オリオンSA（OEC）2026年第3四半期決算説明会：フリーキャッシュフロー4600万ドル、EBITDAガイダンスを引き上げ

要点

• Orion S.A.（NYSE: OEC）の2026年第3四半期における調整後EBITDAは6,700万ドルとなり、前年同期比16%増となった。これには約1,700万ドルの純押し上げ効果（年間EU排出枠の計上時期に伴うもの）が含まれている。
• フリーキャッシュフローは4,600万ドルに達し、運転資本施策および前四半期比での設備投資抑制が寄与した。純レバレッジは前四半期の4.4倍から4.1倍へと低下した。
• 年初来の調整後EBITDAは1億7,100万ドルとなった。経営陣は通期の調整後EBITDAガイダンスの中央値を引き上げ、予想レンジを従来の予想上限寄りに絞り込んだ。
• スペシャリティ事業の調整後EBITDAは前年同期比18%増の2,500万ドルに増加し、ラバー事業の調整後EBITDAは15%増の4,100万ドルとなった。顧客の慎重姿勢や在庫調整を背景に、両セグメントで販売数量は減少した。
• 通期のフリーキャッシュフロー予想は据え置かれ、2026年の設備投資額は引き続き9,000万ドルが目標とされており、2025年水準から7,000万ドルの減少となる。
• 経営陣は、2027年に調整後EBITDAの増加とフリーキャッシュフローの黒字化を見込んでおり、原料調達、製造効率、プラントの信頼性向上、製品ミックスの改善、および運転資本対策がその下支えになると予想している。

主要財務データ

事業および営業実績

スペシャリティ事業

スペシャリティ事業の調整後EBITDAは2,500万ドルに増加した。これは主に、塗料や電線・ケーブル市場向けのプレミアムグレードを含む有利な製品ミックスに加え、原材料価格の転嫁効果によるものである。

需要は前四半期比で軟化し、販売数量は前年同期比で8%減少した。Orionによると、欧米市場ではポリマー分野や流通チャネルで軟調さが最も顕著に見られた。経営陣はこの下押し圧力について、原油由来の原料価格が乱高下するなか、顧客が高コストな在庫の削減を目指して在庫調整を進めたことによるものと説明した。

年初来のスペシャリティ事業の調整後EBITDAは約9,200万ドルとなり、前年同期と比べて約2,500万ドル（37%）増加した。良好な製品ミックスと原材料価格の転嫁が主な要因となった。

ラバー事業

ラバー事業の調整後EBITDAは4,100万ドルに増加した。EU排出枠の計上時期や原材料価格の転嫁効果が、年間契約価格の下落や不利な地域ミックスの影響を十分に相殺した。

販売数量は前年同期比で4%減少した。EMEA需要の小幅な伸びは、米州およびAPACでの減少に打ち消された。経営陣によると、EMEAの補修用タイヤ需要は底堅さを維持した一方、北米のタイヤ稼働率はまだ回復していない。

Orionはまた、特に北米においてスポット市場での需要が継続していると報告した。経営陣は、その需要の多くが他のサプライヤーによる予期せぬ操業停止に関連していると説明した。

キャッシュフローおよびバランスシート

現金の創出は依然としてOrionの最優先財務課題であり、フリーキャッシュフローは債務削減に充当されている。運転資本の改善策としては、支払い条件の見直しや在庫水準の継続的な抑制などが挙げられる。

四半期末後、Orionは欧州タームローンに関連する有利な通貨スワップおよび金利スワップを解消し、同商品に内在していた2,700万ドルを現金化した。

経営陣のガイダンス

経営陣は、Orionの2026年通期調整後EBITDAガイダンスの中央値を引き上げ、予想レンジを従来の予想上限寄りに絞り込んだ。具体的な修正レンジは電話会議中には公表されなかった。

通期のフリーキャッシュフローガイダンスは維持された。経営陣は、原油価格の動向がなければ予想レンジの下限を引き上げていただろうと述べた。

同社は引き続き、2026年の設備投資額を9,000万ドルと見込んでいる。設備投資は、Orionの中で最も収益貢献度の高い資産の信頼性向上に重点的に配分される方針である。

経営陣は、顕著な季節性、顧客の在庫調整、計画的な定期修繕を理由に、第4四半期の業績は両セグメントともに軟調になると見込んでいる。定期修繕の影響の約75%がスペシャリティ事業で、25%がラバー事業で発生する見込みである。また、ラバー事業は前四半期までと同様に、年間契約価格の下落による約1,000万ドルの逆風にも直面する。

