Vallourec Fourth Quarter 2025 Results

Press release

Information
Quarterly statements are unaudited and not subject to any review. Half-year financial statements were subject to limited review by statutory auditors.
Unless otherwise specified, indicated variations are expressed in comparison with the same period of the previous year.
Please see “Definitions of Non-GAAP Financial Data” for definitions of terms presented in this press release.

Meudon (France), February 27th, 2026
Vallourec, a world leader in premium seamless tubular solutions, announces today its results for the fourth quarter 2025. The Board of Directors of Vallourec SA, meeting on February 26th 2026, approved the Group's fourth quarter 2025 Consolidated Financial Statements.

Fourth Quarter 2025 Results

• Q4 Group EBITDA of €214 million, strong 21% EBITDA margin
• Excellent total cash generation of €177 million
• Around €650 million distribution to shareholders targeted by August 2026¹
• Q1 2026 Group EBITDA expected to range between €165 million and €195 million
• Resilient US customer demand while imports continue to decline
• Early signs of activity rebound in key Middle East markets

HIGHLIGHTS

Fourth Quarter 2025 Results

• Group EBITDA of €214 million, up 2% sequentially, EBITDA margin remained strong at 21%
  • Tubes EBITDA per tonne of €548 down (12%) sequentially reflecting negative mix effects
  • Mine & Forest EBITDA at €38 million increasing sequentially by 10%, reflecting higher iron ore market prices partially offset by seasonally lower volumes
• Adjusted free cash flow of €204 million; total cash generation of €177 million – aided by robust collections and inventory management
• Ended the period with a net cash position of €39 million, improving by €179 million sequentially

OUTLOOK

First Quarter 2026 Group EBITDA is expected to range between €165 million and €195 million:

• In Tubes, EBITDA per tonne is expected to be broadly in-line with the Q4 2025 level, while volumes are expected to be below the Q4 2025 level.
• In Mine & Forest, production sold is expected to be around 1.4 million tonnes.

Full Year 2026 results are expected to be influenced by the following dynamics:

• North America Tubes:
  • Sustained strength in sales volumes thanks to Vallourec’s market share gains during 2025
  • A slight near-term decrease in US market prices, with improving industry supply-demand conditions leading to potential improvement later in the year
• International Tubes:
  • Lower sales volumes in H1 2026 due to slower bookings in H2 2025
  • An activity recovery in key Middle Eastern markets setting the stage for higher second half volumes
  • Broadly stable market pricing versus the second half of 2025, with discrete customer contracts driving selective price upside
• Slightly lower year over year iron ore production sold (approximately 5.5 million tonnes) due to an improved production process focusing on value over volume

a Subject to warrant full exercise before the end of June 2026 and to Board of Directors approval in July. Estimated per share amount is based on assumptions detailed in the Appendix.

CONSOLIDATED RESULTS ANALYSIS

Fourth Quarter Results Analysis

In Q4 2025, Vallourec recorded revenues of €1,043 million, down (2%) year over year, or up 4% at constant exchange rates due to an (8%) reduction in volume sold and a (6%) adverse currency effect more than offsetting an 11% improvement in price/mix and minor positive effect in Mine & Forest.

EBITDA amounted to €214 million, or 20.5% of revenues, stable compared to Q4 2024. Positive price/mix effects year over year in Tubes across all regions as well as lower raw materials costs and cost savings were offset by a (€10) million adverse foreign exchange impact and lower tubes volumes, amongst others.

Operating income was €150 million, compared to €229 million in Q4 2024. The year over year decline is explained primarily by lower gains on asset disposals relative to the prior year which benefited from the disposal of Vallourec’s Rath production site in Germany for €155 million.

Financial income (loss) was (€16) million, an improvement versus the (€29) million recorded in Q4 2024, in-line with the Group’s expected quarterly run‑rate of (€15-20) million.

Income tax expense amounted to (€35) million, compared to (€29) million in Q4 2024.

Net income, Group share, was €96 million, versus €163 million in Q4 2024. The year over year reduction reflects the above decline in operating income.

Earnings per diluted share was €0.38, versus €0.67 in Q4 2024, driven by the decline in net income and a modest increase in diluted shares outstanding largely related to the Company’s outstanding warrants, which are accounted for using the treasury share method.

Full‑Year 2025 Results Analysis

In FY 2025, Vallourec recorded revenues of €3,809 million, down (6%) year over year or (1%) at constant exchange rates. The full-year revenue decline reflects a (4%) volume effect and a (5%) currency effect, partially offset by higher volumes from the Mine & Forest and a 1% positive effect due to price/mix.

