Schoeller-Bleckmann Oilfield Equipment (SBO) CMD 2025 summary

2024 financial performance and business review

• Achieved EUR 560 million in sales and EUR 70 million EBIT, with a double-digit EBIT margin of 12.5%, despite a 4.3% sales decline and challenging market conditions, especially in the U.S.

• AMS division saw a 13% sales drop due to softening demand, while OE division grew sales by 7%, driven by strong performance in the Middle East (+48%) and Latin America (+35%).

• Free cash flow doubled to EUR 67 million, cash position rose to EUR 315 million, and net debt reduced to EUR 56 million.

• Dividend proposed at EUR 1.75 per share, with a payout ratio of 61%, slightly lower than last year due to a >30% drop in net income.

• AMS capacity was adjusted with headcount reductions in Europe, U.S., and Asia to match lower demand.

Strategic recalibration and future targets

• Strategy recalibrated with four pillars: diversification, market expansion, technology leadership, and operational excellence, supported by a new corporate identity and rebranding to SBO AG.

• Quantified targets set: sales to reach EUR 900 million by 2030, with EUR 200 million from new industries outside oil and gas.

• EBITDA margin target raised to over 20% by 2030 (from 18% in 2024); emission targets set for 30% reduction in scope 1 & 2, and 10% in scope 3.

• Capital allocation priorities: organic growth (main driver), dividends, M&A (EUR 200-315 million earmarked), and share buybacks (lowest priority).

• M&A to focus on precision manufacturers and service providers in energy transition and industrial sectors, with strict criteria for synergies and cultural fit, targeting majority acquisitions in North America and Europe.

Diversification, market expansion, and technology

• Diversification targets geothermal, 3D metal printing, and flow control markets, leveraging core competencies in high-performance materials and precision manufacturing.

• Flow control identified as a major new market, focusing on high-end, niche components for critical environments (corrosive, high-pressure, high-temperature), not commodity products.

• Market expansion to focus on international growth, especially in the Middle East, Latin America, and Asia, with new facilities such as the Dubai hub and local manufacturing.

• Technology leadership in non-magnetic steel, advanced machining, additive manufacturing, and turnkey solutions for aerospace, semiconductors, and energy transition.

• Operational excellence through vertical integration, global footprint, and sustainability initiatives, including photovoltaic installations, in-house R&D, and production optimization.