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Investing.com -- Shares of Vallourec (PA:EPA:VLLP) fell 2.5% today after the company reported its first-quarter earnings. While Vallourec’s EBITDA for the first quarter of 2025 came in at €207 million, surpassing Bloomberg consensus estimates of €179 million, the stock experienced a downturn. The EBITDA figure also hit the upper end of the company’s guided range of €180-215 million.
The company’s revenue for the quarter was €991 million, a 5% increase over consensus estimates of €941 million. Vallourec’s net cash position improved significantly to €112 million, outperforming the consensus estimate of €57 million.
Despite these positive results, the Tubes division saw a quarter-over-quarter volume decline of 13%, selling 314 thousand tonnes compared to 362 thousand tonnes in the fourth quarter of 2024. However, the Tubes division’s EBITDA per tonne showed a slight increase to €528 from €511 quarter-over-quarter.
The Mine & Forest segment reported a robust 33% quarter-over-quarter increase in EBITDA, reaching €53 million, with production exceeding guidance at 1.6 million tonnes against the expected 1.3 million tonnes. Additionally, the average selling price for Tubes rose by 7% quarter-over-quarter.
For the second quarter of 2025, Vallourec has guided an EBITDA of €170-200 million, with the midpoint falling 7% below the consensus of €199 million. Combining the midpoint of the second-quarter guidance with the first-quarter EBITDA, Vallourec is on track to achieve €392 million in EBITDA for the first half of 2025.
Despite the first-quarter beat, investors may be reacting to the more cautious second-quarter guidance and the decrease in Tubes volumes sold.
Vallourec has maintained its full-year 2025 guidance, indicating an expectation of improved performance in the second half, particularly in international Tubes shipments and EBITDA per tonne, buoyed by higher invoiced international prices and cost savings. The Mine & Forest production guidance remains unchanged at 6 million tonnes.
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