Orion S.A. reported a net sales figure of $1,877.5 million for the fiscal year ending December 31, 2024, a slight decrease of 0.9% from $1,893.9 million in 2023. The company’s net income also fell significantly, down 57.3% to $44.2 million from $103.5 million in the previous year. The decline in profitability was attributed to a combination of factors, including a criminal scheme that resulted in a loss of $55.7 million due to fraudulent wire transfers, alongside increased fixed costs and lower cogeneration revenues. Adjusted EBITDA for the year was reported at $302.2 million, down 9.1% from $332.3 million in 2023.
In terms of operational performance, Orion's total sales volume increased marginally by 0.3% to 934.8 thousand metric tons (kmt) in 2024, driven primarily by a recovery in the Specialty Carbon Black segment, which saw a volume increase of 11.0% to 245.8 kmt. Conversely, the Rubber Carbon Black segment experienced a decline in volume, decreasing by 3.1% to 689.0 kmt, largely due to softening demand in the Americas. The Specialty segment accounted for 34.4% of total revenue, while the Rubber segment made up 65.6%.
Strategically, Orion has been focusing on enhancing its product offerings and expanding its market presence. The company invested approximately $206.7 million in capital expenditures during 2024, primarily for the construction of a new facility in La Porte, Texas. Additionally, Orion entered into a partnership with Alpha Carbone, a French tire recycling company, to produce tire pyrolysis oil and recovered carbon black, which aligns with the company's sustainability goals. The company also reported a total employee headcount of approximately 1,658, reflecting its commitment to maintaining a skilled workforce.
The filing also highlighted the challenges posed by geopolitical factors, including the ongoing Russia-Ukraine conflict and tensions in the Middle East, which have contributed to volatility in raw material prices. Orion has implemented measures to mitigate these risks, such as incorporating raw material cost pass-through provisions in supply agreements and qualifying multiple sources for feedstocks. Looking ahead, the company anticipates continued volatility in the global energy-related commodity markets but remains optimistic about the demand recovery in the Specialty Carbon Black segment, which is expected to support its financial performance in 2025 and beyond.
About Orion S.A.
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