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Vallourec Earnings Release 2025
1738_iss_2025-11-14_ec25af02-d345-4e08-9c0e-10735a632a07.pdf
Earnings Release
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Press release
Meudon (France), November 14th, 2025
Vallourec, a world leader in premium tubular solutions, announces today its results for the third quarter 2025. The Board of Directors of Vallourec SA, meeting on November 12th 2025, approved the Group's third quarter 2025 Consolidated Financial Statements.
Third Quarter 2025 Results
- Q3 Group EBITDA of €210 million; EBITDA margin strong at 23%
- Tubes EBITDA per tonne increased by more than 25% sequentially to €621
- Robust US customer demand demonstrated in recent bookings
- Expanding market share in Brazil via new Long-Term Agreement with Petrobras
- Q4 2025 Group EBITDA expected to range between €195 million and €225 million
- Confirm expected improvement in EBITDA in H2 2025 vs. H1 2025
HIGHLIGHTS & OUTLOOK
Third Quarter 2025 Results
- Group EBITDA of €210 million, up 12% sequentially, in line with midpoint of guidance
- Group EBITDA margin was strong at 23%, the highest level since Q1 2024
- o Tubes EBITDA margin improved more than 320 bps sequentially to 22%, with Tubes EBITDA increasing 30% sequentially to €188 million due to higher selling prices and slightly higher volumes.
- o Mine & Forest EBITDA decreased by (22%) sequentially to €35 million due to lower volumes and higher costs, though EBITDA margin remained solid at 42%.
- Adjusted free cash flow of €69 million; total cash generation of €67 million; net debt reduced to €140 million
- Finalized sale of Serimax to further streamline invested capital and focus on core business activities
- Redeemed 10% of outstanding 2032 senior notes
Fourth Quarter 2025 Group EBITDA is expected to range between €195 million and €225 million:
- In Tubes, EBITDA per tonne is expected to be similar to the Q3 2025 level, while volumes are expected to be slightly above the Q3 2025 level.
- In Mine & Forest, production sold is expected to be around 1.4 million tonnes.
Full Year 2025 Outlook
- Confirm Group EBITDA improvement in H2 2025 vs. H1 2025
- Full Year Group EBITDA is expected to range between €799 and €829 million
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Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer, declared:
"Vallourec delivered solid results once again in the third quarter, with Group EBITDA margin rising to its highest level since the first quarter of 2024. This quarter marks three straight years in which Vallourec has delivered a Group EBITDA margin around 20% and positive total cash generation – a clear testament to the major structural changes we have made within our business since May 2022.
"Our advantaged manufacturing footprint and reputation for high-quality tubular solutions is paying dividends in the United States. Our order intake in this market in recent months has been robust and reflects stable customer drilling activity and an improvement in our market share. We continue to expect a slowdown in imports, which currently represent about 40% of supply in the US OCTG market, as the market responds to higher steel tariffs.
"Also in the quarter, we secured a major contract in Brazil. Our new Long-Term Agreement with Petrobras will expand our market share and further demonstrate Vallourec's ability to deliver high value-added solutions from our domestic manufacturing base. This contract carries potential revenue of up to $1 billion over four years.
"Meanwhile, in select markets in the Eastern Hemisphere, we have seen delays in customer activity that will result in some orders being invoiced in 2026 – later than initially planned. That said, our key international customers continue to advance ambitious plans to grow their oil and gas production capacity over the coming years, which will drive solid demand for our solutions.
"Since we announced the New Vallourec plan in May 2022, we have made significant progress towards our two primary strategic goals. We achieved our objective of crisis-proofing our business ahead of plan, and today we can point to significant progress in achieving best-in-class profitability. In the third quarter, we fully closed the gap in Tubes EBITDA per tonne versus our primary peer. This is thanks to our core principle of Value over Volume and the relentless focus of our teams on operational excellence.
"Our journey does not end here. We remain focused on improving return on invested capital and returning capital to our shareholders. To this end, today we convened a special meeting for holders of Vallourec warrants, in which we will propose a modification in our warrant terms and conditions in order to allow the delivery not only of newly-issued shares but also of existing shares upon their exercise, at the Company's option. This will allow maximum flexibility in our shareholder return framework in the coming year."
Key Quarterly Data a
| in € million, unless noted | Q3 2025 | Q2 2025 | Q3 2024 | QoQ chg. | YoY chg. |
|---|---|---|---|---|---|
| Tubes volume sold (k tonnes) | 303 | 293 | 292 | 10 | 11 |
| Iron ore volume sold (m tonnes) | 1.6 | 1.6 | 1.3 | (0.0) | 0.2 |
| Group revenues | 911 | 863 | 894 | 48 | 17 |
| Group EBITDA | 210 | 187 | 168 | 23 | 42 |
| (as a % of revenue) | 23.1% | 21.7% | 18.8% | 1.4 pp | 4.3 pp |
| Operating income (loss) | 192 | 103 | 124 | 89 | 68 |
| Net income, Group share | 134 | 40 | 73 | 94 | 61 |
| Adj. free cash flow | 69 | 88 | 189 | (20) | (120) |
| Total cash generation | 67 | 57 | 136 | 10 | (68) |
| Net debt (cash) | 140 | 201 | 240 | (61) | (100) |
Includes approximately €7 million in cash held in Serimax, which was accounted for in assets & liabilities held for sale in Q2 2025
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CONSOLIDATED RESULTS ANALYSIS
Third Quarter Results Analysis
In Q3 2025, Vallourec recorded revenues of €911 million, up 2% year over year, or up 7% at constant exchange rates. Group revenues reflect a 4% volume increase, a neutral price/mix effect, a 3% increase due to Mine & Forest, and a (6%) currency effect.
