Orion S.A. Q3 FY25 Results

Persistent macro uncertainty and challenges specific to our tire industry customer base affected our financial performance in the third quarter, as did lower oil prices and our efforts to extract cash from working capital. Product and geographic mix also                                                                                                                                            - 1 -ORION S.A. impacted results. Consequently, our third quarter Adjusted EBITDA was lower sequentially, below expectations. Considering elevated import levels, excess tire channel inventories remain a demand overhang through the remainder of this year. We continue to believe the evolving global trade paradigm including tariffs should ultimately support our tire customers. Despite that, we are intensifying our internal efforts to improve Orion’s competitiveness and to navigate the current backdrop. Our efforts to enhance competitiveness include a comprehensive analysis of cost structure and underperforming assets, headcount reductions, additional belt tightening efforts and greater prioritization of mission critical maintenance projects. Reflecting progress on working capital initiatives and considering our new Adjusted EBITDA guidance range, we anticipate free cash flow in $25 million – $40 million range for 2025.”

A positive during the third quarter was our continued progress on levers to improve cash flow, including working capital efforts. Despite the persistent headwinds in our key end markets, we have generated free cash flow year to date and expect to generate as much as $40 million in positive free cash flow in 2025.”