Vallourec Third Quarter 2025 Results

Press release

Meudon (France), November 14^th, 2025

Vallourec, a world leader in premium tubular solutions, announces today its results for the third quarter 2025. The Board of Directors of Vallourec SA, meeting on November 12^th 2025, approved the Group's third quarter 2025 Consolidated Financial Statements. 

Third Quarter 2025 Results

•      Q3 Group EBITDA of €210 million; EBITDA margin strong at 23%

•      Tubes EBITDA per tonne increased by more than 25% sequentially to €621

•      Robust US customer demand demonstrated in recent bookings

•      Expanding market share in Brazil via new Long-Term Agreement with Petrobras  Q4 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

Third Quarter 2025 Results

•       Group EBITDA of €210 million, up 12% sequentially, in line with midpoint of guidance

•       Group EBITDA margin was strong at 23%, the highest level since Q1 2024 o Tubes EBITDA margin improved more than 320 bps sequentially to 22%, with Tubes EBITDA increasing 30% sequentially to €188 million due to higher selling prices and slightly higher volumes.

o Mine & Forest EBITDA decreased by (22%) sequentially to €35 million due to lower volumes and higher costs, though EBITDA margin remained solid at 42%.

•       Adjusted free cash flow of €69 million; total cash generation of €67 million; net debt reduced to €140 million

•       Finalized sale of Serimax to further streamline invested capital and focus on core business activities              Redeemed 10% of outstanding 2032 senior notes

Fourth Quarter 2025 Group EBITDA is expected to range between €195 million and €225 million:

•       In Tubes, EBITDA per tonne is expected to be similar to the Q3 2025 level, while volumes are expected to be slightly above the Q3 2025 level.

•       In Mine & Forest, production sold is expected to be around 1.4 million tonnes. Full Year 2025 Outlook 

•       Confirm Group EBITDA improvement in H2 2025 vs. H1 2025

•       Full Year Group EBITDA is expected to range between €799 and €829 million

Information

Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer, declared:

“Vallourec delivered solid results once again in the third quarter, with Group EBITDA margin rising to its highest level since the first quarter of 2024. This quarter marks three straight years in which Vallourec has delivered a Group EBITDA margin around 20% and positive total cash generation – a clear testament to the major structural changes we have made within our business since May 2022.

“Our advantaged manufacturing footprint and reputation for high-quality tubular solutions is paying dividends in the United States. Our order intake in this market in recent months has been robust and reflects stable customer drilling activity and an improvement in our market share. We continue to expect a slowdown in imports, which currently represent about 40% of supply in the US OCTG market, as the market responds to higher steel tariffs.

“Also in the quarter, we secured a major contract in Brazil. Our new Long-Term Agreement with Petrobras will expand our market share and further demonstrate Vallourec’s ability to deliver high value-added solutions from our domestic manufacturing base. This contract carries potential revenue of up to $1 billion over four years. 

“Meanwhile, in select markets in the Eastern Hemisphere, we have seen delays in customer activity that will result in some orders being invoiced in 2026 – later than initially planned. That said, our key international customers continue to advance ambitious plans to grow their oil and gas production capacity over the coming years, which will drive solid demand for our solutions.

“Since we announced the New Vallourec plan in May 2022, we have made significant progress towards our two primary strategic goals. We achieved our objective of crisis-proofing our business ahead of plan, and today we can point to significant progress in achieving best-in-class profitability. In the third quarter, we fully closed the gap in Tubes EBITDA per tonne versus our primary peer. This is thanks to our core principle of Value over Volume and the relentless focus of our teams on operational excellence. 

“Our journey does not end here. We remain focused on improving return on invested capital and returning capital to our shareholders. To this end, today we convened a special meeting for holders of Vallourec warrants, in which we will propose a modification in our warrant terms and conditions in order to allow the delivery not only of newly-issued shares but also of existing shares upon their exercise, at the Company’s option. This will allow maximum flexibility in our shareholder return framework in the coming year.” Key Quarterly Data ^[1]

CONSOLIDATED RESULTS ANALYSIS

Third Quarter Results Analysis

In Q3 2025, Vallourec recorded revenues of €911 million, up 2% year over year, or up 7% at constant exchange rates. Group revenues reflect a 4% volume increase, a neutral price/mix effect, a 3% increase due to Mine & Forest, and a (6%) currency effect. 

