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Vallourec First Quarter 2026 Results
Meudon (France), May 13th, 2026
Vallourec, a world leader in premium seamless tubular solutions, announces today its results for the first quarter 2026. The Board of Directors of Vallourec SA, meeting on May 12th 2026, approved the Group's first quarter 2026 Consolidated Financial Statements.
First Quarter 2026 Results
- Q1 Group EBITDA of $220m or €187m, above guidance midpoint
- Strong 22.6% EBITDA margin, up ~200bps sequentially
- Solid cash generation of $135m, net cash position of $67m post $107m buyback
- Resilient customer activity in primary Middle East markets with no cancellations; select order postponements and shipping delays impacting invoicing cadence
- Higher activity levels emerging in US, leading to increasing market pricing
- Q2 2026 Group EBITDA expected to range between $175 million and $205 million
- Vallourec confirms intention to return nearly €650m to shareholders by Augusta
- Vallourec to host Geothermal Deep-Dive on June 15th 2026
CHANGE IN REPORTING CURRENCY
Vallourec changed the reporting currency of the Group’s Consolidated Financial Statements from the Euro to the US Dollar, effective January 1st 2026, to make its financial information more readable by better reflecting the performance of its activities, which are mainly carried out in US Dollars. All functional currencies are unchanged. Comparative 2025 information has been restated (see in Appendix for comparative figures in Euros).
HIGHLIGHTS
First Quarter 2026 Results
- Group EBITDA of $220 million, flat year over year, EBITDA margin improved to 22.6%
- Tubes EBITDA per tonne of $724 up 31% year over year, reflecting positive price/mix effects and excellent cost adaptation
- Mine & Forest EBITDA at $38 million decreasing year over year by (32%), reflecting lower iron ore volumes and negative FX impacts
- Adjusted free cash flow of $177 million; total cash generation of $135 million – aided by robust collections and inventory management
- Ended the period with a net cash position of $67 million, improving by $21 million sequentially after $107 million of share repurchases
OUTLOOK
Second Quarter 2026 Group EBITDA is expected to range between $175 million and $205 million:
- In Tubes, volumes and EBITDA per tonne are expected to decline sequentially, given a longer period of disruption in the Middle East compared to the first quarter, with cost-overruns due to the war to be mostly compensated after the second quarter.
- In Mine & Forest, production sold is expected to be around 1.4 million tonnes.
Full Year 2026 results are expected to be influenced by the following dynamics:
- North America Tubes:
- Sustained strength in sales volumes thanks to Vallourec’s market share gains during 2025 and higher activity levels among certain customers
- Increasing US market prices on improving industry supply-demand conditions, more than offsetting increases in energy and raw material costs
- International Tubes:
- Lower sales volumes in H1 2026 due to slower bookings in H2 2025, as well as longer delivery routes in certain Middle East markets and select order postponements
- Assuming no significant deterioration in the geopolitical situation, an activity recovery in international markets setting the stage for higher second half volumes
- Broadly stable market pricing versus the second half of 2025, with discrete customer contracts driving selective price upside
- Iron ore production sold of approximately 5.5 million tonnes
Key Quarterly Data ($m)b
| in $ million, unless noted | Q1 2026 | Q4 2025* | Q1 2025* | QoQ chg. | YoY chg. |
| Tubes volume sold (k tonnes) | 272 | 335 | 314 | (63) | (42) |
| Iron ore volume sold (m tonnes) | 1.3 | 1.5 | 1.6 | (0.1) | (0.2) |
| Group revenues | 975 | 1,209 | 1,043 | (235) | (68) |
| Group EBITDA | 220 | 249 | 216 | (29) | 4 |
| (as a % of revenue) | 22.6% | 20.6% | 20.7% | 2.0 pp | 1.8 pp |
| Operating income (loss) | 156 | 175 | 154 | (19) | 3 |
| Net income, Group share | 87 | 111 | 89 | (24) | (2) |
| Adj. free cash flow | 177 | 233 | 177 | (56) | 0 |
| Total cash generation | 135 | 202 | 110 | (67) | 25 |
| Net cash (debt) | 67 | 46 | 112 | 21 | (45) |
Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer, declared:
“Vallourec delivered solid results in the first quarter. EBITDA was above the midpoint of our guidance, despite a challenging environment in the Middle East. Our intense focus on execution and cost management produced a 200-basis point sequential improvement in EBITDA margin to over 22%. We converted over 60% of EBITDA to cash, 10-percentage points higher than in Q1 2025, demonstrating the improvement in the quality of our earnings driven by our strong focus on operational efficiency and working capital management. After repurchasing $107m of our shares, we increased our net cash position to $67m at the end of the quarter.
“While there is much uncertainty around the situation in the Middle East and the impact on global economic growth, I am confident that our business can adapt more rapidly than before and take advantage of the improving medium-term outlook we see ahead. Our local presence in key markets, including Saudi Arabia and the UAE, enables us to continue serving our largest customers in the region. Meanwhile, our teams are working closely with customers to find alternative solutions for deliveries served from outside the region, mitigating the negative impact on our volumes.
“In International markets outside the Middle East, we see high levels of tendering activity for offshore and deep-water projects which underpins our expectation for higher bookings in the second half of 2026 and beyond.
“In the US, bookings remain highly robust, and we are seeing early signs of activity growth. OCTG imports continue to decline, especially for seamless products, while new trade investigations will further enforce fair competition in the market. Improving fundamentals in this market will lead to pricing upside in the third quarter.
“In New Energies, we signed a record Long-Term Supply Agreement with Fervo Energy worth up to $800 million in potential revenue by the end of the decade. This follows the announcement in January of our partnership with XGS, further demonstrating the clear commercial momentum in geothermal energy driven by the need for reliable, clean, baseload energy to facilitate datacenter build-out in the US. I am pleased to announce that Vallourec will host a deep dive on the geothermal market and our favorable positioning on June 15th to further illuminate this long-term opportunity for our investors.
“Looking ahead, we expect our customers to respond to rapidly tightening oil & gas supply fundamentals and countries around the world to prioritize energy security. This gives us confidence that we will see higher levels of drilling activity in both the short and medium term. With our industrial footprint close to our markets and premium technology offer, alongside ongoing efforts to improve Vallourec’s operations and capture rapidly expanding addressable markets in New Energies, we are well positioned to drive further value creation.
The consolidated financial statements are included in the pdf version of the press release.
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 marches financiers, or “AMF”), including those listed in the “Risk Factors” section of the Universal Registration Document filed with the AMF on March 27, 2025, under filing number n° D. 25-0192.
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. or 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 Q1 2026 Results
Conference call / audio webcast on May 13th at 9:30 am CET
- To view the webcast: https://vallourec.engagestream.euronext.com/2026-05-13-q1analystcall
- To participate in the conference call, please register beforehand to receive dial-in details: https://engagestream.euronext.com/vallourec/2026-05-13-q1analystcall/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
| July 30, 2026 | Publication of Second 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 Subject to warrant full exercise before the end of June 2026 and to Board of Directors approval in July.
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 US dollars information has been restated (see in Appendix for comparative figures in Euros).
Attachment
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