Vallourec Sa · EURONEXT:VK
Vallourec Sa — Q2 2025 Earnings Presentation
32 slides from Vallourec Sa's earnings presentation, Jul 25, 2025
Slide 1: Q2 2025 Results
Q2 2025 Results July 25, 2025 vv valiourec
Slide 2: Legal Disclaimer
Legal Disclaimer Forward-Looking Statements This presentation 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”, “shoul
Slide 3: Agenda
Agenda Topic Speaker Slide 1 Executive Summary Philippe Guillemot, Chairman of the Board & Chief Executive Officer 4 2 Market Environment Philippe Guillemot, Chairman of the Board & Chief Executive Officer 7 3 Q2 2025 Results Review Sascha Bibert, Chief Financial Officer 11 4 Outlook & Key Takeaways
Slide 4: Executive Summary
1 Executive Summary Philippe Guillemot Chairman of the Board & Chief Executive Officer
Slide 5: Executive Summary
Executive Summary Results & Outlook Sustaining strong margins and healthy cash generation • Solid Q2 margins, lower shipments in line with expectations • Group EBITDA of €187m, slightly above midpoint of guidance; Group EBITDA margin was 22% • Total cash generation of €57m, bringing net debt positio
Slide 6: Brazil Performance Program: Cost Actions Completed
Brazil Performance Program: Cost Actions Completed Eliminating Complexity • Closure of aging 150kt Plug mill • 30% reduction in distinct products offered • Strict minimum order quantities Reducing Costs Increasing Throughput • Decreasing labor costs by 10-15% • Debottlenecking high-value equipment •
Slide 7: Market Environment
2 Market Environment Philippe Guillemot Chairman of the Board & Chief Executive Officer
Slide 8: Steady Recovery in US OCTG Market Prices
Steady Recovery in US OCTG Market Prices Diverging Oil and Gas Activity Imports Up before Tariff Increase Market Prices Have Increased US Horizontal Rig Count Monthly OCTG Imports (Thousand Tonnes) Seamless OCTG Price ($ / Tonne) Oil (L Axis) Gas (R Axis) All Others Major Welded Importers 2,514 2,50
Slide 9: US OCTG Trade Dynamics
US OCTG Trade Dynamics Key Sources of US Supply Welded: More Commoditized Seamless: Higher Value OCTG Shipments (Million Tonnes) % of 2024 Welded OCTG Imports % of 2024 Seamless OCTG Imports 6.0 Other Austria 5.4 19% 17% 5.1 Other 34% 5.0 Korea 1.2 4.3 45% Thailand 1.1 Canada 13% 15% 4.0 Imported 0.
Slide 10: International OCTG Market Healthy and Stable
International OCTG Market Healthy and Stable Global Activity Levels Slightly Increasing in June International Market Pricing Remains Healthy Onshore Rig Count Offshore Rig Count Seamless OCTG Price ($ / Tonne) Onshore (L Axis) Offshore (R Axis) Middle East North Sea 800 550 2,767 2,800 2,833 2,850 2
Slide 11: Q2 2025 Results Review
3 Q2 2025 Results Review Sascha Bibert Chief Financial Officer
Slide 12: Key Group Figures
Key Group Figures Revenues EBITDA € Million € Million 1,085 215 991 207 863 187 Guidance Q2 2024 Q1 2025 Q2 2025 Q2 2024 Q1 2025 Q2 2025 Adjusted Free Cash Flow Net Cash (Debt)* € Million € Million 168 112 84 88 (201) (364) Q2 2024 Q1 2025 Q2 2025 Q2 2024 Q1 2025 Q2 2025 * Including Serimax accounte
Slide 13: Tubes Production and Revenue Details
Tubes Production and Revenue Details Volume Sold Average Selling Price Revenues Thousand Tonnes € / Tonne € Million 351 362 2,937 2,888 2,910 1,030 981 292 314 293 2,710 2,610 912 842 764 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025
Slide 14: Tubes Profitability
Tubes Profitability EBITDA and EBITDA Margin EBITDA per Tonne € Million and % of Revenues € / Tonne 210 599 185 556 511 528 166 494 162 20% 145 19% 19% 19% 18% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Please see “Definitions of Non-GAAP Financial Data” in the A
Slide 15: Mine & Forest Performance
Mine & Forest Performance Production Sold Average Iron Ore Market Price1 Million Tonnes $ / Tonne (Quarterly Average) 112 104 98 1.6 1.6 1.4 Q2 2024 Q1 2025 Q2 2025 Q2 2024 Q1 2025 Q2 2025 Revenues EBITDA € Million € Million and % of Revenues 90 53 87 45 69 15 59% 52% 22% Q2 2024 Q1 2025 Q2 2025 Q2
Slide 16: Group Net Income Analysis
Group Net Income Analysis Net Income, Group Share (Q2 2025) Net Income Evolution € Million Net Income, Group Share (€ Million) 157 159 163 105 105 111 78 76 73 86 48 40 6 5 42 (35) 187 52 40 (415) EBITDA D&A Financial Other Income tax Net income income, (loss) Group Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 17: Cash Flow Analysis
Cash Flow Analysis Q2 2025 Cash Flow Metrics Cash Conversion € Million Adjusted Free Cash Flow / EBITDA 112% 187 102% 99% 95% 83% 81% 103 73% 88 60% 57 45% 47% 39% -29% -87% (313) (370) -150% EBITDA Adj. op. Adj. FCF Total cash Shareholder (Increase) cash flow generation returns decrease Q1 Q2 Q3 Q4
