Vallourec stock falls 1.62 percent despite fresh contract wins

Published on 09/29/2026 at 13:08 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Vallourec secured contracts in Greece and Brazil on September 29, 2026. First-half revenue fell 8 percent to USD 1.86 billion, while EBITDA reached USD 409.4 million.

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Vallourec (ISIN FR0000125684) was last at EUR 18.82 on Euronext Paris on September 29, 2026 at 12:49 p.m. CEST, down 1.62 percent from the prior close of EUR 19.13. The stock fell even as Simply Wall St reported two new contracts tied to carbon storage in Greece and Petrobras's Sepia 2 project in Brazil.

Contracts broaden order visibility

The awards cover premium casing for the Prinos CO2 storage project and sour service line pipe with thermal insulation for Petrobras's ultra-deepwater development. The mix gives Vallourec exposure to both carbon storage infrastructure and high-specification oil and gas work, linking the immediate order story to capacity utilization and product mix.

The Sepia 2 project is particularly important because production and coating are concentrated at Vallourec's Jeceaba and Serra facilities in Brazil. Execution, pricing and delivery costs will determine how much of the contract value reaches operating profit.

Half-year revenue falls 8 percent

According to Ideal Investisseur, Vallourec reported first-half 2026 revenue of USD 1.86 billion, down 8 percent. EBITDA was USD 409.4 million with a 22 percent margin, while net income reached USD 131.5 million and free cash flow was USD 303.0 million.

The comparison shows the tension in the current setup: order quality is improving, but the first-half revenue decline and a 15 percent drop in Tubes volumes keep operating leverage under scrutiny. Cash generation offers a counterweight, with free cash flow exceeding net income by USD 171.5 million in the reported period.

BofA target stands at EUR 24.00

Ideal Investisseur reported that BofA Securities changed Vallourec from sell to buy on September 24, 2026, with a EUR 24.00 price target. That target lies 27.52 percent above the EUR 18.82 price, making the analyst view materially more optimistic than the current quotation.

Vallourec's investor calendar lists November 20, 2026 for its Q3 2026 results, according to the Vallourec investor page. That date should provide the next test of whether contract momentum can offset weaker volumes and preserve the 22 percent first-half EBITDA margin.

Stock remains below yearly high

Vallourec was last at EUR 18.82 on Euronext Paris on September 29, 2026 at 12:49 p.m. CEST, versus a 52-week range of EUR 15.07 to EUR 27.67 and a market capitalization of EUR 4.4 billion. The reference price is down 1.62 percent versus the prior close of EUR 19.13.