Vallourec (VK) Q2 2025 earnings summary

Executive summary

• Q2 2025 EBITDA reached €187 million with a 22% margin, slightly above guidance midpoint, despite a 10% sequential decline and lower shipments; eleven consecutive quarters of positive cash generation achieved.

• €370 million was returned to shareholders via dividends and share repurchases in Q2 2025, reducing net debt to €201 million.

• Strategic initiatives in Brazil, including the cost reduction program, were completed ahead of schedule, exceeding savings targets and driving operational simplification.

• Acquisition of Thermotite do Brasil completed, enhancing deepwater line pipe and pipeline insulation technology.

• Significant long-term agreements and major contracts secured in the Middle East, Algeria, Brazil, and Kuwait, supporting future results.

Financial highlights

• Q2 2025 revenues were €863 million, down 20% year-over-year, mainly due to lower Tubes volumes and prices; EBITDA was €187 million, margin 21.7%.

• Net income, group share, was €40 million in Q2 2025, down from €111 million in Q2 2024.

• Adjusted free cash flow in Q2 2025 was €88 million; total cash generation was €57 million.

• Net debt stood at €201 million as of June 30, 2025, after significant shareholder returns; liquidity at €1.5 billion.

• Mine & Forest segment Q2 2025 EBITDA rose to €45 million from €15 million in Q2 2024, with a 14% increase in iron ore volumes sold.

Outlook and guidance

• Q3 2025 EBITDA expected between €195 million and €225 million; full-year group EBITDA to improve in H2 versus H1.

• Tubes volumes in Q3 to be similar to Q2, with EBITDA per ton expected to increase sequentially; international Tubes shipments and EBITDA per ton anticipated to rise in H2.

• Mine & Forest profitability in H2 will depend on prevailing iron ore prices, with production sold expected at 6 million tonnes for the year.

• US market pricing expected to remain supported by steel tariffs and stable demand.

• The company targets further carbon footprint reductions and continued premiumization of its product portfolio.