NYSE$OEC

Orion SA · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported mixed results with volume growth offset by margin pressures.

Orion S.A. reported first quarter 2024 financial results with net sales up slightly year-over-year, but net income and adjusted EBITDA down. Volume increased, driven by recovery in specialty carbon black, but gross profit was impacted by timing items and higher costs. The company reiterated its full-year guidance for adjusted EBITDA and adjusted diluted EPS.

  • Net sales increased by $2.2 million, or 0.4%, year over year, driven primarily by higher volume.
  • Net income decreased by $15.6 million, or 36.9%, year over year.
  • Adjusted EBITDA decreased by $15.8 million, or 15.6%, year over year.
  • Company reiterates 2024 guidance for Adjusted EBITDA and Adjusted Diluted EPS.

Headline financials

Total Revenue

$503M

Previous: $501M+0.4%
EPS

$0.45

Previous: $0.74-39.2%
Adjusted EBITDA

$85.3M

Previous: $101M-15.6%
Capital Expenditures

-$33.1M

No prior period
Free Cash Flow

$26.7M

Previous: $42.3M-36.9%
Net Income

$26.7M

Previous: $42.3M-36.9%
Operating Income

$52.8M

Previous: $73.5M-28.2%
Gross Profit

$122M

Previous: $136M-10.4%
Cash & Equivalents

$43.9M

Previous: $76.8M-42.8%
Total Assets

$1.87B

Previous: $1.89B-0.8%
R&D Expense

$6.6M

No prior period
Stock-Based Comp

$3.5M

Previous: $2.1M+66.7%

Revenue & EPS history

Orion · Revenue · Quarterly

$503M

Q1 2024+0.4%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Orion · $466M total across 2 segments · Q3 2023

  • Rubber Carbon Black
    $316M-15.4%
  • Specialty Carbon Black
    $150M-11.3%

Forward guidance

Orion S.A. is reiterating its 2024 guidance for the year of an Adjusted EBITDA range of $340 million to $360 million and Adjusted Diluted EPS of $2.05 per share to $2.20 per share. Free cash flow should be $45 million to $65 million this year.

Tailwinds

  • Anticipates growth in 2024.
  • Expects Adjusted EBITDA to be in the range of $340 million to $360 million.
  • Projects Adjusted Diluted EPS of $2.05 to $2.20 per share.
  • Expects free cash flow of $45 million to $65 million.
  • Assuming current economic conditions continue throughout 2024.

Headwinds

  • Soft economic growth conditions.
  • Uncertainty in the global economy.
  • Fluctuations in raw material prices.
  • Potential impacts from geopolitical events.
  • Risks associated with new facility commissioning.

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 2024

Historical avgQ1 2024

-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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