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

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

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 Performance

OEC traded down $1.01 during mid-day trading on Tuesday, reaching $6.11. 94,232 shares of the company traded hands, compared to its average volume of 600,137. The company’s fifty day moving average price is $5.98 and its 200-day moving average price is $6.93. Orion has a 52-week low of $4.34 and a 52-week high of $16.63. The company has a quick ratio of 0.64, a current ratio of 1.08 and a debt-to-equity ratio of 1.69. The stock has a market capitalization of $342.80 million, a P/E ratio of -10.62 and a beta of 1.06.

Hedge Funds Weigh In On Orion

Large investors have recently made changes to their positions in the business. Royal Bank of Canada raised its holdings in shares of Orion by 38.4% in the fourth quarter. Royal Bank of Canada now owns 95,611 shares of the specialty chemicals company’s stock worth $504,000 after buying an additional 26,550 shares during the last quarter. Graham Capital Management L.P. increased its holdings in Orion by 18.7% in the fourth quarter. Graham Capital Management L.P. now owns 57,204 shares of the specialty chemicals company’s stock valued at $302,000 after buying an additional 8,992 shares in the last quarter. Mariner LLC acquired a new stake in Orion in the fourth quarter valued at approximately $135,000. Barclays PLC lifted its holdings in Orion by 16.2% during the fourth quarter. Barclays PLC now owns 99,612 shares of the specialty chemicals company’s stock valued at $526,000 after purchasing an additional 13,858 shares in the last quarter. Finally, Marshall Wace LLP grew its stake in Orion by 46.9% during the 4th quarter. Marshall Wace LLP now owns 69,524 shares of the specialty chemicals company’s stock valued at $367,000 after acquiring an additional 22,206 shares in the last quarter. 94.33% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

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

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.