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EBITDA Margin: 23%, highest since Q1 2024.

EBITDA: 210 million, at the midpoint of guidance.

Net Income: 134 million, aided by strategic projects.

Cash Flow: Positive for the 12th consecutive quarter.

Net Debt: Reduced to 140 million.

Tubes EBITDA: Improved by more than 25% sequentially to 621 million.

Mine and Forest EBITDA Margin: More than 40% despite increased costs.

Total Cash Generation: 67 million, despite a 43 million increase in working capital.

Fourth Quarter EBITDA Outlook: Expected to range between 195 and 225 million.

Full Year EBITDA Outlook: Expected to range between 799 and 829 million.

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Release Date: November 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Vallourec SA (VLOUF) achieved a group EBITDA margin of 23%, the highest since Q1 2024, demonstrating strong operational performance.

The company has maintained a consistent EBITDA margin around 20% and generated positive cash flow for 12 consecutive quarters.

Vallourec SA (VLOUF) secured a major contract with Petrobras in Brazil, expanding its OCTG market share and showcasing its ability to deliver high-value solutions.

The company successfully closed the margin gap with its primary peer, highlighting its focus on operational excellence and value over volume strategy.

Vallourec SA (VLOUF) optimized its capital structure by redeeming 10% of its 2032 senior notes, enhancing financial flexibility.

Delays in customer activity in select markets, particularly in the Middle East and North America, have resulted in some orders being pushed to 2026.

The company faces challenges from a volatile macroeconomic environment, which could impact future performance.

There is a risk of substitution between seamless and welded pipes due to the high price differential, which could affect market dynamics.

Vallourec SA (VLOUF) anticipates a modest increase in working capital in Q4, which could impact cash flow.

The company is exposed to foreign exchange headwinds, which have affected EBITDA performance.

Q: Can you provide more details on the delays in customer activity and the impact on orders from Q4 into 2026? A: Philippe Guillemot, CEO: The delays are due to slower-than-forecast activities in certain countries and customers controlling the timing of order deliveries. These are simply order deferrals, and we expect them to be invoiced in 2026. We remain confident in our market as customers continue to execute capacity increase plans.

Q: How do you see the impact of recent US import tariffs on your business, and what are your plans for the new threading line in Ohio? A: Philippe Guillemot, CEO: The tariffs have led to a decrease in imports, benefiting domestic players like us. Our new threading line in Ohio, a $48 million investment, will increase capacity for high-tech connections, aligning with our value-over-volume strategy. We remain disciplined with our CapEx, maintaining it around 200 million.

Q: Can you elaborate on the potential impact of the new warrant terms and your approach to shareholder returns? A: Philippe Guillemot, CEO: The new terms allow us to use existing shares for warrant obligations, providing flexibility. We aim to reduce dilution by potentially buying back shares. Our shareholder return policy remains at 80-100% of total cash generation.

Q: What is driving the increase in average selling prices, and how do you view the 2026 outlook? A: Philippe Guillemot, CEO: Our focus on high-value-added products and solutions is driving price stability and increases. For 2026, we see strong demand in the US and international markets, with customers like Petrobras and Aramco indicating continued activity.

Q: Could you update us on the progress and benefits of the second phase of investment in the Brazilian mining operations? A: Philippe Guillemot, CEO: The expansion is on track, and we expect to achieve EBITDA targets of 100-125 million. We focus on value over volume, extracting higher quality iron ore, which enhances profitability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.