正式な2027年ガイダンスはまだ設定されていないものの、経営陣は来年の調整後EBITDAの増加とフリーキャッシュフローの黒字化を見込んでいる。想定される要因としては、調達コストの削減、代替原料の認定、製造効率の向上、設備の信頼性改善、製品ミックスの高度化、さらなる運転資本の改善などが挙げられる。

リスクと注目点

• EU排出枠の計上時期：第3四半期の調整後EBITDA実績には、フリーキャッシュフローには影響しない約1,700万ドルの計上時期ズレによるプラス効果が含まれていた。
• 在庫調整（デストッキング）：原油由来の原料価格の変動を受けて、顧客は低い在庫水準と短い予測期間を維持している。
• 第4四半期の季節性と保全活動：例年より大規模な定期修繕が両セグメント、特にスペシャリティ事業の重荷になると予想されている。
• 契約価格：ラバー事業における年間契約価格の下落が、引き続き前年同期比での逆風となっている。
• 地域別需要：タイヤ輸入が減少しているにもかかわらず、北米のタイヤ生産はまだ回復していない。
• 原油価格の変動性：経営陣は、原油価格の下落は最終的に消費者の恩恵となり得るものの、価格変動によって顧客の購買決定が先送りされる可能性があると述べた。

アナリスト質疑応答の要点

経営陣は、第4四半期の軟調さはスペシャリティ事業における新たなマージン問題というよりも、主に顧客の慎重姿勢、在庫調整、計画的な定期修繕を反映したものであると説明した。顧客が提示する需要予測期間は短く、年末に向けて在庫水準に対して依然として慎重な姿勢を崩していない。

在庫削減に関して、Orionは欧州において安全在庫をさらに引き下げる余地があると考えている。米州については、スポット需要がより強いため、経営陣はより慎重な姿勢をとっている。

タイヤ業界向けのOrionのラバー販売のうち、約50%が長期契約によるものである。経営陣は適正と考える2027年の価格設定を求めて交渉を進めており、契約価格に関する双方の期待値の隔たりが大きすぎる場合は、一部の数量をスポット市場向けに残す可能性があると述べた。

経営陣は、貿易措置を受けて輸入タイヤが著しく減少したことを確認したものの、これがまだタイヤ生産の拡大には結びついていないと指摘した。現在の在庫削減が一巡した後の2027年には、その効果がより顕在化すると予想している。

米州における生産と輸入のバランスがより正常化した場合、全セグメント合算の調整後EBITDAは時間をかけて約5,000万ドル〜1億ドル増加する可能性があると経営陣は試算している。

決算説明会 全文書き起こし

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Greetings. Welcome to the Orion S.A. Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Mr. Chris Kapsch, Vice President of Investor Relations. Thank you, Chris. You may begin

Christopher Kapsch

Thank you, Dylan. Good morning, everyone. This is Chris Kapsch, VP of Investor Relations at Orion, and welcome to our Third Quarter 2026 Earning Conference discussion. With me in this call are Corning Painter, Orion's Chief Executive Officer; and Jon Puckett, our Chief Financial Officer. We issued our third quarter results yesterday after the markets closed, and we have posted a slide presentation to the Investor Relations section of our website.

We will be referencing this deck during the call. Before we begin, we are once again obligated to remind you that some of the comments made on today's call are forward-looking statements. These statements are subject to the risks and uncertainties described in the company's filings with the Securities and Exchange Commission, and our actual results may differ from those described during the call. In addition, all forward-looking statements are made as of today, November 5, 2026.

Orion is not obligated to update any forward-looking statements based on new circumstances or revised expectations. Any non-GAAP financial measures discussed during this call are reconciled to the most directly comparable GAAP measures in the tables attached to our press release and/or the quarterly earnings deck. Any non-GAAP financial measures presented in these materials should not be considered as alternatives to financial measures required by GAAP. With that, I'll turn the call over to Corning.

Corning Painter

Good morning, and thank you all for joining us. Cutting right to the chase, on Slide 3 of the deck, we delivered [Technical Difficulty] adjusted EBITDA, and we generated $46 million of free cash flow in the third quarter. Upfront, we're flagging a benefit in Q3 results associated with timing of our European emission allowances, which were only finalized and issued during Q3 as we indicated would be the case earlier this year. The delay in recognizing these credits resulted from the EU having missed their own statutory deadline to agree on new industry benchmarks. These are now established and set for the next 5 years.

