Vallourec SA

Latest Results (29.08.2026):

Vallourec SA — Q2 2026: The Group reported Q2 2026 revenues of US$886m and Group EBITDA of US$190m (21.4% margin). Tubes profitability remained strong with Tubes EBITDA per tonne at US$722. Cash generation was robust (adjusted free cash flow US$125m; total cash generation US$118m) and the balance sheet ended the quarter with a net cash position of US$183m. Management confirmed Q3 2026 Group EBITDA guidance of US$170–210m and a ~€650m shareholder return program for 2026, including an extraordinary interim dividend of €2.05 per share payable on 5 August 2026.

Key Q2 2026 numbers

Revenues US$886m (‑10% YoY); Group EBITDA US$190m (‑9% YoY) and 21.4% margin (vs 21.2% in Q2 2025); Net income, Group share US$45m; diluted EPS US$0.18; adjusted free cash flow US$125m; total cash generation US$118m.

Tubes segment (Q2 2026)

Volumes 244k t (‑17% YoY); Tubes revenues US$811m (‑7% YoY); Tubes EBITDA US$176m (+9% YoY); EBITDA per tonne US$722 (+31% YoY); average selling price up ~12% YoY — strong pricing/mix and cost adaptation offset lower volumes.

Mine & Forest (Q2 2026)

Iron ore sold 1.2m t (‑24% YoY); revenues US$92m (‑7% YoY); EBITDA US$33m (‑35% YoY) — lower volumes sold and FX headwinds from BRL strength. Guidance: Q3 production sold ~1.4m t; full‑year production sold expected ~5.0–5.5m t.

Cash, debt and liquidity

Adjusted free cash flow US$125m in Q2; ended Q2 with net cash US$183m (improved by US$116m sequentially); gross debt US$998m; total liquidity ~US$2.0bn (cash & equivalents US$1,231m, available RCF and ABL capacity).

Guidance and outlook

Q3 2026 Group EBITDA expected US$170–210m. Management expects North American volumes and prices to increase in H2 2026; international volumes to rise despite continued Strait of Hormuz disruption; H2 Tubes EBITDA per tonne to decline vs H1 mainly due to mix and additional Middle East shipment costs (largely expected to be reimbursed in coming quarters).

Shareholder returns & capital actions

~€650m return to shareholders confirmed for 2026: includes completed €110m share buyback (5,868,656 shares repurchased) and an extraordinary interim dividend of €2.05 per share (ex‑dividend 3 Aug, payment 5 Aug 2026).

Commercial & operational highlights

High activity in the US with improved pricing and solid asset utilization; robust offshore tendering converting into bookings and contract awards (e.g., Petrobras Atapu‑2, Azule Energy PAJ, ExxonMobil Hammerhead/Longtail); delayed deliveries for some customers due to Strait of Hormuz closure but resilient customer activity in primary Middle East markets.