EBITDA amounted to €210 million, or 23.1% of revenues, compared to €168 million (18.8% of revenues) in Q3 2024. The increase was driven by higher volumes and average selling prices in Tubes, the favorable impact of cost savings initiatives and higher profitability in Mine & Forest, largely related to the Phase 1 mine extension project.
Operating income was €192 million, compared to €124 million in Q3 2024. Operating income benefited from €28 million of income from asset disposals, restructuring costs and non-recurring items, an increase compared to €15 million of such income earned in Q3 2024. The capital gain from the disposal of Serimax was the major contributor.
Financial income (loss) was (€19) million, flat compared to Q3 2024 and in-line with management's previously stated expectation for run-rate expense of €15-20 million per quarter.
Income tax amounted to (€34) million compared to (€28) million in Q3 2024.
Net income, Group share, was €134 million, compared to €73 million in Q3 2024, with the increase driven by higher EBITDA, lower depreciation charges, the benefit of the Serimax disposal, and a lower effective tax rate compared to Q3 2024.
Earnings per diluted share was €0.53 versus €0.30 in Q3 2024, reflecting the above changes in net income as well as an increase in ordinary shares due to the vesting of shares under management incentive plans and an increase in potentially dilutive shares related to the Company's outstanding warrants.
First Nine Month Results Analysis
In 9M 2025, Vallourec recorded revenues of €2,766 million, down (7%) year over year, or (3%) at constant exchange rates. The decrease in Group revenues reflects a (3%) volume decrease, a (3%) price/mix effect, a 3% increase due to Mine & Forest, and a (4%) currency effect. The year-over-year comparison is particularly affected by a large volume of high-value products in H1 2024 that did not recur in H1 2025.
EBITDA amounted to €604 million, or 21.9% of revenues, compared to €618 million (20.8% of revenues) in 9M 2024**.** The decrease was driven by lower volumes and lower average selling prices in Tubes, partially offset by cost savings initiatives and improvements in Mine & Forest profitability largely related to the Phase 1 mine extension project.
Operating income was €442 million, compared to €397 million in 9M 2024. Operating income was burdened by €16 million of asset disposals, restructuring costs and non-recurring items, a significant decrease compared to €62 million of such expenses incurred in 9M 2024.
Financial income (loss) was negative at (€34) million, compared to a positive €18 million in 9M 2024. Vallourec's 9M 2024 financial income benefited from a net positive impact of €70m related to the balance sheet refinancing in Q2 2024, mainly related to the reversal of fair value accounting on the 2026 senior notes and Stateguaranteed loan (PGE).
Income tax amounted to (€130) million compared to (€114) million in 9M 2024. The effective tax rate was elevated due to non-deductible losses incurred in Europe as well as a shift in profits towards higher-tax geographies.
This resulted in positive net income, Group share, of €259 million, compared to €289 million in 9M 2024.
Earnings per diluted share was €1.04 versus €1.19 in 9M 2024, reflecting the above changes in net income as well as an increase in ordinary shares due to the vesting of shares under management incentive plans and an increase in potentially dilutive shares related to the Company's outstanding warrants.
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RESULTS ANALYSIS BY SEGMENT
Third Quarter Results Analysis
Tubes: In Q3 2025, Tubes revenues were up 1% year over year due to a 4% volume increase driven by higher shipments in both the Eastern and Western hemispheres, partially offset by a (3%) reduction in average selling price. Tubes EBITDA increased from €162 million in Q3 2024 to €188 million in Q3 2025. This was driven by higher profitability primarily in the Western Hemisphere as well as cost savings.
Mine & Forest: In Q3 2025, iron ore production sold was 1.6 million tonnes, an increase of 18% year over year, while EBITDA reached €35 million, versus €22 million in Q3 2024. These improvements resulted largely from the successful start-up of the Phase 1 mine extension in late 2024.
First Nine Months Results Analysis
Tubes: In 9M 2025, Tubes revenues were down (10%) year over year due to a (7%) decrease in average selling price and a (3%) reduction in volume sold. Tubes EBITDA decreased from €592 million in 9M 2024 to €498 million in 9M 2025. These reductions were due to a decrease in pricing in North America, as well as a reduction in international revenue and profitability as Vallourec invoiced a large volume of high-value products in H1 2024 that did not recur in H1 2025.
Mine & Forest: In 9M 2025, iron ore production sold was 4.8 million tonnes, increasing by 16% year over year, while Mine & Forest EBITDA reached €133 million, versus €68 million in 9M 2024. These improvements resulted largely from the successful start-up of the Phase 1 mine extension in late 2024, despite lower benchmark prices.