Because allowance credits are issued on an annual basis, their recognition in Q3 results have an outsized benefit this quarter. It's cleaner to look at our year-to-date adjusted EBITDA of $171 million, which largely balances out Q3 with the absence of these belated credits earlier in the year. The net of all of this has always been in our full year 2026 adjusted EBITDA guidance. Importantly, all of this [Technical Difficulty] free cash flow, which was excellent in the quarter, an accomplishment considering the elevated oil prices. At quarter's end, our net leverage was 4.1x, down 30 basis points from last quarter.

Reflecting our performance to date, we are increasing the midpoint of our adjusted EBITDA guidance range. We're also reaffirming our full year free cash flow guidance, implying positive free cash flow against what we will represent -- what we believe will represent trough earnings in spite of the recent oil price volatility. Looking forward, and though too early to establish formal 2027 guidance, we do expect to deliver higher adjusted EBITDA next year as well as positive free cash flow.

We confidently make this statement based on numerous actions we are taking to improve results highlighted on Slide 4 of the deck. We view today's uncertain backdrop as creating opportunity for companies that are nimble, and we are leveraging our agility to do just that for Orion.

First on this list is safety. We have a deep safety culture at Orion. Through October, we are on track for another year of industry-leading safety performance, including no lost [Technical Difficulty] proud of the Orion organization for their vigilance on this core principle. We're also advancing on quality. [Technical Difficulty] International Automotive Task Force certification at our conductive facility in Europe. IATF certification is the gold standard for automotive in verifying quality management systems.

In our case, this recognition has also been a catalyst to optimize the customer mix served out of this facility as wire and cable and battery customers are essentially competing for product allocation. More broadly, we have executed on a variety of actions that are improving our regional competitiveness. A procurement initiative focused on feedstocks is a prime example.

The tumultuous backdrop with oil price volatility has created many cross currents and relative disparities across a variety of feedstock categories and supply chains. At Orion, we are turning this dynamic into opportunity. We have a sharp regional focus on sourcing, including the qualification of alternative feedstocks, which is yielding not just procurement savings, but yield improvements and net productivity as well.

These efforts are a growing contributor to our P&L, especially in this time of global supply chain disruption, and we expect to build on this in 2027. Within operations, we know we have significant margin expansion potential. And our manufacturing excellence program continues to expand. We are replicating early successes at select plants to other manufacturing sites globally and anticipate broader efficiency gains to contribute to our profit recovery story.

And as mentioned last quarter, improving our overall plant reliability is an enabler for the ongoing structural improvements in our working capital. With these improvements, we still expect positive free cash flow this year in spite of significantly higher oil prices from a year ago. We continue to identify fresh opportunities to improve overall free cash flow, which will be directed towards debt reduction.

One lever to improve free cash flow conversion, of course, is capital expenditures, and you should expect further prioritization of our CapEx spending on reliability at our highest contributing assets. Another lever is working capital. Here, a recalibration of both our payment terms and sustained lower inventory levels have been important factors in driving improvement. We're also taking a fresh look at cash tax optimization. Collectively, all of these efforts are gaining traction, and we expect further impact in 2027.

Finally, we continue to evaluate our production network for additional opportunities. Looking at the industry backdrop, tire imports to the U.S. and Europe are down. Today's duties are having an impact and potentially more are coming. For instance, the EU announced incremental duties related to the anti-subsidization investigation of Chinese tires will go into effect next month. In the U.S., the United Steelworkers Union has petitioned for additional relief from tire imports under Section 201. And even the recent surge in Chinese feedstock and carbon black costs could help these dynamics. [Technical Difficulty] trends in the appendix. But to be clear, we are focused on our self-help measures that we control. With that high-level overview, let me turn the call over to Jon to discuss Q3 results in more detail.

Jonathan Puckett

Thanks, Corning. On Slide 5, let me call your attention to the takeaway at the bottom of this page. As we've reiterated, and let me be clear here, our entire organization is focused on improving cash flow. And our #1 financial priority right now is generating cash for the purpose of debt reduction and deleveraging. So we are extremely pleased with our $46 million of free cash flow generation in the quarter, especially considering oil price volatility.

