Vallourec (VK) Q1 2025 earnings summary

Executive summary

• Q1 2025 EBITDA reached €207 million with a 21% margin, at the high end of guidance, supported by premium positioning and strong international bookings.

• Net cash position improved to €112 million, marking the tenth consecutive quarter of positive cash generation.

• Major international contracts secured and robust bookings, with US market prices increasing but full tariff impacts not yet reflected.

• Announced planned divestment of Serimax to streamline focus on core premium tubular solutions.

• Board proposed a €1.50 per share dividend, totaling approximately €350 million, pending shareholder approval.

Financial highlights

• Q1 2025 revenues were €991 million, flat year-over-year; EBITDA at €207 million (20.9% margin); net income, Group share, was €86 million.

• Adjusted free cash flow was €168 million; total cash generation at €104 million; net cash improved to €112 million.

• Gross debt reduced to €975 million; liquidity at €1,880 million, including €1,098 million cash.

• Industrial margin at 29.5% of revenue, down from 32.4% a year ago; SG&A at 8.2% of revenue.

• Basic EPS at €0.37, diluted EPS at €0.34, both down year-over-year.

Outlook and guidance

• Q2 2025 EBITDA expected between €170 million and €200 million.

• H2 2025 EBITDA anticipated to improve over H1, driven by higher international Tubes shipments and cost savings.

• Tubes sales volumes seen flat to slightly down in Q2, with EBITDA per tonne flat to slightly higher; H2 international shipments and pricing expected to rise.

• Mine & Forest segment to sell around 6 million tonnes in 2025; profitability tied to iron ore prices.

• Mine & Forest segment results expected to normalize from Q1 highs due to softer iron ore prices.