CASH FLOW AND FINANCIAL POSITION
Third Quarter Cash Flow Analysis
Adjusted operating cash flow in Q3 2025 was €170 million versus €117 million in Q3 2024. The increase was attributable to higher EBITDA and lower financial cash out, partially offset by higher tax payments.
Adjusted free cash flow in Q3 2025 was €69 million, a decrease versus €189 million in Q3 2024. The prior year period benefited from a significant (€102 million) release in working capital, compared to an increase of €43 million in Q3 2025.
Total cash generation in Q3 2025 was €67 million, versus €136 million in Q3 2024.
First Nine Month Cash Flow Analysis
Adjusted operating cash flow in 9M 2025 was €444 million versus €448 million in 9M 2024. The slightly lower EBITDA in 9M 2025 was largely offset by lower financial cash out compared to 9M 2024.
Adjusted free cash flow in 9M 2025 was €325 million, lower compared to the €444 million generated in 9M 2024. The decrease was driven by a negative impact from foreign exchange differences and a smaller working capital release.
Total cash generation in 9M 2025 was €228 million, versus €281 million in 9M 2024.
Total cash generation after shareholder returns in 9M 2025 was (€142) million. This reflected (€370) million in shareholder returns, including (€352) million in dividend payments and (€19) million in share repurchases.
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Debt and Liquidity
As of September 30, 2025, Vallourec's net debt positionb was €140 million, a (€161) million deterioration versus December 31, 2024 resulting from the €370m in shareholder returns in the second quarter. Gross debt was €911 million, down from €1,103 million on December 31, 2024. Long-term debt was €810 million and short-term debt totaled €102 million. In September, Vallourec announced the partial redemption of its senior notes maturing in 2032 for an amount of $82m, supporting the company's capital structure and return optimization.
As of September 30, 2025, Vallourec's liquidity position was very strong at €1.6 billion, with €835 million of cash, availability on the revolving credit facility (RCF) of €550 million, and availability on its asset-backed lending facility (ABL) of €175 million.c
b Vallourec entered into 4-year cross-currency swaps (CCS) to hedge the EUR/USD currency exposure related to its USD 2032 Senior Notes. The fair value of the CCS related to the EUR/USD hedging of the principal of the notes is consequently included in the net debt definition.
As of September 30, 2025, the borrowing base for this facility was approximately $218 million, and $13 million in letters of credit and other commitments were issued.
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INFORMATION AND FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements. These forward-looking statements can be identified by the use of forwardlooking terminology, including the terms as "believe", "expect", "anticipate", "may", "assume", "plan", "intend", "will", "should", "estimate", "risk" and or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, Vallourec's results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which they operate. Readers are cautioned that forward-looking statements are not guarantees of future performance and that Vallourec's or any of its affiliates' actual results of operations, financial condition and liquidity, and the development of the industries in which they operate may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if Vallourec's or any of its affiliates' results of operations, financial condition and liquidity, and the development of the industries in which they operate are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks include those developed or identified in the public documents filed by Vallourec with the French Financial Markets Authority (Autorité des marches financiers, or "AMF"), including those listed in the "Risk Factors" section of the Universal Registration Document filed with the AMF on March 27, 2025, under filing number n° D. 25-0192.
Accordingly, readers of this document are cautioned against relying on these forward-looking statements. These forward-looking statements are made as of the date of this document. Vallourec disclaims any intention or obligation to complete, update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws and regulations. This press release does not constitute any offer to purchase or exchange, nor any solicitation of an offer to sell or exchange securities of Vallourec. or further information, please refer to the website https://www.vallourec.com/en.
Future dividends and share buyback authorizations will be assessed on a yearly basis by the Board of Directors taking into account any relevant factor in the future, and will be subject to Shareholders' approval. The Board of Directors will have discretion to employ share buybacks throughout the year, up to the limits authorized by the relevant resolution approved by the Annual General Meeting.
Presentation of Q3 2025 Results
Conference call / audio webcast on November 14th at 9:30 am CET
- To view the webcast: https://vallourec.engagestream.companywebcast.com/2025-11-14 q3resultscallanalysts
- To participate in the conference call, please register beforehand to receive dial-in details: https://engagestream.companywebcast.com/vallourec/2025-11-14-q3resultscallanalysts/dial-in
- Audio webcast replay and slides will be available at: https://www.vallourec.com/en/investors
About Vallourec
Vallourec is a world leader in premium tubular solutions for the energy markets and for demanding industrial applications such as oil & gas wells in harsh environments, new generation power plants, challenging architectural projects, and high-performance mechanical equipment. Vallourec's pioneering spirit and cutting edge R&D open new technological frontiers. With close to 13,000 dedicated and passionate employees in more than 20 countries, Vallourec works hand-in-hand with its customers to offer more than just tubes: Vallourec delivers innovative, safe, competitive and smart tubular solutions, to make every project possible.
Listed on Euronext in Paris (ISIN code: FR0013506730, Ticker VK), Vallourec is part of the CAC Mid 60, SBF 120 and Next 150 indices and is eligible for Deferred Settlement Service.
