Vallourec SA

Latest Results (19.07.2026):

Vallourec SA — Q1 2026: The group reported solid first-quarter 2026 results with Group EBITDA of $220m (€187m) and a strengthened EBITDA margin of 22.6% despite lower volumes and Middle East disruptions. Revenues were $975m (down ~7% YoY), adjusted free cash flow was $177m, total cash generation $135m, and the company finished the quarter with a net cash position of $67m after $107m of share repurchases. Management reiterated a strong liquidity position and confirmed shareholder return plans while guiding Q2 2026 Group EBITDA to $175–$205m.

Key headline numbers

Group EBITDA $220m (€187m); EBITDA margin 22.6% (up ~200bps sequentially). Revenues $975m (−7% YoY). Net income, Group share $87m; diluted EPS $0.35. Adjusted free cash flow $177m; total cash generation $135m.

Cash, debt & liquidity

Ended Q1 2026 with net cash of $67m (improved $21m sequentially after $107m buybacks). Gross debt $994m; strong liquidity of $1.9bn (cash & equivalents $1,119m + available RCF/ABL).

Shareholder returns

Confirmed intention to return nearly €650m to shareholders in 2026. Q1 saw ≈5m shares repurchased (~€91m / $107m) under the €200m program; remaining amounts may fund an extraordinary interim dividend in August, subject to conditions and Board approval.

Volume and revenue trends

Tubes volume sold 272k tonnes (−13% YoY) and iron ore sold 1.3m tonnes (−15% YoY). Group revenues declined to $975m, the drop driven mainly by lower shipments to Asia, Africa and Gulf of America, partially offset by positive price/mix.

Segment performance — Tubes & Mine & Forest

Tubes: EBITDA $196m, EBITDA/tonne $724 (+31% YoY) reflecting price/mix and cost adaptation. Mine & Forest: EBITDA $38m (−32% YoY) due to lower iron ore volumes and FX headwinds.

Cash conversion & working capital

Converted over 60% of EBITDA into cash (adjusted operating cash flow $180m). The quarter benefited from a $45m working-capital release; gross capex $58m.

Regional & market context

Resilient activity in primary Middle East customers with no cancellations but some postponements/shipping delays affecting invoicing cadence. North America showing higher activity and early pricing strength; international volumes expected to recover H2 if geopolitical situation stabilizes.

Outlook — Q2 2026 and full-year direction

Q2 Group EBITDA guidance: $175–$205m. Management expects sequential Tubes volumes and EBITDA/tonne to decline in Q2 due to prolonged Middle East disruption, while US market pricing is expected to improve into H2; iron ore sales for Mine & Forest ~1.4mt in Q2 and ~5.5mt for full year 2026.

Reporting change & other items

Vallourec changed its consolidated reporting currency to US dollars effective Jan 1, 2026 (comparatives restated). Company highlighted a record long-term geothermal supply agreement (up to $800m) and will host a geothermal deep-dive on June 15, 2026.