Orion Engineered Carbons SA
NYSE:OEC
Orion Engineered Carbons SA
Orion Engineered Carbons SA engages in the production and supply of carbon black. The firm operates through two segments: Specialty Carbon Black and Rubber Carbon Black. The Specialty Carbon Black segment is engaged in the production of specialty carbon black. The Rubber Carbon Black segment is involved in the production of rubber carbon black. As of December 31, 2016, it operated a diversified carbon black business with over 280 specialty carbon black grades and approximately 80 rubber carbon black grades. Carbon black is used as a pigment and as a performance additive in coatings, polymers, printing and special applications (specialty carbon black), and in the reinforcement of rubber in tires and mechanical rubber goods (rubber carbon black). As of December 31, 2016, it operated a global platform of 13 production facilities in Europe, North and South America, Asia and South Africa and three sales companies, as well as one jointly-owned production plant in Germany.
Orion Engineered Carbons SA engages in the production and supply of carbon black. The firm operates through two segments: Specialty Carbon Black and Rubber Carbon Black. The Specialty Carbon Black segment is engaged in the production of specialty carbon black. The Rubber Carbon Black segment is involved in the production of rubber carbon black. As of December 31, 2016, it operated a diversified carbon black business with over 280 specialty carbon black grades and approximately 80 rubber carbon black grades. Carbon black is used as a pigment and as a performance additive in coatings, polymers, printing and special applications (specialty carbon black), and in the reinforcement of rubber in tires and mechanical rubber goods (rubber carbon black). As of December 31, 2016, it operated a global platform of 13 production facilities in Europe, North and South America, Asia and South Africa and three sales companies, as well as one jointly-owned production plant in Germany.
Q4 Beat: Orion delivered better-than-expected Q4 2025 results, mainly due to higher volumes, especially in the Specialty segment.
2026 Guidance: The company expects adjusted EBITDA between $160 million and $200 million and free cash flow of $25 million to $50 million for 2026.
Cost Actions: Orion has taken aggressive cost cuts, including $20 million in additional productivity and headcount savings, a $70 million reduction in 2026 CapEx, and rationalization of 3–5 production lines.
Market Headwinds: 2025 was marked by difficult industry conditions, including high tire imports, trade-down to lower-value brands, and weak global freight and industrial demand.
Free Cash Flow Focus: Despite lower expected EBITDA, Orion aims to continue generating positive free cash flow through working capital and CapEx discipline.
Contract Pricing: 2026 contract prices are set lower, but Orion focused on maintaining share rather than sacrificing volume for price.
Potential Upside: Management highlighted early signs of market recovery, especially in freight and tire trade flows, but remains cautious in the outlook.
