Orion (NYSE:OEC) Announces Earnings Results

Orion (NYSE:OEC) announced its quarterly earnings data on Tuesday. The specialty chemicals company reported ($0.34) EPS for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.26), Zacks reports. Orion had a negative net margin of 1.74% and a positive return on equity of 14.90%. The firm had revenue of $411.70 million during the quarter, compared to analysts’ expectations of $365.79 million.

Here are the key takeaways from Orion’s conference call:

• Orion provided 2026 guidance of $160–$200 million adjusted EBITDA, targeted $25–$50 million free cash flow, and reduced CapEx to $90 million, and says it expects to remain FCF-positive despite lower EBITDA.
• The company is cutting costs and footprint (rationalized 3–5 lines), targeting $20 million of additional productivity/headcount savings, and delivered working-capital-driven cash improvements (Q4 working capital benefit ~$64 million) that produced $55 million FCF in 2025 and reduced net debt.
• Rubber segment contracts for 2026 reflect meaningful price concessions (management suggests pricing declines closer to the low single digits vs. some peers’ larger cuts) and industry volumes are expected to be down, with the company saying it defended share rather than buying volume.
• Leading market indicators may be turning positive—U.S. tire imports have recently subsided, probes into dumped/subsidized Chinese tires are underway in Europe, and freight activity shows early inflection signs—but management remains cautious and is not assuming a recovery in its baseline plan.
• The La Porte conductive-carbon project has been pushed to a 2027 start (reducing 2026 CapEx), and management expects roughly $10 million of incremental annual depreciation once it is online.

Orion Stock Down 14.1%

OEC traded down $1.01 on Tuesday, reaching $6.11. 94,232 shares of the company traded hands, compared to its average volume of 600,137. The company has a market cap of $342.80 million, a price-to-earnings ratio of -10.62 and a beta of 1.06. The company has a debt-to-equity ratio of 1.69, a current ratio of 1.08 and a quick ratio of 0.64. The stock’s 50 day moving average price is $5.98 and its 200-day moving average price is $6.93. Orion has a 52-week low of $4.34 and a 52-week high of $16.63.

Institutional Trading of Orion

Several institutional investors have recently modified their holdings of OEC. Quarry LP grew its holdings in shares of Orion by 430.9% in the 4th quarter. Quarry LP now owns 5,861 shares of the specialty chemicals company’s stock valued at $31,000 after acquiring an additional 4,757 shares in the last quarter. Tower Research Capital LLC TRC boosted its holdings in Orion by 321.8% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,382 shares of the specialty chemicals company’s stock valued at $77,000 after purchasing an additional 5,632 shares during the period. Glenmede Investment Management LP acquired a new position in shares of Orion during the 3rd quarter worth approximately $89,000. Mariner LLC acquired a new stake in Orion during the fourth quarter worth approximately $135,000. Finally, Dynamic Technology Lab Private Ltd acquired a new stake in shares of Orion during the 1st quarter worth $137,000. Institutional investors and hedge funds own 94.33% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on OEC. UBS Group raised their price target on Orion from $5.50 to $6.00 and gave the stock a “neutral” rating in a report on Monday, January 12th. Weiss Ratings restated a “sell (d)” rating on shares of Orion in a report on Thursday, January 22nd. Zacks Research upgraded Orion from a “strong sell” rating to a “hold” rating in a report on Tuesday, January 27th. Mizuho set a $6.00 target price on Orion in a research report on Monday, October 20th. Finally, JPMorgan Chase & Co. lowered their price objective on Orion from $9.00 to $5.00 and set an “underweight” rating for the company in a report on Friday, November 28th. Two equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Strong Sell” and an average price target of $5.67.

Orion Company Profile

Orion Engineered Carbons SA, operating as Orion (NYSE: OEC), is a global producer of carbon black, a critical performance additive used to enhance the strength, durability and conductivity of various materials. The company’s products chiefly serve the tire and rubber industry, where carbon black imparts wear resistance and longevity, as well as the plastics, coatings, inks and battery components markets, where specialty grades deliver tailored conductivity and color properties.

Orion’s product portfolio is organized into two core segments: Rubber and Specialty and Chemical Specialties.