Tubacex (TUB) Q4 2025 earnings summary

Executive summary

• Sales declined 6.3% year-over-year to €719.3 million in 2025 amid global market weakness, with profitability resilient as adjusted EBITDA reached €105.8 million and margin improved to 14.7% from 13.9%.

• Major non-recurring, non-cash accounting adjustments impacted EBITDA by €30.7 million, EBIT by €49.3 million, and net income by €47.2 million.

• The order book closed at €1,233 million, with a strong focus on high value-added, premium products.

• Abu Dhabi plant became fully operational, supporting ADNOC contract execution and exceeding planned volumes for 2025.

• Strategic focus remains on cash generation, working capital normalization, and improving return metrics.

Financial highlights

• Adjusted EBIT was €58.3 million, down 8.3% year-over-year; adjusted net profit was €15.9 million, down 30.5%.

• Net financial debt increased to €344.8 million (3.3x EBITDA), mainly due to working capital tied to strategic project ramp-ups.

• Working capital peaked at €324 million, representing 45% of sales.

• Capital expenditure totaled €72.6 million, including investments in the Abu Dhabi facility.

• Dividend payout policy maintained at 40% of adjusted net profit; €6.4 million proposed for 2025.

Outlook and guidance

• 2026 outlook remains prudent amid ongoing macroeconomic and geopolitical uncertainty, with a focus on cash generation, working capital control, and profitable growth.

• Priorities include operational deleveraging, working capital normalization, and commercial selectivity for higher-margin projects.

• Robust opportunity pipeline in Subsea and Nuclear, but award timelines remain uncertain.

• Targeting net debt/EBIT below 2x by 2027, with ongoing focus on cash generation.