TUBOS REUNIDOS (TRG) H1 2024 earnings summary

Executive summary

• H1 2024 saw continued slowdown in orders and increased price pressure, leading to a significant drop in revenue and profitability compared to H1 2023.

• Net financial debt reduced by EUR 62.1 million, aided by strong cash flow from prior years and asset sales.

• Strategic consolidation of manufacturing processes at Amurrio Mill enabled sale of inactive plants, supporting deleveraging.

Financial highlights

• Net turnover fell 51.9% year-over-year to EUR 172.7 million due to lower demand and price pressure.

• EBITDA dropped 93.9% to EUR 5.3 million; EBITDA margin decreased to 3.1% from 26.1%.

• Net income declined 25.9% to EUR 40.4 million; profit before tax was EUR 52.3 million, down 9.1%.

• Operating income turned negative at EUR -2.8 million versus EUR 78.1 million in H1 2023.

• Cash flow from operations was EUR 14.7 million, down 63.5% year-over-year.

Outlook and guidance

• Volumes and prices expected to recover slowly through 2025 as sector inventories normalize and energy projects accelerate.

• O-NextⓇ, a net zero carbon seamless steel pipe, to enter production in H2 2024 and is expected to grow in portfolio share.

• Sector recovery anticipated in 2025, supported by ECB rate cuts and decarbonization trends.