Vallourec Sa · EURONEXT:VK
Vallourec Sa — Q2 2026 Earnings Presentation
35 slides from Vallourec Sa's earnings presentation, Jul 30, 2026
Slide 1: Q2 2026 Results
Q2 2026 Results July 30th, 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
Agenda 1. Executive 2. Market 3. Q2 2026 Summary Environment Results Review Philippe Guillemot 4 Philippe Guillemot 6 Nathalie Delbreuve 13 Chairman of the Board & Chairman of the Board & Chief Financial Officer Chief Executive Officer Chief Executive Officer 4. Outlook & 5. Appendices Key Takeaways
Slide 4: 1. Executive Summary
1. Executive Summary Philippe Guillemot Chairman of the Board & Chief Executive Officer
Slide 5: Executive Summary: Q2 2026
Executive Summary: Q2 2026 Results and Outlook Commercial and Operational Other Key Highlights • EBITDA at midpoint of guidance • United States • ~€650m shareholder return by • EBITDA of $190m and 21.4% margin • OCTG demand & pricing increasing August 2026 • Maintained strong Tubes profitability • I
Slide 6: 2. Market Environment
2. Market Environment Philippe Guillemot Chairman of the Board & Chief Executive Officer
Slide 7: International OCTG Market Snapshot
International OCTG Market Snapshot Demand stable outside Middle East with uptick in June, pricing reflects increased costs Stable activity outside Middle East onshore Market price increases offsetting higher costs Indexed Rig Count (2025 Average = 100) Seamless Market Price ($/tonne) ME Onshore ME O
Slide 8: Spotlight on Middle East
Spotlight on Middle East Primary customer activity remains resilient Production targets require activity rebound Middle East Rig Count (# rigs) June 2026 oil production and shortfall on maximum capacity (mb/d) Saudi Arabia UAE Other Middle East Jun-26 Delta vs. sustainable capacity 600 538 12 516 50
Slide 9: Positive Global Upstream Spending Outlook
Positive Global Upstream Spending Outlook Major project approvals forecast to increase Driving increase in expected upstream capex Upstream project sanctioning by year of approval ($bn) Total Global Upstream Capex ($bn) 700 250 +20% 600 200 +15% 500 150 400 300 100 200 50 100 0 0 2023 2024 2025 2026
Slide 10: Vallourec Coating Solutions
Vallourec Coating Solutions Addressing growing market for offshore projects exploiting complex deepwater reservoirs Enhancing our premium line pipe offering Growing premium offshore line pipe market • Successfully integrated Thermotite in 2025, Line pipe market with thermal insulation coating (thous
Slide 11: US OCTG Market Snapshot
US OCTG Market Snapshot Strong demand with increasing market pricing Drilling activity increasing OCTG inventories declining Driving higher market pricing US Horizontal Rig Count Months of OCTG Inventory1 Seamless Market Prices ($/tonne) 7,0 540 2 720 6,5 2 627 520 2 554 2 509 2 521 500 6,0 2 501 48
Slide 12: Favorable US OCTG Trade Dynamics
Favorable US OCTG Trade Dynamics Seamless imports remain low OCTG trade pressure driving fair competition Monthly OCTG Imports (thousand tonnes) Total OCTG Imports 2026 Year to Date Seamless Welded Taiwan SMLS Imports % of Total Shipments (R Axis)1 9% 250 20% Austria 8% 200 UAE 15% 3% 150 10% Other
Slide 13: 3. Q2 2026 Results Review
3. Q2 2026 Results Review Nathalie Delbreuve Chief Financial Officer
Slide 14: Execution Track Record
Execution Track Record Group EBITDA Margin (%) Net Working Capital Days 30% 125 107 95 99 20% 100 83 85 10% 75 – 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 Total Cash Generation ($m)
Slide 15: Key Group Figures – Q2 2026
Key Group Figures – Q2 2026 Revenues ($m) EBITDA ($m) 209 220 983 975 190 886 Q2 2025 Q1 2026 Q2 2026 Q2 2025 Q1 2026 Q2 2026 Adjusted Free Cash Flow ($m) Net Cash ($m)1 183 177 67 125 103 ( 235) Q2 2025 Q1 2026 Q2 2026 Q2 2025 Q1 2026 Q2 2026 1After $107m and $14m of share buybacks in Q1 & Q2 2026
Slide 16: Tubes Production and Revenue Details
Tubes Production and Revenue Details Volumes Sold (kt) Average Selling Price ($/t) Revenues ($m) 335 3 280 3 457 3 304 3 327 1 157 293 303 2 978 993 272 897 244 872 811 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Revenue Mix by Geography Revenue Mix by M
Slide 17: Tubes Profitability
Tubes Profitability Tubes EBITDA and EBITDA Margin Tubes EBITDA per tonne $ Million and % of Revenues $ / tonne 726 724 722 220 213 637 196 550 176 161 22% 22% 22% 18% 18% Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Please see “Definitions of Non-GAAP Financial Da
Slide 18: Mine & Forest Performance
