NYSE$OEC

Orion SA · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Orion S.A. reported mixed results with increased net sales but decreased net income and adjusted EBITDA due to softer rubber segment demand and unfavorable impacts from prior year raw material costs and cogeneration.

Orion S.A. reported a 4.0% increase in net sales to $477.0 million but a 31.9% decrease in net income to $20.5 million. Adjusted EBITDA decreased by 14% to $75.1 million. The company experienced softer demand in the Rubber segment, though the Specialty segment showed encouraging earnings recovery.

  • Net sales increased by 4.0% year-over-year to $477.0 million.
  • Net income decreased by 31.9% year-over-year to $20.5 million.
  • Adjusted EBITDA decreased by 14% year-over-year to $75.1 million.
  • Company will resume opportunistic stock buyback activity starting in Q3 2024.

Headline financials

Total Revenue

$477M

Previous: $459M+4.0%
EPS

$0.35

Previous: $0.53-34.0%
Total Volume (kmt)

233.1K

Previous: 227.3K+2.6%
Net Sales

$477M

No prior period
Gross Profit

$110M

No prior period
Income from Operations

$41.6M

No prior period
Net Income

$20.5M

No prior period
Adjusted Net Income

$24.5M

No prior period
Adjusted EBITDA

$75.1M

Previous: $87.3M-14.0%
Basic EPS

$0.35

No prior period
Diluted EPS

$0.35

No prior period
Adjusted Diluted EPS

$0.41

No prior period
Capital Expenditures

-$54.3M

No prior period
Free Cash Flow

$20.5M

Previous: $30.1M-31.9%
Operating Income

$41.6M

Previous: $58.9M-29.4%
Cash & Equivalents

$34.2M

Previous: $77.3M-55.8%
Total Assets

$1.91B

Previous: $1.84B+3.6%
R&D Expense

$6.5M

No prior period
Stock-Based Comp

$3M

Previous: $2.6M+15.4%

Revenue & EPS history

Orion · Revenue · Quarterly

$477M

Q2 2024+4%vs Q2 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. revised its 2024 guidance for Adjusted EBITDA to a range of $315 million to $330 million and Adjusted Diluted EPS to a range of $1.75 to $1.95 per share. Free cash flow is expected to be $0 to $25 million.

Tailwinds

  • Expect to see better profitability in the second half of 2024 due to improved plant utilization.
  • Resuming opportunistic stock buyback activity starting in the third quarter of 2024.
  • Confidence in the company's prospects into 2025 and beyond.
  • Net leverage ratio is set to decline next year with continued EBITDA growth and better free cash flow.
  • Ongoing plant investments.

Headwinds

  • Softer Rubber segment demand is expected to continue.
  • Considerable macro uncertainty remains.
  • No meaningful economic improvement is anticipated over the balance of 2024.
  • Optics of quarterly comparison were impacted by unusually high co-generation earnings in the prior year period.
  • Weaker Rubber volume in the second quarter of 2024.

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 Q2 2024

Historical avgQ2 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro