Vallourec Second Quarter 2026 Results
Meudon (France), July 30th, 2026
Vallourec, a world leader in premium seamless tubular solutions, announces today its results for the second quarter 2026. The Board of Directors of Vallourec SA, meeting on July 29th 2026, approved the Group's second quarter 2026 Consolidated Financial Statements.
Second Quarter 2026 Results
- Q2 Group EBITDA of $190m, in line with guidance midpoint
- Maintained strong Tubes profitability at US$722/t
- Solid cash generation of $118m, net cash position of $183m
- High activity levels and improving pricing in US, with solid asset utilization
- Robust offshore tendering activity translating into strong bookings momentum
- Resilient customer activity in primary Middle East markets
- Delayed Strait of Hormuz reopening impacting delivery timing in select countries
- Q3 2026 Group EBITDA expected to range between $170 million and $210 million
-
~€650m shareholder return in 2026 confirmed, including €2.05 per share extraordinary interim dividend to be paid on 5th Augusta
HIGHLIGHTS & OUTLOOK
Second Quarter 2026 Results
- Group EBITDA of US$190 million, down 9% year over year, EBITDA margin improved slightly to 21.4%
- Tubes EBITDA per tonne of $722, up 31% year over year, reflecting positive price/mix effects and excellent cost adaptation
- Mine & Forest EBITDA at $33 million, decreasing year over year by (35%), reflecting lower iron ore volumes sold and negative FX impacts
- Adjusted free cash flow of $125 million; total cash generation of $118 million, driven by robust collections and inventory management
- Ended the period with a net cash position of $183 million, improving by $116 million sequentially after $14 million of share repurchases
Third Quarter 2026 Group EBITDA is expected to range between $170 million and $210 million
- In Tubes, volumes are expected to increase and EBITDA per tonne is expected to decrease sequentially, reflecting a less favorable mix and increased costs due to the geopolitical situation in the Middle East to be largely reimbursed in the coming quarters
- In Mine & Forest, production sold is expected to be around 1.4 million tonnes
H2 2026 EBITDA is expected to be influenced by the following factors:
- In Tubes, volumes and prices in North America are expected to increase in H2 2026 vs. H1 2026.
- International volumes are expected to increase in H2 2026 vs. H1 2026, despite continued closure of the Strait of Hormuz which is affecting delivery timing in select countries. EBITDA per tonne to decline in H2 2026 vs. H1 2026 primarily due to mix effects & additional costs related to Middle East shipments.
- In Mine & Forest, production sold is expected to be around 5 to 5.5 million tonnes for the full year.
Key Quarterly Data ($m)b
| in $ million, unless noted | Q2 2026 | Q1 2026 | Q2 2025* | QoQ chg. | YoY chg. |
| Tubes volume sold (k tonnes) | 244 | 272 | 293 | (28) | (49) |
| Iron ore volume sold (m tonnes) | 1.2 | 1.3 | 1.6 | (0.1) | (0.4) |
| Group revenues | 886 | 975 | 983 | (89) | (98) |
| Group EBITDA | 190 | 220 | 209 | (30) | (19) |
| (as a % of revenue) | 21.4% | 22.6% | 21.2% | (1.1) pp | 0.2 pp |
| Operating income (loss) | 103 | 156 | 114 | (53) | (12) |
| Net income, Group share | 45 | 87 | 44 | (42) | 1 |
| Adj. free cash flow | 125 | 177 | 103 | (52) | 22 |
| Total cash generation | 118 | 135 | 67 | (16) | 52 |
| Net cash (debt) | 183 | 67 | (235) | 116 | 418 |
Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer, declared:
“Vallourec demonstrated the strength and resilience of its business model once again in the second quarter. Despite lower volumes sequentially in our international business, Tubes profitability remained close to the robust level achieved in the first quarter, well above $700/t. Our cash conversion continued to improve year on year, with more than 60% of EBITDA converted into cash during the quarter. We ended the period with a net cash balance of $183m, the highest level since 2009. With the announcement of a €2.05 per share extraordinary interim dividend payable in August and €110m in share repurchases in H1 2026, we are cementing our position as one of the most shareholder-friendly companies both in our peer group and the wider market.
“While uncertainty related to the situation in the Middle East is persisting, our business has adapted quickly. Our primary customers in the region are leveraging local supply chains, including Vallourec, to accelerate their activity. At the same time, select customers more directly affected by disruptions linked to the closure of the Strait of Hormuz continue to defer deliveries as they await greater operational visibility.
“In international markets, we are beginning to see tendering momentum translate into contract awards across both onshore and offshore markets, supporting our expectation of higher volumes in the future.
“To support our customers' growing pipeline of deep and ultra-deepwater offshore developments, Vallourec has invested in advanced coating and thermal insulation technologies that are increasingly critical to flow assurance and project economics. As an example, Vallourec is the first commercial licensee of ExxonMobil’s Goldilocks™ subsea insulation technology. The strength of our offering has translated into major commercial successes this quarter, including contracts awarded for Petrobras’ Atapu-2 project offshore Brazil, Azule Energy’s PAJ project offshore Angola, as well as ExxonMobil’s Hammerhead and Longtail projects in Guyana.
“In our largest single market, the United States, higher activity levels and restrained imports, due to existing tariffs and ongoing trade investigations, are supporting solid utilization of our assets. Market pricing continues to improve, reflecting favorable OCTG fundamentals, with inventory levels across the board now below the five-year average.
“In New Energies, our Deep Dive presentation in June highlighted Vallourec’s advantaged position as a key enabler in the rapidly growing geothermal market, where demand for premium tubular solutions continues to increase. We believe this market could reach a scale comparable to the seamless OCTG markets of South America or Africa by 2030. In the near term, customer demand over the next six months is expected to exceed the prior 12-month total.
“Looking ahead, we are encouraged by our customers’ plans to restore production capacity in the Middle East and by nations’ efforts to diversify their oil and gas supply in response to the recent disruptions affecting the Strait of Hormuz. Supported by our ‘From Good to Great’ plan’s operational excellence initiatives, differentiated and innovative product offering, and ideally-located manufacturing centers, Vallourec is well-positioned to deliver sustainable value creation.”
CONSOLIDATED RESULTS ANALYSIS
Second Quarter Results Analysis
In Q2 2026, Vallourec recorded revenues of $886 million, down (10%) year over year. Group revenues reflect a (17%) volume effect, a 5% price/mix effect, a (1%) decrease due to Mine & Forest, and a 3% currency effect.
EBITDA amounted to $190 million, or 21.4% of revenues, compared with $209 million, or 21.2% of revenues, in Q2 2025. The year over year decrease was mainly driven by a lower contribution from Mine & Forest and the absence of a $16 million contribution from Serimax following its disposal in July 2025.
Operating income was $103 million, compared with $114 million in Q2 2025.
Financial income (loss) was ($15) million, compared with ($6) million in Q2 2025.
Income tax expense amounted to ($32) million, compared with ($57) million in Q2 2025.
Net income was $55 million, versus $51 million in Q2 2025.
Net income, Group share, totalled $45 million, compared with $44 million in Q2 2025.
Earnings per diluted share was $0.18, versus $0.18 in the prior year, reflecting stable profitability and a slightly higher diluted share count (250 million versus 249 million).
First Half Results Analysis
In H1 2026, Vallourec recorded revenues of $1,860 million, down (8%) year over year. Group revenues reflect a (15%) volume effect, a 4% price/mix effect, and a 3% currency effect. Compared with H1 2025 revenues of $2,026 million, revenues decreased by $166 million.
EBITDA amounted to $409 million, or 22.0% of revenues, compared to $425 million (21.0% of revenues) in H1 2025. The decrease was primarily driven by lower revenues and industrial margin, partially offset by lower selling, general and administrative expenses and an improved contribution from other operating items.
Operating income was $259 million, compared to $268 million in H1 2025. Operating income included $20 million of asset disposals, restructuring costs and non-recurring items, compared with $48 million of such expenses incurred in H1 2025.
Financial income (loss) was negative at ($35) million, compared to ($17) million in H1 2025.
Income tax amounted to ($72) million compared to ($103) million in H1 2025. This resulted in positive net income, Group share, of $131 million, compared to $133 million in H1 2025.
Earnings per diluted share was $0.53 versus $0.54 in H1 2025, reflecting the slight decrease in net income, Group share, and a higher average diluted share count.
RESULTS ANALYSIS BY SEGMENT
Second Quarter Results Analysis
Tubes: in Q2 2026, Tubes revenues amounted to $811 million, representing a 7% year over year decline compared with $872 million in Q2 2025. The decrease reflects a 17% decline in volumes sold, partially offset by a 12% increase in average selling price supported by improved price/mix in the Eastern Hemisphere and North America. EBITDA reached $176 million in Q2 2026, up 9% year over year from $161 million in Q2 2025, reflecting improved pricing and mix as well as solid cost adaptation despite lower volumes. EBITDA per tonne increased to $722/t, compared with $550/t in Q2 2025, up 31% year over year.
