Orion Engineered (OEC) AI Stock Analysis

• Market Cap: $268.40M
• Dividend Yield: 1.7%
• Average Volume (3M): 865.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: -4.31%
• EPS Growth: -206.57%
• Country: US
• Employees: 1,658
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.29
• Shares Outstanding: 56,149,708
• 10 Day Avg. Volume: 1,046,234
• 30 Day Avg. Volume: 865,946
• PEG Ratio: -0.37
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -11.29
• Enterprise Value/Market Cap: 5.16
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 3.73
• Enterprise Value/Ebitda: 8.92
• 1Y Price Target: $7.17
• Price Target Upside: 46.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.91
• Revenue Forecast (FY): $1.76B

• Rating: 47 Neutral
• Price Target: $5.00 ▲(2.46% Upside)

The overall stock score reflects significant challenges in financial performance and technical analysis. The company's declining revenue and high leverage are major concerns, compounded by a bearish technical outlook with the stock trading below key moving averages. Valuation is also a concern due to a negative P/E ratio, though the dividend yield provides some support. The earnings call highlighted operational strengths but also underscored market challenges, particularly in the Rubber segment.

Positive Factors

Specialty Segment Growth

Growth in the Specialty segment indicates potential for revenue diversification and expansion into high-value markets, enhancing long-term stability.

Positive Free Cash Flow Outlook

A positive free cash flow outlook suggests strong cash generation ability, providing financial flexibility for strategic investments and debt management.

New CFO Appointment

The appointment of an experienced CFO can enhance financial strategy and execution, potentially improving financial health and operational efficiency.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand and competitive positioning, potentially impacting long-term growth and profitability.

High Leverage

High leverage can strain financial resources, limiting the company's ability to invest in growth opportunities and weather economic downturns.

Rubber Segment Demand Decline

A decline in demand for the Rubber segment affects a core revenue stream, posing risks to revenue stability and market share in key industries.

Orion Engineered 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 Engineered Financial Statement Overview

Summary

Orion Engineered faces challenges with declining revenue and profitability pressures, as seen in the income statement. The balance sheet shows high leverage, though there is some improvement in the TTM period. Cash flow performance is mixed, with recent improvements in free cash flow growth. Overall, the company needs to address revenue growth and manage debt levels to enhance financial stability.

Income Statement

The income statement shows a declining trend in revenue, with a significant drop in the TTM period. Gross profit margin and net profit margin have decreased over time, indicating pressure on profitability. The negative net profit margin in the TTM period is concerning. However, the company has managed to maintain a positive EBIT and EBITDA margin, though both have declined compared to previous years.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio, which has improved in the TTM period but remains a potential risk. Return on equity has decreased significantly, indicating reduced efficiency in generating profits from equity. The equity ratio is relatively stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a strong recovery in free cash flow growth in the TTM period, which is a positive sign. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has been volatile, reflecting fluctuations in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.83B	1.88B	1.89B	2.03B	1.55B	1.14B
Gross Profit	371.40M	428.80M	451.00M	448.80M	386.60M	292.35M
EBITDA	155.10M	225.90M	324.90M	308.00M	327.10M	149.89M
Net Income	-31.80M	44.20M	103.50M	106.20M	134.70M	18.16M
Balance Sheet
Total Assets	1.96B	1.86B	1.83B	1.89B	1.63B	1.39B
Cash, Cash Equivalents and Short-Term Investments	51.30M	54.10M	37.50M	60.80M	65.70M	68.50M
Total Debt	1.01B	1.03B	927.20M	1.01B	867.50M	825.05M
Total Liabilities	1.56B	1.38B	1.35B	1.43B	1.31B	1.21B
Stockholders Equity	401.80M	474.90M	478.50M	459.40M	319.70M	181.01M
Cash Flow
Free Cash Flow	33.15M	-81.40M	173.10M	-151.80M	-69.50M	-19.66M
Operating Cash Flow	217.33M	125.30M	345.90M	81.00M	145.20M	125.28M
Investing Cash Flow	-184.18M	-206.70M	-172.80M	-232.80M	-214.70M	-144.94M
Financing Cash Flow	-34.58M	89.30M	-197.10M	149.30M	73.30M	13.54M

Orion Engineered Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 4.88 is below the 20-day moving average (MA) of 5.20, below the 50-day MA of 6.83, and below the 200-day MA of 10.50, indicating a bearish trend. The MACD of -0.58 indicates Negative momentum. The RSI at 31.27 is Neutral, neither overbought nor oversold. The STOCH value of 36.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OEC.