In the United States, Vallourec has established a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN code: US92023R4074, Ticker: VLOWY). Parity between ADR and a Vallourec ordinary share has been set at 5:1.
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Financial Calendar
February 26, 2026 Publication of Fourth Quarter and Full Year 2025 Results
For further information, please contact:
Investor relations
Connor Lynagh Tel: +1 (713) 409-7842 [email protected]
Individual shareholders
Toll Free Number (from France): 0 805 65 10 10 [email protected]
Press relations
Taddeo - Romain Grière Tel: +33 (0) 7 86 53 17 29 [email protected]
Nicolas Escoulan Tel: +33 (0)6 42 19 14 74 [email protected]
APPENDICES
The Group's reporting currency is the euro. All amounts are expressed in millions of euros, unless otherwise specified. Certain numerical figures contained in this document, including financial information and certain operating data, have been subject to rounding adjustments.
Documents accompanying this release:
- Tubes Sales Volume
- Mine Sales Volume
- Foreign Exchange Rates
- Tubes Revenues by Geographic Region
- Tubes Revenues by Market
- Segment Key Performance Indicators (KPIs)
- Summary Consolidated Income Statement
- Summary Consolidated Balance Sheet
- Key Cash Flow Metrics
- Summary Consolidated Statement of Cash Flows (IFRS)
- Indebtedness
- Liquidity
- Definitions of Non-GAAP Financial Data
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Tubes Sales Volume
| in thousands of tonnes | 2025 | 2024 | YoY chg. |
|---|---|---|---|
| Q1 | 314 | 292 | 7% |
| Q2 | 293 | 351 | (17%) |
| Q3 | 303 | 292 | 4% |
| Year-to-Date Total | 909 | 935 | (3%) |
| Q4 | 362 | – | |
| Annual Total | 1,297 | – |
Mine Sales Volume
| in millions of tonnes | 2025 | 2024 | YoY chg. |
|---|---|---|---|
| Q1 | 1.6 | 1.4 | 15% |
| Q2 | 1.6 | 1.4 | 14% |
| Q3 | 1.6 | 1.3 | 18% |
| Year-to-Date Total | 4.8 | 4.1 | 16% |
| Q4 | 1.3 | – | |
| Annual Total | 5.4 | – |
Foreign Exchange Rates
| Average exchange rate | Q3 2025 | Q2 2025 | Q3 2024 |
|---|---|---|---|
| EUR / USD | 1.17 | 1.13 | 1.10 |
| EUR / BRL | 6.37 | 6.42 | 6.09 |
| USD / BRL | 5.45 | 5.66 | 5.55 |
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Quarterly Tubes Revenues by Geographic Region
| QoQ | YoY | ||||
|---|---|---|---|---|---|
| in € million | Q3 2025 | Q2 2025 | Q3 2024 | % chg. | % chg. |
| North America | 336 | 359 | 331 | (6%) | 2% |
| Middle East | 183 | 137 | 143 | 34% | 28% |
| South America | 131 | 112 | 136 | 17% | (4%) |
| Asia | 102 | 80 | 108 | 27% | (5%) |
| Europe | 51 | 30 | 84 | 72% | (40%) |
| Rest of World | 46 | 47 | 40 | (1%) | 16% |
| Total Tubes | 850 | 764 | 842 | 11% | 1% |
Year-to-Date Tubes Revenues by Geographic Region
| YoY | |||
|---|---|---|---|
| in € million | YTD 2025 | YTD 2024 | % chg. |
| North America | 1,080 | 1,164 | (7%) |
| Middle East | 514 | 551 | (7%) |
| South America | 366 | 458 | (20%) |
| Asia | 302 | 284 | 6% |
| Europe | 117 | 184 | (36%) |
| Rest of World | 148 | 164 | (10%) |
| Total Tubes | 2,527 | 2,805 | (10%) |
Quarterly Tubes Revenues by Market
| in € million | Q3 2025 | Q2 2025 | Q3 2024 | QoQ% chg. | YoY% chg. | YoY % chg.at Const.FX |
|---|---|---|---|---|---|---|
| Oil & Gas and Petrochemicals | 693 | 629 | 698 | 10% | (1%) | 5% |
| Industry | 89 | 76 | 85 | 17% | 4% | 9% |
| Other | 69 | 59 | 60 | 17% | 15% | 20% |
| Total Tubes | 850 | 764 | 842 | 11% | 1% | 7% |
Year-to-Date Tubes Revenues by Market
| in € million | YTD 2025 | YTD 2024 | YoY% chg. | YoY % chg.at Const.FX |
|---|---|---|---|---|
| Oil & Gas and Petrochemicals | 2,102 | 2,338 | (10%) | (7%) |
| Industry | 240 | 304 | (21%) | (13%) |
| Other | 185 | 163 | 13% | 18% |
| Total Tubes | 2,527 | 2,805 | (10%) | (6%) |
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Quarterly Segment KPIsd
| Q3 2025 | Q2 2025 | Q3 2024 | QoQ chg. | YoY chg. | ||
|---|---|---|---|---|---|---|
| Volume sold | 303 | 293 | 292 | 3% | 4% | |
| Revenues (€m) | 850 | 764 | 842 | 11% | 1% | |
| Sec | Average Selling Price (€) | 2,807 | 2,610 | 2,888 | 8% | (3%) |
| Tubes | EBITDA (€m) | 188 | 145 | 162 | 30% | 16% |
| EBITDA per Tonne (€) | 621 | 494 | 556 | 26% | 12% | |
