Vallourec Initiates a €200 Million Share Buyback
Steel tube manufacturer Vallourec has announced the launch of a €200 million share buyback program, set to run until no later than June 30, 2026. The company aims for a total return to shareholders of at least €500 million by August 2026, according to the press release dated January 7.
Execution of the Share Buyback Plan
Vallourec has entrusted a mandate to an investment service provider to proceed with the share buyback until the end of June 2026, the group states. The acquired shares will primarily be used to cover a portion of the share subscription warrants issued by the company, which are expected to be exercised before the end of June 2026. The stated goal is to reduce the dilution associated with this exercise. To a lesser extent, these shares may also be used to cover long-term employee compensation plans, the press release specifies. This program falls within the scope of the authorization granted by the General Meeting of Shareholders on May 22, 2025.
Plans Beyond Share Buyback
In addition to the share buyback, Vallourec plans to pay an exceptional interim dividend in the third quarter of 2026, according to the group. This dividend is expected to amount to approximately €300 million from the exercise of the share subscription warrants, plus any surplus from 80 to 100% of the 2025 cash generation not used for share buybacks. The payment of this exceptional interim dividend is contingent upon the exercise of the warrants, which assumes that the share price exceeds €9.21. Given this exceptional distribution, the company indicates that it is not planned to propose an annual dividend for the fiscal year 2025 at the 2026 general meeting.
Confirmation of Shareholder Returns Policy
Vallourec confirms that these returns to shareholders are in line with its capital allocation policy, according to the press release. This policy is based on a net debt to EBITDA ratio of ±0.5 and liquidity exceeding €1 billion. Chairman of the Board and CEO Philippe Guillemot emphasizes that this announcement is part of the ambition expressed during the Capital Market Day in September 2023. The company, which employs nearly 13,000 staff across about twenty countries, is listed on Euronext Paris and is part of the CAC Mid 60, SBF 120, and Next 150 indices.
