Bilbao, June 19, 2024. Today we held our Annual General Shareholders' Meeting in Bilbao, where the Annual Accounts for the 2024 financial year were approved. During the session, our Non-Executive Chairman, Josu Calvo, and our CEO, Carlos López de las Heras, presented the strategic direction for the year 2025.
At Tubos Reunidos Group, we believe it is time to "turn on the high beams" and prepare, with the support of our entire team, for the decade ahead. The current geopolitical context - particularly the recent tariff measures implemented by the U.S. administration since January 20, 2025 - has disrupted the initial signs of global economic recovery seen at the end of 2024. This new landscape demands bold, long-term thinking and structural responses.
2024 Overview
Throughout 2024, we intensified our commercial activity and strengthened our international presence. Key milestones included opening a new technical-commercial office in Germany, reinforcing our teams in Italy and the United States, and expanding our footprint in the Indian market - which we consider highly strategic due to its growth potential. Between late 2024 and early 2025, we secured two major power generation projects in India, valued at a combined €26.5 million.
We also made significant progress in our Premium product range, achieving a 30% year-on-year increase in sales. These high-value-added products now represent 27% of total sales - up from 18.7% in 2023 and 21.3% in 2022 - strengthening our value proposition in key markets.
In terms of innovation, we reached a major milestone by becoming the first global manufacturer to commercialize a seamless tube with near-zero emissions. Our O-Next® product has received a very positive market response, with orders totaling 10,794 tons to date. This reflects our leadership in technology and our strong commitment to sustainability and industrial decarbonization.
From a financial standpoint, we improved our position significantly through a debt buyback operation executed in January 2024. This agreement with our financial partners allowed us to repurchase €107 million in financial debt for €27.5 million in cash, achieving a 74.2% average discount. This initiative reduced our gross financial debt by €114 million in principal and accrued interest and generated a financial gain of €65 million, as reported in our Annual Accounts.
Despite a 39% drop in revenue due to global pricing pressures, we closed the year with a net profit of €28.6 million and entered 2025 with an order backlog 44% higher than the previous year.
Looking ahead to 2025
We are proactively adjusting our strategy to respond to ongoing shifts in the global landscape, which remains increasingly shaped by geopolitical tensions. Our focus this year includes strengthening our commercial reach in new markets, enhancing relationships with existing clients, and continuing to drive internal efficiency.
Reinforcing our balance sheet and optimizing our financial structure will remain a top priority, enabling us to respond to a volatile and demanding economic environment with confidence and resilience.
The recent decision by the Trump administration to double tariffs on steel and aluminum imports to 50%, along with the removal of the exemption system for products lacking sufficient U.S. supply, has directly impacted our operations. This exemption system had previously allowed most of our exports to enter the U.S. market without penalties.
We faced a similar situation during the previous Trump administration, and thanks to decisive management, we were able to stabilize our business. While the current geopolitical environment is more complex and the cost impact more severe, we draw confidence from our past experience and the resilience we've built.
We remain hopeful that ongoing negotiations between the U.S. and the EU will result in a balanced and constructive trade agreement. Meanwhile, the European Union is reviewing its safeguard measures to make them more effective. Looking ahead, the introduction of the Carbon Border Adjustment Mechanism (CBAM) in 2026 is expected to promote fairer global competition and support industrial decarbonization by aligning carbon costs across borders.
As our CEO Carlos López de las Heras stated:
"We are fully confident that by working with clear goals, in coordination, and with the essential support of our key stakeholders - both internal and, especially, external - we will continue moving toward the stability Tubos Reunidos needs to unlock its full potential, which is considerable."