Core Insights - Vallourec reported solid results for Q3 2025, with Group EBITDA margin reaching its highest level since Q1 2024, marking three consecutive years of around 20% EBITDA margin and positive cash generation [4][6][9] Financial Performance - Q3 2025 Group EBITDA was €210 million, a 12% increase sequentially, aligning with the midpoint of guidance [6] - EBITDA margin was strong at 23%, the highest since Q1 2024 [6] - Tubes EBITDA per tonne increased by over 25% sequentially to €621 [6] - Adjusted free cash flow was €69 million, with total cash generation of €67 million, and net debt reduced to €140 million [6] Market Dynamics - Robust demand in the US market, with stable customer drilling activity and improved market share, while imports are expected to slow due to higher steel tariffs [5][6] - A new Long-Term Agreement with Petrobras in Brazil is expected to expand market share and could generate up to $1 billion in revenue over four years [7] Strategic Initiatives - The company has made significant progress in crisis-proofing its business and achieving best-in-class profitability since the New Vallourec plan was announced in May 2022 [9] - The focus remains on improving return on invested capital and returning capital to shareholders, with proposed modifications to warrant terms for flexibility in shareholder returns [10] Future Outlook - Q4 2025 Group EBITDA is expected to range between €195 million and €225 million, with full-year EBITDA projected between €799 million and €829 million [4][6] - Production sold in Mine & Forest is expected to be around 1.4 million tonnes [6]

Core Insights - Vallourec reported its second quarter 2025 results, showcasing resilience in its business model despite challenges in shipments and market conditions [1][4]. Financial Performance - Group EBITDA for Q2 2025 was €187 million, reflecting a 10% sequential decline but slightly above guidance midpoint, with a strong EBITDA margin of 22% [6][10]. - Tubes EBITDA margin improved by 76 basis points sequentially to 19%, although Tubes EBITDA declined by 13% due to lower volumes [6][10]. - Mine & Forest EBITDA decreased by 15% sequentially, impacted by lower market prices and higher costs, yet maintained a strong margin of 52% [6][10]. - Total cash generation amounted to €57 million, with adjusted free cash flow at €88 million [6][10]. Shareholder Returns - The company returned €370 million to shareholders through dividends of €1.50 per share and the repurchase of 1.2 million shares in Q2 2025 [4][6]. Operational Developments - The Brazil Performance Program is ahead of schedule, with significant operational simplifications completed, including the closure of a legacy Plug mill [5][7]. - Cost savings initiatives exceeded the target of €150 per tonne, enhancing operational efficiency [7]. Market Outlook - Q3 2025 Group EBITDA is projected to range between €195 million and €225 million, with expectations for improved performance in the second half of 2025 compared to the first half [4][6]. - The international OCTG market remains resilient, with recent contract awards indicating strong demand for Vallourec's premium products [8][9]. - In the US, market prices improved due to steel tariffs, and while oil drilling activity has decreased, gas drilling has rebounded, supporting demand for Vallourec's products [9].