Revenue growth remains in a contractionary phase with a 3.8% year-over-year decline in 2026Q1, while gross margins have eroded significantly from the 24.3% peak observed in early 2024.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 1.79B | 1.81B | 1.88B | 1.89B | 2.03B | 1.55B | 1.14B | 1.48B | 1.58B | 1.33B | 1.08B | 1.22B | 1.6B | 1.85B | 1.85B |
| Revenue Growth % | -3.44% | -3.77% | -0.87% | -6.75% | 31.3% | 36.12% | -23.03% | -6.45% | 18.81% | 22.61% | -10.87% | -24.18% | -13.33% | 0.09% | - |
| Cost of Goods Sold | 1.45B | 1.45B | 1.45B | 1.44B | 1.58B | 1.16B | 844.03M | 1.09B | 1.15B | 950.7M | 727.55M | 865.31M | 1.24B | 1.48B | 1.48B |
| COGS % of Revenue | - | 80.09% | 77.16% | 76.19% | 77.9% | 75.01% | 74.27% | 73.6% | 72.76% | 71.57% | 67.16% | 71.19% | 77.16% | 79.93% | 79.85% |
| Gross Profit | 340.9M | 359.8M | 428.8M | 451M | 448.8M | 386.6M | 292.35M | 389.71M | 429.97M | 377.6M | 355.8M | 350.19M | 366.09M | 371.18M | 372.36M |
| Gross Margin % | 19.06% | 19.91% | 22.84% | 23.81% | 22.1% | 24.99% | 25.73% | 26.4% | 27.24% | 28.43% | 32.84% | 28.81% | 22.84% | 20.07% | 20.15% |
| Gross Profit Growth % | - | -16.09% | -4.92% | 0.49% | 16.09% | 32.24% | -24.98% | -9.36% | 13.87% | 6.13% | 1.6% | -4.34% | -1.37% | -0.32% | - |
| Operating Expenses | 259.6M | 258.2M | 264.9M | 246.4M | 248.8M | 232.4M | 196.34M | 226.76M | 252.24M | 225.65M | 208.75M | 212.33M | 239.37M | 227.25M | 228.9M |
| OpEx % of Revenue | - | 14.29% | 14.11% | 13.01% | 12.25% | 15.02% | 17.28% | 15.36% | 15.98% | 16.99% | 19.27% | 17.47% | 14.93% | 12.28% | 12.38% |
| Selling, General & Admin | 231.4M | 230.7M | 237.8M | 221.9M | 227.1M | 210.4M | 176.14M | 206.89M | 231.92M | 210.3M | 192.58M | 186.09M | 193.17M | 216.89M | 215.59M |
| SG&A % of Revenue | - | 12.77% | 12.67% | 11.72% | 11.18% | 13.6% | 15.5% | 14.01% | 14.7% | 15.83% | 17.78% | 15.31% | 12.05% | 11.72% | 11.66% |
| Research & Development | 28.2M | 27.5M | 27.1M | 24.5M | 21.7M | 22M | 20.2M | 19.87M | 20.32M | 18.16M | 15.28M | 14.65M | 15.75M | 13.93M | 12.57M |
| R&D % of Revenue | - | 1.52% | 1.44% | 1.29% | 1.07% | 1.42% | 1.78% | 1.35% | 1.29% | 1.37% | 1.41% | 1.21% | 0.98% | 0.75% | 0.68% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.32M | -5.26M | -9.38M | -5.33M | -7.3M |
| Operating Income | 79.9M | 101.6M | 163.9M | 204.6M | 200M | 154.2M | 96.01M | 162.95M | 177.73M | 151.94M | 165.34M | 142.77M | 159.3M | 128.85M | 131.24M |
| Operating Margin % | 4.47% | 5.62% | 8.73% | 10.8% | 9.85% | 9.97% | 8.45% | 11.04% | 11.26% | 11.44% | 15.26% | 11.75% | 9.94% | 6.97% | 7.1% |
| Operating Income Growth % | - | -38.01% | -19.89% | 2.3% | 29.7% | 60.61% | -41.08% | -8.32% | 16.97% | -8.1% | 15.81% | -10.37% | 23.63% | -1.82% | - |
| EBITDA | 180.3M | 233.5M | 289.2M | 317.6M | 305.7M | 258.3M | 192.53M | 259.66M | 275.89M | 250.3M | 252.08M | 222.34M | 253.03M | 233.88M | 209.63M |
| EBITDA Margin % | 10.08% | 12.92% | 15.4% | 16.77% | 15.05% | 16.7% | 16.94% | 17.59% | 17.48% | 18.84% | 23.27% | 18.29% | 15.78% | 12.64% | 11.34% |
| EBITDA Growth % | -33.42% | -19.26% | -8.94% | 3.89% | 18.35% | 34.16% | -25.85% | -5.88% | 10.22% | -0.71% | 13.38% | -12.13% | 8.19% | 11.56% | - |
| D&A (Non-Cash Add-back) | 100.4M | 131.9M | 125.3M | 113M | 105.7M | 104.1M | 96.53M | 96.71M | 98.16M | 98.36M | 86.74M | 79.57M | 93.73M | 105.03M | 78.39M |
