Orion SA | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 500.9 M

Revenue: As of FY2026 Q2, the actual value is USD 500.9 M, beating the estimate of USD 474.4 M.

EPS: As of FY2026 Q2, the actual value is USD 0.03.

EBIT: As of FY2026 Q2, the actual value is USD 21.3 M.

Second Quarter 2026 Financial Highlights

Net Sales

Orion S.A. reported total Net sales of $500.9 million for the second quarter of 2026, an increase from $466.4 million in the prior year’s quarter. This was driven by 9% higher average year-over-year oil prices and 2% favorable foreign currency translation, partially offset by 2% lower pricing, 1% reduced volumes, and adverse product mix in the Rubber Carbon Black segment . Specialty Carbon Black: Net sales increased to $184.8 million in Q2 2026 from $158.1 million in Q2 2025, a 17% year-over-year increase, attributed to 8% higher pricing, 4% favorable product mix, 3% higher volumes, and a 2% foreign exchange benefit . Rubber Carbon Black: Net sales increased to $316.1 million in Q2 2026 from $308.3 million in Q2 2025, a 3% year-over-year increase, driven by 5% higher pricing from pass-through effects of higher oil prices, partially offset by 3% lower volumes and customer mix, with a 3% foreign currency translation benefit .

Net Income

Consolidated Net income for the second quarter of 2026 was $1.8 million, down from $9.0 million in the prior year quarter .

Adjusted EBITDA

Adjusted EBITDA for the second quarter of 2026 was $58.2 million, which is a 26% sequential improvement, but decreased from $68.8 million in Q2 2025 . Specialty Carbon Black: Adjusted EBITDA increased by 96% to $39.0 million in Q2 2026 from $19.9 million in Q2 2025, primarily due to beneficial pricing and volume improvement in premium grades and high-margin regions . Rubber Carbon Black: Adjusted EBITDA decreased by 61% to $19.2 million in Q2 2026 from $48.9 million in Q2 2025, mainly due to lower contractual pricing agreements for 2026, unfavorable customer mix, and an intentional inventory draw .

Other Operational Metrics

Gross Profit: Gross profit was $93.0 million in Q2 2026, down from $98.4 million in Q2 2025 .
Income from Operations: Income from operations was $21.3 million in Q2 2026, compared to $32.1 million in Q2 2025 .
Selling, General and Administrative Expenses: These expenses were $62.7 million in Q2 2026, up from $57.7 million in Q2 2025 .
Research and Development Costs: These costs were $7.2 million in Q2 2026, compared to $6.5 million in Q2 2025 .
Interest and Other Financial Expense, Net: These expenses were $16.3 million in Q2 2026, down from $19.1 million in Q2 2025 .
Income Tax Expense: Income tax expense was $3.4 million in Q2 2026, down from $4.6 million in Q2 2025 .
Cost Saving Initiatives: Orion S.A. is on track for a full-year benefit of $20 million from ongoing cost-saving initiatives .

Cash Flow and Balance Sheet

Operating Cash Flow: Operating cash flow was $27.3 million in Q2 2026, supported by a $4 million contribution from working capital initiatives . For the six months ended June 30, 2026, net cash provided by operating activities was $14.9 million .
Capital Expenditures (Capex): Capex was $25.4 million in Q2 2026, which was $11 million less than the prior quarter . For the six months ended June 30, 2026, acquisition of property, plant, and equipment was -$61.5 million . The company is on track for full-year capital expenditures of $90 million .
Free Cash Flow: Free cash flow was $1.9 million in Q2 2026 . For the six months ended June 30, 2026, free cash flow was -$46.6 million .
Net Debt: Net debt was $960.7 million at the end of Q2 2026, compared to $921.2 million at December 31, 2025 .
Net Debt-to-TTM Adjusted EBITDA Ratio: The ratio was 4.4x at quarter end, compared to 3.7x at December 31, 2025 .
Liquidity: Orion S.A. ended the quarter with liquidity of $178 million .

Outlook

Orion S.A. reaffirmed its 2026 Adjusted EBITDA guidance range of $170 million to $210 million . The company increased its full-year free cash flow guidance range to an outflow of -$10 million to a positive free cash flow of $20 million . This represents a $43 million improvement at the midpoint compared to prior guidance, attributed to successful working capital efforts and expected easing of global oil prices in the second half of the year .