NYSE$OEC

Orion SA · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported record first quarter financial results.

Orion Engineered Carbons reported strong Q1 2023 results, with net sales of $500.7 million and net income of $42.3 million. The company achieved a record Adjusted EBITDA of $101 million and Adjusted Diluted EPS of $0.74. Strong cash flow allowed for share repurchases and debt reduction.

  • Net sales increased by $16.2 million year over year, reaching $500.7 million.
  • Net income rose by $9.8 million year over year, totaling $42.3 million.
  • Adjusted EBITDA reached a record $101 million, a 22% increase year over year.
  • Adjusted Diluted EPS also hit a record of $0.74, up by $0.17 year over year.

Headline financials

Total Revenue

$501M

Previous: $485M+3.3%
EPS (adj)

$0.74

Previous: $0.57+29.8%
Adjusted EBITDA

$101M

Previous: $83.2M+21.5%
Adjusted Diluted EPS

$0.74

Previous: $0.57+29.8%
Free Cash Flow

$42.3M

Previous: $32.5M+30.2%
Net Income

$42.3M

Previous: $32.5M+30.2%
Operating Income

$73.5M

Previous: $54.6M+34.6%
Gross Profit

$136M

Previous: $118M+15.7%
Cash & Equivalents

$76.8M

Previous: $41.3M+86.0%
Total Assets

$1.89B

Previous: $1.77B+6.8%
Stock-Based Comp

$2.1M

Previous: $1.5M+40.0%

Revenue & EPS history

Orion · Revenue · Quarterly

$501M

Q1 2023+3.3%vs Q1 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Orion · $501M total across 2 segments · Q1 2023

  • Rubber Carbon Black
    $339M
  • Specialty Carbon Black
    $162M

Forward guidance

The company is reiterating its 2023 guidance for Adjusted EBITDA in the range of $350 million to $380 million and Adjusted EPS of $2.30 to $2.60. Free cash flow is projected to be approximately $100 million for the year.

Tailwinds

  • Adjusted EBITDA range of $350 million to $380 million, up 17 percent at the midpoint, compared with 2022.
  • Full year 2023 Adjusted EPS of $2.30 to $2.60, up 25 percent at the midpoint.
  • Free cash flow should be approximately $100 million this year.
  • Remain on track to realize 2025 goal of a mid-cycle Adjusted EBITDA earnings capacity of $500 million.

Headwinds

  • Guidance takes into consideration items recorded in the first quarter that will not repeat this year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.9%

Avg return

Earnings day

-1.5%

Avg return

5 days after

+0.2%

Avg return

30 days after

57%

26 / 46 earnings

Positive

+10.0%

Q4 2022

Best reaction

-27.4%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-12.3%-8.5%-18.0%
Q4 2025-19.8%-14.5%-26.9%
Q3 2025-8.4%-1.0%+1.6%
Q1 2025-10.6%-0.8%+0.5%
Q4 2024+3.3%-0.4%-8.3%
Q3 2024-5.9%+5.3%+7.9%
Q2 2024-27.4%-28.0%-24.2%
Q1 2024-0.0%+4.0%+5.3%
Q4 2023+1.6%+0.8%-1.6%
Q3 2023+4.5%+4.1%+20.6%
Q2 2023+5.5%+4.0%+4.8%
Q1 2023+6.7%-0.2%+11.2%
Q4 2022+10.0%+11.4%+10.7%
Q3 2022+6.2%+11.1%+20.7%
Q2 2022-8.0%-8.1%-3.8%
Q1 2022+1.7%+0.8%+22.6%
Q4 2021-9.5%-19.4%-18.7%
Q3 2021+0.8%-0.4%-10.8%
Q2 2021+1.4%+0.2%+3.9%
Q1 2021-1.1%-6.1%-7.4%
Q4 2020-2.0%+2.0%+19.1%
Q3 2020-6.2%+3.2%+14.0%
Q2 2020+9.4%+11.4%+15.7%
Q1 2020+4.9%-5.5%+54.9%
Q4 2019+6.9%-5.7%-54.6%
Q3 2019+8.9%+15.9%+8.1%
Q2 2019-20.8%-29.5%-28.6%
Q1 2019+4.9%+2.9%-11.2%
Q4 2018-19.3%-22.6%-27.5%
Q3 2018+8.2%+2.1%+1.2%
Q2 2018+8.0%+9.5%+10.3%
Q1 2018+0.0%+1.5%+19.8%
Q4 2017+1.3%-0.4%-8.9%
Q3 2017+0.6%+2.8%+2.8%
Q2 2017+2.6%-2.6%+3.8%
Q1 2017+0.5%-2.9%-7.4%
Q4 2016-1.0%-0.7%-9.3%
Q3 2016+3.4%+1.1%+0.8%
Q2 2016+7.0%+6.4%+13.1%
Q1 2016+9.1%
Q4 2015+1.8%
Q3 2015-6.7%
Q2 2015-0.7%
Q1 2015-0.3%
Q4 2014+1.5%
Q3 2014-2.1%
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013

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