Orion S.A., a specialty chemical company, announced financial results for period ended September 30, 2024.

During Q3 2024, Orion reported net sales of US$ 463.4 million, down $2.8 million year over year. Net loss was $20.2 million, which includes a $42.5 million impact from the loss due to misappropriation of assets, net of income tax benefit, down $46.4 million year over year. Adjusted EBITDA was $80.1 million, up 4% year over year.

“While our net income was a loss due to the fraud event, Orion delivered strong third quarter Adjusted EBITDA, even with Rubber segment volumes being down 11% versus prior year. Rubber volumes have constrained operating results in 2024, due to the high level of tire imports into Western markets. We addressed this as part of our commercial strategy for 2025. As a result, we expect volume growth, even in a flat market, while maintaining Rubber segment gross profit per ton. Increased tariffs and/or economic improvement represent potential upsides. Expected operational improvements, productivity initiatives and strong cost management, should also contribute,” stated Corning Painter, Orion’s Chief Executive Officer. “I believe the company is in an excellent position to deliver higher Adjusted EBITDA next year regardless of the global economy’s trajectory.”

“As we complete our growth investments, we expect much stronger free cash flow in 2025 and 2026,” continued Painter. “With conviction around this dynamic, and as conveyed last quarter, we continue to see share repurchases as an appropriate allocation of excess capital. We re-initiated buyback activity during the third quarter, repurchasing approximately $11 million of stock, or more than 1% of our shares outstanding.”

Jeff Glajch, Orion’s Chief Financial Officer added, “this quarter’s GAAP Net loss of $20 million includes $43 million of net loss due to the fraud. This compares to a net income of $26 million in the third quarter of 2023. The independent investigation is complete and remediation measures have been implemented.”

“On an operating basis, before the impact from the misappropriation of assets,” continued Glajch, “our 4% Adjusted EBITDA improvement was achieved despite the aforementioned lower Rubber segment volumes. These results illustrate the durable and resilient nature of our business as we close out 2024. The Adjusted EBITDA improvement was a function of better Specialty segment regional mix, better operating performance and formula-based pricing, which more than offset lower Rubber volumes. For the balance of 2024, considering macro signals and lower forecasts from customers including key tiremakers about extended year-end production shutdowns, we are modifying our full year guidance.”