Clearly, our working capital improvement initiatives are making a difference and moving the needle, and that is evident in the [Technical Difficulty] ratio, which also improved to 4.1x from 4.4x last quarter. Back to the top of the slide. Adjusted EBITDA was $67 million during Q3, up 16% year-over-year. As Corning mentioned, our adjusted EBITDA includes the annual EU emission allowances that we received in the third quarter.

The nature of the EU emission allowances requires that we recognize the allowances upon receiving them from the EU rather than accruing for them throughout the year. As this annual allowance is tied directly to our European plant production levels, which is essentially run 24/7 and for which [Technical Difficulty] there is an inherent timing mismatch between [Technical Difficulty] This timing mismatch resulted in approximately $17 million of net benefit to our adjusted EBITDA in Q3.

To put the quarterly timing impact in perspective, if the benefit of the annual EU emissions allowances were recognized more evenly throughout the year, our third quarter adjusted EBITDA would have been closer to $50 million, while our first half adjusted EBITDA would have been about $10 million higher. Importantly, our year-to-date adjusted EBITDA of $171 million is not materially affected by this timing difference.

Similarly, our implied fourth quarter guidance would be about $5 million higher absent the timing impact associated with the recognition of these allowances. This is purely a P&L timing issue and has no impact on our free cash flow metrics. On Slide 6, our Specialty segment adjusted EBITDA of $25 million increased 18% year-over-year in Q3, primarily on favorable mix with strength from premium grades serving the coatings and the wire and cable markets, coupled with the combined [Technical Difficulty] pass-through effect. Specialty demand [Technical Difficulty] sequentially during Q3 and declined 8% on a year-over-year basis.

Western region demand softened, most notably in polymers and distribution channels. We believe customers are destocking in these regions as their procurement priorities have shifted from security of supply [Technical Difficulty] high-cost inventory as the Middle East conflict continues to create volatility in oil-based feedstocks. Year-to-date, Specialty segment adjusted EBITDA of nearly $92 million is up approximately $25 million or 37% compared to the prior year, with favorable mix and the pass-through effect of raw materials representing the largest drivers of year-over-year improvement.

Just a little bit of forward-looking commentary here. We expect modest specialty results in Q4 on more pronounced fourth quarter seasonality and destocking. We also expect heavier-than-normal turnaround activity and associated costs in Q4 as we moved turnarounds to later in the year to take advantage of demand strength earlier in the year. Regarding 2027, we have several levers to drive Specialty segment performance. These include upgrading our product mix, sourcing [Technical Difficulty] initiatives.

On Slide 7, our Rubber segment adjusted EBITDA of $41 million increased 15% year-over-year in Q3. The combined effect of emission allowance timing and the pass-through effect from higher raw materials more than offset lower annual contract pricing and unfavorable regional mix. Rubber volumes declined 4% year-over-year with slightly higher demand in EMEA more than offset by declines in both the Americas and APAC.

The improvement in EMEA was consistent with resilience exhibited in that region's replacement tire market, whereas tire build rates in North America have yet to recover. A bit of additional forward-looking commentary here. We expect subdued Rubber segment results in Q4, owing primarily to lower year-over-year contract pricing and more pronounced fourth quarter seasonality as well as turnaround activity and related costs. Regarding 2027, we see multiple areas to drive segment performance, including further improvements in plant reliability, benefits from feedstock sourcing initiatives and continued strength in the spot market, particularly in North America.

Slide 8 summarizes many of the points we've already made on free cash flow, working capital and our financial position. Capital expenditures were lower sequentially in Q3, contributing favorably to our cash flow performance during the quarter. We finished the quarter with net debt of $918 million and a 4.1x leverage ratio based on the trailing 12-month adjusted EBITDA. Total liquidity was $193 million at quarter's end. We further enhanced our liquidity at the third -- after the third quarter ended when we unwound favorable cross-currency and interest rate swaps related to our European term loans, taking advantage of favorable market conditions and monetized $27 million embedded in the instrument. This decision highlights our proactive approach to risk management and our balance sheet focus. With that, I'll turn the call back to Corning.

Corning Painter

Thanks, Jon. On Slide 9, we share updated guidance metrics, including the narrowing of our adjusted EBITDA guidance towards the high end of our previous range. Our free cash flow guidance remains unchanged, although we would have lifted the lower end of that range if not [Technical Difficulty] prices. We remain on track for $90 million of capital expenditures in 2026, a $70 million reduction versus last year.

