Orion SA (OEC) AI Stock Analysis

• Market Cap: $313.44M
• Dividend Yield: 1.61%
• Average Volume (3M): 935.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• 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: 3.95
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 3.44
• Enterprise Value/Ebitda: 8.16
• 1Y Price Target: $5.58
• Price Target Upside: -1.76% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.32
• Revenue Forecast (FY): $1.70B

• Rating: 46 Neutral
• Price Target: $5.50 ▼(-3.17% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held down primarily by weakened profitability and high leverage, alongside bearish technicals that reflect a broader downtrend. Offsetting factors include improved recent free cash flow and management’s cost/CapEx actions, but 2026 guidance points to lower EBITDA and sustained balance-sheet risk, limiting upside near term.

Positive Factors

Improved cash generation

Orion delivered positive and material free cash flow in 2025 after a volatile prior period, driven by working-capital gains. Sustained cash generation strengthens the firm's ability to fund needed investment, service debt and support payouts or de-leveraging over the next several quarters if maintained.

Capital-light posture and lower CapEx

Management’s shift to materially lower capital spending is structural for near-term free cash flow profile. A capital-light stance reduces headline investment needs and supports sustained FCF generation and ability to prioritize debt paydown or liquidity preservation across the 2–6 month horizon.

Operational reliability and ESG strength

Improved plant reliability and top-tier ESG recognition indicate durable operational discipline and lower incident-related costs or shutdown risk. Strong safety and sustainability credentials support customer relationships and may protect margins in specialty markets over coming quarters.

Negative Factors

Elevated leverage and large debt load

High absolute and relative leverage constrains strategic flexibility and increases vulnerability to earnings volatility. With sizable debt outstanding, interest and covenant sensitivity limit the company's capacity to invest or absorb weaker demand without sustained cash generation or further deleveraging.

Weakened profitability and net loss

The swing to a significant net loss and margin compression reflects structural pressure on earnings quality. Negative ROE and weaker margins reduce internal capital to repair the balance sheet, making sustained recovery dependent on improved pricing or structural cost reductions.

Guidance implies meaningful EBITDA downdraft

Management’s explicit guidance for materially lower EBITDA signals near-term secular or cyclical demand weakness. A lower earnings base limits organic deleveraging and raises the risk that credit flexibility and cost actions must be repeatedly relied upon, pressuring medium-term financial resilience.

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

Overall fundamentals are pressured. Profitability deteriorated with a 2025 net loss and weaker margins, while the balance sheet remains highly leveraged (debt-to-equity ~2.55x) and equity declined. Cash flow is a relative bright spot with positive 2025 free cash flow, 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: 5.68
• 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 5.68 is below the 20-day moving average (MA) of 6.51, below the 50-day MA of 6.02, and below the 200-day MA of 8.01, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 8.47 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	$5.72B	37.60	12.86%	0.61%	7.55%	22.43%
CBT	74 Outperform	$3.96B	13.30	20.88%	2.72%	-7.04%	-11.28%
SSL	67 Neutral	$5.73B	41.96	1.55%	―	-6.73%	―
SXT	65 Neutral	$4.05B	30.15	12.31%	1.70%	4.25%	56.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CC	54 Neutral	$2.76B	-7.01	-90.40%	4.37%	2.12%	-579.74%
OEC	46 Neutral	$313.44M	-4.53	-7.24%	1.61%	-4.31%	-206.57%

Orion SA Corporate Events

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.