Tubacex Cements Earnings Strength in First-Half 2025 Amid Worldwide Market Uncertainty

Jul 24, 2025 | 2025, Todos | 0 comments

 

  • Tubacex delivered EBITDA of €61 million, up 21.8 % versus H1 2024, and net profit of €15.6 million, a year-on-year increase of 140.9 %.
  • The order backlog stands at €1.4 billion, comprising premium, high-value-added solutions across multiple sectors, fully aligned with the strategic plan.
  • Despite a slower pace of new orders amid global commercial uncertainty, Tubacex upholds its mid- and long-term outlook, backed by a robust competitive and industrial presence in the United States, where it operates seven plants, along with its extensive geographic diversification and a project-based strategy focused on selling advanced products directly to end customers.
  • First-half results underscore the Group’s resilience and validate its strategic positioning, rooted in niche-market leadership and a culture of innovation.

 

Bilbao 24th July 2025.

The Tubacex Group has closed the first half (H1) of 2025 with sales of 361.4 million euros (-9.2% vs. H1 2024, which includes both the declining trend in nickel prices and the depreciation of the dollar against the euro), an EBITDA of 61 million euros (+21.8% vs. H1 2024), and a net profit of 15.6 million euros (+140.9% vs. H1 2024), also driven by the licensing agreement with ADNOC for the use of its Sentinel Prime connection in non-CRA applications.

 

Robust Premium Backlog and Strong Revenue Visibility

The order book remains around 1.4 billion euros, with a high concentration in complex, high value-added solutions for critical sectors such as E&P Gas (which accounts for 31% of the Group’s total revenues), Industrial (29%), New Markets such as aerospace, defense, and semiconductors (17%), E&P Oil (17%), and Powergen (6%).

Geographically, Tubacex’s revenues are distributed across Asia-Middle East, which represents 48% of total sales in the first half of the year (where the company has a key strategic customer such as ADNOC), Europe with 25%, America with 24%, and Africa with 3%, a distribution that highlights the company’s global diversification and strong focus on regions with significant energy and industrial investment, with positive medium- and long-term prospects

 

Key Developments across The Group’s Business Lines

  • Tubacex has started manufacturing and machining the new Búzios and Sepia-Atapu orders for Petrobras in Brazil, while ADNOC has already run CRA tubing fitted with Tubacex’s proprietary Sentinel® Prime connection.
  •  Low-Carbon Solutions. The Group has secured the world’s first bioenergy with carbon-capture (BECCS) project in Brazil, which will also deploy Sentinel® Prime CRA OCTG. Tubacoat®, its advanced coatings technology, is gaining further traction in petrochemicals, and engineering work continues on low-carbon-hydrogen systems.
  •  PowerGen. Momentum is building around new nuclear builds in Europe and ultra-super-critical (USC) boiler projects in India, supported by a newly installed shot-peening line at the Umbergaon plant.
  • Industrial. The division faces subdued demand across Europe, most notably in Germany, compounded by falling raw-material prices.
  • New Markets. Aerospace, defense and semiconductor applications keep expanding, whereas global demand in the hydraulic & instrumentation (H&I) segment remains notably soft.

 

Temporary Increase in Net Debt Linked to Working Capital

Net Financial Debt (NFD) stood at €369 million at the close of the first half, resulting in an NFD/EBITDA ratio of 3.1 times. The increase compared to December 2024 is primarily due to the working capital invested in the manufacturing of the Abu Dhabi project, which has already reached its peak with a global impact of €120 million. This project is expected to begin invoicing in the second half of 2025. Liquidity stands at €216.6 million, and the equity ratio (equity over total assets) remains solid at 33 per cent.

 

2025 Outlook: A Year of Expanding Earnings and Margins

Tubacex maintains a positive outlook for the entire current year, while also showing caution due to global uncertainty, which requires constant monitoring of market conditions. However, the Group reaffirms the objectives of the NT² plan for 2027:

  • Revenues: Between 1.2-1.4 billion euros.
  • EBITDA: > 200 million euros.
  • NFD/EBITDA: <2 times (includes potential investments in inorganic growth).
  • Shareholder remuneration (Pay-out): Between 30% and 40%.

 

Firm Commitment to sustainability

Tubacex continues to make progress towards its environmental, social, and governance goals set for 2030. In the environmental field, it stands out for its advances in decarbonization and circularity, driven by investments and operational improvements that reinforce its commitment to a more efficient industry. This approach is supported by international recognition, such as the A- rating awarded by CDP and its positive performance in the S&P Global sustainability index, which reflect the company’s commitment to transparency, responsible management, and continuous improvement in sustainability.