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Last updated : 15/09/2026 - 17h35
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Vallourec Secures $800 Million Geothermal Contract in the United States

Vallourec and Fervo Energy have announced the signing of a five-year supply agreement to support the deployment of geothermal energy in the United States. This agreement represents a potential revenue of $800 million for the French tubular group.


Vallourec Secures $800 Million Geothermal Contract in the United States

Exclusive Supply Partnership

Vallourec will be the exclusive supplier of tubular solutions and VAM® connections for Fervo Energy through its partner Sooner Inc. The agreement, signed on April 9, 2026, structures a fully U.S.-based supply chain for critical geothermal well infrastructure. All products will be developed, manufactured, and tested in the United States at Vallourec's industrial base.

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Vallourec will provide a wide range of premium tubular solutions designed to withstand the extreme temperature conditions of next-generation geothermal wells. The high-torque VAM® connections, initially developed for unconventional oil and gas applications, are now proven in geothermal environments. The technical teams from Fervo and Vallourec will work closely together, leveraging Vallourec's One R&D center in Houston.

Five-Year Agreement with Significant Revenue Potential

The agreement spans five years and represents a potential revenue of up to $800 million for Vallourec over the duration of the contract.



Sector Métaux et mines Acier / sidérurgie


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Context

Period
  • Period: S1 2026
Key reported figures
  • Revenue: 1 860 millions de dollars
  • Quarterly revenue: 1 860 millions de dollars
  • Revenue growth: -8 %
  • EBITDA: 409,4 millions de dollars
  • EBITDA margin: 22 %
  • Net income: 131,5 millions de dollars
  • Free cash flow: 303 millions de dollars
  • -183,1 millions de dollars
Risks mentioned
  • Baisse de 15 % des volumes vendus de Tubes au premier semestre 2026
  • RBE Mines & Forêts en recul à 71 M$ contre 107 M$, effets de change défavorables du réal
  • Fermeture du détroit d'Ormuz affectant les délais de livraison à l'international
Opportunities identified
  • RBE du segment Tubes en hausse à 372 M$ grâce aux prix et au mix produit
  • Position de liquidité très solide de 2,0 milliards de dollars au 30 juin 2026
  • Produit d'environ 307 M€ encaissé le 8 juillet 2026 après exercice des bons de souscription
Outlook / guidance
  • Expected EBITDA: 190 millions de dollars

The information presented in this article is provided for informational purposes only and does not constitute an investment recommendation, an incentive to buy or sell a financial asset, or investment advice. Readers are invited to conduct their own research before making any decision.

Investments in the stock market involve risks, including the risk of capital loss. Past performance of an asset or market is no guarantee of future results. Any investment decision should be made taking into account your personal financial situation, objectives and risk tolerance.

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