Orion S.A. reported first quarter 2025 results showing a decline in revenue and earnings, impacted by lower oil prices, unfavorable exchange rates, and unplanned plant downtime. Net sales fell to $477.7 million (down 5% year over year), and adjusted EBITDA dropped 22% to $66.2 million. While volumes rose in the Rubber Carbon Black segment, Specialty Carbon Black demand softened in the Americas.

“First quarter results were affected by costs from unplanned plant downtime, as well as timing items including raw material pass-throughs. Collectively, these factors masked an otherwise much stronger underlying business performance. The normalization of timing items coupled with ongoing operational improvements set up for a sequentially better second quarter, absent any pronounced deterioration in the macro backdrop,” said CEO Corning Painter. “We continue to expect prospective net benefit from auto sector tariffs and their impact on imported replacement tires, insomuch as relieving market share pressure on U.S. tire manufacturing. That said, should broader tariffs precipitate a pronounced global economic slowdown, we would not be immune. Regardless, we believe we are well positioned to navigate the evolving backdrop and deliver on our cash flow goals.”

Despite the macro uncertainty, Orion reaffirmed its full-year free cash flow guidance of $40–70 million, while slightly adjusting its Adjusted EBITDA and EPS ranges. The company expects a stronger Q2 and continues to see 2025–2026 as key inflection years.

Read more in Orion’s full Q1 2025 report and outlook: www.orioncarbons.com