Orion Engineered reports Q1 adjusted EPS 52c, consensus 48c

Reports Q1 revenue $502.9M, consensus $506.43M. “Congratulations to the team on our first quarter results. It is not just the strong Q1 adjusted EBITDA of $85.3 million, there were several key indicators behind the headlines. Specialty gross profit margins increased $167 per ton sequentially, to a level well above second half last year, and more in line with normal margin levels, we are also seeing volumes strengthening. Rubber gross profit margins of $435 per ton were well above last year’s average of $409 per ton. Prior to 2022, our Rubber gross profit margins typically ran in the $200 to $300 per ton range. These results clearly show that our key markets continue to restructure and this is the new normal from which we can build. In the first quarter alone, three new tire plants were announced in North America and Europe,” said Corning Painter, Orion’s chief executive officer. “Looking forward, we celebrated the groundbreaking for our acetylene-based conductive additives facility in La Porte, Texas which, when commissioned in 2025, will produce essential materials to support the global shift to electrification. We expect to deliver another year of growth in 2024, as well as meaningful progress towards our financial and operational goals,” said Mr. Painter.