| Capex (€m) | 25 | 19 | 25 | 30% | 0% | |
| Volume sold | 1.6 | 1.6 | 1.3 | (1%) | 18% | |
| e &est | Revenues (€m) | 83 | 87 | 66 | (5%) | 26% |
| Mine &Forest | EBITDA (€m) | 35 | 45 | 22 | (22%) | 59% |
| _ | Capex (€m) | 14 | 12 | 11 | 17% | 25% |
| Q | Revenues (€m) | 32 | 65 | 50 | (50%) | (35%) |
| H&O | EBITDA (€m) | (16) | (5) | (14) | (227%) | (15%) |
| نب | Revenues (€m) | (54) | (53) | (64) | (3%) | 15% |
| ī. | EBITDA (€m) | 3 | 3 | (2) | _ | _ |
| Revenues (€m) | 911 | 863 | 894 | 6% | 2% | |
| Total | EBITDA (€m) | 210 | 187 | 168 | 12% | 25% |
| Capex (€m) | 39 | 32 | 36 | 22% | 7% |
Year-to-Date Segment KPIs
| YTD 2025 | YTD 2024 | YoY chg. | ||
|---|---|---|---|---|
| Volume sold | 909 | 935 | (3%) | |
| Revenues (€m) | 2,527 | 2,805 | (10%) | |
| Sec | Average Selling Price (€) | 2,779 | 3,001 | (7%) |
| Tubes | EBITDA (€m) | 498 | 592 | (16%) |
| EBITDA per Tonne (€) | 548 | 633 | (13%) | |
| Capex (€m) | 77 | 93 | (18%) | |
| Volume sold | 4.8 | 4.1 | 16% | |
| e &est | Revenues (€m) | 260 | 215 | 21% |
| Mine &Forest | EBITDA (€m) | 133 | 68 | 96% |
| Capex (€m) | 41 | 25 | 67% | |
| Q | Revenues (€m) | 143 | 144 | (0%) |
| H&O | EBITDA (€m) | (31) | (40) | 24% |
| نب | Revenues (€m) | (164) | (195) | 16% |
| nt. | EBITDA (€m) | 4 | (1) | _ |
| _ | Revenues (€m) | 2,766 | 2,969 | (7%) |
| Total | EBITDA (€m) | 604 | 618 | (2%) |
| — | Capex (€m) | 121 | 121 | (0%) |
<sup>d Volume sold in thousand tonnes for Tubes and million tonnes for Mine & Forest. H&O = Holding & Other; Int = Intersegment Transactions. Values for percentage changes not shown where not meaningful.
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Quarterly Summary Consolidated Income Statement
| € million, unless noted | Q3 2025 | Q2 2025 | Q3 2024 | QoQ chg. | YoY chg. |
|---|---|---|---|---|---|
| Revenues | 911 | 863 | 894 | 48 | 17 |
| Cost of sales | (644) | (577) | (633) | (66) | (11) |
| Industrial margin | 268 | 286 | 262 | (19) | 6 |
| (as a % of revenue) | 29.4% | 33.2% | 29.3% | (3.8) pp | 0.1 pp |
| Selling, general and administrative expenses | (82) | (92) | (84) | 10 | 2 |
| (as a % of revenue) | (9.0%) | (10.7%) | (9.4%) | 1.6 pp | 0.4 pp |
| Other | 25 | (7) | (9) | 32 | 34 |
| EBITDA | 210 | 187 | 168 | 23 | 42 |
| (as a % of revenue) | 23.1% | 21.7% | 18.8% | 1.4 pp | 4.2 pp |
| Depreciation of industrial assets | (38) | (38) | (46) | 1 | 8 |
| Amortization and other depreciation | (8) | (10) | (8) | 2 | 0 |
| Impairment of assets | 0 | 0 | (5) | (0) | 5 |
| Asset disposals, restructuring costs and non-recurring items | 28 | (36) | 15 | 64 | 13 |
| Operating income (loss) | 192 | 103 | 124 | 89 | 68 |
| Financial income (loss) | (19) | (5) | (19) | (13) | (0) |
| Pre-tax income (loss) | 173 | 97 | 105 | 76 | 68 |
| Income tax | (34) | (52) | (28) | 18 | (6) |
| Share in net income (loss) of equity affiliates | (0) | (0) | (0) | 0 | (0) |
| Net income | 139 | 45 | 78 | 94 | 62 |
| Attributable to non-controlling interests | 6 | 6 | 5 | 0 | 0 |
| Net income, Group share | 134 | 40 | 73 | 94 | 61 |
| Basic earnings per share (€) | 0.57 | 0.17 | 0.32 | 0.40 | 0.25 |
| Diluted earnings per share (€) | 0.53 | 0.16 | 0.30 | 0.37 | 0.23 |
| Basic shares outstanding (millions) | 234 | 234 | 230 | 0 | 4 |
| Diluted shares outstanding (millions) | 250 | 249 | 244 | 1 | 7 |
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Year-to-Date Summary Consolidated Income Statement
| € million, unless noted | YTD 2025 | YTD 2024 | YoY chg. |
|---|---|---|---|
| Revenues | 2,766 | 2,969 | (204) |
| Cost of sales | (1,919) | (2,076) | 157 |
| Industrial margin | 846 | 893 | (47) |
| (as a % of revenue) | 30.6% | 30.1% | 0.5 pp |
| Selling, general and administrative expenses | (256) | (263) | 7 |
| (as a % of revenue) | (9.2%) | (8.8%) | (0.4) pp |
| Other | 14 | (13) | 26 |
| EBITDA | 604 | 618 | (13) |
| (as a % of revenue) | 21.9% | 20.8% | 1.0 pp |
| Depreciation of industrial assets | (117) | (135) | 18 |
| Amortization and other depreciation | (28) | (25) | (3) |
| Impairment of assets | (1) | 1 | (2) |
| Asset disposals, restructuring costs and non-recurring items | (16) | (62) | 45 |