Mine & Forest: in Q2 2026, iron ore production sold totaled 1.2 million tonnes, down 24% year over year from 1.6 million tonnes in Q2 2025. Segment revenues amounted to $92 million, down 7% year over year compared with $99 million in Q2 2025. EBITDA reached $33 million, down 35% year over year from $51 million, mainly reflecting lower volumes and negative FX impacts due to the strengthening of the Brazilian Real.
First Half Results Analysis
Tubes: In H1 2026, Tubes revenues were down (7%) year over year due to a (15%) decrease in volume sold, partially offset by a 10% increase in average selling price. Tubes EBITDA increased from $334 million in H1 2025 to $372 million in H1 2026. These improvements were driven by higher pricing and favorable product mix, which more than offset the impact of lower volumes across the Group’s markets.
Mine & Forest: In H1 2026, iron ore production sold was 2.6 million tonnes, decreasing by 19% year over year, while Mine & Forest EBITDA reached $71 million, versus $107 million in H1 2025. These decreases were mainly driven by lower iron ore volumes and negative FX impacts due to the strengthening of the Brazilian Real.
CASH FLOW AND FINANCIAL POSITION
Second Quarter Cash Flow Analysis
In Q2 2026, adjusted operating cash flow was $126 million, compared with $115 million in Q2 2025, reflecting lower EBITDA which was more than offset by lower non-cash items, financial cash out and tax payments.
Adjusted free cash flow was $125 million, compared with $103 million in Q2 2025. The quarter benefited from a $39 million working-capital release and positive foreign exchange differences, partly offset by higher capital expenditures of $50 million.
Total cash generation in Q2 2026 reached $118 million, compared with $67 million in Q2 2025, reflecting higher free cash flow and lower restructuring and non-recurring items year over year.
Total cash generation after shareholder returns was $104 million, after $14 million of share repurchases, compared with ($352) million in Q2 2025, which included $418 million of shareholder returns.
First Half Cash Flow Analysis
Adjusted operating cash flow in H1 2026 was $306 million versus $293 million in H1 2025. The increase was attributable to stronger cash conversion despite lower EBITDA versus the prior year period.
Adjusted free cash flow in H1 2026 was $303 million, compared with $280 million in H1 2025. Vallourec benefited from a $85 million of working capital release in H1 2026, versus $139 million in H1 2025. Higher adjusted operating cash flow and a favorable impact from foreign exchange differences more than offset higher capital expenditures versus the prior year period.
Total cash generation in H1 2026 was $253 million, versus $176 million in H1 2025.
Total cash generation after shareholder returns in H1 2026 was $132 million. This reflected ($121) million of share repurchases, compared with ($418) million of shareholder returns in H1 2025.
Debt and Liquidity
As of June 30, 2026, Vallourec’s net cash positionc was $183 million, compared with $46 million as of December 31, 2025. Gross debt was $998 million, down from $1,013 million on December 31, 2025. Long-term debt was $738 million and short-term debt was $259 million.
As of June 30, 2026, Vallourec’s liquidity position remained very strong at $2.0 billion, including $1,231 million of cash and cash equivalents, $627 million of available capacity under the revolving credit facility (RCF), and $191 million of availability under the asset-backed lending facility (ABL)d.
SHAREHOLDER RETURNS
Vallourec completed on June 30, 2026 its share buyback program, launched on January 8, 2026.
As of market close on June 30, 2026, Vallourec had repurchased a total of 5,868,656 shares at an average price of 18.67€, under instructions given to an independent investment services provider, for an aggregate amount of approximately €110 million. Among the shares repurchased:
- 4,850,000 shares were allocated to cover part of the warrants (ISIN: FR00140030K7) issued by Vallourec, in order to limit the dilution resulting from their exercise before their maturity on June 30, 2026;
- the remaining shares were allocated to cover the Group’s long-term employee incentive plans.
In addition, all outstanding warrants were exercised in June and the related shares were substantially delivered early July through the issuance of 28 465 882 new shares and the delivery of the 4,850,000 existing shares repurchased under the above-mentioned program. As a result of the warrant exercise, Vallourec has received on July 8, 2026 aggregate proceeds of close to €307 million.
Vallourec confirms the return of approximately €650 million to shareholders during the 2026 calendar year, including €110 million allocated to the share buyback program. The balance will be distributed in the form of an extraordinary interim dividend of 2.05€ per share in respect of fiscal year 2026e. This interim dividend will be paid according to the following timetable:
- Ex-dividend date: August 3, 2026
- Payment date: August 5, 2026
This is fully in line with Vallourec’s capital allocation policy, including a leverage ratio of +/- 0.5x net debt to EBITDA as well as liquidity above €1bn.
