Vallourec, a world leader in premium seamless tubular solutions, announces today its results for the fourth quarter 2025. The Board of Directors of Vallourec SA, meeting on February 26th 2026, approved the Group's fourth quarter 2025 Consolidated Financial Statements.
Fourth Quarter 2025 Results
Q4 Group EBITDA of €214 million, strong 21% EBITDA margin
Excellent total cash generation of €177 million
Around €650 million distribution to shareholders targeted by August 2026a
Q1 2026 Group EBITDA expected to range between €165 million and €195 million
Resilient US customer demand while imports continue to decline
Early signs of activity rebound in key Middle East markets
HIGHLIGHTS
Fourth Quarter 2025 Results
Group EBITDA of €214 million, up 2% sequentially, EBITDA margin remained strong at 21%
Tubes EBITDA per tonne of €548 down (12%) sequentially reflecting negative mix effects
Mine & Forest EBITDA at €38 million increasing sequentially by 10%, reflecting higher iron ore market prices partially offset by seasonally lower volumes
Adjusted free cash flow of €204 million; total cash generation of €177 million, aided by robust collections and inventory management
Ended the period with a net cash position of €39 million, improving by €179 million sequentially
OUTLOOK
First Quarter 2026 Group EBITDA is expected to range between €165 million and €195 million:
In Tubes, EBITDA per tonne is expected to be broadly in-line with the Q4 2025 level, while volumes are expected to be below the Q4 2025 level.
In Mine & Forest, production sold is expected to be around 1.4 million tonnes.
Full Year 2026 results are expected to be influenced by the following dynamics:
North America Tubes:
Sustained strength in sales volumes thanks to Vallourec's market share gains during 2025
A slight near-term decrease in US market prices, with improving industry supply-demand conditions leading to potential improvement later in the year
International Tubes:
Lower sales volumes in H1 2026 due to slower bookings in H2 2025
An activity recovery in key Middle Eastern markets setting the stage for higher second half volumes
Broadly stable market pricing versus the second half of 2025, with discrete customer contracts driving selective price upside
Slightly lower year over year iron ore production sold (approximately 5.5 million tonnes) due to an improved production process focusing on value over volume
Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer, declared:
"Vallourec delivered robust results once again in the fourth quarter. EBITDA was above the midpoint of our guidance and we produced a solid 21% EBITDA margin. We converted over 80% of EBITDA to cash, a further demonstration of our consistent improvement in working capital management and operational efficiency. After paying over €370 million to our shareholders in 2025, we returned our balance sheet to a net cash position in December.
"From this solid financial base, we will deliver on our commitment to be one of the most shareholder friendly companies in our peer group. We are targeting returns to shareholders of approximately €650 million between January and August 2026, a nearly €280 million increase versus 2025. We have adopted a balanced distribution framework, limiting warrant dilution through buybacks, growing distributions through a targeted interim dividend payment of €1.75 per share in Augustb, and maintaining a defensive balance sheet.
"Reflecting on our 2025 results, I am pleased with the many milestones we have achieved. After reaching zero net debt at the end of 2024, we paid a substantial dividend to shareholders for the first time in a decade in 2025. We significantly narrowed the profitability gap with our primary peer to the lowest level since we embarked on the New Vallourec Plan in early 2022. Finally, our consistent improvement in profitability and financial resilience was recognized with Investment Grade credit ratings across all three rating agencies.
"Our focus in 2026 turns to profitable growth through targeted R&D and capital investments to solve the energy challenges of today and tomorrow. In doing so, we will remain committed to our core principles of value over volume and operational excellence. We are investing in value-added capacity enhancements, including our new high-torque threading line in the US and advanced coating capabilities like our Cleanwell® solution. Meanwhile, we are progressing our ambitions in New Energies, with a recently-announced partnership with XGS Energy in the advanced geothermal arena, and a memorandum of understanding with Baker Hughes in the hydrogen space. We are seeing particularly strong momentum in geothermal markets as the industry searches for ways to deliver clean baseload power to meet rapidly growing energy demand, which is accentuated by rapid growth in artificial intelligence and energy‑intensive data centers.
"In the US, our assets remain highly-utilized and recent booking activity remains strong. Industry pricing has softened slightly, but we are encouraged by the downward trend in imports due to Section 232 tariffs and the resilience of our customers' activity. In International markets, commercial activity remained subdued in the second half of 2025. In the Middle East we are seeing signs of acceleration, especially in markets with higher levels of unconventional activity.
"We see potential for activity to increase in the second semester and beyond as the oil market rebalances, gas-related activity increases and the acceleration of depletion necessitates investments to maintain and grow production."
The consolidated financial statements are included in the pdf version of the press release.
Key Quarterly Data
Quarterly figures
in € million, unless noted
Q4 2025
Q3 2025
Q4 2024
QoQ chg.
YoY chg.
Tubes volume sold (k tonnes)
