Vallourec Fourth Quarter 2025 Results

Vallourec, a world leader in premium seamless tubular solutions, announces today its results for the fourth quarter 2025. The Board of Directors of Vallourec SA, meeting on February 26^th 2026, approved the Group's fourth quarter 2025 Consolidated Financial Statements.

Fourth Quarter 2025 Results

• Q4 Group EBITDA of €214 million, strong 21% EBITDA margin
• Excellent total cash generation of €177 million
• Around €650 million distribution to shareholders targeted by August 2026 ^a
• Q1 2026 Group EBITDA expected to range between €165 million and €195 million
• Resilient US customer demand while imports continue to decline
• Early signs of activity rebound in key Middle East markets

HIGHLIGHTS

Fourth Quarter 2025 Results

• Group EBITDA of €214 million, up 2% sequentially, EBITDA margin remained strong at 21%
  • Tubes EBITDA per tonne of €548 down (12%) sequentially reflecting negative mix effects
  • Mine & Forest EBITDA at €38 million increasing sequentially by 10%, reflecting higher iron ore market prices partially offset by seasonally lower volumes
• Adjusted free cash flow of €204 million; total cash generation of €177 million – aided by robust collections and inventory management
• Ended the period with a net cash position of €39 million, improving by €179 million sequentially
  

OUTLOOK

First Quarter 2026 Group EBITDA is expected to range between €165 million and €195 million :

• In Tubes, EBITDA per tonne is expected to be broadly in-line with the Q4 2025 level, while volumes are expected to be below the Q4 2025 level.
• 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
  • A slight near-term decrease in US market prices, with improving industry supply-demand conditions leading to potential improvement later in the year
• International Tubes:
  • Lower sales volumes in H1 2026 due to slower bookings in H2 2025
  • An activity recovery in key Middle Eastern 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
• Slightly lower year over year iron ore production sold (approximately 5.5 million tonnes) due to an improved production process focusing on value over volume

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

“Vallourec delivered robust results once again in the fourth quarter. EBITDA was above the midpoint of our guidance and we produced a solid 21% EBITDA margin. We converted over 80% of EBITDA to cash – a further demonstration of our consistent improvement in working capital management and operational efficiency. After paying over €370 million to our shareholders in 2025, we returned our balance sheet to a net cash position in December.

“From this solid financial base, we will deliver on our commitment to be one of the most shareholder friendly companies in our peer group. We are targeting returns to shareholders of approximately €650 million between January and August 2026, a nearly €280 million increase versus 2025. We have adopted a balanced distribution framework, limiting warrant dilution through buybacks, growing distributions through a targeted interim dividend payment of €1.75 per share in August^b, and maintaining a defensive balance sheet.

“Reflecting on our 2025 results, I am pleased with the many milestones we have achieved. After reaching zero net debt at the end of 2024, we paid a substantial dividend to shareholders for the first time in a decade in 2025. We significantly narrowed the profitability gap with our primary peer to the lowest level since we embarked on the New Vallourec Plan in early 2022. Finally, our consistent improvement in profitability and financial resilience was recognized with Investment Grade credit ratings across all three rating agencies.

“Our focus in 2026 turns to profitable growth through targeted R&D and capital investments to solve the energy challenges of today and tomorrow. In doing so, we will remain committed to our core principles of value over volume and operational excellence. We are investing in value-added capacity enhancements, including our new high-torque threading line in the US and advanced coating capabilities like our Cleanwell® solution. Meanwhile, we are progressing our ambitions in New Energies, with a recently-announced partnership with XGS Energy in the advanced geothermal arena, and a memorandum of understanding with Baker Hughes in the hydrogen space. We are seeing particularly strong momentum in geothermal markets as the industry searches for ways to deliver clean baseload power to meet rapidly growing energy demand, which is accentuated by rapid growth in artificial intelligence and energy‐intensive data centers.

“In the US, our assets remain highly-utilized and recent booking activity remains strong. Industry pricing has softened slightly, but we are encouraged by the downward trend in imports due to Section 232 tariffs and the resilience of our customers' activity. In International markets, commercial activity remained subdued in the second half of 2025. In the Middle East we are seeing signs of acceleration – especially in markets with higher levels of unconventional activity.

“We see potential for activity to increase in the second semester and beyond as the oil market rebalances, gas-related activity increases and the acceleration of depletion necessitates investments to maintain and grow production.”

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

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 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 .

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 Q4 2025 Results

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

• To view the webcast:
• To participate in the conference call, please register beforehand to receive dial-in details:
• Audio webcast replay and slides will be available at: /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

For further information, please contact:

^a Subject to warrant full exercise before the end of June 2026 and to Board of Directors approval in July. Estimated per share amount is based on assumptions detailed in the Appendix.

^b Subject to warrant full exercise before the end of June 2026 and to Board of Directors approval in July. Estimated per share amount is based on assumptions detailed in the Appendix.

Attachment

• Vallourec Q4 2025 Results Press Release_Final

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