Vallourec S.A.

Q2 2026 group revenue was $886 million and group EBITDA was $190 million, equal to a 21.4% margin. Tubes revenue was $811 million, Tubes EBITDA was $176 million, EBITDA margin was 22%, and EBITDA per ton was $722; Tubes volumes sold were 244,000 tons and average selling prices were $3,327 per ton versus $2,978 in Q2 2025. Mine & Forest revenue was $92 million and EBITDA was $33 million, with a 36% margin; mine production sold was approximately 1.2 million tons versus 1.3 million tons in Q1. Net income group share was $45 million, total cash generation before shareholder return was $118 million, adjusted free cash flow was $125 million, and net cash was $183 million at quarter-end. For Q3, management expects group EBITDA of $170 million-$210 million and Mine & Forest production sold of around 1.4 million tons; for full-year Mine & Forest, they now expect 5 million-5.5 million tons. Management also said Q3 Tubes volumes should increase sequentially while EBITDA per ton should decrease, and North American volumes and prices should rise in H2 versus H1 2026.

Philippe Guillemot struck a confident tone, saying Vallourec delivered a strong quarter despite lower international volumes and that the business model remains resilient in a complex Middle East environment. He emphasized high-value contract wins, especially the ExxonMobil Guyana deepwater contract, and said recent bookings should support higher invoicing from late 2026 with more announcements expected in the second half. He also framed the company as increasingly well positioned in U.S. OCTG, geothermal, and offshore/deepwater markets.

Nathalie Delbreuve focused on margin resilience, cash, and balance sheet strength. She said Q2 EBITDA remained strong at 21.4%, net working capital was 85 days and broadly stable, total cash generation before shareholder return was $118 million, and adjusted free cash flow was $125 million. She highlighted $14 million of share buyback cash out in Q2, $121 million in share buybacks in the first semester, net cash of $183 million at end-June, and total liquidity above $2 billion; she also noted €307 million of warrant proceeds received in July and the planned €2.05 interim extraordinary dividend.

Analysts focused heavily on Middle East disruption, asking about extra costs, reimbursement timing, delivery routes, and whether Q2 volume weakness was mostly due to the Strait of Hormuz closure. Management said the extra costs are mainly transportation and storage, have shifted partly into Q3, and are being discussed customer by customer for recovery over coming quarters, partially extending into 2027; they also stressed there have been no order cancellations, only delivery postponements. Questions also covered U.S. pricing versus inflation, with management saying price increases are more than covering cost inflation, and asked about mix effects and Q4 improvement, which management declined to pre-guide.