Orion S.A. (OEC) investor relations material

Executive summary

• Adjusted EBITDA for Q1 2026 was $46 million, down 30% year-over-year but above internal expectations, driven by late-quarter demand surge, especially in the Specialty segment.

• Net sales for Q1 2026 were $459.5 million, down 3.8%–4% year-over-year, mainly due to lower oil prices and unfavorable product mix, partially offset by higher volumes and favorable FX.

• Net loss for Q1 2026 was $9.9 million to $10 million, compared to net income of $9.1 million in Q1 2025, reflecting lower gross profit and higher interest expense.

• The company is leveraging its regional manufacturing footprint and supply chain agility amid global volatility, focusing on cost reductions, inventory management, and margin opportunities.

• Demand improvement was broad-based and has continued into April and May, prompting an increase in full-year adjusted EBITDA guidance.

Financial highlights

• Adjusted EBITDA for Q1 2026 was $46.1 million, down from $66.2 million year-over-year, but ahead of internal forecasts.

• Net sales for Q1 2026 were $459.5 million, down from $477.7 million in Q1 2025.

• Free cash outflow for Q1 was $48–$48.5 million, driven by working capital use and capital expenditures.

• Net debt at quarter-end was $965 million, with a net leverage ratio of 4.2x and liquidity of nearly $192 million.

• Adjusted net loss was $6.1 million, with adjusted diluted EPS of $(0.11), down from $0.22 in Q1 2025.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance raised to $170 million–$210 million, up from $160 million–$200 million.

• Free cash outflow for 2026 expected between $25 million and $50 million, assuming oil prices moderate in H2.

• Capital expenditures expected to be ~$90 million for 2026.

• Earnings split expected to be roughly 50/50 between H1 and H2 due to timing of European emission credits.

• Management anticipates some moderation in oil prices and demand in the second half of 2026.