Orion S.A. (OEC) Investor presentation summary

Company overview

• Leading global producer of carbon black, ranked #1 in specialty and top 3 in rubber segments by 2025 revenue.

• Operates 15 production facilities, serving over 80 countries with ~1,600 employees.

• 2025 revenue reached $1,807 million, with adjusted EBITDA of $248 million and free cash flow of $55 million.

• Business mix in 2025: 34% specialty and 66% rubber by revenue; 38% specialty and 62% rubber by adjusted EBITDA.

• Broad product portfolio addresses diverse applications in rubber, batteries, construction, coatings, plastics, and more.

Market position and demand drivers

• Holds largest global share in specialty carbon black and is a leading player in premium grades.

• Rubber carbon black demand is driven by replacement tires (~80%), with EVs increasing wear rates and demand.

• High barriers to entry due to localized asset base, regulatory hurdles, and multi-year customer qualifications.

• Growth supported by trends in electrification, infrastructure, and reshoring of manufacturing.

• Specialty segment benefits from high-growth applications in batteries, power storage, and conductive additives.

Financial performance and resilience

• Demonstrated stable demand and profit durability, with major YoY changes only during COVID-19 lockdowns.

• Adjusted EBITDA remained resilient, with 2025 at $248 million and gross profit conversion rates consistently near 70%.

• Majority of sales under indexed contracts, allowing pass-through of feedstock and energy cost volatility.

• History of positive free cash flow, with improved working capital management and reduced capex post-EPA investments.

• 2026 guidance: adjusted EBITDA $170–210 million, free cash flow $(10)–$20 million, capex ~$90 million.