Full-year EBITDA totaled €819 million, versus €832 million in FY 2024. This slight decline includes a significant adverse foreign exchange impact of €47 million. Excluding the effect of foreign exchange, the slight decline in tubes profitability was more than offset by a stronger contribution from Mine & Forest.

Operating income for FY 2025 reached €593 million, compared to €626 million in FY 2024. The decrease is primarily attributable to lower EBITDA and lower gains on asset disposals relative to the prior year.

Financial income (loss) stood at (€50) million in FY 2025, compared with (€11) million in FY 2024. FY 2024 financial income benefited from a net positive impact of €70m related to the balance sheet refinancing in Q2 2024, mainly related to the reversal of fair value accounting on the 2026 senior notes and State-guaranteed loan (PGE).

Income tax expense amounted to (€164) million for 2025 versus (€143) million in 2024.

This resulted in FY 2025 net income Group share of €355 million, compared with €452 million in FY 2024.

Diluted earnings per share were €1.42 in FY 2025, compared to €1.86 in FY 2024.

RESULTS ANALYSIS BY SEGMENT

Fourth Quarter Results Analysis

Tubes: in Q4 2025, revenues were €999 million, a 2% year‑over‑year increase reflecting a 10% increase in average selling price and more favorable mix, largely offset by an (8%) decline in volumes and (6%) adverse foreign exchange impact. EBITDA amounted to €183 million in Q4 2025, broadly stable year over year. EBITDA per tonne was €548/t, higher than the €511/t achieved in Q4 2024, reflecting broad improvements in pricing and mix despite lower volumes and a (€10) million adverse foreign exchange impact year over year.

Mine & Forest: in Q4 2025, iron ore production sold was 1.5 million tonnes up 13% from 1.3 million tonnes in Q4 2024. Segment revenues increased to €80 million, from €74 million in Q4 2024, while EBITDA reached €38 million, down (4%) year over year versus €40 million in Q4 2024.

Full‑Year Results Analysis

Tubes: in FY 2025, Tubes revenues were €3,526 million, down (7%) year over year from €3,786 million in FY 2024. Volumes sold totaled 1,244 kt versus 1,297 kt in FY 2024, down (4%) year over year while the average selling price decreased from €2,919/t to €2,834/t or (3%) year over year. EBITDA of €682 million declined by (12%) year over year with higher prices and mix more than offset by the impact of lower volumes, other items and foreign exchange.

Mine & Forest: in FY 2025, iron ore production sold reached 6.2 million tonnes, increasing by 15% year over year, while EBITDA reached €171 million, versus €108 million in 2024. This improvement resulted largely from the successful start-up of the Phase 1 mine extension in late 2024 and a smaller positive non-cash impact from the periodic revaluation of the forest.

CASH FLOW AND FINANCIAL POSITION

Fourth Quarter Cash Flow Analysis

Adjusted operating cash flow in Q4 2025 was €144 million, compared with €149 million in Q4 2024, reflecting higher tax payments and non-cash items partly offset by lower financial cash out.

Adjusted free cash flow in Q4 2025 was €204 million, versus €178 million in Q4 2024. Q4 2025 benefited from significant working‑capital release of €108 million, largely due to strong inventory management.

Total cash generation in Q4 2025 was €177 million, compared with €253 million in Q4 2024.

Full‑Year Cash Flow Analysis

Adjusted operating cash flow in FY 2025 was €587 million, compared to €597 million in FY 2024. The slight year over year decrease reflects lower EBITDA, higher non-cash items and tax payments, partly offset by lower financial cash out.

Adjusted free cash flow in FY 2025 was €529 million, versus €622 million in FY 2024, with the decline mainly reflecting foreign exchange differences, partly offset by improvements in working capital performance.

Total cash generation in FY 2025 was €405 million, compared with €534 million in FY 2024, with restructuring charges & non-recurring items more than halving year over year to €145 million from €301 million in 2024. Asset disposals were significantly lower in 2025 at €21 million versus €214 million in 2024.

Total cash generation after shareholder returns in FY 2025 was €35 million, reflecting €370 million paid to shareholders, including dividends and share repurchases.

Debt and Liquidity

As of December 31, 2025, Vallourec’s net cash position² was €39 million, an €18 million improvement versus December 31, 2024 reflecting strong cash generation and €370 million returned to shareholders. Gross debt was €862 million, down from €1,103 million on December 31, 2024. Long-term debt was €809 million and short-term debt totaled €53 million. In September, Vallourec announced the partial redemption of its senior notes maturing in 2032 for an amount of $82m, supporting the company’s capital structure optimization.