| Operating income (loss) | 442 | 397 | 45 |
| Financial income (loss) | (34) | 18 | (52) |
| Pre-tax income (loss) | 409 | 415 | (6) |
| Income tax | (130) | (114) | (16) |
| Share in net income (loss) of equity affiliates | (1) | 1 | (2) |
| Net income | 278 | 302 | (24) |
| Attributable to non-controlling interests | 19 | 13 | 6 |
| Net income, Group share | 259 | 289 | (30) |
| Basic earnings per share (€) | 1.11 | 1.26 | (0.15) |
| Diluted earnings per share (€) | 1.04 | 1.19 | (0.15) |
| Basic shares outstanding (millions) | 234 | 230 | 4 |
| Diluted shares outstanding (millions) | 250 | 243 | 6 |
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Summary Consolidated Balance Sheet
| Assets | 30-Sep-25 | 31-Dec-24 | Liabilities | 30-Sep-25 | 31-Dec-24 |
|---|---|---|---|---|---|
| Equity - Group share | 2,249 | 2,512 | |||
| Net intangible assets | 27 | 33 | Non-controlling interests | 85 | 89 |
| Goodwill | 46 | 34 | Total equity | 2,334 | 2,601 |
| Net property, plant and equipment | 1,715 | 1,842 | Bank loans and other borrowings | 810 | 962 |
| Biological assets | 70 | 61 | Lease debt | 40 | 41 |
| Equity affiliates | 14 | 17 | Employee benefit commitments | 59 | 75 |
| Other non-current assets | 102 | 150 | Deferred taxes | 80 | 84 |
| Deferred taxes | 162 | 180 | Provisions and other long-term liabilities | 278 | 266 |
| Total non-current assets | 2,136 | 2,317 | Total non-current liabilities | 1,266 | 1,428 |
| Inventories | 1,111 | 1,170 | Provisions | 55 | 83 |
| Trade and other receivables | 479 | 671 | Overdraft & other short-term borrowings | 102 | 141 |
| Derivatives - assets | 120 | 36 | Lease debt | 19 | 26 |
| Other current assets | 218 | 234 | Trade payables | 702 | 795 |
| Derivatives - liabilities | 142 | 132 | |||
| Cash and cash equivalents | 835 | 1,103 | Other current liabilities | 279 | 325 |
| Total current assets | 2,763 | 3,213 | Total current liabilities | 1,299 | 1,502 |
| Assets held for sale and discontinuedoperations | (0) | 1 | Liabilities held for sale and discontinuedoperations | (0) | – |
| Total assets | 4,899 | 5,531 | Total equity and liabilities | 4,899 | 5,531 |
{13}------------------------------------------------
Quarterly Key Cash Flow Metrics
| In € million | Q3 2025 | Q2 2025 | Q3 2024 | QoQ chg. | YoY chg. |
|---|---|---|---|---|---|
| EBITDA | 210 | 187 | 168 | 23 | 42 |
| Non-cash items in EBITDA | (7) | (20) | (14) | 13 | 7 |
| Financial cash out | 3 | (27) | (17) | 29 | 19 |
| Tax payments | (36) | (38) | (20) | 2 | (16) |
| Adjusted operating cash flow | 170 | 103 | 117 | 67 | 53 |
| Change in working capital | (43) | 43 | 102 | (86) | (145) |
| Gross capital expenditure | (39) | (32) | (36) | (7) | (3) |
| Foreign exchange differences | (20) | (26) | 6 | 6 | (25) |
| Adjusted free cash flow | 69 | 88 | 189 | (20) | (120) |
| Restructuring charges & non-recurring items | (29) | (34) | (73) | 6 | 44 |
| Asset disposals & other cash items | 27 | 3 | 19 | 24 | 8 |
| Total cash generation | 67 | 57 | 136 | 10 | (68) |
| Shareholder returns | – | (370) | – | 370 | – |
| Total cash generation after shareholder returns | 67 | (313) | 136 | 380 | (68) |
| Non-cash adjustments to net debt | (6) | 0 | (11) | (7) | 5 |
| (Increase) decrease in net debt | 61 | (313) | 124 | 374 | (64) |
Year-to-Date Key Cash Flow Metrics
| In € million | YTD 2025 | YTD 2024 | YoY chg. |
|---|---|---|---|
| EBITDA | 604 | 618 | (13) |
| Non-cash items in EBITDA | (33) | (5) | (28) |
| Financial cash out | (21) | (77) | 56 |
| Tax payments | (107) | (89) | (19) |
| Adjusted operating cash flow | 444 | 448 | (4) |
| Change in working capital | 78 | 109 | (31) |
| Gross capital expenditure | (121) | (121) | 1 |
| Foreign exchange differences | (77) | 8 | (85) |
| Adjusted free cash flow | 325 | 444 | (119) |
| Restructuring charges & non-recurring items | (117) | (211) | 93 |
| Asset disposals & other cash items | 21 | 48 | (27) |
| Total cash generation | 228 | 281 | (53) |
| Shareholder returns | (370) | – | (370) |
| Total cash generation after shareholder returns | (142) | 281 | (423) |
| Non-cash adjustments to net debt | (19) | 49 | (69) |
| (Increase) decrease in net debt | (161) | 331 | (492) |
