Vallourec Q1 core profits drop, but rebound expected in second half 2025

French steel tubes manufacturer Vallourec announced a 3% decline in its core profit for the first quarter on Thursday as lower steel tube costs in North America continue to impact its business.

The company's operating profit before interest, tax, depreciation, and amortization (EBITDA), which was 235 million euros a year ago, fell to 207 millions euros in the third quarter, as per its quarterly guidance.

Vallourec anticipates that the EBITDA will continue to decline in the second quarter and be between 170 million euros and 200 millions of euros.

The company, however, said that they expect a rebound to occur in the second half 2025. This is due to higher international tube deliveries, as a result from a strong order intake over recent quarters.

Due to the uncertainty on the market, the CEO Philippe Guillemot stated that "market prices for OCTG tubes (Oil Country Tubular Goods), continue to increase in the United States, even though they don't yet reflect the full impact of the newly announced tariffs."

(source: Reuters)