Vallourec forecasts positive second half for 2026
Release Date:
2026-03-03
French pipe maker Vallourec expects activity to strengthen in the second half of the year and beyond, as oil markets rebalance and gas-related investment picks up, Kallanish learns from its recent earnings report.
The company adds that it sees strong momentum in geothermal as the energy sector focuses on providing clean power amid rising electricity demand. Growth in artificial intelligence and energy-intensive data centres is also supporting this trend.
Ebitda for the first quarter of 2026 is expected to range between €165 million ($195m) and €195m. In the Tubes segment, Ebitda/tonne is forecast to remain broadly in line with the level achieved in the fourth quarter 2025, although volumes are forecast to be lower compared with the previous quarter.
Vallourec expects global tube sales volumes to decrease in the first half of 2026, due to slower order intake in the second half of 2025. However, a rebound in Middle Eastern markets activity is expected to drive stronger volumes in the second half, while prices should remain broadly stable compared with H2 2025.
In the Middle East Vallourec notices “signs of acceleration – especially in markets with higher levels of unconventional activity,” the report states.
Iron ore sales are forecast to be slightly lower year-on-year, at around 5.5 million tonnes, as the company continues to prioritise value over volume through improvements in its production process. In 2025 the company sold 6.2mt of iron ore, up 15% on-year.
“Our focus in 2026 turns to profitable growth through targeted R&D and capital investments to solve the energy challenges of today and tomorrow. In doing so, we will remain committed to our core principles of value over volume and operational excellence,” Ceo Philippe Guillemot comments.
He adds that the company is investing in value-added capacity enhancements, including its new high-torque threading line in the US and advanced coating capabilities.
For 2025, Vallourec reported €3.8 billion of sales, down 6% y-o-y due to a 4% reduction in volumes and a 5% negative currency impact, partly offset by higher sales in the Mine & Forest segment and a slightly positive price mix effect.
Ebitda amounted to €819m for the year, compared with €832m in 2024. Last year, the tube division shipped 1,244,000t, up 4% compared to 2024.
From: Kallanish
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