As of July 29, 2026, the total number of ordinary shares comprising Vallourec’s share capital amounts to 265,866,407.
INFORMATION AND FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms as “believe”, “expect”, “anticipate”, “may”, “assume”, “plan”, “intend”, “will”, “should”, “estimate”, “risk” and or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, Vallourec’s results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which they operate. Readers are cautioned that forward-looking statements are not guarantees of future performance and that Vallourec’s or any of its affiliates’ actual results of operations, financial condition and liquidity, and the development of the industries in which they operate may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if Vallourec’s or any of its affiliates’ results of operations, financial condition and liquidity, and the development of the industries in which they operate are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks include those developed or identified in the public documents filed by Vallourec with the French Financial Markets Authority (Autorité des marchés financiers, or “AMF”), including those listed in the “Risk Factors” section of the Universal Registration Document filed with the AMF on March 26, 2026, under filing number n° D. 26-0145, each of these documents being available on the Vallourec website (www.vallourec.com).
Accordingly, readers of this document are cautioned against relying on these forward-looking statements. These forward-looking statements are made as of the date of this document. Vallourec disclaims any intention or obligation to complete, update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws and regulations. This press release does not constitute any offer to purchase or exchange, nor any solicitation of an offer to sell or exchange securities of Vallourec. For further information, please refer to the website https://www.vallourec.com/en.
Future dividends and share buyback authorizations will be assessed on a yearly basis by the Board of Directors taking into account any relevant factor in the future, and will be subject to Shareholders’ approval. The Board of Directors will have discretion to employ share buybacks throughout the year, up to the limits authorized by the relevant resolution approved by the Annual General Meeting.
Presentation of Q2 2026 Results
Conference call / audio webcast on July 30th at 9:30 am CET
- To view the webcast: https://vallourec.engagestream.euronext.com/2026-07-30-h1results
- To participate in the conference call, please register beforehand to receive dial-in details: https://engagestream.euronext.com/vallourec/2026-07-30-h1results/dial-in
- Audio webcast replay and slides will be available at: https://www.vallourec.com/en/investors
About Vallourec
Vallourec is a world leader in premium tubular solutions for the energy markets and for demanding industrial applications such as oil & gas wells in harsh environments, new generation power plants, challenging architectural projects, and high-performance mechanical equipment. Vallourec’s pioneering spirit and cutting edge R&D open new technological frontiers. With close to 13,000 dedicated and passionate employees in more than 20 countries, Vallourec works hand-in-hand with its customers to offer more than just tubes: Vallourec delivers innovative, safe, competitive and smart tubular solutions, to make every project possible.
Listed on Euronext in Paris (ISIN code: FR0013506730, Ticker VK), Vallourec is part of the CAC Mid 60, SBF 120 and Next 150 indices and is eligible for Deferred Settlement Service.
In the United States, Vallourec has established a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN code: US92023R4074, Ticker: VLOWY). Parity between ADR and a Vallourec ordinary share has been set at 5:1.
Financial Calendar
| November 20, 2026 | Publication of Third Quarter 2026 Results |
For further information, please contact:
|
Investor relations Daniel Thomson Tel: +44 (0)75 91 83 74 05 daniel.thomson@vallourec.com |
Press relations Taddeo - Romain Grière Tel: +33 (0) 7 86 53 17 29 romain.griere@taddeo.fr |
|
Individual shareholders Toll Free Number (from France): 0 805 65 10 10 actionnaires@vallourec.com |
Nicolas Escoulan Tel: +33 (0)6 42 19 14 74 nicolas.escoulan@taddeo.fr |
a The Annual General Meeting to be held on May 27, 2027 will acknowledge the interim dividend of €2.05 per share paid in 2026 and will be asked to approve any balance of the dividend in respect of the 2026 financial year.
b See in Appendix for comparative figures in Euros
* Vallourec changed the reporting currency of the Group’s Consolidated Financial Statements from the Euro to the US Dollar, effective January 1st 2026. Comparative 2025 figures have been restated to US Dollars (see in Appendix for comparative figures in Euros).
c Vallourec entered into 4-year cross-currency swaps (CCS) to hedge the EUR/USD currency exposure related to its USD 2032 Senior Notes. The fair value of the CCS related to the EUR/USD hedging of the principal of the notes is consequently included in the net debt definition.
d The borrowing base on June 30th 2026 was approximately $202m. Availability is shown net of approximately $11m of letters of credit and other items.
e The Annual General Meeting to be held on May 27, 2027 will acknowledge the interim dividend of €2.05 per share paid in 2026 and will be asked to approve any balance of the dividend in respect of the 2026 financial year.
Attachment
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