Orion Engineered (OEC) AI Stock Analysis

• Market Cap: $315.56M
• Dividend Yield: 1.47%
• Average Volume (3M): 693.50K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 1.16
• Revenue Growth: -3.79%
• EPS Growth: -79.76%
• Country: US
• Employees: 1,658
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.32
• Shares Outstanding: 56,149,708
• 10 Day Avg. Volume: 972,535
• 30 Day Avg. Volume: 693,503
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.98
• Enterprise Value/Revenue: 0.85
• Enterprise Value/Gross Profit: 3.99
• Enterprise Value/Ebitda: 9.66
• 1Y Price Target: $8.00
• Price Target Upside: 40.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 47 Neutral
• Price Target: $5.50 ▼(-3.17% Downside)

Orion Engineered's overall stock score is primarily influenced by its financial performance and technical analysis. The company faces significant challenges in maintaining profitability and managing high leverage, which are reflected in its moderate financial performance score. Technical indicators show a bearish trend, further impacting the score. While the earnings call provided some positive strategic shifts, current market conditions and valuation concerns weigh on the overall outlook.

Positive Factors

Operational Efficiency

Efforts to optimize operations and reduce unplanned downtime can enhance long-term profitability and cash flow, improving overall efficiency.

Specialty Product Growth

Expanding into high-growth markets such as lithium-ion batteries positions Orion for future revenue growth and market diversification.

Debt Reduction Focus

Prioritizing debt reduction strengthens the balance sheet, enhancing financial stability and reducing risk from high leverage.

Negative Factors

Revenue Decline

A declining revenue trend indicates challenges in market demand and competitive positioning, potentially impacting long-term growth.

High Leverage

High leverage increases financial risk, limiting flexibility and potentially affecting the company's ability to invest in growth opportunities.

Demand Headwinds

Persistent demand headwinds in key segments can hinder revenue growth and profitability, challenging the company's market position.

Orion Engineered Business Overview & Revenue Model

Company Description

Orion Engineered Carbons (OEC) is a leading global supplier of carbon black, a critical component used in a variety of applications including tires, coatings, plastics, and other rubber products. With a commitment to sustainability and innovation, OEC operates manufacturing facilities across the globe and offers a comprehensive portfolio of high-performance carbon blacks, specialized formulations, and technical services to meet diverse customer needs in the automotive, industrial, and consumer markets.

How the Company Makes Money

Orion Engineered Carbons generates revenue primarily through the production and sale of carbon black products. The company operates on a B2B model, supplying its products to manufacturers in various industries, including automotive, coatings, and plastics. Key revenue streams include the sale of standard and specialty carbon blacks, which are utilized in tire manufacturing and other rubber applications, as well as in coatings and plastics for enhanced performance. Additionally, OEC benefits from long-term contracts with major customers, which provide stability and predictable income. The company also invests in research and development to create innovative products and improve production efficiencies, further enhancing its revenue potential. Strategic partnerships with leading companies in the automotive and industrial sectors play a significant role in expanding OEC's market reach and driving sales growth.

Orion Engineered Financial Statement Overview

Summary

Orion Engineered faces challenges in revenue growth and profitability, with declining margins and high leverage. While there is improvement in free cash flow, the company needs to address its debt levels and operational efficiency to enhance financial health. The overall financial position is moderate, with potential risks due to high leverage and declining profitability.

Income Statement

Orion Engineered's income statement shows a declining revenue trend with a negative growth rate in the TTM period. The gross profit margin has decreased from previous years, and the net profit margin is low at 0.82% in TTM. EBIT and EBITDA margins have also declined, indicating reduced operational efficiency. Overall, the company faces challenges in maintaining profitability and revenue growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.19 in TTM, indicating significant leverage. Return on equity has decreased over time, reflecting lower profitability on shareholders' investments. The equity ratio is stable, but the high leverage poses potential risks. The company needs to manage its debt levels to improve financial stability.

Cash Flow

The cash flow statement shows a significant improvement in free cash flow growth in the TTM period, which is a positive sign. However, the operating cash flow to net income ratio is low, suggesting challenges in converting income into cash. The free cash flow to net income ratio is moderate, indicating some efficiency in cash generation. Overall, cash flow management shows improvement but remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.84B	1.88B	1.89B	2.03B	1.55B	1.14B
Gross Profit	393.30M	428.80M	451.00M	448.80M	386.60M	292.35M
EBITDA	162.60M	225.90M	327.20M	302.80M	244.90M	149.89M
Net Income	15.10M	44.20M	103.50M	106.20M	134.70M	18.20M
Balance Sheet
Total Assets	2.02B	1.86B	1.83B	1.89B	1.63B	1.39B
Cash, Cash Equivalents and Short-Term Investments	42.60M	44.20M	37.50M	60.80M	65.70M	68.50M
Total Debt	1.02B	1.03B	927.20M	915.30M	782.90M	738.44M
Total Liabilities	1.56B	1.38B	1.35B	1.43B	1.31B	1.21B
Stockholders Equity	466.50M	474.90M	478.50M	459.40M	319.70M	181.01M
Cash Flow
Free Cash Flow	63.10M	-81.40M	173.10M	-151.80M	-69.50M	-19.66M
Operating Cash Flow	118.05M	125.30M	345.90M	81.00M	145.20M	125.28M
Investing Cash Flow	-190.30M	-206.70M	-172.80M	-232.80M	-214.70M	-144.94M
Financing Cash Flow	79.80M	89.30M	-197.10M	149.30M	73.30M	13.54M

Orion Engineered Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 5.68 is below the 20-day moving average (MA) of 6.77, below the 50-day MA of 8.63, and below the 200-day MA of 11.32, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 25.77 is Positive, neither overbought nor oversold. The STOCH value of 24.70 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	78 Outperform	$5.09B	34.34	12.06%	0.55%	7.55%	22.43%
SXT	71 Outperform	$4.11B	30.48	12.18%	1.71%	4.95%	53.63%
CBT	69 Neutral	$3.78B	9.29	29.03%	2.48%	-3.61%	-9.70%
SSL	63 Neutral	$3.49B	9.24	4.56%	―	-6.73%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
OEC	47 Neutral	$315.56M	20.87	3.11%	1.47%	-3.79%	-79.76%
CC	41 Neutral	$1.99B	―	-87.50%	4.99%	2.48%	-459.90%

Orion Engineered Corporate Events

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.

Orion Engineered Announces CFO Jeff Glajch’s Retirement

On July 30, 2025, Orion S.A. announced the upcoming retirement of its Chief Financial Officer, Jeff Glajch, effective early in the fourth quarter of 2025. Glajch’s retirement is not due to any disagreements with the company, and he will assist in the transition until the end of the year. Orion’s CEO, Corning Painter, expressed gratitude for Glajch’s contributions, noting that his leadership has strengthened the company’s finance and IT teams, positioning Orion for future growth. A comprehensive search for Glajch’s successor will be initiated.

The most recent analyst rating on (OEC) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Orion Engineered stock, see the OEC Stock Forecast page.