Speciality chemicals company Orion S.A. reported a 56 percent decline in second-quarter net income, as persistent demand challenges and elevated tyre imports weighed on performance despite improved production volumes.

The Houston-based carbon black manufacturer posted net income of USD 9.0 million, or 16 cents per share, for the three months ended 30 , compared with USD 20.5 million, or 35 cents per share, in the same period last year.

Revenue fell 2.2 percent to USD 466.4 million from USD 477.0 million a year earlier, primarily due to lower oil prices, though higher volumes in the rubber carbon black segment partially offset this.

“Our second quarter results were in line with our expectations, helped by an improved sequential plant performance,” stated Corning Painter, Chief Executive Officer.

“We overcame persistent demand headwinds related to elevated tire imports, which have continued to pressure key tire customers, along with broader customer hesitancy reflecting considerable macro uncertainty,” continued Painter.

The company's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 8.4 percent to USD 68.8 million from USD 75.1 million in the prior-year quarter. Adjusted diluted earnings per share fell to 32 cents from 41 cents.

Mixed Segment Performance

Orion’s speciality carbon black segment struggled significantly, with volumes dropping 7.8 percent to 58.0 thousand metric tonnes as demand weakened in Europe, the Middle East, Africa and the Americas. The segment's adjusted EBITDA plummeted 28.9 percent to USD 19.9 million.

In contrast, the larger rubber carbon black division showed resilience, with volumes rising 6.9 percent to 182.0 thousand metric tonnes due to stronger demand in Asia Pacific and the Americas. The segment’s adjusted EBITDA increased 3.8 percent to USD 48.9 million, aided by lower fixed costs and higher cogeneration benefits.

Capacity Rationalisation Planned

The company announced plans to discontinue production at three to five carbon black production lines across multiple facilities as it adapts to challenging market conditions.

Chief Financial Officer Jeff Glajch emphasised the company’s focus on cash generation despite headwinds.

“We are resolutely focused on levers to improve cash flow,” stated Orion’s Chief Financial Officer Jeff Glajch. “Even with the persistent macro headwinds, we expect to reach our previously conveyed goal of more than $50 million of free cash flow for 2025.”

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Zeon Corporation and Visolis Inc. have formalised their partnership by signing a binding term sheet, marking a pivotal advancement in the commercialisation of bio-based isoprene monomer and sustainable aviation fuel (SAF).

This collaboration, which now moves from technology verification towards project implementation, is built upon the progress made since their initial memorandum of understanding in March 2024 and the subsequent joint feasibility study announced in April 2025. Bio-based isoprene monomer serves as an essential component in the production of synthetic rubbers and various other materials, while SAF is increasingly recognised as a critical next-generation fuel for reducing carbon emissions within the aviation industry.

The newly established term sheet outlines a foundational agreement on the key elements required for a final investment decision. These include defining the business structure and the respective roles of each company, establishing technology and development strategies and advancing detailed engineering for the proposed production facility. Furthermore, the agreement covers the evaluation of potential sites, the process for engaging with suppliers, securing necessary regulatory approvals and planning the financing pathway.

The envisioned facility is set to commence commercial-scale output after successfully demonstrating mass production capabilities for biomass-based isoprene and SAF, utilising Visolis’ proprietary technology. Both companies are now committed to expediting the path to full-scale production and ensuring a steady supply of these sustainable products to the global market.

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Zeon Corporation has deepened its commitment to digital chemistry through a strategic investment and partnership with Chemify Limited, secured via its corporate venture arm Zeon Ventures Inc. Chemify, a growth-stage UK enterprise, is reshaping molecular research by integrating digital tools with automated laboratory systems. Its proprietary Chemputation technology translates molecular targets into executable chemical code, which operates directly on robotic platforms to complete integrated Design–Make–Test–Analyze cycles without manual intervention. This closed-loop automation allows Chemify to explore previously inaccessible areas of chemical space while reducing the timeline from concept to synthesized compound by up to tenfold.

A cornerstone of Chemify’s capability is its recently inaugurated Chemifarm in Glasgow – one of the most sophisticated automated facilities in the world for molecular design and construction. The facility enables accelerated iteration and autonomous synthesis of novel small molecules, converting chemical code into tangible compounds with unprecedented efficiency. These advances are critical for developing functional, synthesisable molecules that can contribute solutions to urgent global issues spanning public health, energy efficiency and environmental protection.

Zeon has been at the forefront of adopting digital methodologies in chemical R&D, recognising their transformative potential from an early stage. This investment is positioned to strengthen Zeon’s internal digital chemistry efforts and catalyse the invention of novel materials capable of addressing complex societal needs. The move aligns with Zeon’s STAGE30 corporate strategy, which targets a rise in revenue contribution from four key growth sectors – Mobility, Healthcare and Life Sciences, Telecommunications and Green Transformation – to 48 percent by fiscal 2028. By backing pioneering enterprises and cultivating advanced materials, Zeon continues to advance its dual vision of a sustainable planet and a secure, progressive society.

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The Rubber Board of India has announced the opening of an application window for financial aid for sulphur dusting to combat powdery mildew disease in rubber plantations for the year 2026. The scheme is open to all Rubber Producers’ Societies (RPS) operating in both traditional and non-traditional growing regions.

From 10 to 20 February 2026, eligible societies must submit their applications online through the 'ServicePlus' portal on the official Rubber Board website. Societies requiring help with the submission process are advised to contact their nearest Rubber Board regional office or field station, or to consult the board's website for further guidance.

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Pyrum Innovations AG has welcomed the official recognition by French authorities on 17 January 2026, which classifies tyre pyrolysis oil (TPO) as a legitimate raw material for the chemical sector. This pivotal regulatory milestone for pyrolysis oil derived from end-of-life tyres substantially enhances the product’s integration into established chemical value chains. It also provides greater predictability for future purchase and partnership frameworks, thereby accelerating the development of industrial material cycles.

For Pyrum, which processes scrap tyres through pyrolysis to recover pyrolysis oil, industrial carbon black and steel, this decision underscores the critical need for standardised and reliable regulatory conditions. Such clarity is fundamental for scaling investments, production volumes and supply chains, particularly as the chemical industry and circular economy converge. The establishment of clear product categories is essential to ramp up the market for high-quality recycled raw materials.

The company remains committed to tracking further developments in France and the wider European dialogue regarding the classification and application of recycled feedstocks. Pyrum’s overarching objective is to expand industrial-scale recycling solutions for scrap tyres. This regulatory progress directly supports the company’s mission to secure long-term, quality-assured supply agreements with partners across the chemical industry, thereby advancing a more sustainable and circular economic model.

Pascal Klein, CEO, Pyrum Innovations AG, said, “The decision in France is an important step for the industrial use of pyrolysis oil from waste tyres. It supports a trend that we are seeing in many markets, where the chemical industry is seeking reliable, technologically robust and clearly classified alternative raw materials.”

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