Schoeller-Bleckmann Oilfield Equipment (SBO) CMD 2025 summary

2024 financial performance and business review

• Sales reached EUR 560 million, the second-best year in company history, with an EBIT margin of 12.5% and free cash flow doubling to EUR 67 million, despite a 4.3% sales decline from the previous year.

• AMS division sales declined by over 13% due to softening demand, while Oilfield Equipment (OE) grew 7%, driven by strong international expansion, especially in the Middle East and Latin America.

• Operational changes and new product introductions led to a turnaround in OE, achieving double-digit EBIT margins in the second half.

• The balance sheet remains strong with an equity ratio of 50%, net debt at EUR 56 million, and a proposed dividend of EUR 1.75 per share.

• Scope 2 emissions were further reduced through increased use of renewables and energy efficiency initiatives.

Strategy update and future direction

• Strategy recalibrated to focus on diversification, market expansion, technology leadership, and operational excellence, with a new corporate identity and rebranding to SBO AG proposed for 2025.

• Expansion into new industries beyond oil & gas, targeting energy transition, industrial sectors, and flow control niches, leveraging existing capabilities in forging, additive manufacturing, and high-performance materials.

• Measurable 2030 targets set: sales of EUR 900 million (from EUR 560 million in 2024), with over EUR 200 million from new business areas, and maintaining an EBITDA margin above 20%.

• Sustainability goals include a 30% reduction in Scope 1 and 2 emissions and a 10% reduction in Scope 3 emissions by 2030.

• Capital allocation prioritizes organic growth, followed by dividends, M&A (with EUR 200-300 million earmarked for strategic acquisitions), and share buybacks.

Business developments and operational initiatives

• New Dubai facility to serve as a regional hub, supporting local sales and manufacturing for the Middle East, with global expertise leveraged across growth regions.

• Technology leadership reinforced by expanding 3D metal printing and turnkey services, and applying drilling and completion technologies to new markets like geothermal and helium.

• Operational excellence initiatives include optimizing production capacity, increasing agility to adapt to market shifts, and implementing vertical integration where it adds customer value.

• Clear M&A criteria established, focusing on synergies, cultural fit, and majority acquisitions in North America and Europe, with a preference for transformative deals outside oil & gas.

• Comprehensive rebranding includes new company and division names, and a new logo, to reflect the strategic shift and broader industry focus.