Orion S.A. Q1 FY26 Results

We are pleased with our first quarter results, including Adjusted EBITDA of $46 million which was ahead of internal expectations. This was despite Rubber segment volumes which reflected continued sluggish Western Hemisphere tire build rates to start the year. The dynamic backdrop resulting from the Middle East conflict is a test of Orion’s agility, and I am proud of our team’s responsiveness – executing price increases and surcharges, flexing our supply chain to meet higher demand, and judiciously managing inventories. Despite uncertainties associated with the conflict, including its impact on energy prices and the global economy, our business’s resilience and asset footprint have enabled us to support customers during these dynamic times. Orion’s products are essential, we are competitively positioned, and our customer relationships are enduring. Our healthy order book underscores the value of Orion’s local supply network. The earnings resilience of our business is enhanced during periods of higher oil prices. This characteristic, coupled with our strong order trends, gives us confidence to increase our 2026 Adjusted EBITDA guidance range, which is now $170 to $210 million, up from $160 to $200 million. We do contemplate some moderation in both oil prices and demand in the second half of 2026.”

In addition to normal first quarter seasonality, we experienced incremental working capital headwinds during the month of March due to higher crude oil prices. Contrary to the upward bias in EBITDA, working capital is pressured during periods of higher oil prices. Oil price volatility affects the timing of cash conversion but does not alter the long-term cash generation fundamentals of the business. Accordingly, we are amplifying efforts to mitigate the effects on working capital. Generating positive cash flow remains our number one financial priority.”