Orion SA · Q2 2021 earnings

Briefing

Achieved second highest Adjusted EBITDA since IPO and resolved dispute with Evonik.

Orion Engineered Carbons S.A. reported strong financial results for the second quarter of 2021, achieving the second-highest Adjusted EBITDA since its IPO. The company's performance was driven by increased sales volume, favorable product mix, and the resolution of a dispute with Evonik, which bolstered its financial position. The company is positioned to complete EPA investments, capture growth in differentiated markets and generate substantial free cash flow in 2023.

• Achieved second highest Adjusted EBITDA since IPO.
• Positioned the company to complete EPA investments, capture growth in differentiated markets and generate substantial free cash flow in 2023.
• Received cash payment of $79.5 million, resolving longstanding dispute with Evonik, substantially bolstering financial position.
• Net sales of $401.0 million, up $198.4 million, year over year.

Headline financials

Revenue & EPS history

Orion is raising its Adjusted EBITDA guidance to $265 million to $285 million primarily reflecting improved second half Specialty pricing and mix versus our prior outlook. The company expects that its second half financial results, though strong, will not match the robust level of our first half, due to planned outages at several plants, including our Ivanhoe, Louisiana site where we are completing our EPA work, and typical Rubber Carbon Black end-of-year seasonality.