Tubacex (TUB) Q3 2025 earnings summary

Executive summary

• Sales for the first nine months of 2025 reached €525.9M, with EBITDA at €84.6M (up 8.4% year-over-year) and a margin of 16.1%.

• Net profit for the period was €16.7M, up 17.5% year-over-year, despite a 7.6% sales decline due to lower activity and adverse market conditions.

• Profitability improved due to a favorable sales mix, premium product positioning, and the ADNOC licensing agreement.

• Order backlog stands at €1,266M, concentrated in high-margin, value-added products for critical sectors.

Financial highlights

• EBITDA margin improved to 16.1% (from 13.7% in 9M24), and EBIT margin rose to 9.6% (from 8.0%).

• Net profit margin increased to 3.2% for 9M25, up from 2.5% in 9M24.

• Net financial debt rose to €399.3M, with NFD/EBITDA at 3.5x, mainly due to working capital for the ADNOC contract.

• Cash position at €124.8M and liquidity at €179.9M, with a solvency ratio of 34%.

• Dividend of €25M paid; capex for the period was €47M, including investment in the Abu Dhabi plant.

Outlook and guidance

• Positive outlook for profitability and deleveraging in 2026, with financial deleveraging expected in Q4 2025 as ADNOC-related billings and collections occur.

• The order backlog, especially in high value-added products, supports continued strong margins.

• The company is reassessing 2026 scenarios to secure margins and recover activity volumes.

• Strategic plan targets for 2027 include EBITDA > €200M, revenue €1,200–1,400M, and NFD/EBITDA <2x.