Orion rubber blacks hit by “historically high” cheap tire imports

Houston – Orion SA’s Rubber Carbon Black segment has reported higher volumes but lower sales and earnings in 2025, as “historically high” levels of lower-tier tire imports into the Western Hemisphere weighed on results.

For the full year ended 31 Dec 2025, rubber carbon black volumes rose 4% year on year to 714.8kt, from 689.0kt in 2024.

Segment sales declined 3% to $1.18 billion (€1.0 billion), from $1.23 billion a year earlier.

Adjusted earnings fell 20% to $154.5 million, compared with $194.1 million in 2024, Orion reported 17 Feb.

Orion said lower tire production rates in key Western markets, soft freight tonnage and the pass-through effect of lower oil prices pressured performance.

The earnings decline was also attributed to an unfavourable customer and regional mix, partly offset by higher volumes.

In the fourth quarter, the division’s volumes declined 1% year-on-year to 166.7kt, reflecting lower demand in EMEA and the Americas, largely offset by gains in other regions.

Segment sales fell 5% year-on-year to $272 million in the quarter, primarily due to the pass-through of lower oil prices, while adjusted earnings decreased 22% to $28.7 million.

According to Orion, ‘historically high’ levels of lower-tier tire imports into the Western Hemisphere and “persistently soft demand” in key industrial end-markets including transportation and polymers pressured results, particularly in the second half.

In response, the supplier said it had focused on mitigating actions, including cost rationalisation, inventory reduction and other optimisation efforts.

At group level, Orion reported full-year net sales of $1.8 billion, down 4% year-on-year, and adjusted earnings of $248 million.

Commenting on the full-year performance, CEO Corning Painter said results were “better than contemplated in our most recent guidance,” as year-end destocking and customer production curtailments were “not as pronounced as anticipated.”

Painter added that “transient fundamental headwinds” had affected financial results and outlook, but said the company had made progress on operational and manufacturing initiatives during the year.