Summary: Vallourec SA delivered fourth-quarter 2025 results that combined stronger-than-expected cash generation with a cautious near-term outlook. EBITDA for the quarter met analyst expectations and sat above the midpoint of company guidance, the cash position swung to a net cash balance, and management proposed an interim dividend larger than analysts had modeled. At the same time, the company warned of softer volumes ahead and provided guidance for the first quarter of 2026 that sits slightly below analyst consensus.
Quarterly results and drivers
For the fourth quarter of 2025, Vallourec reported EBITDA of 214 million, which matched closely with analyst forecasts of 213 million and exceeded the midpoint of the company guided range of 195 million to 225 million. Management attributed the outperformance to a stronger-than-expected contribution from the Mine & Forest division.
Revenue for the quarter reached 1.043 billion, above analyst estimates of 932 million. The company reported a net income of 96 million for the period, which fell short of the 113 million consensus, with the shortfall linked to restructuring costs and other non-recurring items.
Balance sheet and cash flow
Vallourec closed the quarter with a net cash position of 39 million, reversing expectations of net debt - analysts had anticipated net debt of 82 million. The group s cash position improved by 179 million versus the prior quarter, aided by a 108 million working capital inflow.
Dividend decision
Reflecting the stronger cash generation, the company proposed an interim dividend of 1.75 per share, payable in August 2026. That dividend level implies a yield of 9% and is higher than the 1.31 per share analysts had expected.
Operational performance by division
- Tubes division: Generated EBITDA of 183 million. EBITDA per tonne was 548, down 12% from 621 per tonne in the third quarter. Average selling prices for tubes rose 6% to 2,984 per tonne, up from 2,807 in the prior quarter. Tube volumes sold increased to 335,000 tonnes from 303,000 tonnes in the third quarter, an 11% rise.
- Mine & Forest division: Reported EBITDA of 38 million, up 9% from 35 million in the third quarter. Production reached 1.5 million tonnes, ahead of the 1.4 million tonnes the company had guided.
Near-term guidance and outlook
For the first quarter of 2026, Vallourec issued EBITDA guidance of 165 million to 195 million. The midpoint of that range is 180 million, which the company noted sits 3% below the analyst consensus of 186 million.
Management expects Tubes EBITDA per tonne to remain broadly in line with fourth-quarter levels, but anticipates volumes in the Tubes business to decline in the coming quarter. The Mine & Forest division s production sold is projected to be around 1.4 million tonnes for the first quarter.
Looking to the full year of 2026, Vallourec said it expects to gain market share in North America, which should help support volumes. The company also flagged a slight near-term decrease in U.S. market prices, while noting the potential for supply-demand conditions to improve through the year.
Internationally, volumes are expected to be slower in the first half of 2026, with a recovery in the Middle East anticipated in the second half. Overall prices are forecast to remain flat in the second half of 2026.
On iron ore, production sold is expected to be slightly lower year-over-year at around 5.5 million tonnes, reflecting an adjusted production approach that prioritizes value over volume.
Conclusion
Vallourec s Q4 results combined an EBITDA outcome in line with analysts and a stronger-than-expected cash swing that enabled management to propose a higher interim dividend. At the same time, net income was pressured by one-off charges and the company has offered conservative guidance for the opening quarter of 2026, with mixed signals on volumes and prices over the near term.