you, Chris. Thank
forward? what get QX path was right the our to deck, our Before EBITDA walking go through And expectations? heat. the to Slide and let's X detailed below Why is
major million to segment at we of set year. the the adverse the midpoint You factors. Rubber is will guidance expectations revised see now below and are Lower-than-expected $XX the cogeneration beginning million volumes our $XX XXXX
prior due concerned bridge year. business factors EBITDA the the ton was polymer The show which We and the and later but as I'm maintenance. cogeneration is in these mainly slightly with mix customer costs respond within performing again one-offs, and in in This last compared QX, timing that's expected was level This well. effects improving higher range. GP year decline up our lower Volume Our markets, to not higher in about in segment of to netted fine. GP per Specialty business is per Most for to with negative is quarter, this a strengthening coatings deck. ton our demand. and
Rubber Let's focus on then the business.
is and is Rubber in gain demand expect story pricing importantly, well. is underlying and three drivers. year-on-year, Volume not the nearly flat, we as but with key up markets is to First XXXX positive. our soft as in black carbon
lower First, consumers us. they as brands, to which down hurts trading value inflation, are currently adjust higher to ultimately
in been sharply North Second, imports but and first say more higher in I item, related have up have the America little to bit. that Europe. about to a
follows while the this And truck bottomed, is replacement and impacts activity trucking gradual at Third, manufacturing. This recovery best. demand. tire OEM is perhaps
the for European for and are our Europe gains last listed. be reasons clear, in markets only to volume and up the but in I volumes rubber expectations Regionally, Europe, below To America Asia key in due negotiations. are down year's North other us and
to some cogeneration, performance our All maintenance later costs prior timing costs, XXXX is to tied more the spending. this discuss reduction Our mix rubber in lower for volumes than account in $XX a cost higher million of including We'll initial between guidance. considered, rubber but inflation. year and of is more one-offs, detail,
forward to the second Looking half continue this of improve. year, to Specialty should
to execute prepare inventory absorption. which volumes, we build and a an likely We modest will expect Rubber only XXXX, improvement for in will help
additional challenge. an is Cogen
of much is and plant at below our down partner power QX. have Further, prices was expected European down intermittently QX utility in to Louisiana expectations. for Our been be
to expect apply reflecting think favorable and to likely we XXXX, Rubber continue industry. believe will to Personally, improve, cycle, many I are the pricing broadly reasons restructuring a and security. Pricing volumes our there support Looking more the of key are that. this will priority, local say I'll markets, supply of demand higher which value key and to about in remains tariffs have a
Looking for Porte second top of next facilities us. forward, new These we are half load, and have Huaibei, priorities to year. La two then the in
expect spending we We that. CapEx significantly do lower until
Slide on As X. you can see
to requirements expand we'll that these associated grades will we expect typically differentiated capacity We most effort. to capital about calls. with grades, future specialty market, modest bringing in remain and require excited efforts for our more capital. and have this Rubber, we continue debottleneck but about But the minimal sustainable to In say again,
Considering slightly share be excess capital free may we our Specialty flow year, anticipated move. but this fundamental and in our cash the working right balance, a shareholders, on decided spending, activity opportunistically well resume repurchase restructuring business, negative recovery feedback to our the upon modest we pace. Rubber lower Depending capital, and this see have from as at
of solid referenced back another on EBITDA. the being for deck, On Slide X track we year of
demand to results of underlying anything will conservatively close we benefits. environment levels, $XX likely Kt that alone. or saw such achieve disappointing we $XX to the onetime to other in upside us, Compared EBITDA in those this be Note as XXXX. have about Rubber timing with and million EBITDA million would we despite XXX is While volume growth, mid-cycle are excluding conditions, a not
This and during have down markets imports in due lagged low-value profit substantially is the but segment Western of weak partly the in unit surge been margins the are consumer of held spite quarter, well sales. build volumes. up below to to market numbers sell-through is by tire builds end Rubber Our because tire tire pre-pandemic still fueled okay, Replacement inflation. Absolute has and of local have levels. worsened consumers trade
North are imports tire impacting European tire manufacturing. Clearly, American and
earnings capacity North the and America We their this Europe spoke Western yesterday, into do in not will structural. believe is about this release. Just into a onshore continue. believe manufacturer We tire
have seen before. blips this our We volumes like in