Finally, the implied Q4 EBITDA expectations reflects above normal seasonality in both segments [Technical Difficulty] as Jon mentioned. Turning to Slide 10. To sum it up, we delivered $171 million of adjusted EBITDA year-to-date. We delivered on free cash flow, and we did this in spite of the turmoil in the world. We are determined that 2026 will be our trough year and that in 2027, we will return to growth. We're not relying on the market. We are taking action on the things we control to drive improvement going forward. We appreciate your interest in joining us today. And with that, Dylan, let's open up the call for Q&A. Thank you.

Operator

[Operator Instructions] Our first question comes from Josh Spector with UBS.

質疑応答

Christopher Perrella

It's Chris Perrella on for Josh. As I think about the fourth quarter there. Can you just -- is it further destocking in both segments that's driving the weakness absent the EU credits? Or is pricing also down? Is there margin compression that you're seeing in Specialty? Can you just go a little bit deeper there? And then I have a follow-up on inventory.

Corning Painter

Sure. Yes. No, it's really just -- if you put yourself in the shoes of a master-batch company or another manufacturer downstream from us, and maybe a lot of your feedstocks are oil-based in price. Nobody really wants to have a lot of inventory. I mean what happened in the last 2 days would be great if you had some inventory -- I would say, disastrous, excuse me, if you had inventory, right? The price just went down, you bought it when it's expensive, now it's cheaper. I think people are just very cautious about wanting any inventory, whereas maybe in Q2, people were really worried about supply and what's going to happen in this and that.

It's not a margin issue for us [Technical Difficulty] customers signaling that they are very cautious. They've all along given us very short forecast periods and expressed not a lot of clarity about further out. But our sense of customers are they're pretty cautious about November and where they want to end in December.

Jonathan Puckett

Yes. And Chris, I would just add to that, too, is turnaround timing is a pretty big factor in our fourth quarter as well. And that was intentional on our part. We pushed turnarounds to the end of the year just to take advantage of demand strength that was earlier in the year. And so that's a pretty significant impact. And the other element that we've talked about all year is the annual contract pricing in rubber, and that's consistent with prior quarters, that's about a $10 million impact on price.

Corning Painter

Yes. So there's that margin, but that's like continue. There's nothing new there. And if I take you back to earlier this year, like when you did see a surge in demand when the war began, I think we all had the concern that at some point, though, the consumer is going to run out of gas, right, so to speak. And we wanted to like make the product while the going is good because at some point, there was a concern that demand would be destroyed. So we pushed it back. And all in all, we feel pretty good about that.

Christopher Perrella

Is the turnaround impact evenly split between the 2 segments? And then just a follow-up on the inventory. How low are they versus normal? And can you move them? I know you're looking to generate cash. Is there more water to be run from that sponge?

Jonathan Puckett

Yes. On the turnaround timing, it's more weighted towards Specialty than to Rubber. It's probably 75% Specialty, 25% Rubber. And then on the inventory, yes, that's going to be a little bit mixed geographically. There are some areas of the world where we can take a little more adjust safety stocks down, and that's probably in Europe. In the Americas, where we've seen a lot of spot demand, we'd probably be a little more cautious there.

Operator

Our next question comes from John Roberts with Mizuho.

Saurabh Dhir

This is Saurabh on for John Roberts. So I guess, first, can you parse out the impact on EBITDA from the raw material pass-through and the EU allowances?

Jonathan Puckett

We did spike out the allowances, and that's about the $17 million. So -- and the split, just so you can do it, Saurabh, is, it's about 30% in Specialty and 70% in Rubber. And then -- and we've laid out the combined impact. So I think you can parse out the rest of the math from that.

Saurabh Dhir

And on the contract negotiations for next year, like can you provide us some hints and color on like what are you seeing for next year? Any encouragement from the customers?

Corning Painter

Yes, sure. Let me speak to that. So first of all, it's commercially sensitive. So I can only kind of make high-level comments. Also, let's say, of our total rubber sales into the tire industry, we're probably about 50% contracted. Keep in mind, we have one large customer [Technical Difficulty] no negotiation with them.

