Vallourec Sa · EURONEXT:VK
Vallourec Sa — Q1 2026 Earnings Presentation
36 slides from Vallourec Sa's earnings presentation, May 13, 2026
Slide 1: Q1 2026 Results
Q1 2026 Results May 13th, 2026
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
1. Executive 2. Market 3. Q1 2026 Summary Environment Results Review Philippe Guillemot 4 Philippe Guillemot 7 Nathalie Delbreuve 14 Chairman of the Board & Chairman of the Board & Chief Financial Officer Chief Executive Officer Chief Executive Officer 4. Outlook & 5. Appendices Key Takeaways Philip
Slide 4: 1. Executive Summary
1. Executive Summary Philippe Guillemot Chairman of the Board & Chief Executive Officer
Slide 5: Executive Summary: Q1 2026
Executive Summary: Q1 2026 Reporting currency of the Group changed from Euro to US Dollar, effective January 1st 20261 Results and Outlook Commercial and Operational Other Key Highlights • EBITDA above guidance midpoint • United States • Geothermal market momentum • EBITDA of $220m (or 187m€) and •
Slide 6: Margin and Return Gap
Margin and Return Gap Higher Tubes Margin Than Peer in Q1 Continued Outperformance on ROIC Tubes EBITDA per Tonne (Peer vs. Vallourec, $) Trailing 12 Month Return on Invested Capital1 Vallourec Peer Quarterly Trailing 12 Months 100 30% – 25% (100) 20% (200) 15% (300) ROIC (400) 10% (500) 5% (600) –
Slide 7: 2. Market Environment
2. Market Environment Philippe Guillemot Chairman of the Board & Chief Executive Officer
Slide 8: Middle East Markets in Context
Middle East Markets in Context ~20-25% of Tubes Revenue from the Region Market Overview and Vallourec Response 2025 Tubes Revenues by Region Rest of • Resilient activity in Saudi Arabia and UAE World • Vallourec Middle East sales primarily focused on 21% onshore applications • OCTG demand remains re
Slide 9: How We Serve Middle East Customers
How We Serve Middle East Customers Limited operational impact so far thanks to strong local footprint Saudi Arabia • Iron ore typically supplied to domestic steelmakers from India, delivered to Oman • Tubes produced in-country with heat treatment and finishing facilities • Local finished tubes inven
Slide 10: Well Positioned for Oil & Gas Upcycle
Well Positioned for Oil & Gas Upcycle Technical expertise and industrial footprint ready to support increasing client activity United States • Field-proven high-torque OCTG Eastern Hemisphere connections supporting the needs of • Premium solutions tailored to our increasingly longer lateral wells cl
Slide 11: New Energies: Proven Solutions Ready to Scale
New Energies: Proven Solutions Ready to Scale Strengthening global energy security of supply Geothermal: domestic, reliable baseload clean power generation • Recent advances in enhanced and advanced geothermal systems unlock significantly greater future power generation potential • Comprehensive sol
Slide 12: International OCTG Market Snapshot
International OCTG Market Snapshot Activity stable outside the Middle East, high tendering activity offshore Middle East Offshore Activity Most Impacted Signs of Inflection in International Pricing Indexed Rig Count (2025 Average = 100) Seamless Market Price ($/tonne) Middle East Onshore Middle East
Slide 13: US OCTG Market Snapshot
US OCTG Market Snapshot Robust demand with increasing market pricing Stable Drilling Activity in Q1 Seamless Imports Remain Low Price Increases Since February US Horizontal Rig Count Monthly OCTG Imports (Thousand Tonnes) Seamless Market Prices ($/tonne) Seamless Welded Oil (L Axis) Gas (R Axis) SML
Slide 14: 3. Q1 2026 Results Review
3. Q1 2026 Results Review Nathalie Delbreuve Chief Financial Officer
Slide 15: Execution Track Record
Execution Track Record Group EBITDA Margin (%) Net Working Capital Days 30% 125 107 95 99 20% 100 83 86 10% 75 – 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 Total Cash Generation ($m) Net C
Slide 16: Key Group Figures – Q1 2026
Key Group Figures – Q1 2026 Revenues ($m) EBITDA ($m) 1,209 249 1,043 975 216 220 Q1 2025 Q4 2025 Q1 2026 Q1 2025 Q4 2025 Q1 2026 Adjusted Free Cash Flow ($m) Net Cash ($m) 233 121 177 177 67 46 Q1 2025 Q4 2025 Q1 2026 Q1 2025 Q4 2025 Q1 2026 Including $107m share buyback Please see “Definitions of
Slide 17: Tubes Production and Revenue Details
Tubes Production and Revenue Details Volumes Sold (kt) Average Selling Price ($/t) Revenues ($m) 335 3,280 3,457 3,304 1,157 314 303 3,062 3,004 293 960 993 272 879 897 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Revenue Mix by Geography Revenue Mix by M
Slide 18: Tubes Profitability
Tubes Profitability Tubes EBITDA and EBITDA Margin Tubes EBITDA per Tonne $ Million and % of Revenues $ / Tonne 726 724 220 213 637 196 568 551 173 166 22% 22% 19% 18% 18% Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Please see “Definitions of Non-GAAP Financial Da
