Vallourec Second Quarter 2025 Results

Meudon (France), July 25^th, 2025

Vallourec, a world leader in premium tubular solutions, announces today its results for the second quarter 2025. The Board of Directors of Vallourec SA, meeting on July 24^th 2025, approved the Group's second quarter 2025 Consolidated Financial Statements.

Second Quarter 2025 Results

• Q2 Group EBITDA of €187 million with strong 22% margin
• €370 million returned to shareholders via dividends and share repurchases
• Secured significant OCTG orders, particularly in the Middle East
• Expect further support to US market pricing from increased steel tariffs
• Q3 2025 Group EBITDA expected to range between €195 million and €225 million
• Confirm expected improvement in EBITDA in H2 2025 vs. H1 2025

HIGHLIGHTS & OUTLOOK

Second Quarter 2025 Results

• Group EBITDA of €187 million, down (10%) sequentially, slightly above guidance midpoint; EBITDA margin was strong at 22%
  • Tubes EBITDA margin improved 76 bps sequentially to 19%, though Tubes EBITDA declined (13%) sequentially due to lower volumes.
  • Mine & Forest EBITDA decreased by (15%) sequentially due to lower market prices and higher costs but EBITDA margin remained strong at 52%.
• Adjusted free cash flow of €88 million; total cash generation of €57 million
• Net debt position of €201 million following €370m of shareholder returns^a
  
  
  
  

Third Quarter 2025 Group EBITDA is expected to range between €195 million and €225 million:

• In Tubes, EBITDA per tonne is expected to increase sequentially, while volumes are expected to be similar to the Q2 2025 level.
• In Mine & Forest, production sold is expected to be around 1.5 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 volumes are expected to increase in H2 2025 versus H1 2025. EBITDA per tonne will improve in H2 2025 compared to H1 2025 due primarily to higher invoiced international prices and cost reductions.
• 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:

“In the second quarter, Vallourec once again demonstrated the strength of its business model. Despite lower shipments in the Eastern Hemisphere, our Tubes EBITDA margin expanded to 19%, driven by sequential improvements in profitability in our North and South American production hubs. Our Mine & Forest business also continued to perform extremely well despite sequentially lower iron ore market prices. Further, we continued our streak of positive total cash generation, which now marks eleven straight quarters of this performance. Meanwhile, we made good on our promise to return significant capital to our shareholders, paying both a €1.50 per share dividend and repurchasing 1.2 million shares in the second quarter.

“The Brazil Performance Program we announced in July 2024 is ahead of schedule. We have completed a significant simplification of our operations, which included the closure of our legacy Plug mill at the end of 2024. Our primary cost savings initiatives are now completed. We have delivered regional cost savings well in excess of our €150 per tonne target due to strong delivery across multiple workstreams. We remain focused on fully capitalizing on the potential of this premier asset base including by increasing its production capability by more than 100 thousand tonnes.^b

“The international OCTG market has been impacted by recent macroeconomic volatility; however, our stream of recent contract awards highlights the value of Vallourec’s premium product offering. We continue to see further opportunities ahead as our resilient customer base is progressing on major multi-year drilling programs which will require the support of sophisticated suppliers like Vallourec. The global shift towards increased gas and unconventional drilling will also provide significant opportunities for Vallourec to capitalize on its differentiated premium market positioning.

“In the US, market prices further improved over the second quarter in response to the steel tariffs implemented earlier this year. US oil drilling activity has fallen in response to weaker and highly volatile oil prices, though this has been partially offset by a rebound in gas drilling activity. Despite this, our latest bookings indicate a healthy level of demand that will keep our mills well utilized at current staffing levels. Meanwhile, imports will likely moderate from their second quarter levels following the change in tariff rates announced in early June. This should support US-based industrial players such as Vallourec.

“Globally, we are moving into the next phase of organizational improvement as we work to achieve operational excellence across our manufacturing footprint. Thanks to our internal performance initiatives, differentiated product offering, and ideally-located manufacturing centers, we are well-positioned to continue to create significant value over the coming years.”

Key Quarterly Data ^c

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

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 Q2 2025 Results

Conference call / audio webcast on July 25^th at 9:30 am CET

• To listen to the audio webcast:
• To participate in the conference call, please dial (password: “Vallourec”):
  • +44 (0) 33 0551 0200 (UK)
  • +33 (0) 1 7037 7166 (France)
  • (USA)
• Audio webcast replay and slides will be available at:

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 Includes approximately €7 million in cash held in Serimax, which is now accounted for in assets & liabilities held for sale

b Measured as annualized production versus the First Half 2024 baseline, consistent with the target announced in July 2024.

c Includes approximately €7 million in cash held in Serimax, which is now accounted for in assets & liabilities held for sale

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