Orion S.A. Reports Decline in Revenue and Profitability for Q2 and First Half of 2025

Orion S.A. reported its financial results for the second quarter and first half of 2025, revealing a decline in both revenue and profitability compared to the same periods in 2024. For the three months ended June 30, 2025, the company generated net sales of $466.4 million, a decrease of 2.2% from $477.0 million in the prior year. The gross profit also fell by 10.4% to $98.4 million, down from $109.8 million, primarily due to lower volumes in the Specialty Carbon Black segment and unfavorable pricing dynamics. Net income for the quarter was $9.0 million, a significant drop of 56.1% from $20.5 million in the same quarter last year.

In the first half of 2025, Orion's net sales totaled $944.1 million, down 3.7% from $979.9 million in the first half of 2024. The gross profit for this period decreased by 15.3% to $196.5 million, attributed to unfavorable raw material cost pass-throughs and a decline in the Specialty Carbon Black segment's performance. The company reported a net income of $18.1 million for the six months, down 61.7% from $47.2 million in the previous year. The effective tax rate for the first half of 2025 increased to 44.3%, compared to 32.5% in the same period last year, largely due to valuation allowances for tax losses.

Operationally, Orion's customer engagement metrics showed a mixed performance. The volume of carbon black sold increased by 6.9 kmt to 240.0 kmt in the second quarter, driven by higher demand in the Rubber Carbon Black segment. However, the Specialty Carbon Black segment experienced a decline in volume, reflecting lower demand in key markets. The company also reported a decrease in selling, general, and administrative expenses, which fell by 4.3% to $57.7 million in the second quarter, primarily due to reduced distribution costs.

Strategically, Orion announced plans to idle production lines at several facilities in the Americas and EMEA by the end of 2025. This decision aims to focus maintenance investments on higher-performing production lines, enhancing reliability and productivity. The company continues to evaluate its capital expenditures, which amounted to $71.4 million in the first half of 2025, primarily for safety and maintenance investments. As of June 30, 2025, Orion's total liquidity stood at $181.9 million, including cash and equivalents of $42.6 million and available credit under its revolving credit facility.

Looking ahead, Orion S.A. anticipates ongoing challenges due to market conditions, including fluctuating raw material prices and demand variability across its segments. The company remains focused on optimizing its operations and capitalizing on growth opportunities while managing its cost structure effectively.