| EBIT | -9M | 101.6M | 100.6M | 211.9M | 202.3M | 223M | 53.37M | 143.55M | 195M | 121.88M | 116.79M | 123.11M | 46.83M | 113.72M | 112.07M |
| Net Interest Income | -64.2M | -62.3M | -49.4M | -50.9M | -39.9M | -38M | -38.7M | -23.97M | -28.64M | -44.13M | -41.44M | -47.53M | -97.09M | -130.8M | -129.23M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 824K | 740.04K | 2.16M | 1.52M | 6.15M | 1.94M |
| Interest Expense | 64.2M | 62.3M | 49.4M | 50.9M | 39.9M | 38M | 38.7M | 23.97M | 28.64M | 29.08M | 42.18M | 49.68M | 98.61M | 134.91M | 128.66M |
| Other Income/Expense | -135.5M | -135.9M | -110M | -40.8M | -42.3M | 32.2M | -69.72M | -42.81M | -9.48M | -67.35M | -90.27M | -68.79M | -210.39M | -144.01M | -143.83M |
| Pretax Income | -55.6M | -34.3M | 53.9M | 163.8M | 157.7M | 186.4M | 26.29M | 120.14M | 168.25M | 84.6M | 75.07M | 73.98M | -51.09M | -15.16M | -12.59M |
| Pretax Margin % | -3.11% | -1.9% | 2.87% | 8.65% | 7.76% | 12.05% | 2.31% | 8.14% | 10.66% | 6.37% | 6.93% | 6.09% | -3.19% | -0.82% | -0.68% |
| Income Tax | 33.6M | 35.8M | 9.7M | 60.3M | 51.5M | 51.7M | 8.13M | 33.22M | 46.94M | 19.74M | 25.71M | 26.43M | 23.11M | 10M | 11.45M |
| Effective Tax Rate % | -60.43% | -104.37% | 18% | 36.81% | 32.66% | 27.74% | 30.93% | 27.65% | 27.9% | 23.33% | 34.24% | 35.73% | -45.24% | -65.93% | -91% |
| Net Income | -89.1M | -70.1M | 44.2M | 103.5M | 106.2M | 134.7M | 18.16M | 86.92M | 121.31M | 64.86M | 49.37M | 47.54M | -74.2M | -25.16M | -24.04M |
| Net Margin % | -4.98% | -3.88% | 2.35% | 5.46% | 5.23% | 8.71% | 1.6% | 5.89% | 7.69% | 4.88% | 4.56% | 3.91% | -4.63% | -1.36% | -1.3% |
| Net Income Growth % | -434.96% | -258.6% | -57.29% | -2.54% | -21.16% | 641.9% | -79.11% | -28.35% | 87.03% | 31.39% | 3.83% | 164.08% | -194.89% | -4.66% | - |
| Net Income (Continuing) | -89.1M | -70.1M | 44.2M | 103.5M | 106.2M | 134.7M | 18.16M | 86.92M | 121.31M | 64.86M | 49.37M | 47.54M | -74.2M | -25.16M | -24.04M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.58 | -1.24 | 0.76 | 1.73 | 1.73 | 2.21 | 0.30 | 1.42 | 1.99 | 1.07 | 0.82 | 0.79 | -1.35 | -0.44 | -0.42 |
| EPS Growth % | -447.83% | -263.16% | -56.07% | 0% | -21.72% | 636.67% | -78.87% | -28.64% | 85.98% | 30.49% | 3.8% | 158.52% | -206.82% | -4.76% | - |
| EPS (Basic) | - | -1.24 | 0.76 | 1.75 | 1.74 | 2.22 | 0.30 | 1.45 | 2.04 | 1.09 | 0.83 | 0.79 | -1.35 | -0.44 | -0.42 |
| Diluted Shares Outstanding | 56.38M | 56.32M | 58.37M | 59.98M | 61.38M | 60.95M | 61.41M | 61.3M | 61.05M | 60.67M | 60.15M | 59.83M | 50.47M | 59.64M | 59.64M |
| Basic Shares Outstanding | 56.38M | 56.32M | 58.22M | 58.99M | 60.9M | 60.71M | 60.43M | 59.99M | 59.57M | 59.32M | 59.35M | 59.63M | 50.4M | 59.64M | 59.64M |
| Dividend Payout Ratio | - | - | 10.86% | 4.73% | 4.71% | - | 66.34% | 55.26% | 39.29% | 70.47% | 89.62% | 93.3% | - | - | - |
Margin compression from feedstock
As evidenced by the most recent quarterly data, OEC has experienced a sustained revenue decline, with the latest period showing a 3.8% year-over-year contraction, suggesting that the company is struggling to maintain volume growth amidst a challenging macroeconomic environment for specialty chemical producers.
