Vallourec raises FY25 EBITDA guidance after strong Q3 tube performance

Investing.com -- French steel pipe manufacturer Vallourec on Friday reported third-quarter EBITDA of €210 million, slightly ahead of consensus estimates of €207 million and within the company’s guided range of €195-225 million.

The company’s Tubes segment delivered a strong performance with EBITDA of €188 million, exceeding estimates. Tubes EBITDA per tonne reached €621, a 26% increase from €494 in the second quarter, with the company noting it had "fully closed the gap in Tubes EBITDA per tonne versus our primary peer."

Vallourec’s average selling price for tubes rose 8% quarter-over-quarter to €2,807 per tonne, while tube volumes sold reached 303,000 tonnes, up 3% from the previous quarter.

Net income came in at €139 million, significantly above consensus expectations of €97 million, boosted by a €28 million gain primarily from the disposal of Serimax.

The company’s Mine & Forest segment generated €35 million in EBITDA, down 22% from the second quarter and slightly below estimates. Production reached 1.6 million tonnes, exceeding guidance of 1.5 million tonnes.

Vallourec reported net debt of €140 million, higher than expected due to increased cash tax payments and a €20 million foreign exchange outflow.

For full-year 2025, Vallourec set EBITDA guidance at €799-829 million (midpoint €814 million), which is 3% below consensus estimates. The company cited delays in customer activity in select Eastern Hemisphere markets, resulting in some orders being pushed to 2026.

For the fourth quarter, Vallourec expects EBITDA between €195-225 million, with EBITDA per tonne similar to the third quarter and slightly higher volumes.

The company also announced a special meeting for warrant holders to propose modifications allowing delivery of either newly-issued or existing shares upon exercise, at the company’s option.

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