Slide 18: Debt and Liquidity
Debt and Liquidity Debt Evolution Liquidity Evolution Net Cash (Debt) (€ Million)1 € Million 1,877 1,880 Net debt Gross debt 500 224 232 1,539 1,536 177 177 1,203 550 550 – (201) 189 462 550 (500) 462 (941) 1,103 1,098 (1,000) 900 809 552 (1,500) Y/E Y/E Y/E Q1 Q2 (2,000) 2022 2023 2024 2025 Q3 Q4 Q
Slide 19: Outlook & Key Takeaways
4 Outlook & Key Takeaways Philippe Guillemot Chairman of the Board & Chief Executive Officer
Slide 20: 2025 Operational Outlook
2025 Operational Outlook Third Quarter 2025 Full Year 2025 Expect international volumes Volumes to be similar to Q2 to increase in H2 vs. H1 Tubes EBITDA per tonne to increase sequentially EBITDA per tonne to improve in H2 vs. H1 due to improvements in pricing Production sold to be around 1.5mt Prod
Slide 21: Key Takeaways
Key Takeaways We remain focused on improving profitability and return on invested 1 capital as we drive Vallourec towards operational excellence. Recent trade actions in the US continue to support pricing despite 2 reductions in oil drilling activity. International OCTG markets continue to be driven
Slide 22: Appendices
Appendices ¥ vallourec
Slide 23: Key Performance Indicators
Key Performance Indicators Quarterly Figures Year-to-Date Figures Q2 2025 Q1 2025 Q2 2024 QoQ chg. YoY chg. H1 2025 H1 2024 YoY chg. Volume sold 293 314 351 (7%) (17%) 606 643 (6%) Revenues (€m) 764 912 1,030 (16%) (26%) 1,677 1,963 (15%) Tubes Average Selling Price (€) 2,610 2,910 2,937 (10%) (11%)
Slide 24: Tubes Revenue Breakdown
Tubes Revenue Breakdown Revenue by Region Quarterly Figures Year-to-Date Figures QoQ YoY YoY in € million Q2 2025 Q1 2025 Q2 2024 % chg. % chg. H1 2025 H1 2024 % chg. North America 359 385 383 (7%) (6%) 743 833 (11%) Middle East 137 194 247 (29%) (45%) 331 409 (19%) South America 112 123 169 (9%) (3
Slide 25: Income Statement
Income Statement Quarterly Figures Year-to-Date Figures € million, unless noted Q2 2025 Q1 2025 Q2 2024 QoQ chg. YoY chg. H1 2025 H1 2024 YoY chg. Revenues 863 991 1,085 (128) (221) 1,854 2,075 (220) Cost of sales (577) (699) (774) 122 197 (1,276) (1,443) 168 Industrial margin 286 292 311 (6) (24) 5
Slide 26: Balance Sheet
Balance Sheet In € million Assets 30-Jun-25 31-Dec-24 Liabilities 30-Jun-25 31-Dec-24 Equity - Group share 2,083 2,512 Net intangible assets 27 33 Non-controlling interests 83 89 Goodwill 41 34 Total equity 2,166 2,601 Net property, plant and equipment 1,690 1,842 Bank loans and other borrowings 876
Slide 27: Cash Flow Summary
Cash Flow Summary Quarterly Figures Year-to-Date Figures In € million Q2 2025 Q1 2025 Q2 2024 QoQ chg. YoY chg. H1 2025 H1 2024 YoY chg. EBITDA 187 207 215 (20) (27) 394 450 (55) Non-cash items in EBITDA (20) (6) (0) (14) (20) (26) 9 (35) Financial cash out (27) 3 (65) (30) 38 (23) (60) 37 Tax payme
Slide 28: Financial Indebtedness and Liquidity
Financial Indebtedness and Liquidity Financial Indebtedness In € million 30-Jun-25 31-Dec-24 7.500% 8-year USD Senior Notes due 2032 683 771 1.837% PGE due 2027 180 176 ACC ACE (a) 47 39 Other (b) 32 117 Total gross financial indebtedness 941 1,103 Less: cash and cash equivalents (c) 809 1,103 Plus:
Slide 29: Definitions of Non-GAAP Financial Data and Concepts
Definitions of Non-GAAP Financial Data and Concepts Adjusted free cash flow is defined as adjusted operating cash flow +/- change in operating working capital and gross capital expenditures. It corresponds to net cash used in operating activities less restructuring and non-recurring items +/- gross
Slide 30: Definitions of Non-GAAP Financial Data and Concepts
Definitions of Non-GAAP Financial Data and Concepts Gross capital expenditure: gross capital expenditure is defined as the sum of cash outflows for acquisitions of property, plant and equipment and intangible assets and cash outflows for acquisitions of biological assets. (Increase) decrease in net
Slide 31: Definitions of Non-GAAP Financial Data and Concepts
Definitions of Non-GAAP Financial Data and Concepts Non-cash adjustments to net debt includes non-cash foreign exchange impacts on debt balances, IFRS-defined fair value adjustments on debt balances, and other non-cash items. Non-cash items in EBITDA includes provisions and other non-cash items in E
Slide 32: Share Information and Financial Calendar
Share Information and Financial Calendar Share Information Financial Calendar Euronext Paris • November 14, 2025: Publication of Third ISIN code: FR0013506730 Quarter and First-Nine Month 2025 Results Ticker: VK Upcoming Investor Events USA: American Depositary Receipt (ADR) • September 3, 2025: Bar