Will's questions to Orion SA (OEC) leadership • Q1 2025
Question
Will, on behalf of Jon Tanwanteng at CJS Securities, asked for more detail on the headwind from the timing of input costs and whether this impact is expected to reverse. He also questioned if the company's guidance includes any net benefit from tariffs and how it balances potential upside with risks like lower freight activity.
Answer
CEO Corning Painter explained that the input cost timing mismatch was primarily related to natural gas price movements in the quarter and is not expected to be a recurring headline issue, noting such effects can sometimes reverse. He clarified that the company's guidance is based on customer forecasts, which remain cautious and do not yet reflect a significant second-half ramp-up from tariffs, but also do not indicate a recession.