Orion (NYSE:OEC) Releases Earnings Results, Misses Estimates By $0.26 EPS

Orion (NYSE:OEC) issued its earnings results on Tuesday. The specialty chemicals company reported ($0.34) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.26), Zacks reports. Orion had a negative net margin of 1.74% and a positive return on equity of 14.90%. The company had revenue of $411.70 million during the quarter, compared to analysts’ expectations of $365.79 million.

Here are the key takeaways from Orion’s conference call:

• Orion provided 2026 guidance of $160–$200 million adjusted EBITDA, targeted $25–$50 million free cash flow, and reduced CapEx to $90 million, and says it expects to remain FCF-positive despite lower EBITDA.
• The company is cutting costs and footprint (rationalized 3–5 lines), targeting $20 million of additional productivity/headcount savings, and delivered working-capital-driven cash improvements (Q4 working capital benefit ~$64 million) that produced $55 million FCF in 2025 and reduced net debt.
• Rubber segment contracts for 2026 reflect meaningful price concessions (management suggests pricing declines closer to the low single digits vs. some peers’ larger cuts) and industry volumes are expected to be down, with the company saying it defended share rather than buying volume.
• Leading market indicators may be turning positive—U.S. tire imports have recently subsided, probes into dumped/subsidized Chinese tires are underway in Europe, and freight activity shows early inflection signs—but management remains cautious and is not assuming a recovery in its baseline plan.
• The La Porte conductive-carbon project has been pushed to a 2027 start (reducing 2026 CapEx), and management expects roughly $10 million of incremental annual depreciation once it is online.

Orion Stock Down 19.4%

NYSE OEC traded down $1.38 on Tuesday, reaching $5.73. The company had a trading volume of 372,074 shares, compared to its average volume of 601,301. Orion has a 1-year low of $4.34 and a 1-year high of $16.63. The company’s fifty day moving average is $5.98 and its 200-day moving average is $6.93. The firm has a market capitalization of $321.85 million, a price-to-earnings ratio of -9.98 and a beta of 1.06. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.64 and a current ratio of 1.08.

Analysts Set New Price Targets

A number of equities analysts have commented on OEC shares. UBS Group boosted their price objective on shares of Orion from $5.50 to $6.00 and gave the stock a “neutral” rating in a report on Monday, January 12th. JPMorgan Chase & Co. dropped their price target on shares of Orion from $9.00 to $5.00 and set an “underweight” rating for the company in a research note on Friday, November 28th. Weiss Ratings reissued a “sell (d)” rating on shares of Orion in a research report on Thursday, January 22nd. Mizuho set a $6.00 price target on shares of Orion in a research report on Monday, October 20th. Finally, Zacks Research upgraded shares of Orion from a “strong sell” rating to a “hold” rating in a research report on Tuesday, January 27th. Two analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, Orion presently has a consensus rating of “Strong Sell” and a consensus price target of $5.67.

Institutional Investors Weigh In On Orion

A number of institutional investors have recently made changes to their positions in OEC. Quarry LP lifted its stake in Orion by 430.9% in the 4th quarter. Quarry LP now owns 5,861 shares of the specialty chemicals company’s stock valued at $31,000 after purchasing an additional 4,757 shares during the last quarter. Tower Research Capital LLC TRC lifted its stake in shares of Orion by 321.8% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,382 shares of the specialty chemicals company’s stock valued at $77,000 after acquiring an additional 5,632 shares during the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Orion during the 1st quarter worth $137,000. Glenmede Investment Management LP acquired a new position in Orion in the 3rd quarter worth about $89,000. Finally, State of Wyoming bought a new position in Orion in the second quarter valued at about $220,000. Institutional investors own 94.33% of the company’s stock.

Orion Company Profile

Orion Engineered Carbons SA, operating as Orion (NYSE: OEC), is a global producer of carbon black, a critical performance additive used to enhance the strength, durability and conductivity of various materials. The company’s products chiefly serve the tire and rubber industry, where carbon black imparts wear resistance and longevity, as well as the plastics, coatings, inks and battery components markets, where specialty grades deliver tailored conductivity and color properties.

Orion’s product portfolio is organized into two core segments: Rubber and Specialty and Chemical Specialties.