VK Vallourec

Meudon (France), February 27th, 2025

Vallourec, a world leader in premium tubular solutions, announces today its results for the fourth quarter 2024. The Board of Directors of Vallourec SA, meeting on February 26th 2025, approved the Group's fourth quarter 2024 Consolidated Financial Statements.

Fourth Quarter 2024 Results

• Q4 Group EBITDA of €214 million, with strong 20% EBITDA margin
• Full year EBITDA of €832 million, exceeding midpoint of expected range
• Reached €21 million net cash, achieving zero net debt target a year ahead of plan
• International OCTG market remains strong; US market steadily improving
• Q1 2025 Group EBITDA expected to range between €180 million and €215 million
• Expect 2025 EBITDA to improve in H2 2025 vs. H1 2025
• €1.50 per share dividend to be proposed at the 2025 AGMa

HIGHLIGHTS

Fourth Quarter 2024 Results

• Group EBITDA of €214 million, up 27% sequentially; EBITDA margin remained strong at 20%
  • Tubes EBITDA per tonne of €511 down (8%) sequentially due to lower realized US prices, partly offset by robust international results and cost savings
  • Mine & Forest EBITDA of €40 million up 82% sequentially due to higher realized prices, reduced costs and non-cash forest revaluation effects
• Adjusted free cash flow of €178 million; total cash generation of €253 million
• Net cash position of €21 million, improving €261 million sequentially

First Quarter 2025 Group EBITDA is expected to range between €180 million and €215 million:

• In Tubes, sequentially higher EBITDA per tonne will be more than offset by lower international shipments.
• In Mine & Forest, production sold is expected to be around 1.3 million tonnes. Profitability will be determined by prevailing iron ore market prices.

Full Year 2025 Group EBITDA is expected to reflect a second half improvement:

• In Tubes, international shipments are expected to increase in H2 2025 compared to H1 2025 due to strong bookings over recent months. EBITDA per tonne should further improve in H2 2025 compared to H1 2025 due to higher invoiced international prices, expected US market price improvements, and cost savings.
• In Mine & Forest, production sold is expected to be around 6 million tonnes. Profitability will be determined by prevailing iron ore market prices.

Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer, declared:

“Reflecting on our 2024 results, I am very pleased with the continued improvements we have made in Vallourec’s operational and financial position. Today, Vallourec is not only a company that has been restructured; it is a company that has been deeply transformed. We achieved several major milestones in 2024, perhaps none greater than achieving our goal of reaching zero net debt a full year ahead of plan. Our balance sheet is now in excellent shape, as we have not only reduced net debt, but fully reshaped our capital structure to ensure a high level of liquidity and long financial runway with substantially reduced financial costs.

We now capitalize on this progress with today’s announcement that we will propose a dividend of €1.50 per share at our upcoming Annual General Meeting. This marks Vallourec’s first return to shareholders in a decade and lays the foundation for recurring future returns.

Our goal of making Vallourec crisis-proof has been achieved. We remain focused on the second key objective of the New Vallourec plan: sustainably delivering best-in-class profitability. We are progressing ahead of plan on our optimization program in Brazil, which will mark a major step in this journey. Meanwhile, we are embarking on several strategic investments that we believe will deliver higher value to our customers, and ultimately higher pricing and margins for our products. For example, we are expanding our high-torque threading capacity in the United States and investing in our global production capacity for our proprietary dope-free technology, CLEANWELL®. Paired with other strategic moves such as our pending acquisition of Thermotite do Brasil, we see the next leg of our Value over Volume strategy taking shape.

Our core markets remain supportive. Our bookings in both the US and international markets ended 2024 on a high note, evidence of the strong global demand for premium tubular solutions. We have seen a steady improvement in US pricing over the past several months, which will begin to manifest in our first quarter results. While we are still analyzing the full impact of recent changes in US trade policy, we believe on the whole they will support further upside in the US market. Vallourec’s vertically-integrated domestic manufacturing footprint – from steelmaking to finishing operations – serves the vast majority of volumes delivered to our US customers. As such, we are well-positioned to navigate this new environment. Meanwhile, our recent success in major international tenders sets a strong baseline for the second half of 2025. This favorable exit rate will give us strong momentum moving into 2026.”

Key Quarterly Data 

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 14, 2024, under filing number n° D. 24-0113.

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.

The consolidated financial statements are included in the PDF version of the press release.

Presentation of Q4 2024 Results

Conference call / audio webcast on February 27th at 9:30 am CET

• To listen to the audio webcast: https://channel.royalcast.com/landingpage/vallourec-en/20250227_1/
• To participate in the conference call, please dial (password: “Vallourec”):
  • +44 (0) 33 0551 0200 (UK)
  • +33 (0) 1 7037 7166 (France)
  • +1 786 697 3501 (USA)
• 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 14,000 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.

a 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.

Attachment

• Vallourec Q4 & FY 2024 Results Press Release

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