Orion S.a. · NYSE:OEC
Orion — Q2 2025 Earnings Presentation
25 slides from Orion's earnings presentation, Aug 7, 2025
Slide 1: 2Q Earnings Conference Call
orion 2025 2Q Earnings Conference Call August 7, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Forwar atement This presentation contains and refers to certain forward-looking statements with respect to our financial condition, results of operationsand business, These statements constitute forward-looking statements within the meaning of Section 21£ of the Securities
Slide 3: Broad 2025 Considerations
Broad 20 2025 Considerations 2Q EBITDA of ~$69M up sequentially, despite ~5% softer volumes Improved plant performance Specialty results reflect greater customer hesitancy; Positioned for recovery Sequential Earnings Improvement, Challenging Backdrop Persists Results in line with expectations Improv
Slide 4: Potential Tariff Benefit
Potential Tariff Benefit Yl] Late 2025 Tariffs of 25% on Southeast Asian tires intact Replacement tires (more than half of Orion’s U.S. Tire Imports total Rubber segment volumes) Americas region represents ~40% of Rubber sales Monthly tire import data spiked March (+8%), April (+12%) and May (+7%) a
Slide 5: Tire Industry Capital Investments Underscore Reshoring Trends
Tire Industry Capital Investments Underscore Reshoring Trends N.A. Tire Production Capacity (LV + TB) (MM Units/yr) (+53 (417,5%) 1 1 pg | 2025 2026 2027 2028 2029 2030 Growth of ~53 million tires/yr in N.A. production capacity from 2025 to 2030 (3.3% CAGR) $7-S8 Billion of N.A. Tire Investments 202
Slide 6: Rationalization of 3-5 Production Lines
Rationalization of 3-5 Production Lines Ongoing data-driven analysis of asset performance by plant, line, product, and customers Portfolio | ue . Fewer lines competing for maintenance capital Opti mM ization Projects increasingly focused on ensuring reliability of most important, highest performing
Slide 7: Key 2Q 2025 Financial Metrics
Key 2Q 2025 Financial Metrics Performance Drivers * Overall portfolio exhibited resilience in 2Q, underpinned by+3% YoY volume improvement attributable to Rubber segment * Unfavorable geographic mix reflected in volume bridge; Improved operating performance, lower costs and higher Cogen offset price
Slide 8: Rubber Business Results
Rubber Business Results 2Q 2025 Key Performance Drivers - Volume gains despite persistent pressure on western tire production, driven by 2025 contract outcomes and improvement in China « Volume gains skewed toward lower margin regions + Cost performance outpaced price/mix + Cost improvement from imp
Slide 9: Specialty Business Results
Specialty Business Results 2Q 2025 Key Performance Drivers ° Volumes weak in North American and Europe, particularly into higher-volume polymers end market; Customer hesitancy ° Huaibei improvement, conductives strength both bright spots * Cost variance primarily a function of inventory revaluation
Slide 10: Revised Full Year 2025 Guidance
Revised Full Year 2025 Guidance Adjusted EBITDA Revised: $270M - $290M (Reflecting current FX rates) Prior: $270M - $310M Reaffirming FCF | Guidance ina Adjusted 5 Prion st 20 per share $170 pe hare D iffi Cc U It Yea r Capital Expenditures ~$150M (unchanged) Depreciation & Amortization ~$125M (prio
Slide 11: Capital Spending Outlook
Capital Spending Outlook ($ in millions) Sharply Improving Free Cash Flow sas = Total 2025-26 Capex — 2. & Expectations Unchanged ~ | Limited Growth Capex - 2020 2021 2022 2023 2024 2025F 2026F Sufficient Ca pacity = Maintenance mEPA(1) =LAP(2) mGrowth/Other ~ Projected Growth Q)__EPAspend completed
Slide 12: Free Cash Flow Remains Key Focus
Free Cash Flow Remains key Focus 2025 FCF Guidance Reaffirmed ——— FY 2024 - 2026E ($ in millions) 2024A 2025E 2026E Adjusted EBITDA $302 — $270-$290 — Higher Working Capital, Other (21) ~25 NA Cash Interest Exp. (49) (50-55) flat Cash Taxes (63) (40-45) flat or higher Maintenance Capex (103) (90) (9