Orion Engineered Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCPC	80 Outperform	$5.09B	34.41	12.06%	0.55%	7.55%	22.43%
SSL	69 Neutral	$4.46B	11.84	4.56%	―	-6.73%	―
CBT	66 Neutral	$3.27B	10.21	22.05%	2.83%	-7.04%	-11.00%
SXT	66 Neutral	$4.03B	29.00	12.31%	1.72%	4.25%	56.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
OEC	47 Neutral	$268.40M	―	-7.24%	1.70%	-4.31%	-206.57%
CC	46 Neutral	$1.89B	―	-69.74%	4.31%	2.12%	-579.74%

Orion Engineered Corporate Events

Orion Engineered Carbons Maintains Stable Risk Profile Amidst Unchanged Factors

Orion Engineered Carbons SARL has not reported any significant changes to the risk factors that were previously outlined in their Annual Report on Form 10-K for the year ending December 31, 2024. This suggests that the company’s risk profile remains consistent with past disclosures, providing stakeholders with a stable outlook on potential business challenges. However, it remains crucial for investors and analysts to continuously monitor any developments that could impact these risk factors in the future. Maintaining vigilance in assessing these risks is essential for informed decision-making and strategic planning.

Orion Engineered Carbons Reports Q3 2025 Financial Results

Orion Engineered Carbons SARL is a global leader in the production of carbon black, a material used in a variety of applications such as tires, coatings, and plastics, with a focus on innovation and sustainability across its 14 production facilities worldwide.

Orion Engineered Carbons: Mixed Signals in Earnings Call

The recent earnings call of Orion Engineered Carbons SARL painted a mixed picture, reflecting both optimism and challenges. The company showcased strong operational performance and strategic growth in its Specialty segment. However, significant hurdles in the Rubber segment, along with profitability pressures due to market conditions, weighed heavily on the overall sentiment. Orion’s focus on cost control and free cash flow generation is a positive aspect, yet the current market challenges and financial impacts are concerning.

Orion Engineered Amends Credit Agreement with €50M Facility

On September 30, 2025, Orion Engineered Carbons GmbH, along with Goldman Sachs Bank USA and UniCredit Bank GmbH, entered into the Fourteenth Amendment to their credit agreement, originally dated July 25, 2014. This amendment includes an incremental €50,000,000 revolving facility and a reset of the First Lien Leverage Ratio financial covenant, impacting the company’s financial operations and potentially its market positioning.

The most recent analyst rating on (OEC) stock is a Sell with a $9.00 price target. To see the full list of analyst forecasts on Orion Engineered stock, see the OEC Stock Forecast page.

Orion Engineered Announces Interim Dividend for Shareholders

On September 11, 2025, Orion S.A. announced an interim dividend of $0.0207 per common share, totaling approximately $1.2 million, to be paid on January 20, 2026, to shareholders of record as of December 12, 2025. This financial move underscores Orion’s commitment to rewarding its shareholders and may enhance its market positioning by demonstrating financial stability and shareholder value.

The most recent analyst rating on (OEC) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Orion Engineered stock, see the OEC Stock Forecast page.

Orion Engineered Carbons Navigates Mixed Earnings Call

Orion Engineered Carbons SARL’s recent earnings call painted a picture of mixed sentiment, as the company managed to meet its EBITDA expectations while navigating through several challenges. The call highlighted Orion’s strategic initiatives aimed at fostering future growth, although demand headwinds and tariff impacts present ongoing uncertainties. The company is actively addressing these issues with operational improvements and financial strategies.

Orion Engineered Carbons Reports Q2 2025 Results

Orion Engineered Carbons SARL, a specialty chemical company, is a leading global supplier of carbon black, used in various applications such as tires, coatings, and plastics. The company, with a rich history and extensive global presence, focuses on delivering high-performance and sustainable solutions.