Orion SA (OEC)
NYSE:OEC
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Orion SA
(NYSE:OEC)
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Rating:53Neutral
Price Target:
$6.50
▲(1.88% Upside)
Action:ReiteratedDate:04/01/26
The score is held back primarily by weakening profitability and high leverage, despite improved 2025 free cash flow. Management’s 2026 outlook points to a meaningful EBITDA step-down and ongoing balance-sheet risk, while technical momentum is currently supportive but appears somewhat stretched. Valuation is mixed due to losses (negative P/E) and only a modest dividend yield.
Positive Factors
Improved free cash flow generation
Orion delivered mid‑double‑digit million free cash flow in 2025 after working‑capital gains and lower capex. This cash generation, backed by explicit working‑capital execution and capex cuts, creates durable financial flexibility to fund deleveraging or optionality over the next several quarters.
Negative Factors
Elevated leverage and sizable debt load
High absolute and ratio leverage constrains financial flexibility and raises refinancing and covenant risk absent sustained earnings recovery. With operating cash flow modest relative to debt, balance‑sheet de‑risking requires consistent FCF improvement over several quarters, making leverage a persistent structural vulnerability.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved free cash flow generation
Orion delivered mid‑double‑digit million free cash flow in 2025 after working‑capital gains and lower capex. This cash generation, backed by explicit working‑capital execution and capex cuts, creates durable financial flexibility to fund deleveraging or optionality over the next several quarters.
Read all positive factors
Orion SA (OEC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$359.03M
Dividend Yield1.61%
Average Volume (3M)935.23K
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth-4.31%
EPS Growth-206.57%
CountryUS
Employees1,658
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.34
Shares Outstanding56,273,700
10 Day Avg. Volume1,047,203
30 Day Avg. Volume935,232
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.77
Price to Sales (P/S)0.16
P/FCF Ratio5.92
Enterprise Value/Market Cap3.56
Enterprise Value/Revenue0.71
Enterprise Value/Gross Profit3.55
Enterprise Value/Ebitda8.42
Forecast
1Y Price Target
$6.13Price Target Upside-3.92% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)0.19
Revenue Forecast (FY)$1.69B
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 segmen...
How the Company Makes Money
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Orion SA Key Performance Indicators (KPIs)
Orion SA Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational and financial strengths—most notably positive free cash flow in a difficult year, successful working capital and CapEx reductions, safety and ESG accolades, improved plant reliability, and proactive credit amendments—against persistent industry headwinds (elevated tire imports, freight weakness) and notable near-term earnings pressure. Management emphasized cost actions and footprint rationalization to preserve cash, but 2026 guidance implies a material EBITDA decline versus 2025. Overall, positives (cash generation, cost actions, safety/ESG) offset but do not fully outweigh the expected earnings downdraft and external market risks, resulting in a cautious, balanced outlook.Positive Updates
Full-Year EBITDA Outperformance
Delivered full-year adjusted EBITDA of $248,000,000 for 2025, exceeding the company's most recent outlook.
Negative Updates
Industry Demand Headwinds from Elevated Tire Imports
Persisting elevated imports of lower-tier tires into Western regions and a related trade-down in consumer buying depressed Western tire production and pricing negotiations throughout 2025, creating a challenging backdrop for carbon black demand.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year EBITDA Outperformance
Delivered full-year adjusted EBITDA of $248,000,000 for 2025, exceeding the company's most recent outlook.
Read all positive updates
Company Guidance
Orion guided 2026 adjusted EBITDA of $160–$200 million (with first‑half EBITDA of $90–$110 million, reflecting a historical ~55% H1 weighting), free cash flow of $25–$50 million, and capital expenditures of $90 million (down $70 million versus 2025). Management said this outlook assumes lower EBITDA versus 2025 ($248 million FY2025 adjusted EBITDA) but continued positive free cash flow after executing working‑capital initiatives that generated $64 million in Q4 and helped deliver $55 million of free cash flow for 2025; operating cash flow improved to $2 million for 2025, CapEx was $46 million lower than 2024, and Q4 net debt reduction was $40 million, finishing the year with $920 million of net debt and 3.7x leverage (down from 3.8x). They also plan $20 million of productivity/headcount savings, have rationalized 3–5 lines, improved North American plant reliability by >200 basis points, and secured a credit‑agreement amendment to provide leverage flexibility.Orion SA Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
41
Neutral
Cash Flow
58
Neutral
| 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
Positive
6.38
Price Trends
5.91
Positive
5.59
Positive
7.22
Negative
Market Momentum
0.24
Negative
61.01
Neutral
79.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OEC, the sentiment is Positive. The current price of 6.38 is above the 20-day moving average (MA) of 5.55, above the 50-day MA of 5.91, and below the 200-day MA of 7.22, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 61.01 is Neutral, neither overbought nor oversold. The STOCH value of 79.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OEC.
Orion SA Risk Analysis
Orion SA disclosed 37 risk factors in its most recent earnings report. Orion SA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Orion SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.57B | 32.29 | 12.31% | 0.61% | 7.55% | 22.43% | |
70 Outperform | $3.99B | 11.96 | 20.42% | 2.72% | -7.04% | -11.28% | |
65 Neutral | $3.99B | 29.50 | 11.63% | 1.70% | 4.25% | 56.51% | |
62 Neutral | $7.71B | 76.21 | 1.59% | ― | -6.73% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | $359.03M | -4.24 | -16.31% | 1.61% | -4.31% | -206.57% | |
51 Neutral | $3.22B | -4.59 | -113.20% | 4.37% | 2.12% | -579.74% |
* Basic Materials Sector Average
OEC
Orion SA
6.38
-5.56
-46.55%
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Orion SA Corporate Events
Business Operations and StrategyShareholder Meetings
Orion SA Schedules Hybrid 2026 Annual Shareholders Meeting
Positive
Mar 6, 2026
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 reco...
Dividends
Orion SA Declares Interim Quarterly Dividend for Shareholders
Positive
Feb 26, 2026
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 shareh...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.