You might have heard some comments earlier this week from a competitor talking about tire imports down, manufacturing hasn't moved that much. I want to make it clear. We are not resigned on that subject. And we are not [Technical Difficulty] negotiating for next year, and we are pushing hard on what's a fair price, the right price, look at all the spot demand that's underinvestment, we think, from some people in maintenance. This is what the industry needs, and we are pushing hard for that. I'd also say I'm very focused on the companies with whom we can be partners. And in some cases, if our expectations are too far apart, you know what, we can just hold back some and play the spot market. I think that's going to be pretty robust next year.

Operator

Our next question comes from Daniel Rizzo with Jefferies.

Daniel Rizzo

Just a follow up on what you just said. Is the spot market in the U.S. relatively large? I thought it was mostly contract or I should say in North America really?

Corning Painter

Yes, you're absolutely right. It is traditionally like contracted. But the catch is if somebody has unplanned downtime and they can't fulfill it, then you see people come out. In Europe, you see more where there's people who are relying on, let's say, imported carbon black, maybe at the very bottom, not really tire manufacturers, very bottom, you see some of that in the U.S. And so for example, when Chinese prices spiked, we definitely saw some people now looking for new sources of supply. But by and large, in North America, we attribute this to unplanned downtime by others.

Daniel Rizzo

Okay. And then given the productivity you've done and the reliability you've created, how should we think about incremental margins when a recovery eventually occurs? Would it be -- I mean, how much -- I would assume it would be higher, but how much? And also along the same lines, how should we think about mid-cycle margins in both segments really?

Corning Painter

So I mean, I think our rule of thumb on incremental -- what incremental margins [Technical Difficulty] rubber in the 300s. And I think that's a margin off of wherever the contract pricing is in that time frame. So I think I'd still use that today. I don't know, Jon, if you...

Jonathan Puckett

No, I think that's about right, Corning.

Corning Painter

Yes.

Jonathan Puckett

Yes. And then as far as mid-cycle margins, we really think of it as maybe mid-cycle EBITDA. And we anticipate [Technical Difficulty] and then if you can get back to a more normalized production level and import level balance in the Americas, you're going to be able to step up significantly EBITDA in each of the segment. And I think that size in the neighborhood of $50 million to $100 million, you could step up over a period of time.

And the key point on mid-cycle also is kind of unique in the tire market in that so much of tire demand is replacement. Tire sales in North America, Europe, it's good, right, down a little bit in trucking because of trucking activity, but passenger car, light truck, it's fine. The whole issue has been the level of imports there. So like what we really need in that part is sort of a little bit of reversion towards the norm on that as we move forward from where we are today rather than like dramatic [Technical Difficulty] you know replacement tires, that's a consumable and people are driving.

Daniel Rizzo

I'm sorry, you broke up a few times. So just with the tariffs in the U.S. and the antidumping in the EU, that's having minimal effect as of right now?

Corning Painter

Well, it's having an effect in that you can see a drop in the amount of imported tires, really quite marked. You see that. You don't yet see really a pickup in tire manufacturing. So I would relate that to, look, we're in an inventory drawdown to the comments we said earlier. People are destocking. Nobody wants a lot of inventory, perhaps in anticipation of expected tariffs or duties, people imported extra earlier. I don't think we're really going to see that at this point until into next year. But you definitely see a reduction in tire imports.

Operator

Our next question comes from John Roberts with Mizuho Securities.

John Ezekiel Roberts

Oil prices have come off hard in the last couple of days, both in the spot market and the 12-month Brent futures. Do you think that's going to exacerbate the customer destocking that you highlighted you think is already underway?

Corning Painter

I think volatility makes people cautious. At a lower number, maybe people will start buying again though. But you're absolutely right. Like we started working on the script a couple of days ago, current prices, yesterday's prices, it's a pretty dynamic time. And that's part of our point. It's pretty agile to make the most of this. And so when they turn on, fine, we'll be ready for it. And all these cross currents and raw materials and what's better, what's worse, like we're just trying to make the most of that in this pretty dynamic time we're in. But I think if oil prices come down, that's going to be good for the consumer. I think ultimately, that would be a positive.

Operator

We have reached the end of our question-and-answer session. I would now like to turn the floor back over to Corning Painter for closing comments.

Corning Painter

Well, thank you all for your time and your interest today. We're going to be engaging with investors over the next several weeks. We have an NYSE event coming up and a small cap conference in Dallas. And we look forward to being able to say more about our 2027 and our fourth quarter results call in February. Thanks very much, and have a good rest of your day.

Operator

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.