Vallourec: Strong margins despite lower volumes

Research evidence excerpt

Vallourec: Strong margins despite lower volumes

Equity Research

European Energy Services

13 May 2026

Vallourec

Strong margins despite lower

volumes First Look

A 7% EBITDA beat came from much lower volumes than VLLP.PA/VK FP OVERWEIGHT

expected and despite Middle East disruptions. European Energy Services POSITIVE

Price Target EUR 30.00

Price (12-May-26) EUR 24.00

Potential Upside/Downside +25.0%

Source: Bloomberg, Barclays ResearchDespite a sharp 13% volume shortfall driven by Middle East disruption, Vallourec delivered

stronger-than-expected margins and solid execution. Revenues missed Bloomberg derived

consensus expectations meaningfully (11%), but EBITDA came in 7% ahead, underlining European Energy Services

the resilience of pricing/mix and cost control. Management reiterated near-term caution Mick Pickup

into 2Q, while longer-term confidence is supported by US activity, pricing tailwinds and +44 (0)20 3134 6695

growing geothermal exposure. As such we see the results as having a positive impact. mick.pickup@barclays.com

Barclays, UK

Volumes hit by disruption, revenues miss: Pipe shipments of 272kt were a significant 13% Pratik Kadam

miss versus consensus (312kt), reflecting extended disruption in the Middle East, shipment +91 (0)22 6175 2301

delays and select order postponements. Revenues of EUR833mn were a significant 11% miss pratik.kadam@barclays.com

versus Bloomberg derived consensus (Barclays EUR953mn, Consensus EUR939mn), largely Barclays, UK

volume-led rather than pricing-driven. Management emphasised that there were no order

cancellations in core Middle East markets, but timing effects weighed on invoicing in the

quarter.

Margins hold up despite lower activity: EBITDA of EUR187mn was a small 7% beat versus