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
Revenue & EPS history
Orion · Revenue · Quarterly
$477M
Revenue by segment
Orion · $466M total across 2 segments · Q3 2023
- Rubber Carbon Black$316M-15.4%67.7%
- Specialty Carbon Black$150M-11.3%32.3%
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
-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
| Quarter | Report date | Reaction (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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