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Orion SA
(NYSE:OEC)
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Rating:50Neutral
Price Target:
$6.50
▼(-7.01% Downside)
Action:Reiterated
Date:08/06/26
OEC scores in the middle primarily due to weakened profitability and elevated leverage, partially offset by a strong TTM rebound in operating/free cash flow. The earnings call adds modest support from reaffirmed EBITDA guidance and improved free-cash outlook, but Rubber segment deterioration and feedstock volatility risks remain key overhangs. Technically, the stock shows neutral-to-weak near-term momentum, and valuation is constrained by losses despite a modest dividend yield.
Positive Factors
Improved cash generation
Orion’s TTM operating cash flow and materially improved free cash flow represent a durable improvement in cash conversion versus recent years. Stronger FCF increases flexibility to fund maintenance capex, pay an interim dividend and slowly de-lever, reducing refinancing and liquidity pressure over the next several quarters.
Negative Factors
Elevated leverage
High absolute and relative leverage constrains financial flexibility and raises refinancing and interest-rate sensitivity risks. With net debt near $1B and limited liquidity, the company has less room to absorb further margin pressure or invest organically without slowing deleveraging or relying on stronger, sustained cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved cash generation
Orion’s TTM operating cash flow and materially improved free cash flow represent a durable improvement in cash conversion versus recent years. Stronger FCF increases flexibility to fund maintenance capex, pay an interim dividend and slowly de-lever, reducing refinancing and liquidity pressure over the next several quarters.
Read all positive factors
Orion SA Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Breaks down underlying operating profitability by segment after removing one‑time items, showing which businesses actually generate cash earnings. Comparing segment EBITDA highlights margin strength, operational efficiency, and sensitivity to raw material or energy cost swings, helping assess durable profit drivers versus cyclical exposure.
Breaks down underlying operating profitability by segment after removing one‑time items, showing which businesses actually generate cash earnings. Comparing segment EBITDA highlights margin strength, operational efficiency, and sensitivity to raw material or energy cost swings, helping assess durable profit drivers versus cyclical exposure.
Data provided by:
The Fly
The FlyOrion SA (OEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$364.01M
Dividend Yield1.3%
Average Volume (3M)935.23K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth-1.02%
EPS Growth-734.16%
CountryUS
Employees1,639
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-1.73
Shares Outstanding56,522,697
10 Day Avg. Volume1,047,203
30 Day Avg. Volume935,232
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.77
Price to Sales (P/S)0.16
P/FCF Ratio5.92
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$8.00Price Target Upside14.45% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.15
Revenue Forecast (FY)$1.78B
Orion SA Business Overview & Revenue Model
Company Description
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 fo...
How the Company Makes Money
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Orion SA Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a mix of strong operational execution and material segment headwinds. Specialty delivered a standout quarter (96% YoY EBITDA growth) and the company converted working capital actions into positive free cash flow and lifted full-year free cash flow expectations. These positives were offset by a substantial year-over-year decline in the Rubber segment (61% EBITDA decline) driven by contractual pricing and lower local tire production rates. Management reaffirmed guidance and emphasized resilience, but near-term visibility and feedstock volatility remain risks. On balance, operational improvements and cash generation progress meaningfully mitigate the notable Rubber weakness.Positive Updates
Adjusted EBITDA Recovery Sequentially
Adjusted EBITDA rose 26% sequentially to $58 million in Q2 2026, driven by pricing actions and improved product mix.
Negative Updates
Rubber Segment Weakness
Rubber adjusted EBITDA was $19 million, down 61% year-over-year primarily due to lower 2026 contractual pricing agreements, unfavorable customer mix and absorption impact from intentional inventory reductions.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EBITDA Recovery Sequentially
Adjusted EBITDA rose 26% sequentially to $58 million in Q2 2026, driven by pricing actions and improved product mix.
