Meudon (France), May 15th, 2025
Vallourec, a world leader in premium tubular solutions, announces today its results for the first quarter 2025. The Board of Directors of Vallourec SA, meeting on May 14th 2025, approved the Group's first quarter 2025 Consolidated Financial Statements.
First Quarter 2025 Results
- Q1 Group EBITDA of €207 million, with strong 21% EBITDA margin
- Total cash generation of €104 million, bringing net cash position to €112 million
- Continued strong international booking momentum at healthy prices
- US market prices increased further in Q1 2025
- Q2 2025 Group EBITDA expected to range between €170 million and €200 million
- Confirm expected improvement in EBITDA in H2 2025 vs. H1 2025
HIGHLIGHTS
First Quarter 2025 Results
- Group EBITDA of €207 million, down (3%) sequentially; EBITDA margin improved to 21%
- Tubes EBITDA per tonne of €528 increased 3% sequentially, driven by strong profitability in Eastern Hemisphere
- Mine & Forest EBITDA of €53 million up 33% sequentially due to higher volume sold and lower cost per tonne
- Adjusted free cash flow of €168 million; total cash generation of €104 million
- Net cash position of €112 million, improving €91 million sequentially
Second Quarter 2025 Group EBITDA is expected to range between €170 million and €200 million:
- In Tubes, EBITDA per tonne is expected to be flat to slightly higher sequentially, while volumes are anticipated to be flat to slightly down sequentially.
- 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 shipments are expected to increase in H2 2025 compared to H1 2025 due to strong bookings over recent quarters. EBITDA per tonne should improve in H2 2025 compared to H1 2025 especially due to higher invoiced international prices and cost savings.
- 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:
“We are pleased with our first quarter 2025 results, which landed at the high end of our expected range. Once again, our premium positioning has enabled us to generate solid profitability, not only in our Tubes segment, but also for our mine in Brazil, where the benefits of the Phase 1 extension project are apparent. We also generated strong cash flow, marking the tenth straight quarter of positive cash generation – clear evidence of the cash flow potential of the New Vallourec.
“Financial market sentiment on the Oil & Gas sector has soured in recent weeks due to dual concerns about rising oil output by OPEC+ members and fears of a slowdown in oil demand. Notwithstanding this, our key international customers are progressing their long-term plans. As a result, our first quarter bookings continued the strong trend we observed in the fourth quarter, and we see a robust pipeline of opportunities ahead of us. This sales performance underpins our continued expectations of a second-half improvement in profitability. Meanwhile, US market prices have shown a continued upward trend, but they do not yet reflect the full impact of recently-announced tariffs due to ongoing market uncertainty.
“As a result of the substantial changes we have made within Vallourec over the past three years, we are well positioned for any market environment. We have focused our offering on differentiated, premium products and we have strong positions with global national oil companies, international oil companies, and resilient independent US producers. We have centralized production in cost-efficient hubs close to our key customers. We can serve all of our onshore US customers’ needs from our integrated operations in the US, putting us in an ideal position to navigate today’s trade environment.
“Our strong balance sheet has recently been endorsed by positive ratings actions across all three ratings agencies, including an upgrade to an Investment Grade rating by Fitch. This, and our proven ability to generate significant cash flow, will allow us to manage the business optimally in any market condition.”
Key Quarterly Data
| in € million, unless noted | Q1 2025 | Q4 2024 | Q1 2024 | QoQ chg. | YoY chg. |
| Tubes volume sold (k tonnes) | 314 | 362 | 292 | (49) | 21 |
| Iron ore volume sold (m tonnes) | 1.6 | 1.3 | 1.4 | 0.26 | 0.2 |
| Group revenues | 991 | 1,065 | 990 | (74) | 1 |
| Group EBITDA | 207 | 214 | 235 | (7) | (28) |
| (as a % of revenue) | 20.9% | 20.1% | 23.7% | 0.8 pp | (2.8) pp |
| Operating income (loss) | 148 | 229 | 174 | (82) | (26) |
| Net income, Group share | 86 | 163 | 105 | (77) | (19) |
| Adj. free cash flow | 168 | 178 | 171 | (10) | (3) |
| Total cash generation | 104 | 253 | 101 | (149) | 3 |
| Net debt (cash) | (112) | (21) | 485 | (91) | (597) |
The consolidated financial statements are included in the PDF version of the press release.
Information and Forward-Looking Statements
This press release includes forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms as “believe”, “expect”, “anticipate”, “may”, “assume”, “plan”, “intend”, “will”, “should”, “estimate”, “risk” and or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, Vallourec’s results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which they operate. Readers are cautioned that forward-looking statements are not guarantees of future performance and that Vallourec’s or any of its affiliates’ actual results of operations, financial condition and liquidity, and the development of the industries in which they operate may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if Vallourec’s or any of its affiliates’ results of operations, financial condition and liquidity, and the development of the industries in which they operate are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks include those developed or identified in the public documents filed by Vallourec with the French Financial Markets Authority (Autorité des marches financiers, or “AMF”), including those listed in the “Risk Factors” section of the Universal Registration Document filed with the AMF on March 27, 2025, under filing number n° D. 25-0192.
Accordingly, readers of this document are cautioned against relying on these forward-looking statements. These forward-looking statements are made as of the date of this document. Vallourec disclaims any intention or obligation to complete, update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws and regulations. This press release does not constitute any offer to purchase or exchange, nor any solicitation of an offer to sell or exchange securities of Vallourec. or further information, please refer to the website https://www.vallourec.com/en.
Future dividends and share buyback authorizations will be assessed on a yearly basis by the Board of Directors taking into account any relevant factor in the future, and will be subject to Shareholders’ approval. The Board of Directors will have discretion to employ share buybacks throughout the year, up to the limits authorized by the relevant resolution approved by the Annual General Meeting.
Presentation of Q1 2025 Results
Conference call / audio webcast on May 15th at 9:30 am CET
- To listen to the audio webcast: https://channel.royalcast.com/landingpage/vallourec-en/20250515_1/
- To participate in the conference call, please dial (password: “Vallourec”):
- +44 (0) 33 0551 0200 (UK)
- +33 (0) 1 7037 7166 (France)
- +1 786 697 3501 (USA)
- Audio webcast replay and slides will be available at: https://www.vallourec.com/en/investors
About Vallourec
Vallourec is a world leader in premium tubular solutions for the energy markets and for demanding industrial applications such as oil & gas wells in harsh environments, new generation power plants, challenging architectural projects, and high-performance mechanical equipment. Vallourec’s pioneering spirit and cutting edge R&D open new technological frontiers. With close to 13,000 dedicated and passionate employees in more than 20 countries, Vallourec works hand-in-hand with its customers to offer more than just tubes: Vallourec delivers innovative, safe, competitive and smart tubular solutions, to make every project possible.
Listed on Euronext in Paris (ISIN code: FR0013506730, Ticker VK), Vallourec is part of the CAC Mid 60, SBF 120 and Next 150 indices and is eligible for Deferred Settlement Service.
In the United States, Vallourec has established a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN code: US92023R4074, Ticker: VLOWY). Parity between ADR and a Vallourec ordinary share has been set at 5:1.
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