EBITDA amounted to €210 million, or 23.1% of revenues, compared to €168 million (18.8% of revenues) in Q3 2024. The increase was driven by higher volumes and average selling prices in Tubes, the favorable impact of cost savings initiatives and higher profitability in Mine & Forest, largely related to the Phase 1 mine extension project.

Operating income was €192 million, compared to €124 million in Q3 2024. Operating income benefited from €28 million of income from asset disposals, restructuring costs and non-recurring items, an increase compared to €15 million of such income earned in Q3 2024. The capital gain from the disposal of Serimax was the major contributor. 

Financial income (loss) was (€19) million, flat compared to Q3 2024 and in-line with management’s previously stated expectation for run-rate expense of €15-20 million per quarter.

Income tax amounted to (€34) million compared to (€28) million in Q3 2024.

Net income, Group share, was €134 million, compared to €73 million in Q3 2024, with the increase driven by higher EBITDA, lower depreciation charges, the benefit of the Serimax disposal, and a lower effective tax rate compared to Q3 2024.  

Earnings per diluted share was €0.53 versus €0.30 in Q3 2024, reflecting the above changes in net income as well as an increase in ordinary shares due to the vesting of shares under management incentive plans and an increase in potentially dilutive shares related to the Company’s outstanding warrants. 

First Nine Month Results Analysis

In 9M 2025, Vallourec recorded revenues of €2,766 million, down (7%) year over year, or (3%) at constant exchange rates. The decrease in Group revenues reflects a (3%) volume decrease, a (3%) price/mix effect, a 3% increase due to Mine & Forest, and a (4%) currency effect. The year-over-year comparison is particularly affected by a large volume of high-value products in H1 2024 that did not recur in H1 2025. 

EBITDA amounted to €604 million, or 21.9% of revenues, compared to €618 million (20.8% of revenues) in 9M 2024. The decrease was driven by lower volumes and lower average selling prices in Tubes, partially offset by cost savings initiatives and improvements in Mine & Forest profitability largely related to the Phase 1 mine extension project.

Operating income was €442 million, compared to €397 million in 9M 2024. Operating income was burdened by €16 million of asset disposals, restructuring costs and non-recurring items, a significant decrease compared to €62 million of such expenses incurred in 9M 2024.

Financial income (loss) was negative at (€34) million, compared to a positive €18 million in 9M 2024. Vallourec’s 9M 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 Stateguaranteed loan (PGE).

Income tax amounted to (€130) million compared to (€114) million in 9M 2024. The effective tax rate was elevated due to non-deductible losses incurred in Europe as well as a shift in profits towards higher-tax geographies.

This resulted in positive net income, Group share, of €259 million, compared to €289 million in 9M 2024. 

Earnings per diluted share was €1.04 versus €1.19 in 9M 2024, reflecting the above changes in net income as well as an increase in ordinary shares due to the vesting of shares under management incentive plans and an increase in potentially dilutive shares related to the Company’s outstanding warrants.

RESULTS ANALYSIS BY SEGMENT

Third Quarter Results Analysis 

Tubes: In Q3 2025, Tubes revenues were up 1% year over year due to a 4% volume increase driven by higher shipments in both the Eastern and Western hemispheres, partially offset by a (3%) reduction in average selling price. Tubes EBITDA increased from €162 million in Q3 2024 to €188 million in Q3 2025. This was driven by higher profitability primarily in the Western Hemisphere as well as cost savings.

Mine & Forest: In Q3 2025, iron ore production sold was 1.6 million tonnes, an increase of 18% year over year, while EBITDA reached €35 million, versus €22 million in Q3 2024. These improvements resulted largely from the successful start-up of the Phase 1 mine extension in late 2024.

First Nine Months Results Analysis

Tubes: In 9M 2025, Tubes revenues were down (10%) year over year due to a (7%) decrease in average selling price and a (3%) reduction in volume sold. Tubes EBITDA decreased from €592 million in 9M 2024 to €498 million in 9M 2025. These reductions were due to a decrease in pricing in North America, as well as a reduction in international revenue and profitability as Vallourec invoiced a large volume of high-value products in H1 2024 that did not recur in H1 2025.

Mine & Forest: In 9M 2025, iron ore production sold was 4.8 million tonnes, increasing by 16% year over year, while Mine & Forest EBITDA reached €133 million, versus €68 million in 9M 2024. These improvements resulted largely from the successful start-up of the Phase 1 mine extension in late 2024, despite lower benchmark prices. 

CASH FLOW AND FINANCIAL POSITION

Third Quarter Cash Flow Analysis

Adjusted operating cash flow in Q3 2025 was €170 million versus €117 million in Q3 2024. The increase was attributable to higher EBITDA and lower financial cash out, partially offset by higher tax payments.

Adjusted free cash flow in Q3 2025 was €69 million, a decrease versus €189 million in Q3 2024. The prior year period benefited from a significant (€102 million) release in working capital, compared to an increase of €43 million in Q3 2025.

Total cash generation in Q3 2025 was €67 million, versus €136 million in Q3 2024.

First Nine Month Cash Flow Analysis

Adjusted operating cash flow in 9M 2025 was €444 million versus €448 million in 9M 2024. The slightly lower EBITDA in 9M 2025 was largely offset by lower financial cash out compared to 9M 2024.

Adjusted free cash flow in 9M 2025 was €325 million, lower compared to the €444 million generated in 9M 2024. The decrease was driven by a negative impact from foreign exchange differences and a smaller working capital release.

Total cash generation in 9M 2025 was €228 million, versus €281 million in 9M 2024.

Total cash generation after shareholder returns in 9M 2025 was (€142) million. This reflected (€370) million in shareholder returns, including (€352) million in dividend payments and (€19) million in share repurchases.

Debt and Liquidity

As of September 30, 2025, Vallourec’s net debt position^[2] was €140 million, a (€161) million deterioration versus December 31, 2024 resulting from the €370m in shareholder returns in the second quarter. Gross debt was €911 million, down from €1,103 million on December 31, 2024. Long-term debt was €810 million and short-term debt totaled €102 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 and return optimization. 

As of September 30, 2025, Vallourec’s liquidity position was very strong at €1.6 billion, with €835 million of cash, availability on the revolving credit facility (RCF) of €550 million, and availability on its asset-backed lending facility (ABL) of €175 million.^[3]

INFORMATION AND FORWARD-LOOKING STATEMENTS

Presentation of Q3 2025 Results

Conference call / audio webcast on November 14^th at 9:30 am CET

•       To view the webcast: https://vallourec.engagestream.companywebcast.com/2025-11-14q3resultscallanalysts

•       To participate in the conference call, please register beforehand to receive dial-in details:

https://engagestream.companywebcast.com/vallourec/2025-11-14-q3resultscallanalysts/dial-in        Audio webcast replay and slides will be available at: https://www.vallourec.com/en/investors

About Vallourec

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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

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^[4]

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

^(a)              Refers to ACC (Advances on Foreign Exchange Contract) and ACE (Advances on Export Shipment Documents) program in Brazil ^(b) Gross debt as of December 31, 2024 included a €77 million overdraft that was repaid in early January. 

^(c) 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.

Liquidity

^(a) As of December 31, 2024, cash, net of overdrafts was €1,024 million. The €77 million overdraft reflected in the year end 2024 figures was repaid in early January. ^(b) This $350m committed ABL is subject to a borrowing base calculation based on eligible accounts receivable and inventories, among other items. The borrowing base at September 30^th 2025 was approximately $218m. Availability is shown net of approximately $13m of letters of credit and other items.

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 FX 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).