As of December 31, 2025, Vallourec’s liquidity position was very strong at €1.7 billion, with €965 million of cash, availability on the revolving credit facility (RCF) of €550 million, and availability on its asset-backed lending facility (ABL) of €138 million.³

2026 SHAREHOLDER RETURN UPDATE

On January 7, 2026, Vallourec announced the commencement of a €200 million share buyback to take place until June 30th, 2026 at the latest. In addition, the Company announced the intention to distribute an extraordinary interim dividend composed of:

• Approximately €300 million of proceeds from the exercise of warrant (BSA) proceeds; and
• 80–100% of 2025 total cash generation not returned in the form of share buybacks

Based on Vallourec’s full year 2025 results, Vallourec indicates that the amount of this extraordinary interim dividend is expected to be approximately €450 million¹. This brings expected shareholder returns in the calendar year of 2026 to nearly €650 million. This significant shareholder return demonstrates Vallourec’s commitment to becoming one of the most shareholder-friendly companies within its peer group. The distribution compares to €370m returned to shareholders in 2025.

Assuming the continued execution of the current €200m share buyback program at €19 per share, and the expectation of the full exercise of Vallourec’s outstanding warrants, this would represent an estimated interim dividend of approximately €1.75 per share¹ – a meaningful increase versus Vallourec’s €1.50 per share dividend in 2025. This extraordinary interim dividend is subject to customary conditions and the approval of Vallourec’s Board of Directors in July 2026. This extraordinary interim dividend amount is also contingent on the full exercise of Vallourec’s outstanding warrants on or before their expiration on June 30, 2026. Vallourec reminds investors that it does not intend to propose an annual dividend with respect to 2025 to the annual shareholders' meeting in 2026.

Vallourec confirms that the above shareholder returns are expected to remain within its capital allocation policy which is subject to a leverage ratio of +/- 0.5x net debt to EBITDA as well as maintaining liquidity greater than €1 billion.

The group confirms its commitment to distribute 80-100% of its annual total cash generation in future years through dividends and/or share repurchases.

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 Q4 2025 Results

Conference call / audio webcast on February 27th at 9:30 am CET

• To view the webcast: https://vallourec.engagestream.companywebcast.com/2026-02-27-fy25
• To participate in the conference call, please register beforehand to receive dial-in details: https://engagestream.companywebcast.com/vallourec/2026-02-27-fy25/dial-in
• 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.

Financial Calendar

May 13, 2026   Publication of First Quarter 2026 Results

For further information, please contact:

Investor relations

Daniel Thomson
Tel: +44 (0)75 91 83 74 05
daniel.thomson@vallourec.com

Press relations

Taddeo - Romain Grière
Tel: +33 (0) 7 86 53 17 29
romain.griere@taddeo.fr

Individual shareholders

Toll Free Number (from France): 0 805 65 10 10
actionnaires@vallourec.com

Nicolas Escoulan
Tel: +33 (0)6 42 19 14 74
nicolas.escoulan@taddeo.fr

APPENDICES

The Group’s reporting currency is the euro. All amounts are expressed in millions of euros, unless otherwise specified. Certain numerical figures contained in this document, including financial information and certain operating data, have been subject to rounding adjustments.

Documents accompanying this release:

• Tubes Sales Volume
• Mine Sales Volume
• Foreign Exchange Rates
• Tubes Revenues by Geographic Region
• Tubes Revenues by Market
• Segment Key Performance Indicators (KPIs)
• Summary Consolidated Income Statement
• Summary Consolidated Balance Sheet
• Key Cash Flow Metrics
• Summary Consolidated Statement of Cash Flows (IFRS)
• Indebtedness
• Liquidity
• Definitions of Non-GAAP Financial Data
• Pro Forma Interim Dividend Calculation

Tubes Sales Volume

Mine Sales Volume

Foreign Exchange Rates

Quarterly Tubes Revenues by Geographic Region

Year-to-Date Tubes Revenues by Geographic Region

Quarterly Tubes Revenues by Market

Year-to-Date Tubes Revenues by Market

Quarterly Segment KPIs

a Volume sold in thousand tonnes for Tubes and million tonnes for Mine & Forest. H&O = Holding & Other; Int = Intersegment Transactions. Values for percentage changes not shown where not meaningful.

