Orion S.a. · NYSE:OEC
Orion — Q3 2025 Earnings Presentation
24 slides from Orion's earnings presentation, Nov 5, 2025
Slide 1: 3Q Earnings Conference Call
orion 2025 3Q Earnings Conference Call November 5, 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: Macro backdrop still difficult
Macro backdrop still difficult Broad 30 2025 - Major Western tire manufacturers adjusting Considerations strategies to combat import challenges Premium Specialty markets soft, affecting mix; Channel hesitancy 3Q EBITDA of ~$57.7M down Challenges unique to Orion on soft volumes in key regions, advers
Slide 4: Pressure on Western Tire Mfg. — No Tariff Benefit Visible Yet
Pressure on Western Tire Mfg. — No Tariff Benefit Visible Yet U.S. Tire Imports Jan Feb Mar AprMay Jun Jul Aug Sep Oct Nov Dec USTMA U.S.Tire Production i) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tariffs of 25% on imported replacement tires intact - Latest available import data: July, up 9%
Slide 5: Increasing Competitiveness
Increasing Competitiveness Intensified Focus on Cash Flow Generation Not counting on end market recovery Cost actions being implemented Cash from working capital - Sustained improvement in plant operations, enabling reduced inventory levels - Robust seasonal Q4 release still expected Progress on wor
Slide 6: Key 3Q 2025 Financial Metrics
Key 3Q 2025 Financial Metrics Performance Drivers ° Volumes up year over year, but skewed toward lower-margin APAC region + Price/mix variance largely a function of adverse product and customer mix, as well as pricing * Reduced inventory affected fixed cost absorption; Oil-price driven inventory rev
Slide 7: Rubber Business Results
Rubber Business Results 3Q 2025 Key Performance Drivers - Volume gains in APAC and South America, on improved operating performance and 2025 contract outcomes, respectively + Pricing/mix reflected customer and regional mix comparisons, as well as contract outcomes + Reduced fixed cost absorption, ad
Slide 8: Specialty Business Results
Specialty Business Results 3Q 2025 Key Performance Drivers ° Overall volumes modestly higher, but predominantly into lower value markets or applications * Adverse product mix reflected hesitant demand trends in premium segments * Cost variance impacted by fixed cost absorption, otherwise GP/ton woul
Slide 9: Goodwill impairment is non-cash
Goodwill impairment is non-cash Other Financial Recovered $7.3M of fraud-related losses during Q3 2025; Discussion Items Continued aggressive pursuit on recoveries Updated amendment to credit agreement - Increased RCF capacity back to prior levels - Expanded bank group - larger more global banks - O
Slide 10: Revised Full Year 2025 Guidance
Revised Full Year 2025 Guidance Adjusted EBITDA (Reflecting current FX rates) RevESEh PPI - Cee Po S itive F C F Sti | | Adjusted EPS Revised: $0.80 - $0.95 per share Ex p e cte d fo r 2 @) 2 5 Capital Expenditures ~$150M (unchanged) Depreciation & Amortization ~$125M (unchanged) Free Cash Flow Revi
Slide 11: Resolute Focus On Improving Free Cash Flow
Resolute Focus On Improving Free Cash Flow Capital Spending Outlook ($ in millions) $233 $215 $207 $81 $37 $171 $145 $44 $29 aa $67 $20 $61 $29 $103} $85 $78 $55 2020 2021 2022 2023 2024 = Maintenance =EPA(I) = LAP(2) = Growth/Other (1) EPAspend completed in 2023 2) Greenfield project for acetylene
Slide 12: Free Cash Flow Remains Key Priority
Free Cash Flow Remains Key Priority FCF Conversion Inflection More Pronounced Beyond 2025, on Reduced Capex ——— FY 2024 - 2025E ($ in millions) 2024A 9M2025 2025E Adjusted EBITDA $302 => $193 = $220 - $235 Working Capital, Other (21) 5 50 Cash Interest Exp. (49) (38) (50) Cash Taxes (63) (31) (40) M