Mine & Forest Performance Production Sold (million tonnes) Average Iron Ore Market Price ($/tonne) 1,6 105 1,3 104 1,2 98 Q2 2025 Q1 2026 Q2 2026 Q2 2025 Q1 2026 Q2 2026 Mine & Forest Revenues ($m) EBITDA ($m) 51 99 95 92 38 33 52% 40% 36% Q2 2025 Q1 2026 Q2 2026 Q2 2025 Q1 2026 Q2 2026 18 Please se
Slide 19: Group Net Income
Group Net Income Q2 2026 Net Income Drivers Net Income Evolution $ Million and % of Revenues Net Income, Group Share ($ Million) 21% 168 173 170 156 62 114 114 122 111 79 82 80 89 87 44 45 6 15 190 35 -39 32 5% 45 EBITDA D&A Financial Other Income tax Net -453 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 20: Cash Flow Analysis
Cash Flow Analysis Q2 2026 Cash Flow Bridge Cash Conversion $ Million Adjusted Operating Cash Flow Less Capex / EBITDA 11 64% 18 61% 58% 56% 50 50 52% 35 7 44% 43% 42% 40% 38% 41% 40% 35% 35% 190 24% 24% 24% 118 EBITDA Non- Financial Tax Chg. in Capex Restr., Total cash -3% cash cash out paid workin
Slide 21: Debt and Liquidity
Debt and Liquidity Debt Evolution Liquidity Evolution Net Cash (Debt) ($ Million)1 $ Million Net Cash (Debt) Gross (Debt) 2 033 2 048 1 950 1 942 1 946 500 183 251 1 800 1 832 191 1 701 233 162 195 208 205 – 196 595 627 1 283 571 646 632 511 645 646 ( 500) 202 (1 000) 493 ( 998) 1 146 1 187 1 134 1
Slide 22: 4. Outlook & Key Takeaways
4. Outlook & Key Takeaways Philippe Guillemot Chairman of the Board & Chief Executive Officer
Slide 23: 2026 Operational Outlook
2026 Operational Outlook Third Quarter 2026 H2 2026 Perspectives Volumes to increase sequentially • North America Tubes: Tubes • Volumes and pricing to increase on improving industry EBITDA per tonne to decline supply-demand dynamics sequentially • International Tubes: • International volumes are ex
Slide 24: Key Takeaways
Key Takeaways 1 We are delivering best-in-class margins and driving improved cash conversion through operational excellence and cost management 2 US customers are increasing activity in Oil & Gas and Geothermal, with recent trade investigations driving strong domestic utilization Growing upstream pr
Slide 25: 5. Appendices
4 4 5. Appendices
Slide 26: Key Performance Indicators
Key Performance Indicators Quarterly Figures Year-to-Date Figures Q2 2026 Q1 2026 Q2 2025* QoQ chg. YoY chg. H1 2026 H1 2025* YoY chg. Volume sold 244 272 293 (10%) (17%) 515 606 (15%) Revenues ($m) 811 897 872 (10%) (7%) 1,708 1,832 (7%) Tubes Average Selling Price ($) 3,327 3,304 2,978 1% 12% 3,31
Slide 27: Tubes Revenue Breakdown
Tubes Revenue Breakdown Revenue by Region Quarterly Figures Year-to-Date Figures QoQ YoY YoY in $ million Q2 2026 Q1 2026 Q2 2025* % chg. % chg. H1 2026 H1 2025* % chg. North America 384 368 407 4% (6%) 753 812 (7%) Middle East 177 250 157 (29%) 12% 427 361 18% South America 120 137 127 (12%) (6%) 2
Slide 28: Income Statement
Income Statement Quarterly Figures Year-to-Date Figures $ million, unless noted Q2 2026 Q1 2026 Q2 2025* QoQ chg. YoY chg. H1 2026 H1 2025* YoY chg. Revenues 886 975 983 (89) (98) 1,860 2,026 (166) Cost of sales (613) (666) (663) 53 50 (1,279) (1,400) 121 Industrial margin 273 309 321 (36) (48) 581
Slide 29: Balance Sheet
Balance Sheet In $ million Assets 30-Jun-26 31-Dec-25* Liabilities 30-Jun-26 31-Dec-25* Equity - Group share 2,840 2,710 Net intangible assets 36 40 Non-controlling interests 108 103 Goodwill 42 40 Total equity 2,949 2,813 Net property, plant and equipment 2,106 2,073 Bank loans and other borrowings
Slide 30: Cash Flow Summary
Cash Flow Summary Quarterly Figures Year-to-Date Figures In $ million Q2 2026 Q1 2026 Q2 2025* QoQ chg. YoY chg. H1 2026 H1 2025 YoY chg. EBITDA 190 220 209 (30) (19) 409 425 (15) Non-cash items in EBITDA (11) 7 (22) (17) 11 (4) (28) 24 Financial cash out (18) (4) (29) (14) 11 (22) (26) 4 Tax paymen
Slide 31: Financial Indebtedness & Liquidity
Financial Indebtedness & Liquidity Financial Indebtedness In $ million 30-Jun-26 31-Dec-25* 7.500% 8-year USD Senior Notes due 2032 723 721 1.837% PGE due 2027 213 215 ACC ACE (a) 28 39 Other 34 38 Total gross financial indebtedness 998 1,013 Less: cash and cash equivalents 1,231 1,134 Plus: fair va
Slide 32: 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 33: 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 34: 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 35: Share Information and Financial Calendar
Share Information and Financial Calendar Share Information Financial Calendar Euronext Paris • Nov 20, 2026: Publication of Third Quarter ISIN code: FR0013506730 2026 Results Ticker: VK Upcoming Investor Events USA: American Depositary Receipt (ADR) • July 31, 2026: TP ICAP Non-Deal Roadshow ISIN co