of to I United fear their pending surrendering surge EU or A company separate do markets. And tire States the the the you, increase. imports a or second see attributed not automotive tell a tariff in I'll recent
For contribution, end A largely will maintenance our the of lower-than-expected activity of and associated but also planned headwinds by have These ongoing was enable reliability and greater over costs, Orion, assets. the these higher portion inflation. been to cogen upgrades maintenance reduce time. costs amplified and the of planned tied upgrading manufacturing market some unplanned turnarounds turnaround with throughput
very of downtime. in a Belpre, contributed month in system which a to example, QX, lines one in replaced we old filtering For of Ohio, our
year, more efficiency more and the help this will achieve leaning revised we costs will backdrop Given trim be our to into challenging initiatives guidance. that us
midyear we commenced, without to to already reluctant time-bound deals. commitments any historically discussions to but late out contract offers. Slide maker had into We On during begun time initial intent to prospects the negotiations strictly going an negotiation. report frame mentioned the regarding this indeed appropriate QX reflecting during be our supply expectations And need rush enforce for timed have to then negotiations that Those conclusion, we're didn't XXXX, our volume X, during summer is annual tire industry's our as months. more lengthy some call earnings hold
caution in on investors I close. now a few negotiations expecting We're major an with formal customers, would early but
we capital return as all Some investments. determined for outcome be a positive our for several are a year's We're may prolonged to on for negotiation negotiations reasons. earn this ongoing cycle anticipating
capacity carbon key First black contrasted in expanding is additions. restructuring, our with industry with markets the ongoing limited tire capacity
I Second, XXXX. negotiating is remind XXXX. you, about we're not for This
strong. The ban. will recovery, The Third, place, stabilizing. carbon there are Russian some remains with specialty recently, freight data from has multiple the market black to Miles-driven Belarus added fully is industry and been And grades. capacity to now rubber specialty positive ban back indicators. shift just is in
you by EPA systems emission Fourth, domestic down, effectively have when the on localized and they finally, the outages. recent with take potential capacity reliable. know, industry's boost few North entire Europe now points. more tires a increased shipping in reduced plant America These less go Fifth, and is investments control demand. they as tariffs percentage would And usually imported expensive And the for industry's them.
is this think I likely. looking pretty
about make confident of the these into heading segment considerations XXXX. Rubber All us
back this, second profit inventories improve a operating in of metrics, confluence leverage to build the our half. thanks and we costs. This should to intend Given unit better
done segment in expect the heavy the our terms in EBITDA continue lifting while has change Rubber years, recent our of to to recover. step Specialty Now we in segment
with growth capital trajectory. Porte a segment When beyond innovation-led investment. And growth, Orion's additional of should enhance Here, for the meaningful mix. important medium-term without be segment coupled driver the the Specialty an need will growth La market end broader ongoing recovery overall
perceptions Despite our made customers strive on are where see have our made sustainability, discuss we to perspective, to public by want investment ours, I here, we From downstream industries gears, the substantial or misunderstood broader community. as we even for especially believe commitments opportunity have like circularity. progress sustainability. we increasingly Shifting about
our produce their third purely We the feedstocks. rating here. to first will platinum published We our you places In digest XXth We take report completed carbon considering four all week. plants. industry addition from player at we evaluated. A last in companies others noteworthy black all to U.S. earn sustainability having their which percentile, us well from few to ahead of the the latest hope EcoVadis, upgrades programs major points completing of were biocircular plants time sustainability
to QX, circular enable pyrolysis production Africa, may -- and investment help tire of a on have we and volumes industrial became of stress water costs. European help this grades invested which up local dedicated This carbon will to During by will a recycling in oil, effluent that of in it black.
In focused wastewater reducing tire community use to reduce South a small Orion a scaling scale our before of commercial commercial crisis, repurpose state-of-the-art company be water facility treatment water technology proactively help potable for improve reliability our treated a water, from we use. process
start construction of XXXX. the battery La track our growth other Porte, finally, the in plant emissions on is in markets conductive serving and to And low Texas carbons
leader All greater unlocking confident commercially as our power in we foundation viable of considered, feel at Orion. products. the these journey sustainable Orion much efforts earnings towards industry and driving place All our is inherent
to turn Jeff. the call I'll that, over With
