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 a late-quarter demand surge, especially in the Specialty segment.

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

• Net loss for Q1 2026 was $9.9 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 $48.5 million, driven by higher working capital needs and $36 million in CapEx.

• Adjusted net loss was $6.1 million, compared to adjusted net income of $12.8 million in Q1 2025.

• Adjusted diluted EPS was $(0.11), down from $0.22 in Q1 2025.

Outlook and guidance

• Full-year adjusted EBITDA guidance raised by $10 million to $170–$210 million, with an expected even split between H1 and H2 due to emission credit timing.

• Full-year free cash outflow expected between $25 million and $50 million, assuming oil prices moderate in H2.

• Q2 cash flow expected to mirror Q1, with improvement in Q3 and positive cash flow in Q4.

• Management expects sufficient liquidity to meet planned capital expenditures and working capital needs, but highlights risks from oil price volatility and geopolitical tensions.

• Demand strength in specialties expected to persist through Q2, but visibility beyond that is limited due to geopolitical uncertainty.