{14}------------------------------------------------
Summary Consolidated Statement of Cash Flows (IFRS)
| In € million | Q3 2025 | Q3 2024 | YoY chg. | 9M 2025 | 9M 2024 | YoY chg. |
|---|---|---|---|---|---|---|
| Net income (loss) | 139 | 78 | 62 | 278 | 302 | (24) |
| Depreciation, amortization and impairment | 46 | 47 | (1) | 146 | 147 | (1) |
| Unrealized gains and losses on changes in fair value | (18) | (21) | 3 | (28) | (14) | (14) |
| Expense arising from share-based payments | 3 | 9 | (7) | 11 | 38 | (27) |
| Change in provisions | (22) | (62) | 40 | (94) | (152) | 57 |
| Capital gains and losses on disposals of non-current assets and equity interests | (31) | (11) | (20) | (40) | (12) | (28) |
| Share in income (loss) of equity-accounted companies | 0 | 0 | 0 | 1 | (1) | 2 |
| Others, including net exchange differences | (15) | (17) | 1 | (65) | (25) | (41) |
| Financial result, net | 19 | 19 | 0 | 34 | (18) | 52 |
| Tax expense (including deferred taxes) | 34 | 28 | 6 | 130 | 114 | 16 |
| Cash flow from operating activities before net financial result and taxes | 154 | 69 | 85 | 372 | 380 | (8) |
| Interest paid | (4) | (5) | 1 | (37) | (75) | 38 |
| Income tax paid | (36) | (20) | (16) | (107) | (89) | (19) |
| Interest received | 7 | 10 | (4) | 22 | 29 | (7) |
| Change in operating working capital | (43) | 102 | (145) | 78 | 109 | (31) |
| Net cash from (used in) operating activities (A) | 78 | 156 | (78) | 328 | 354 | (27) |
| Acquisitions of property, plant and equipment, and intangible and biological assets | (39) | (36) | (2) | (121) | (121) | 1 |
| Disposals of property, plant and equipment and intangible assets | (0) | 19 | (19) | 12 | 40 | (27) |
| Acquisition of subsidiary, net of cash acquired | 0 | 0 | 0 | (17) | 0 | (18) |
| Disposal of discontinued operations, net of cash disposed of | 51 | – | 51 | 51 | – | 51 |
| Other cash flow from investing activities | (1) | 6 | (7) | 15 | 26 | (10) |
| Net cash flow from (used in) investing activities (B) | 11 | (11) | 22 | (60) | (56) | (4) |
| Increase or decrease in equity | – | – | – | 3 | – | 3 |
| Equity transactions | (10) | – | (10) | (10) | – | (10) |
| Dividends paid to non-controlling interests | (6) | (0) | (6) | (12) | (1) | (11) |
| Dividends paid to shareholders of the parent company | – | – | – | (352) | – | (352) |
| Share buyback programs | – | – | – | (19) | – | (19) |
| Proceeds from new borrowings | 88 | 3 | 86 | 104 | 792 | (689) |
| Repayment of borrowings | (138) | (40) | (98) | (140) | (1,148) | 1,008 |
| Repayment of lease liabilities | (6) | (6) | 0 | (19) | (17) | (2) |
| Other cash flows from (used in) financing activities | (0) | (1) | 0 | (2) | (1) | (0) |
| Net cash flow from (used in) financing activities (C) | (71) | (44) | (27) | (446) | (375) | (71) |
| Change in net cash (A+B+C) | 18 | 101 | (83) | (178) | (76) | (101) |
| Opening net cash | 802 | 719 | 1,026 | 898 | ||
| Change in net cash | 18 | 101 | (178) | (76) | ||
| Impact of changes in exchange rates | 8 | (12) | (14) | (14) | ||
| Total cash | 828 | 808 | 834 | 808 | ||
| Cash and cash equivalents from assets held for sale | 7 | – | – | – | ||
| Closing net cash | 834 | 808 | 834 | 808 |
{15}------------------------------------------------
Indebtedness
| In € million | 30-Sep-25 | 31-Dec-24 |
|---|---|---|
| 7.500% 8-year USD Senior Notes due 2032 | 614 | 771 |
| 1.837% PGE due 2027 | 180 | 176 |
| ACC ACE (a) | 72 | 39 |
| Other (b) | 44 | 117 |
| Total gross financial indebtedness | 911 | 1,103 |
| Less: cash and cash equivalents | 835 | 1,103 |
| Plus: fair value of cross currency swap (c) | 63 | (21) |
| Total net financial indebtedness | 140 | (21) |
(a) Refers to ACC (Advances on Foreign Exchange Contract) and ACE (Advances on Export Shipment Documents) program in Brazil
Liquidity
| In € million | 30-Sep-25 | 31-Dec-24 |
|---|---|---|
| Cash and cash equivalents (a) | 835 | 1,103 |
| Available RCF | 550 | 550 |
| Available ABL (b) | 175 | 224 |
| Total liquidity | 1,560 | 1,877 |
(a) As of December 31, 2024, cash, net of overdrafts was €1,024 million. The €77 million overdraft reflected in the year end 2024 figures was repaid in early January.