Slide 13: Improved Sequential Results Despite Macro Uncertainty
Improved Sequential Results Despite Macro/ Uncertainty; Operating Performance a Key Factor Key Takeaways Expecting Some Benefit from Tariffs Late 2025 Enacting Additional Measures to Combat Persistently Challenging Backdrop Q&A Discussion Free Cash Flow Improvement > Highest Priority B
Slide 14: Upcoming Investor Engagement
Upcoming Investor Engagement Mizuho Industrials & Chemicals Conference 2025 New York, Aug. 13% UBS Global Materials Conference New York, Sept. 3"4 Jefferies Industrials Conference New York, Sept. 4th 4
Slide 15: Appendix
Appendix
Slide 16: Change in Net Debt
Change in Net Debt Sources & ($ in millions) Adjusted EBITDA Change in NWC Change in Provision Cash Paid for Interest Cash Income Tax Other Operating Cash Flow Capital Expenditures Repurchase of Common stock/Dividends Other: Primarily FX on Debt (Increase)/Decrease in Net Debt 135 Quarter End Net Le
Slide 17: Three Months Ended
Three Months Ended Q2 2025 Q1 2025 Q2 2024 Net sales 466 478 477 Cost of Sales 368 380 367 Gross Profit 98 98 110 Sales volume (in kmt) 240 252 233 Gross Profit per Metric Ton 410 390 471 Net income (loss) 9 9 21 ° ° Income tax expense (benefit) 5 9 9 Historical Non- Se ow . Income before earnings n
Slide 18: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation Reconciliation of FCF and ‘Twelve Months Ended December 31, 2024 2023 2022 Adjusted EBITDA $302 $332 $312 Maintenance & EPA CAPEX (103) (108) (152) Interest payments (49) (39) (34) Cash paid for taxes") (63) (56) (24) Discretionary Cash Flow $66 $254 $145)
Slide 19: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation Adjusted diluted EPS ics Reconci $ per share Three Months Ended 02.2025 Q1 2025 02.2024 Diluted EPS $0.16 $0.16 $0.35 Long Term Incentive Plan. 0.06 0.05 0.05 Misappropriation of assets, net oo oo oo Professional fees related to misappropriation of assets
Slide 20: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation Adjusted Net Income Three Months Ended Q2.2025 Q1 2025 Q2 2024 Net income 9.0 $ 91 $ 20.5 ‘add back long-term incentive plan 36 27 3.0 ‘add back loss due to misappropriation of assets, net = = = ‘add back loss due to professional fees related to misappropr
Slide 21: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation n unless otherwise stated) Capital Employed 2025 2024 2023 2022 2021 2020 22025 YTD 922024 YTD Total Assets 20249 19088 18573 1/8334 18887 1,631.0 13898 LESS: Current Liabilities 6208 4893 5167 4403 5528 448.7 3247 Capital Employed 1,404.1 14195 13406 1,39
Slide 22: Net Debt and Debt ratio
Historical Non- GAAP Metrics Reconciliation Net Debt and Debt ratio June 30, 2025 Current portion of long-term debt and other financial liabilities 3420 Long-term debt, net 680.2 Total debt as per Consolidated Balance Sheets 1,022.2 Add: Deferred debt issuance costs- Term loans 28 Less: Cash and cas
Slide 23: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation 03 2022 4 2022 Q1 2023 2.2023 03 2023 4 2023 Q1 2024 2.2024 3 2024 4 2024 Q1 2025 2.2025 Rubbe Specialty Sales Quarterly Sales Quarterly iam’ _tinmiltons) (prote/font “kml” Gnenifons) (roft Ton 191.0 69.6 523 M48 168.4 59.0 467 377 180.5 843 53.0 52.1 1737
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present certain financial measures that are not prepared in accordance with GAAP or the accounting standards of any other jurisdiction and may not be comparable to other similarly titled measures of other companies. For a reconciliation of these non-GAAP financial meas
Slide 25: Investor Relations
Investor Relations Contact Details Christopher Kapsch christopher.kapsch@orioncarbons.com
Orion S.A. Common Shares — Q2 2025 Earnings Presentation on 6ix