What is Orion's gross profit margin?

Did Orion beat or miss consensus estimates last quarter?

What were the key takeaways from Orion's earnings call?

What is Orion's latest dividend and current dividend yield?

What does Orion do and what are its main business segments?

What were the key takeaways from Orion’s earnings call?

What factors drove the changes in Orion's revenue and profit?

What guidance did Orion's management provide for the next earnings period?

- **New CFO Transition**: Incoming CFO to start December 2025, ensuring continuity with Jeff Glajch through Q1 2026.
- **Q3 Financials**: $58 million EBITDA vs. expectations, driven by 29% U.S. tire production decline and specialty market softness.
- **Cost Actions**: 2025 free cash flow guidance of $25-40 million, with 2026 savings from production line closures and headcount reduction.
- **Tariff Impact**: 232 tariffs may reduce imported tire competitiveness, supporting local production recovery.
- **Specialty Growth**: Conductive products in wire/cable and battery storage show potential, but near-term demand tied to industrial activity.
- **La Porte Plant**: 2026 startup costs expected to weigh on margins despite long-term strategic benefits.
- **Customer Negotiations**: 2026 volume and pricing uncertain, with industry focus on modernization and brand differentiation.


**【CEO Summary Section】**
- Announced the hiring of a new CFO with 30+ years of experience, starting December 2025, with Jeff Glajch transitioning through Q1 2026.
- Q3 2025 Adjusted EBITDA of $58 million, below expectations due to soft demand in Rubber and Specialty segments.
- Key challenges: 29% decline in U.S. tire production, 20% Europe decline, and 35% Western Europe decline.
- Actions taken: Rationalizing 3-5 underperforming production lines, reducing non-plant headcount, and optimizing discretionary spend to achieve mid-2026 cost savings.
- Focus on free cash flow generation through improved plant reliability and working capital management, targeting $25-40 million positive free cash flow for 2025.

**【CFO Financial Commentary】**
- Revenue down 3% YoY due to oil price pass-through, with Rubber segment volumes up 7% but lower-margin mix.
- Gross profit declined 20% YoY due to adverse geographic mix, fixed cost absorption, and inventory revaluation.
- Recorded $81 million non-cash goodwill impairment charge, partially offset by $7.3 million fraud recovery.
- Guidance updated for 2025 free cash flow of $25-40 million, with capital spending focused on plant reliability.

**【Q&A Highlights】**
- **Volumes & Pricing**: Q4 expects seasonal shutdowns; 2026 volume outlook uncertain due to ongoing contract negotiations. La Porte plant startup costs expected to be negative in 2026.
- **Import Impact**: Tariffs (e.g., 232 Section) may close price gap between imported and local tires, potentially driving demand recovery.
- **Specialty Growth**: Long-term potential in conductive products for wire/cable and battery storage, but near-term dependent on industrial activity.
- **Cost Savings**: $34 million inventory reduction in 2025; 2026 savings from production line rationalization and headcount reduction to be detailed in February guidance.
- **Tariff Effectiveness**: Industry self-help (e.g., brand innovation) and trade policy both needed to shift consumer preference back to local tires.


Orion S.A. (OEC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

OEC

OEC fundamentals

You can ask Aime