Vallourec (VK) Q2 2025 earnings summary

Executive summary

• Q2 2025 EBITDA reached €187 million with a 22% margin, slightly above guidance midpoint, despite lower shipments and a 10% sequential decline.

• €370 million was returned to shareholders via dividends and share buybacks in Q2, reducing net debt to €201 million.

• Strategic initiatives in Brazil, including cost reduction programs, were completed ahead of schedule and exceeded savings targets.

• Major contracts secured in the Middle East, Algeria, Brazil, and Kuwait, with the acquisition of Thermotite do Brasil enhancing deepwater line pipe offerings.

• Eleven consecutive quarters of positive cash generation achieved, with a return to dividends and share buybacks.

Financial highlights

• Q2 2025 revenues were €863 million, down 20% year-over-year, mainly due to lower Tubes volumes and prices.

• Q2 2025 EBITDA was €187 million (21.7% margin), down from €215 million a year earlier, but margin improved year-over-year.

• Q2 2025 net income, group share, was €40 million, compared to €111 million in Q2 2024.

• Adjusted free cash flow in Q2 2025 was €88 million; liquidity at June 30, 2025 was €1.5 billion, including €809 million in cash.

• Net debt stood at €201 million at quarter-end, improved from €364 million a year earlier.

Outlook and guidance

• Q3 2025 EBITDA expected between €195 million and €225 million; full-year EBITDA to improve in H2 2025 versus H1 2025.

• Tubes volumes in Q3 to be similar to Q2, with EBITDA per tonne expected to increase sequentially.

• International Tubes volumes and EBITDA per tonne anticipated to rise in H2 2025, supported by earlier bookings and pricing improvements.

• Mine & Forest profitability in H2 will depend on prevailing iron ore prices, with production sold expected at 6 million tonnes for the year.

• No change in risk outlook for 2025; macro and geopolitical risks persist, especially from US trade policy and global conflicts.