Slide 19: Mine & Forest Performance
Mine & Forest Performance Production Sold (million tonnes) Average Iron Ore Market Price ($/tonne) 1.6 106 1.5 1.3 104 104 Q1 2025 Q4 2025 Q1 2026 Q1 2025 Q4 2025 Q1 2026 Mine & Forest Revenues ($m) EBITDA ($m) 94 94 95 56 45 38 59% 48% 40% Q1 2025 Q4 2025 Q1 2026 Q1 2025 Q4 2025 Q1 2026 19 Please s
Slide 20: Group Net Income
Group Net Income Q1 2026 Net Income Drivers Net Income Evolution $ Million and % of Revenues Net Income, Group Share ($ Million) 23% 168 173 170 156 60 114 114 122 111 79 82 80 89 87 46 6 20 14 (39) 220 40 9% 87 EBITDA D&A Financial Other Income tax Net (453) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 21: Cash Flow Analysis
Cash Flow Analysis Q1 2026 Cash Flow Bridge Cash Conversion $ Million Adjusted Operating Cash Flow Less Capex / EBITDA 7 4 64% 61% 42 55 58 58% 56% 52% 42 44% 43% 42% 40%38% 41% 35% 35% 220 24% 24% 24% 135 EBITDA Non- Financial Tax Chg. in Capex Restr., Total cash -3% cash cash out paid working Non-
Slide 22: Debt and Liquidity
Debt and Liquidity Debt Evolution Liquidity Evolution Net Cash (Debt) ($ Million)1 $ Million Net Cash (Debt) Gross (Debt) 1,950 2,033 1,942 1,946 500 1,800 1,832 1,701 251 162 195 67 233 208 205 – 196 1,283 571 595 646 632 511 645 646 (500) 202 493 (1,000) (994) 1,146 1,187 1,134 1,119 995 948 980 (
Slide 23: 4. Outlook & Key Takeaways
4. Outlook & Key Takeaways Philippe Guillemot Chairman of the Board & Chief Executive Officer
Slide 24: 2026 Operational Outlook
2026 Operational Outlook Second Quarter 2026 2026 Perspectives Volumes and EBITDA per tonne to Tubes decrease sequentially • North America Tubes: volumes to remain strong with further upside potential in H2 as certain customers increase drilling activity. US market pricing increasing with improving
Slide 25: Key Takeaways
Key Takeaways We are delivering further improvements in profitability driven by our 1 intense focus on operational excellence and cost management Our local presence and product mix is supporting performance in key 2 Middle East markets with resilient customer activity We see high tendering activity
Slide 26: Appendices
5. Appendices
Slide 27: Key Performance Indicators
Key Performance Indicators Q1 2026 Q4 2025* Q1 2025* QoQ chg. YoY chg. Volume sold 272 335 314 (19%) (13%) Revenues ($m) 897 1,157 960 (22%) (7%) Tubes Average Selling Price ($) 3,304 3,457 3,062 (4%) 8% EBITDA ($m) 196 213 173 (8%) 14% EBITDA per Tonne ($) 724 637 551 14% 31% Capex ($m) 43 47 35 (1
Slide 28: Tubes Revenue Breakdown
Tubes Revenue Breakdown Revenue by Region QoQ YoY in $ million Q1 2026 Q4 2025* Q1 2025* % chg. % chg. North America 368 411 405 (10%) (9%) Middle East 250 306 204 (18%) 23% South America 137 222 130 (38%) 6% Asia 81 93 126 (13%) (36%) Europe 31 37 38 (17%) (19%) Rest of World 31 88 58 (65%) (47%) T
Slide 29: Income Statement
Income Statement $ million, unless noted Q1 2026 Q4 2025* Q1 2025* QoQ chg. YoY chg. Revenues 975 1,209 1,043 (235) (68) Cost of sales (666) (880) (737) 214 71 Industrial margin 309 329 306 (21) 3 (as a % of revenue) 31.7% 27.2% 29.3% 4.4 pp 2.3 pp Selling, general and administrative expenses (87) (
Slide 30: Balance Sheet
Balance Sheet In $ million Assets 31-Mar-26 31-Dec-25* Liabilities 31-Mar-26 31-Dec-25* Equity - Group share 2,790 2,710 Net intangible assets 37 40 Non-controlling interests 110 103 Goodwill 41 40 Total equity 2,900 2,813 Net property, plant and equipment 2,098 2,073 Bank loans and other borrowings
Slide 31: Cash Flow Summary
Cash Flow Summary In $ million Q1 2026 Q4 2025* Q1 2025* QoQ chg. YoY chg. EBITDA 220 249 216 (29) 4 Non-cash items in EBITDA 7 (17) (6) 24 13 Financial cash out (4) (27) 3 23 (7) Tax payments (42) (38) (35) (5) (7) Adjusted operating cash flow 180 167 178 13 2 Change in working capital 45 123 85 (7
Slide 32: Financial Indebtedness & Liquidity
Financial Indebtedness & Liquidity Financial Indebtedness In $ million 31-Mar-26 31-Dec-25* 7.500% 8-year USD Senior Notes due 2032 722 721 1.837% PGE due 2027 213 215 ACC ACE (a) 10 39 Other 49 38 Total gross financial indebtedness 994 1,013 Less: cash and cash equivalents 1,119 1,134 Plus: fair va
Slide 33: 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 34: 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 35: 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 36: Share Information and Financial Calendar
Share Information and Financial Calendar Share Information Financial Calendar Euronext Paris • July 30, 2026: Publication of Second Quarter ISIN code: FR0013506730 2026 Results Ticker: VK Upcoming Investor Events USA: American Depositary Receipt (ADR) • May 18, 2026: BNP Paribas Non-Deal ISIN code: