First Quarter 2025 Results
Vallourec announced 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.
• 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.”
