Orion (OEC) reported late Monday preliminary fiscal Q3 adjusted EBITDA of about $55 million, with factors including lower Western market Rubber volumes and an oil price-driven inventory revaluation affecting the results.
The company said it now expects full-year 2025 adjusted EBITDA of $220 million to $235 million, compared with $270 million to $290 million in August.
"Reflecting the continued weakness in Western tire industry manufacturing rates due to elevated imports, we have tactically opted to reduce our production levels, reflecting our intensified focus on free cash flow generation," said CEO Corning Painter.
Painter said the company still expects to generate positive free cash flow this year, adding that it will be introducing additional cost measures to bolster its earnings and cash flow generation.
The company plans to release Q3 results Nov. 4.
Shares were down about 17% during after-hours activity.