Vallourec: 2H to see a rebound

Research evidence excerpt

Vallourec: 2H to see a rebound

leaving it

Current BVPS (EUR) 10.14with 17%) could remove some of the optionality that investors saw in the stock, but with

Source: Bloomberg

potential catalysts to become more positive in 2H26, we remain Overweight.

ArcelorMittal sell down takes some of the optionality away, but history shows industrials Price Performance Exchange-PA

can get out of Vallourec early: ArcelorMittal announced a sale of a10% stake in Vallourec, 52 Week range EUR 27.67-14.56

which it has held since March 2024, bought at EUR14.64/share and leaving it with a 17% holding.

With over 75% uplift since then, at the close price, the deal has been a success, but many

investors we feel were eyeing ArcelorMittal as a potential stake builder in future rather than a

financial investor. Indeed, it could raise questions to why an industrial player does not see the

upside potential that we believe there is in the stock (see MT sell down removes buyout

optionality 19 May 26).

Source: IDC

Disruption masks resilience: Q1 was defined by a sharp, disruption-led volume miss, but the Link to Barclays Live for interactive charting

underlying message was one of operational resilience and improving medium-term

fundamentals. A significant 13% volume shortfall drove a strong 11% revenue miss

European Energy Services

vs. consensus, yet EBITDA delivered a strong 7% beat, with margins holding at a robust 22.6%.

Mick Pickup

Management reiterated near-term caution into 2Q, but confidence in a recovery through 2H +44 (0)20 3134 6695

remains underpinned by Middle East normalisation, improving US pricing dynamics and mick.pickup@barclays.com

growing optionality from geothermal. Barclays, UK

Pratik Kadam

+91 (0)22 6175 2301

Barclays Capital Inc.