Orion S.A.

Second-quarter adjusted EBITDA was $58 million, up 26% sequentially and down 15% year over year. Specialty adjusted EBITDA was $39 million, up 96% year over year, on 5% higher specialty volumes; Rubber adjusted EBITDA was $19 million, down 61% year over year. Cash flow from operations was $27 million, capital expenditures were $25 million, and free cash flow was $2 million in Q2. Net debt ended the quarter at $961 million, with net debt-to-adjusted EBITDA of 4.4x and liquidity of $178 million. For 2026, Orion reaffirmed adjusted EBITDA guidance of $170 million to $210 million and raised free cash flow guidance to a $5 million midpoint, assuming Brent crude averages $80 per barrel in the second half.

Corning Painter framed the quarter as evidence that Orion is executing well in a volatile environment, emphasizing controllable levers like safety, reliability, working capital, and pricing. He highlighted strong Specialty demand, favorable local-for-local supply dynamics, and supportive trade and regulatory developments, including EU antidumping duties on Chinese tire exports. His tone was constructive and confident, but he repeatedly noted limited visibility and macro uncertainty.

Jon Puckett focused on the mechanics behind the quarter: $58 million of adjusted EBITDA, with Specialty offsetting Rubber weakness, and $2 million of free cash flow. He said working capital initiatives, especially inventory and accounts payable, generated $4 million of cash in the quarter and more than offset what would have been about a $60 million oil-feedstock headwind. He also noted capex fell by $11 million sequentially to $25 million, net debt was $961 million, leverage was 4.4x, and liquidity was $178 million.

Analysts pressed on contract negotiations, Specialty’s Q3 outlook, gross profit per ton durability, payment terms, and EU emissions credits. Management said negotiations have started with some customers and that the setup is somewhat better this year because of lower imports, regulatory actions, tight spot markets, and customers’ experience with reliability. On Specialty, management said Q3 is seasonally weaker, visibility is limited, some Q2 pricing/timing benefits may not repeat, and September is usually the biggest month, while EU emissions credits are now expected to hit in Q3 and are included in guidance.