11 Best Small Cap Chemical Stocks to Buy According to Hedge Funds

4. Orion S.A. (NYSE:OEC)

Market Capitalization: $1.07 Billion

Number of Hedge Fund Holders: 23

Orion S.A. (NYSE:OEC) is a leading specialty chemicals company focused on producing carbon black, a vital material used in various applications such as tires, coatings, and batteries. Carbon black, which is a solid form of carbon produced as powder or pellets, is used to tint, colorize, increase durability, provide reinforcement, conduct electricity, and add UV protection. With 15 production plants worldwide and four innovation centers, Orion S.A. (NYSE:OEC) offers a diverse variety of production processes tailored to meet specific customer needs.

In April 2024, Orion S.A. (NYSE:OEC) broke ground on a new plant in La Porte, Texas, which will be the first facility in the US to produce acetylene-based conductive additives for lithium-ion batteries. This innovative plant will significantly reduce carbon emissions, boasting only one-tenth the carbon footprint of other commonly used materials. The facility is expected to start operations in the second quarter of 2025, positioning Orion S.A. (NYSE:OEC) as a key player in the growing electrification market.

In the third quarter of 2024, the company reported net sales of $463.4 million, slightly down from the previous year. Orion S.A. (NYSE:OEC) reported a net loss of $20.2 million, which included a $42.5 million impact from a significant asset misappropriation incident. Despite a loss due to the fraud event, Orion S.A. (NYSE:OEC) achieved an adjusted EBITDA of $80 million, marking a 7% improvement from the previous quarter and indicating strong operational resilience.

For the first nine months of 2024, the company’s net sales reached $1.44 billion, up by $17.6 million year-over-year. Although rubber segment volumes were down due to high tire imports into Western markets, Orion S.A. (NYSE:OEC) strategic focus on operational improvements and cost management is expected to drive future growth.