The consistent negative growth trajectory indicates that the company's pricing power may be insufficient to offset volume losses in its core segments. Investors should monitor whether this trend reflects a structural loss of market share or merely a cyclical downturn in automotive and industrial demand.
Based on reported financial statements, gross margins have compressed from a peak of 24.3% in early 2024 to 17.2% in the most recent quarter, highlighting the company's vulnerability to fluctuations in carbon black oil costs and limited ability to pass through inflationary pressures.
The inability to maintain gross margins above the 20% threshold suggests that the company's high-fixed-cost manufacturing model is currently inefficient. This margin degradation appears to be a primary driver of the company's recent inability to sustain positive net profitability.
According to recent SEC filings, OEC has reported inconsistent net income results, including a significant net loss of $67.1 million in 2025Q3, which suggests that non-operating items or impairment charges are creating substantial noise that masks the underlying operational performance of the business.
The disconnect between positive gross profit and recurring net losses warrants further investigation into the company's non-operating expense structure. It appears that interest expenses or one-time environmental remediation costs may be disproportionately impacting the bottom line, rendering EPS figures less reliable for valuation purposes.
As reported in financial statements, SG&A expenses have remained relatively sticky despite the revenue decline, with the company spending approximately $59.1 million in the most recent quarter, indicating a lack of operational flexibility in managing overhead during periods of top-line contraction.
The rigidity of the cost structure suggests that management may be prioritizing long-term capacity maintenance over short-term expense discipline. This approach may be necessary for technical operations, but it leaves the company highly exposed to further revenue declines.
Based on the provided income statement data, the shift to a negative net margin of -3.88% in the latest quarter raises significant questions regarding the company's ability to generate sustainable shareholder returns without a fundamental improvement in feedstock price pass-through mechanisms.
Short-sellers may focus on the company's inability to return to profitability despite its specialized product portfolio. The current financial profile suggests that the 'complexity discount' applied by the market may be justified until the company demonstrates a clear path to stabilizing its net income.
Quick answers to the most common questions about buying OEC stock.
For fiscal year 2025, Orion Engineered Carbons S.A. (OEC) reported total revenue of $1.81B. This represents a 2.2% decline compared to $1.85B in 2012.
Orion Engineered Carbons S.A. (OEC) reported a net loss of $70.1M for the fiscal year ending 2025.
Orion Engineered Carbons S.A. (OEC) reported an operating income of $101.6M, resulting in an operating profit margin of 5.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Orion Engineered Carbons S.A. (OEC) generated $359.8M in gross profit for the year, representing a gross profit margin of 19.9%. This demonstrates the company's core pricing power and production efficiency.