TUBOS REUNIDOS (TRG) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was EUR 324 million, down 39.2% year-over-year, with EBITDA at EUR 8.8 million and net profit at EUR 28.6 million, marking the third consecutive year of profitability.

• Significant debt reduction in January 2024 via a discount auction generated a net result of EUR 66.5 million, strengthening equity.

• Cost containment and efficiency measures helped offset lower sales volumes and prices.

• Order backlog at year-end was EUR 144 million, up 44% from 2023, driven by premium and low-emission products and increased market momentum.

Financial highlights

• Revenue fell to EUR 324 million from EUR 532.9 million, a 39.2% decrease year-over-year.

• EBITDA dropped 91.8% to EUR 8.8 million; EBITDA margin declined to 2.7% from 20.0%.

• Net profit attributable to the parent was EUR 28.6 million, down 49.2% year-over-year.

• Cash flow from operations was EUR 6.2 million, with net cash flow negative at EUR -46.2 million.

• Net financial debt reduced to EUR 234.3 million, a 17% decrease from 2023.

Outlook and guidance

• 2025 expected to remain uncertain due to global market volatility and US tariff policy changes.

• Elimination of steel import quotas in the US from March 2025 could significantly impact the sector.

• EU market faces challenges from weak German growth, political instability, and rising imports from China and Ukraine.

• Potential for demand recovery in the US OCTG segment and positive market reaction if the Ukraine conflict ends.