Orion rubber blacks earnings fall 60% as sales edge up

Houston, Texas – Orion Engineered Carbons has reported a 61% year-on-year decline in second quarter adjusted earnings (EBITDA) for its rubber carbon black business, as lower sales volumes and weaker pricing more than offset higher oil-linked feedstock costs.

Net sales for the three months ended 30 June increased 3% year-on-year to $316 million (€274 million), while adjusted earnings fell 61% to $19.2 million, the company reported 5 Aug.

The increase in sales reflected a 9% pass-through effect from higher oil prices and a 3% favourable foreign exchange impact.

The gains, Orion said, were partly offset by a 4% negative impact of 2026 contractual pricing agreements; 3% lower volumes and a 3% adverse customer and regional mix.

Orion said volatility in oil-derived feedstock costs and concerns over raw material availability did not materially affect underlying demand during the quarter, despite the conflict in the Middle East.

Demand for replacement tires in the Americas remained below year-earlier levels for both PC/LT and TBR tires, while OE demand improved slightly for PC/LT tires but declined for TBR applications.

In Europe, passenger car tire demand, both replacement and OE, declined slightly year-on-year, while truck and bus tire sales increased.

Orion noted that tire production was “below historic norms” with imports “trending down slowly.”

The group expects European anti-dumping duties to support local tire manufacturing, while the ‘Class 8’ truck order strength in 2026 could “portend” tire maintenance spend in 2027.

For the first six months of 2026, rubber carbon black sales declined 3% year-on-year to $606 million, while adjusted earnings fell 57.0% to $38.2 million.