Orion S.A. Q2 net sales miss estimates
Overview
Orion Q2 2025 net sales fall 2.2% yr/yr, missing analyst expectations, per LSEG data
Adjusted EPS for Q2 misses estimates
Adjusted EBITDA beats expectations
Co plans to discontinue production of three to five carbon black lines at multiple facilities
Outlook
Orion revises 2025 Adjusted EBITDA guidance to $270 mln - $290 mln
Company reaffirms 2025 free cash flow guidance at $40 mln - $70 mln
Orion sees no recovery in industrial end markets in 2025
Result Drivers
OIL PRICE IMPACT - Lower oil prices primarily drove a 2.2% decrease in net sales
SPECIALTY SEGMENT DECLINE - Specialty Carbon Black segment volume fell due to lower demand in EMEA and Americas
RUBBER SEGMENT GROWTH - Rubber Carbon Black segment volume rose due to higher demand in Asia Pacific and Americas
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $466.40 mln | $470 mln (4 Analysts) |
Q2 Adjusted EPS | Miss | $0.32 | $0.34 (5 Analysts) |
Q2 EPS | $0.16 | ||
Q2 Net Income | $9 mln | ||
Q2 Adjusted EBITDA | Beat | $68.80 mln | $68.20 mln (4 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy"
Wall Street's median 12-month price target for Orion SA is $15.00, about 35.3% above its August 5 closing price of $9.71
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago
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