Read all positive updates
Company Guidance
Orion reaffirmed full-year adjusted EBITDA guidance of $170–$210 million and raised its free cash flow outlook to a midpoint of $5 million, assuming Brent averaging $80 per barrel in H2 2026; Q2 results included adjusted EBITDA of $58 million (Specialty $39M, Rubber $19M), Q2 free cash flow of $2 million, cash from operations of $27 million, CapEx of $25 million (down $11M sequentially) and working capital as a $4 million source of cash despite feedstock costs rising ~29% Q1→Q2 (an unmitigated ~$60 million headwind), with net debt of $961 million (net debt/adjusted EBITDA 4.4x), liquidity of $178 million, and management citing a $43 million full‑year improvement in free cash flow driven largely by working capital initiatives and seasonal assumptions.Orion SA Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
44
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.82B | 1.81B | 1.88B | 1.89B | 2.03B | 1.55B |
| Gross Profit | 335.50M | 359.80M | 428.80M | 451.00M | 448.80M | 386.60M |
| EBITDA | 147.60M | 159.90M | 225.90M | 324.90M | 308.00M | 327.10M |
| Net Income | -96.30M | -70.10M | 44.20M | 103.50M | 106.20M | 134.70M |
Balance Sheet | ||||||
| Total Assets | 1.99B | 1.91B | 1.86B | 1.83B | 1.89B | 1.63B |
| Cash, Cash Equivalents and Short-Term Investments | 50.80M | 60.70M | 54.10M | 37.50M | 60.80M | 65.70M |
| Total Debt | 1.01B | 979.50M | 1.03B | 927.20M | 1.01B | 867.50M |
| Total Liabilities | 1.61B | 1.52B | 1.38B | 1.35B | 1.43B | 1.31B |
| Stockholders Equity | 380.30M | 384.60M | 474.90M | 478.50M | 459.40M | 319.70M |
Cash Flow | ||||||
| Free Cash Flow | 18.44M | 50.20M | -81.40M | 173.10M | -151.80M | -69.50M |
| Operating Cash Flow | 171.82M | 211.20M | 125.30M | 345.90M | 81.00M | 145.20M |
| Investing Cash Flow | -153.18M | -161.00M | -206.70M | -172.80M | -232.80M | -214.70M |
| Financing Cash Flow | -10.32M | -36.60M | 89.30M | -197.10M | 149.30M | 73.30M |
Orion SA Technical Analysis
Negative
6.99
Price Trends
6.83
Negative
6.86
Negative
6.15
Positive
Market Momentum
0.03
Positive
45.09
Neutral
25.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OEC, the sentiment is Negative. The current price of 6.99 is above the 20-day moving average (MA) of 6.93, above the 50-day MA of 6.83, and above the 200-day MA of 6.15, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 45.09 is Neutral, neither overbought nor oversold. The STOCH value of 25.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OEC.
Orion SA Risk Analysis
Orion SA disclosed 37 risk factors in its most recent earnings report. Orion SA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orion SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $5.73B | 34.60 | 12.79% | 0.59% | 10.14% | 16.56% | |
75 Outperform | $4.46B | 23.90 | 12.07% | 2.02% | -4.74% | -53.83% | |
69 Neutral | $5.55B | 34.85 | 13.02% | 1.31% | 8.12% | 16.87% | |
62 Neutral | $7.36B | 49.10 | 1.59% | ― | -1.88% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
50 Neutral | $364.01M | -3.68 | -24.91% | 1.18% | -1.02% | -734.16% | |
44 Neutral | $2.29B | -7.63 | -170.31% | 2.06% | -1.38% | 28.10% |
* Basic Materials Sector Average
OEC
Orion SA
6.37
-4.15
-39.46%
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CBT
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SXT
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129.99
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CC
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15.26
0.51
3.47%
Orion SA Corporate Events
Executive/Board ChangesDividendsFinancial DisclosuresShareholder Meetings
Orion Shareholders Approve 2026 Governance and Auditors
Positive
Jun 29, 2026
Orion S.A. held its Annual General Meeting of Shareholders on June 25, 2026, at which investors approved all resolutions presented, including the election of eight directors to serve until the 2026 annual meeting and the compensation of the board ...
Dividends
Orion SA Declares Interim Dividend for Shareholders
Positive
Jun 25, 2026
On June 25, 2026, Orion S.A. announced that its board declared an interim dividend scheduled to be paid in the fourth quarter of 2026. The move underscores the company’s ongoing commitment to shareholder returns and suggests confidence in it...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.