Tubacex (TUB) Q4 2024 earnings summary

Executive summary

• 2024 marked a pivotal year with strategic agreements, including a $200M capital injection from Mubadala for a 49% stake in the OCTG CRA division, a joint venture with Mubadala, and the launch of the Sentinel Prime connection, positioning the company as a global leader in premium OCTG solutions.

• Major new orders and long-term contracts were secured, notably with ADNOC ($1B over 10 years) and Petrobras, ensuring strong sales visibility and future growth.

• Sales for 2024 totaled €767.5M, a 10% decline year-over-year, mainly due to lower nickel prices and project timing, with EBITDA at €107M (13.9% margin), the second highest in company history.

• Net profit for 2024 was €22.9M, down 37.1% year-over-year, but Q4 net profit rose 1.6% to €8.7M compared to Q4 2023.

• The order backlog remains at a record €1.56B, heavily weighted toward high-value-added products, providing strong revenue visibility into 2025.

Financial highlights

• Sales reached €767.5M, down 10% year-over-year, with EBITDA at €107M (13.9% margin) and EBIT at €63.5M (8.3% margin).

• Net profit for 2024 was €22.9M (3.0% margin); Q4 net profit was €8.7M (4.4% margin).

• Net financial debt at year-end was €255M, with a NFD/EBITDA ratio of 2.4x.

• Working capital increased to €310.2M, mainly due to inventory buildup for strategic projects, representing 40.4% of sales.

• Equity group share rose 57.5% to €378M; total equity up 64.2% to €482.2M.

Outlook and guidance

• 2025 is expected to be a record year, driven by the start of ADNOC billing, full operation of the Abu Dhabi plant, and continued strong order intake.

• Strategic plan targets for 2027: sales of €1.2–1.4B, EBITDA over €200M, and NFD/EBITDA below 2x.

• Dividend payout of €25M proposed for 2025, including a €15M extraordinary dividend, with ongoing commitment to shareholder returns.

• Growth outlook is supported by a record order backlog and high visibility into 2025–2026 revenues.