Orion SA (OEC) AI Stock Analysis

• Market Cap: $268.43M
• Dividend Yield: 1.61%
• Average Volume (3M): 935.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: -4.31%
• EPS Growth: -206.57%
• Country: US
• Employees: 1,658
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.34
• Shares Outstanding: 56,273,700
• 10 Day Avg. Volume: 1,047,203
• 30 Day Avg. Volume: 935,232
• PEG Ratio: 0.02
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 5.92
• Enterprise Value/Market Cap: 4.42
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 3.30
• Enterprise Value/Ebitda: 7.82
• 1Y Price Target: $5.88
• Price Target Upside: 23.27% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.32
• Revenue Forecast (FY): $1.70B

• Rating: 46 Neutral
• Price Target: $5.00 ▲(4.82% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is held down primarily by weakened financial performance (2025 loss and high leverage) and bearish technicals (below key moving averages with negative momentum). Valuation support from a modest dividend and a cautiously balanced earnings outlook—featuring continued free cash flow focus but lower 2026 EBITDA guidance—only partially offset these risks.

Positive Factors

Improved free cash flow and working-capital execution

Sustained ability to convert operations into free cash flow, backed by explicit working-capital gains, strengthens liquidity and funds debt reduction, dividends, or strategic moves. Consistent FCF execution across cycles materially improves balance-sheet resilience and supports deleveraging over the next several quarters.

Capital-light stance and lower ongoing CapEx

A materially lower capex plan shifts the company toward a capital-light profile, preserving free cash flow and flexibility. If maintained, this reduces the funding need for growth capex, supports cash available for debt paydown and dividends, and lessens refinancing pressure over the medium term.

Operational reliability and top-tier ESG/safety performance

Improved plant reliability and leading ESG/safety credentials reduce downtime, lower incident-related costs, and ease permit and customer risks. Such operational excellence supports sustained margins, customer retention, and lower cost of compliance, benefiting long-term profitability and stakeholder relations.

Negative Factors

Elevated leverage and sizable absolute debt load

High leverage materially constrains financial flexibility and increases refinancing and covenant risk if earnings weaken. Given sizable debt versus equity, sustained positive cash generation is required to materially de-risk the balance sheet; failure to do so raises credit and investment constraints over coming quarters.

2026 guidance implies sizable EBITDA decline

A projected meaningful EBITDA downdraft reduces internal cash available for debt paydown and reinvestment, increasing the time needed to restore margins and delever. Persistently lower EBITDA pressures covenant headroom, makes capital allocation harder, and raises the bar for sustainable recovery across the next 2–6 months.

Structural demand headwinds in core end markets

End-market deterioration and trade-driven price pressure reduce volume and pricing power for the core carbon-black business. Structural demand softness and trade dynamics can compress margins and delay project returns (e.g., production starts pushed), extending recovery timelines and complicating durable earnings improvement.

Orion SA Business Overview & Revenue Model

Company Description

Orion Engineered Carbons S.A., together with its subsidiaries, manufactures and sells carbon black products in Germany, the United States, South Korea, Brazil, China, South Africa, the rest of Europe, and internationally. It operates in two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; high purity carbon black grades for the fiber industry; and conductive carbon black grades for polymers, coatings, and battery electrodes. It also provides rubber carbon black products for applications in mechanical rubber goods under the PUREX brand, as well as in tires under the ECORAX brand name. The company was formerly known as Orion Engineered Carbons S.à r.l. and changed its name to Orion Engineered Carbons S.A. in July 2014. Orion Engineered Carbons S.A. was founded in 1862 and is headquartered in Senningerberg, Luxembourg.

How the Company Makes Money

Orion Engineered Carbide generates revenue primarily through the sale of its engineered carbide products, which are used in various industrial applications. The company employs a direct sales model, collaborating closely with clients to deliver customized solutions that meet their operational requirements. Key revenue streams include the sale of standard and bespoke wear parts, cutting tools, and other engineered solutions. OEC also benefits from long-term contracts with major players in its target industries, providing a stable income base. Additionally, partnerships with technology providers and industry leaders enhance its product offerings and market reach, contributing positively to overall revenue growth.

Orion SA Financial Statement Overview

Summary

Financials are pressured: profitability deteriorated with a 2025 net loss and weaker margins, while the balance sheet remains highly leveraged (debt-to-equity ~2.55x, negative ROE in 2025). Cash flow is a relative bright spot with 2025 free cash flow turning positive, but it has been volatile and is modest versus the debt load.

Income Statement

Profitability has weakened meaningfully: net income swung to a loss in 2025 (-$70.1M) from a profit in 2024 ($44.2M), and margins compressed versus prior years (net margin -3.9% in 2025 vs +2.4% in 2024 and +5.5% in 2023). Revenue has also been soft, declining slightly in 2024–2025 after a post-2021 peak, with 2025 down ~1.2% year over year. A positive is that gross margin remains near ~20% and operating profitability (EBIT margin ~5.6% in 2025) is still positive, but overall earnings quality and trend have deteriorated.

