attendance: CEO Corning Painter, CFO Jon Puckett, and VP of Investor Relations Chris Kapsch will attend both virtual events, indicating the company's commitment to investor communication and aiming to bolster market confidence.
- Industry Leadership: Orion S.A. is a leading global supplier of carbon black, operating 15 production plants and 4 innovation centers, enabling it to provide a diverse range of high-performance applications tailored to customer specifications, further solidifying its market leadership.
- Sustainability Commitment: The company is dedicated to delivering sustainable solutions through a deep understanding of customer needs, demonstrating its strategic significance in innovation and environmental responsibility, aligning with current market demands for sustainable products.
See More
Orion S.A. Achieves Record Safety Performance in 2025
- Outstanding Safety Record: Orion S.A. achieved a Total Recordable Incidence Rate (TRIR) of 0.18 in 2025, significantly lower than the chemical manufacturing industry's average of 1.6, demonstrating the company's exceptional performance in employee safety and reinforcing its leadership position in the sector.
- Significant Reduction in Injuries: With only three employee injuries reported globally, this success highlights the effectiveness of the company's safety management, as CEO Corning Painter noted that this achievement reflects strong operational discipline, with a commitment to further advancements in safety.
- International Safety Recognition: Orion received 10 safety awards from the International Carbon Black Association, with eight plants earning Gold Awards, indicating that the company has set a benchmark for employee health and safety in the industry, thereby enhancing its competitive edge.
- Commitment to Continuous Improvement: The ongoing manufacturing excellence initiatives implemented across Orion's 15 plants not only elevate safety standards but also lay a solid foundation for future business growth, ensuring the company's innovation and sustainability in the carbon black industry.
See More
Orion S.A. (NYSE:OEC) Schedules Q4 2025 Earnings Release and Conference Call
- Earnings Release Schedule: Orion S.A. will release its Q4 2025 results before the market opens on February 17, 2026, reflecting the company's ongoing performance in the specialty chemicals sector.
- Conference Call Timing: Following the earnings release, Orion will hold a conference call at 8:30 AM (ET) the same day, providing investors with a direct communication opportunity with management to enhance transparency.
- Dial-in Information: The U.S. toll-free number is 1-877-407-4018, and the international number is 1-201-689-8471, ensuring global investor participation and improving interaction between the company and its investors.
- Webcast and Replay: The conference will be available via live and archived webcast on Orion's website, allowing investors who cannot attend in real-time to access the information, further enhancing the company's information disclosure convenience.
See More
JP Morgan Keeps Underweight Rating on Orion (OEC)
JP Morgan's Recommendation: On November 28, 2025, JP Morgan maintained an Underweight recommendation for Orion (NYSE:OEC), despite an average one-year price target of $9.44/share, suggesting an 86.09% upside from its closing price of $5.07/share.
Projected Revenue and EPS: Orion's projected annual revenue is estimated at $2,385 million, reflecting a 30.38% increase, with a projected non-GAAP EPS of 3.30.
Fund Sentiment: There are currently 372 funds reporting positions in Orion, a decrease of 41 (9.93%) from the previous quarter, with total shares owned by institutions down 2.34% to 63,295K shares.
Shareholder Activity: Notable shareholders like Pzena Investment Management and Divisar Capital Management have adjusted their holdings, with Pzena increasing its shares by 2.51% while others, like Brown Advisory, have significantly decreased their portfolio allocation in OEC.
See More
