Orion Engineered Carbons reports 61% drop in rubber carbon black earnings despite 3% sales rise

Orion Engineered Carbons has posted a 61% year-on-year plunge in adjusted earnings (EBITDA) for its rubber carbon black division during Q2 2026, despite a 3% increase in net sales to $316 million (€274 million). The company reported adjusted earnings of $19.2 million for the three months ended 30 June, down sharply from the prior-year period. The sales uptick was driven by a 9% pass-through from higher oil prices and a 3% boost from favorable foreign exchange effects, but these gains were eroded by a 4% drag from 2026 contractual pricing agreements, a 3% decline in volumes, and a 3% adverse customer and regional mix. Orion noted that oil-linked feedstock cost volatility and Middle East conflict-related raw material concerns did not significantly impact underlying demand. Demand dynamics varied by region: replacement tire sales in the Americas fell for both passenger/light-truck (PC/LT) and truck/bus (TBR) segments, while original equipment (OE) demand improved slightly for PC/LT but declined for TBR. In Europe, passenger car tire demand—both replacement and OE—fell slightly year-on-year, though truck and bus tire sales rose. Orion described tire production as “below historic norms,” with imports “trending down slowly.” The company expects European anti-dumping duties to bolster local tire manufacturing, while strong Class 8 truck orders in 2026 could signal higher tire maintenance spending in 2027. For the first half of 2026, rubber carbon black sales dropped 3% year-on-year to $606 million, while adjusted earnings fell 57.0% to $38.2 million. The report is sourced from the European Rubber Journal.