Balance Sheet

Leverage remains elevated for the profile: debt-to-equity is ~2.55x in 2025 (still high despite improvement from 2020’s very high level). Equity has declined from 2023–2025, and returns to shareholders turned negative in 2025 (return on equity about -18%), reflecting the earnings loss. Total debt is sizable (~$980M) relative to equity (~$385M), which increases financial risk if profitability stays pressured, though total assets have been fairly stable.

Cash Flow

Cash generation improved in 2025 with solid operating cash flow ($211.2M) and positive free cash flow ($50.2M), a sharp rebound from negative free cash flow in 2024 (-$81.4M). However, cash flow has been volatile across the period (negative free cash flow in 2020–2022 and 2024, strong in 2023). Another concern is that in 2025 operating cash flow was modest relative to the company’s debt load (operating cash flow-to-debt around 0.34), suggesting limited near-term balance-sheet de-risking capacity without sustained improvement.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.81B	1.88B	1.89B	2.03B	1.55B
Gross Profit	359.80M	428.80M	451.00M	448.80M	386.60M
EBITDA	233.50M	225.90M	324.90M	308.00M	327.10M
Net Income	-70.10M	44.20M	103.50M	106.20M	134.70M
Balance Sheet
Total Assets	1.91B	1.86B	1.83B	1.89B	1.63B
Cash, Cash Equivalents and Short-Term Investments	60.70M	54.10M	37.50M	60.80M	65.70M
Total Debt	979.50M	1.03B	927.20M	1.01B	867.50M
Total Liabilities	1.52B	1.38B	1.35B	1.43B	1.31B
Stockholders Equity	384.60M	474.90M	478.50M	459.40M	319.70M
Cash Flow
Free Cash Flow	50.20M	-81.40M	173.10M	-151.80M	-69.50M
Operating Cash Flow	211.20M	125.30M	345.90M	81.00M	145.20M
Investing Cash Flow	-161.00M	-206.70M	-172.80M	-232.80M	-214.70M
Financing Cash Flow	-36.60M	89.30M	-197.10M	149.30M	73.30M

Orion SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4.77 is below the 20-day moving average (MA) of 5.48, below the 50-day MA of 5.97, and below the 200-day MA of 7.63, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 35.18 is Neutral, neither overbought nor oversold. The STOCH value of 19.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OEC.

Orion SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCPC	81 Outperform	$5.41B	32.29	12.31%	0.61%	7.55%	22.43%
CBT	74 Outperform	$3.63B	11.96	20.88%	2.72%	-7.04%	-11.28%
SSL	67 Neutral	$7.24B	76.21	1.59%	―	-6.73%	―
SXT	65 Neutral	$3.79B	29.50	12.31%	1.70%	4.25%	56.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CC	51 Neutral	$2.64B	-4.59	-113.20%	4.37%	2.12%	-579.74%
OEC	46 Neutral	$268.43M	-4.24	-7.24%	1.61%	-4.31%	-206.57%

Orion SA Corporate Events

Orion SA Schedules Hybrid 2026 Annual Shareholders Meeting

On March 6, 2026, Orion S.A. announced that its 2026 annual general meeting of shareholders will take place on June 25, 2026, at 2:00 p.m. Central European Time at its office in Senningerberg, Luxembourg, with shareholder admission based on a record date of April 23, 2026. The AGM will be conducted in person and streamed via live online webcast, enabling both physical and virtual participation and allowing shareholders to exercise their rights through advance remote communication, which may broaden engagement and accessibility for the company’s global investor base.

By offering a hybrid meeting format, Orion aligns its governance practices with evolving shareholder expectations for flexibility and digital access, potentially strengthening investor relations for the specialty chemicals producer. The combination of an in-person venue in Luxembourg and virtual attendance options reflects the company’s international footprint and may help ensure greater inclusivity for stakeholders unable to travel, reinforcing transparency around corporate decision-making processes.

The most recent analyst rating on (OEC) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Orion SA stock, see the OEC Stock Forecast page.

Orion SA Declares Interim Quarterly Dividend for Shareholders

On February 26, 2026, Orion S.A. announced that its board declared an interim quarterly dividend of $0.0207 per common share, totaling about $1.2 million based on current shares outstanding. The move underscores continued capital returns to shareholders and provides income investors with clarity on near-term cash distributions.

The interim dividend is scheduled to be paid on April 2, 2026, to shareholders of record as of March 12, 2026, with a 15% Luxembourg withholding tax applicable subject to possible exemptions or reductions. The payment timetable and tax treatment are important considerations for both domestic and international investors assessing Orion’s payout profile and after-tax yield.

The most recent analyst rating on (OEC) stock is a Hold with a $5.50 price target. To see the full list of analyst forecasts on Orion SA stock, see the OEC Stock Forecast page.