Tubacex (TUB) Q2 2025 earnings summary

Executive summary

• EBITDA reached €61 million, up 21.8% year-over-year, with net profit surging 140.9% to €15.6 million, despite a 9.2% decline in sales to €361.4 million.

• Order backlog stands at €1.4 billion, focused on premium, high-value solutions and strategic projects, ensuring profitability and visibility.

• Investment in the Abu Dhabi plant completed, with initial billings starting in July 2025, expected to drive significant growth in H2.

• Strategic focus on high-value products, long-term contracts, and growing presence in Asia and the Middle East.

• Results highlight resilience and validate strategic positioning in niche markets and innovation.

Financial highlights

• Sales declined 9.2% year-over-year to €361.4 million; EBITDA margin improved to 16.9%, EBIT margin 10.3%.

• Net profit margin increased to 4.3% from 1.6% year-over-year.

• Net financial debt at €369 million, with NFD/EBITDA at 3.1x, mainly due to working capital for Abu Dhabi project.

• Working capital peaked at €384.6 million, representing 52.6% of sales.

• CapEx for the period was €41.6 million, mainly for Abu Dhabi plant; dividend payout completed.

Outlook and guidance

• Maintains positive outlook for 2025, expecting stable or improved results and margins, supported by execution of backlog and new billings from ADNOC and Petrobras contracts.

• Strategic plan targets for 2027: revenues €1.2–1.4 billion, EBITDA >€200 million, NFD/EBITDA <2x, and payout ratio 30–40%.

• Targeting NFD/EBITDA ratio of 2–2.5x by end of 2025, with significant deleveraging expected in H2 as major project billings commence.

• Commitment to reduce oil & gas exposure to one-third of business and lead in low-carbon sectors.

• Cautious stance due to global uncertainty, with ongoing monitoring of market conditions.