(b) Gross debt as of December 31, 2024 included a €77 million overdraft that was repaid in early January.
(c) Vallourec entered into 4-year cross-currency swaps (CCS) to hedge the EUR/USD currency exposure related to its USD 2032 Senior Notes. The fair value of the CCS related to the EUR/USD hedging of the principal of the notes is consequently included in the net debt definition.
(b) This $350m committed ABL is subject to a borrowing base calculation based on eligible accounts receivable and inventories, among other items. The borrowing base at September 30th 2025 was approximately $218m. Availability is shown net of approximately $13m of letters of credit and other items.
{16}------------------------------------------------
DEFINITIONS OF NON-GAAP FINANCIAL DATA
Adjusted free cash flow is defined as adjusted operating cash flow +/- change in operating working capital and gross capital expenditures. It corresponds to net cash used in operating activities less restructuring and non-recurring items +/- gross capital expenditure.
Adjusted operating cash flow is defined as EBITDA adjusted for non-cash benefits and expenses, financial cash out and tax payments.
Asset disposals and other cash items includes cash inflows from asset sales as well as other investing and financing cash flows.
Change in working capital refers to the change in the operating working capital requirement.
Data at constant exchange rates: The data presented "at constant exchange rates" is calculated by eliminating the translation effect into euros for the revenue of the Group's entities whose functional currency is not the euro. The translation effect is eliminated by applying Year N-1 exchange rates to Year N revenue of the contemplated entities.
EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization is calculated by taking operating income (loss) before depreciation and amortization, and excluding certain operating revenues and expenses that are unusual in nature or occur rarely, such as:
- impairment of goodwill and non-current assets as determined within the scope of impairment tests carried out in accordance with IAS 36;
- significant restructuring expenses, particularly resulting from headcount reorganization measures, in respect of major events or decisions;
- capital gains or losses on disposals;
- income and expenses resulting from major litigation, significant roll-outs or capital transactions (e.g., costs of integrating a new activity).
Financial cash out includes interest payments on financial and lease debt, interest income and other financial costs.
Foreign exchange differences reconciles select items in the cash flow statement to their effective cash impact. This effect is related to intra-group financing, including related FX hedging.
Gross capital expenditure: gross capital expenditure is defined as the sum of cash outflows for acquisitions of property, plant and equipment and intangible assets and cash outflows for acquisitions of biological assets.
(Increase) decrease in net debt (alternatively, "change in net debt") is defined as total cash generation +/- non-cash adjustments to net debt.
Industrial margin: The industrial margin is defined as the difference between revenue and cost of sales (i.e. after allocation of industrial variable costs and industrial fixed costs), before depreciation.
Lease debt is defined as the present value of unavoidable future lease payments.
Net debt: Consolidated net debt (or "net financial debt") is defined as bank loans and other borrowings plus overdrafts and other short-term borrowings minus cash and cash equivalents plus the fair value of the cross-currency swaps related to the EUR/USD hedging of the principal of the $820 million 7.5% senior notes. Net debt excludes lease debt.
Net working capital requirement is defined as working capital requirement net of provisions for inventories and trade receivables; net working capital requirement days are computed on an annualized quarterly sales basis.
Non-cash adjustments to net debt includes non-cash foreign exchange impacts on debt balances, IFRS-defined fair value adjustments on debt balances, and other non-cash items.
Non-cash items in EBITDA includes provisions and other non-cash items in EBITDA.
Operating working capital requirement includes working capital requirement as well as other receivables and payables.
{17}------------------------------------------------
Restructuring charges and non-recurring items consists primarily of the cash costs of executing the New Vallourec plan, including severance costs and other facility closure costs.
Total cash generation is defined as adjusted free cash flow +/- restructuring charges and non-recurring items and asset disposals & other cash items. It corresponds to net cash used in operating activities +/- gross capital expenditure and asset disposals & other cash items.
Working capital requirement is defined as trade receivables plus inventories minus trade payables (excluding provisions).