Orion cuts earnings estimate on low-cost tire influx

Houston, Texas – Orion SA has lowered its full-year earnings (EBITDA) forecast due mainly to demand headwinds and the influx of cheap tires into its key markets.

The carbon black supplier now expects adjusted earnings to come in between $270 – $290 million (€232 - €249 million), down from an earlier forecast of $270 – $310 million.

“We are narrowing our guidance ranges to factor in a surge of tire imports into North America during the second quarter, as well as revised macro assumptions for the second half of 2025,” explained CEO Corning Painter 6 Aug.

The revised guidance range, he said, “assumes no meaningful recovery in our industrial end markets over the balance of 2025.”

According to the Orion leader, the second quarter was characterised by “persistent demand headwinds related to elevated tire imports” and broader customer hesitancy reflecting “considerable macro uncertainty.”

Over the first six months of the year, Orion’s rubber carbon black segment reported a 4.6% year-on-year increase in volumes to 372 kilotonnes, driven by higher demand in the Asia-Pacific region and Americas.

Net sales, however, decreased by $18.2 million, or 2.8%, year-over-year to $625.3 million for the six months ended 30 June.

Orion linked the dip primarily to the pass-through of lower oil prices, partially offset by higher volume.

Adjusted earnings fell 14.2% to $89.7 million for the six-month period, driven primarily by “unfavourable timing from the pass-through of raw material costs and unfavourable customer and regional mix.”