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Orion S.A. (OEC) investor relations material
Orion S.A. Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q4 and full-year 2025 results exceeded expectations in some areas, but the year was marked by record tire imports, soft specialty demand, and broad market uncertainty impacting pricing and volumes.
Operational excellence led to outstanding safety performance, with only three incidents and improved plant reliability.
Decisive cost and cash actions, including headcount reductions, procurement projects, and production rationalization, delivered ~$20M in savings and improved operational efficiency.
Full-year free cash flow reached $55 million, driven by working capital efficiencies and cost management.
Net loss for 2025 was $70 million, including an $81 million non-cash goodwill impairment.
Financial highlights
Full-year 2025 Adjusted EBITDA was $248 million, down 18% year-over-year, but above the latest outlook; volumes up 1.5%.
Net sales for 2025 were $1,806.7 million, down 4% year-over-year; Q4 net sales were $411.7 million, down 5%.
Free cash flow for 2025 was $55 million, with $64 million generated in Q4 alone; operating cash flow improved to $216 million.
Adjusted net income was $28 million, a 72.8% decline from the prior year; adjusted diluted EPS was $0.50, down from $1.76 in 2024.
Net debt at year-end was $921 million, with a leverage ratio of 3.7x.
Outlook and guidance
2026 Adjusted EBITDA guidance: $160–$200 million; H1 2026: $90–$110 million.
Free cash flow expected between $25–$50 million in 2026; capex projected at $90 million, down from $161 million in 2025.
Cost and spending actions are expected to drive positive free cash flow in 2026, with cautious outlook despite potential upsides from trade flows and freight recovery.
Pricing outcomes and flat to slightly lower volumes are expected to drive 2026 earnings.
Contract pricing for 2026 is set, with subdued tire build rates assumed.
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