Vallourec Second Quarter 2025 Results
Meudon (France), July 25th, 2025
Vallourec, a world leader in premium tubular solutions, announces today its results for the second quarter 2025. The Board of Directors of Vallourec SA, meeting on July 24th 2025, approved the Group's second quarter 2025 Consolidated Financial Statements.
Second Quarter 2025 Results
Q2 Group EBITDA of €187 million with strong 22% margin
€370 million returned to shareholders via dividends and share repurchases
Secured significant OCTG orders, particularly in the Middle East
Expect further support to US market pricing from increased steel tariffs
Q3 2025 Group EBITDA expected to range between €195 million and €225 million
Confirm expected improvement in EBITDA in H2 2025 vs. H1 2025
HIGHLIGHTS & OUTLOOK
Second Quarter 2025 Results
Group EBITDA of €187 million, down (10%) sequentially, slightly above guidance midpoint; EBITDA margin was strong at 22%
Tubes EBITDA margin improved 76 bps sequentially to 19%, though Tubes EBITDA declined (13%) sequentially due to lower volumes.
Mine & Forest EBITDA decreased by (15%) sequentially due to lower market prices and higher costs but EBITDA margin remained strong at 52%.
Adjusted free cash flow of €88 million; total cash generation of €57 million
Net debt position of €201 million following €370m of shareholder returnsa
Third Quarter 2025 Group EBITDA is expected to range between €195 million and €225 million:
In Tubes, EBITDA per tonne is expected to increase sequentially, while volumes are expected to be similar to the Q2 2025 level.
In Mine & Forest, production sold is expected to be around 1.5 million tonnes. Profitability will be determined by prevailing iron ore market prices.
Full Year 2025 Group EBITDA is expected to reflect a second half improvement:
In Tubes, international volumes are expected to increase in H2 2025 versus H1 2025. EBITDA per tonne will improve in H2 2025 compared to H1 2025 due primarily to higher invoiced international prices and cost reductions.
In Mine & Forest, production sold is expected to be around 6 million tonnes. Profitability will be determined by prevailing iron ore market prices.
Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer, declared:
"In the second quarter, Vallourec once again demonstrated the strength of its business model. Despite lower shipments in the Eastern Hemisphere, our Tubes EBITDA margin expanded to 19%, driven by sequential improvements in profitability in our North and South American production hubs. Our Mine & Forest business also continued to perform extremely well despite sequentially lower iron ore market prices. Further, we continued our streak of positive total cash generation, which now marks eleven straight quarters of this performance. Meanwhile, we made good on our promise to return significant capital to our shareholders, paying both a €1.50 per share dividend and repurchasing 1.2 million shares in the second quarter.
"The Brazil Performance Program we announced in July 2024 is ahead of schedule. We have completed a significant simplification of our operations, which included the closure of our legacy Plug mill at the end of 2024. Our primary cost savings initiatives are now completed. We have delivered regional cost savings well in excess of our €150 per tonne target due to strong delivery across multiple workstreams. We remain focused on fully capitalizing on the potential of this premier asset base including by increasing its production capability by more than 100 thousand tonnes.b
"The international OCTG market has been impacted by recent macroeconomic volatility; however, our stream of recent contract awards highlights the value of Vallourec's premium product offering. We continue to see further opportunities ahead as our resilient customer base is progressing on major multi-year drilling programs which will require the support of sophisticated suppliers like Vallourec. The global shift towards increased gas and unconventional drilling will also provide significant opportunities for Vallourec to capitalize on its differentiated premium market positioning.
"In the US, market prices further improved over the second quarter in response to the steel tariffs implemented earlier this year. US oil drilling activity has fallen in response to weaker and highly volatile oil prices, though this has been partially offset by a rebound in gas drilling activity. Despite this, our latest bookings indicate a healthy level of demand that will keep our mills well utilized at current staffing levels. Meanwhile, imports will likely moderate from their second quarter levels following the change in tariff rates announced in early June. This should support US-based industrial players such as Vallourec.
"Globally, we are moving into the next phase of organizational improvement as we work to achieve operational excellence across our manufacturing footprint. Thanks to our internal performance initiatives, differentiated product offering, and ideally-located manufacturing centers, we are well-positioned to continue to create significant value over the coming years."
Key Quarterly Data c
in € million, unless noted
Q2 2025
Q1 2025
Q2 2024
QoQ chg.
YoY chg.
Tubes volume sold (k tonnes)
293
314
351
(21)