Year-to-Date Segment KPIs

Quarterly Summary Consolidated Income Statement

Year-to-Date Summary Consolidated Income Statement

Summary Consolidated Balance Sheet

Quarterly Key Cash Flow Metrics

Year-to-Date Key Cash Flow Metrics

Summary Consolidated Statement of Cash Flows (IFRS)

Indebtedness

Liquidity

Pro Forma Interim Dividend Calculation

DEFINITIONS OF NON-GAAP FINANCIAL DATA

Adjusted free cash flow is defined as adjusted operating cash flow +/- change in operating working capital and gross capital expenditures. It corresponds to net cash used in operating activities less restructuring and non-recurring items +/- gross capital expenditure.

Adjusted operating cash flow is defined as EBITDA adjusted for non-cash benefits and expenses, financial cash out and tax payments.

Asset disposals and other cash items includes cash inflows from asset sales as well as other investing and financing cash flows.

Change in working capital refers to the change in the operating working capital requirement.

Data at constant exchange rates: The data presented “at constant exchange rates” is calculated by eliminating the translation effect into euros for the revenue of the Group’s entities whose functional currency is not the euro. The translation effect is eliminated by applying Year N-1 exchange rates to Year N revenue of the contemplated entities.

EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization is calculated by taking operating income (loss) before depreciation and amortization, and excluding certain operating revenues and expenses that are unusual in nature or occur rarely, such as:

• impairment of goodwill and non-current assets as determined within the scope of impairment tests carried out in accordance with IAS 36;
• significant restructuring expenses, particularly resulting from headcount reorganization measures, in respect of major events or decisions;
• capital gains or losses on disposals;
• income and expenses resulting from major litigation, significant roll-outs or capital transactions (e.g., costs of integrating a new activity).

Financial cash out includes interest payments on financial and lease debt, interest income and other financial costs.

Foreign exchange differences reconciles select items in the cash flow statement to their effective cash impact. This effect is related to intra-group financing, including related foreign exchange hedging.

Gross capital expenditure: gross capital expenditure is defined as the sum of cash outflows for acquisitions of property, plant and equipment and intangible assets and cash outflows for acquisitions of biological assets.

(Increase) decrease in net debt (alternatively, “change in net debt”) is defined as total cash generation +/- non-cash adjustments to net debt.

Industrial margin: The industrial margin is defined as the difference between revenue and cost of sales (i.e. after allocation of industrial variable costs and industrial fixed costs), before depreciation.

Lease debt is defined as the present value of unavoidable future lease payments.

Net debt: Consolidated net debt (or “net financial debt”) is defined as bank loans and other borrowings plus overdrafts and other short-term borrowings minus cash and cash equivalents plus the fair value of the cross-currency swaps related to the EUR/USD hedging of the principal of the $820 million 7.5% senior notes. Net debt excludes lease debt.

Net working capital requirement is defined as working capital requirement net of provisions for inventories and trade receivables; net working capital requirement days are computed on an annualized quarterly sales basis.

Non-cash adjustments to net debt includes non-cash foreign exchange impacts on debt balances, IFRS-defined fair value adjustments on debt balances, and other non-cash items.

Non-cash items in EBITDA includes provisions and other non-cash items in EBITDA.

Operating working capital requirement includes working capital requirement as well as other receivables and payables.

Restructuring charges and non-recurring items consists primarily of the cash costs of executing the New Vallourec plan, including severance costs and other facility closure costs.

Total cash generation is defined as adjusted free cash flow +/- restructuring charges and non-recurring items and asset disposals & other cash items. It corresponds to net cash used in operating activities +/- gross capital expenditure and asset disposals & other cash items.

Working capital requirement is defined as trade receivables plus inventories minus trade payables (excluding provisions).

Notes

1. Estimated per share amount is based on assumptions detailed in the Appendix.
2. Vallourec entered into 4-year cross-currency swaps (CCS) to hedge the EUR/USD currency exposure related to its USD 2032 Senior Notes. The fair value of the CCS related to the EUR/USD hedging of the principal of the notes is consequently included in the net debt definition.
3. As of December 31, 2025, the borrowing base for this facility was approximately $176 million, and $13 million in letters of credit and other commitments were issued.
4. Refers to ACC (Advances on Foreign Exchange Contract) and ACE (Advances on Export Shipment Documents) program in Brazil.
5. Gross debt as of December 31, 2024 included a €77 million overdraft that was repaid in early January.
6. As of December 31, 2024, cash, net of overdrafts was €1,026 million. The €77 million overdraft reflected in the year end 2024 figures was repaid in early January.
7. Assumes share price of €19 for remainder of buyback program. See: https://www.vallourec.com/investors/press-releases-regulated-information/
8. Rounded to nearest €0.05