Slide 13: Taking decisive actions to combat headwinds
Taking decisive actions to combat headwinds Concluding Remarks More details on cost measures, asset optimization when we provide 2026 view in February Q&A Discussion Free cash flow improvement and leverage reduction > Highest priorities B
Slide 14: Appendix
Appendix
Slide 15: Reshoring Beneficiary: N.A. Tire Industry Production Capacity to 2030
Reshoring Beneficiary: N.A. Tire Industry Production Capacity to 2030 N.A. Tire Production Capacity (MM Units) Gane +47 \415,8%) I | i 2025 2026 2027 2028 2029 2030 + Net growth of 47 million tires/yr in N.A. production capacity from 2025 to 2030 (~3% CAGR) Current Announcements of N.A. Tire Product
Slide 16: FX has been a major factor contributing to higher leverage ratio
FX (particularly the Euro’s strengthening) has been a major factor contributing to higher leverage ratio Free cash flow efforts are helping mitigate Sources & Uses ($ in millions) Adjusted EBITDA Change in NWC Change in Provision Cash Paid for Interest Cash Income Tax Other Operating Cash Flow Capit
Slide 17: Historical Non-GAAP Metrics Reconciliation
Three Months Ended Q3 2025 Q2 2025 Q3 2024 Net sales 451 466 463 Cost of Sales 365 368 356 Gross Profit 86 98 107 Sales volume (in kmt) 238 240 225 Gross Profit per Metric Ton 360 410 477 Net income (loss) (67) 9 (20) . . Income tax expense (benefit) qa) 5 (11) Historical Non- Sa Ow Tnicoime (logs)
Slide 18: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation ‘Twelve Months Ended December 31, 2024 2023 2022 Adjusted EBITDA $302 $332 $312 Working Capital (21) 125 (147) Maintenance & EPA CAPEX (103) (108) (152) Interest payments (49) (39) (34) Cash paid for taxes (63) (56) (24) Discretionary Cash Flow $66 $254 $1
Slide 19: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation jation in $ per share Adjusted diluted EPS Three Months Ended Q3 2025 Q2 2025 Q3 2024 Diluted EPS $(1.20) $0.16 $(0.35) Misappropriation of assets, net = Professional fees related to misappropriation of assets = Other Adjustments including restructuring =
Slide 20: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation Adjusted Net Income Three Months Ended Q32025 Q2 2025 Q32024 Net income (loss) $ (67.1) $ 9.0 $ (20.2) add back long-term incentive plan 37 36 48 add back loss (recovery) due to misappropriation of FOr add back goodwill impairment add back other adjustment
Slide 21: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation n unless otherwise stated) Capital Employed 2025 2024 2023 2022 2021 2020 32025 YTD Q32024 YTD Total Assets 1,963.9 1,996.3 18573 1/8334 18887 1,631.0 13898 LESS: Current Liabilities 6353 5779 5167 4403 5528 448.7 3247 Capital Employed 13286 14184 13406 1,
Slide 22: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation Historical Non-GAAP Metrics Reconci Net Debt and Debt ratio September 30, 2025 Current portion oflong termdebt and other financial liabilities $ 329.6 Longterm debt, net 680.6 Total debt as per Consolidated Balance Sheets 1,010.2 Add: Deferred debt issuanc
Slide 23: Historical Non-GAAP Metrics Reconciliation
Historical Non- GAAP Metrics Reconciliation 4 2022 Q1 2023 2.2023 03 2023 4 2023 Q1 2024 2.2024 03 2024 4 2024 Q1 2025 2.2025 03 2025 Rubbe Specialty Sales Quarterly Sales Quarterly iam’ _tinmiltons) (prote/font “kml” Gnenifons) (roft Ton 168.4 59.0 467 37.7 180.5 843 53.0 52.1 1737. 745 53.6 426 18
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
Orion S.A. Common Shares — Q3 2025 Earnings Presentation on 6ix