Vallourec (VK) Q4 2024 earnings summary

Executive summary

• Achieved zero net debt a year ahead of plan, reducing net debt by €591 million and reaching a net cash position of €21 million at year-end 2024.

• Welcomed ArcelorMittal as a 28.5% anchor shareholder and divested the Düsseldorf-Rath site in Germany for €155 million.

• Announced the first dividend in a decade, proposing €1.50 per share, representing 90% of H2 2024 cash generation.

• Strategic investments included the acquisition of Thermotite do Brasil and expansion in US high-torque threading and CLEANWELL® technology.

• Focused on premium product growth, cost optimization, and a high-yield shareholder return model.

Financial highlights

• Q4 2024 EBITDA margin was 20.1%, with EBITDA at €214 million; full-year EBITDA reached €832 million, margin at 20.6%.

• Q4 2024 revenues were €1,065 million, down 17% year-over-year; full-year revenues €4,034 million, down 21%.

• Q4 net income, Group share, was €163 million; FY 2024 net income €452 million.

• Q4 adjusted free cash flow was €178 million; total cash generation €253 million.

• Liquidity at year-end 2024 was €1,877 million.

Outlook and guidance

• Q1 2025 EBITDA expected between €180 million and €215 million.

• FY 2025 EBITDA expected to improve in H2, driven by higher international shipments and pricing.

• Tubes sales volumes to be down sequentially in Q1 2025, but EBITDA per tonne to rise; full-year international shipments and EBITDA per tonne expected to increase in H2.

• Mine & Forest production expected at 1.3 million tons in Q1 and around 6 million tons for 2025; profitability tied to iron ore prices.

• Board targets distributing 80–100% of annual total cash generation from 2025 onward via dividends and/or share buybacks.