WARREN, Ohio – Vallourec’s chairman and CEO on Wednesday said orders for tubular products across the U.S. market remain “highly robust,” and strong demand is expected into the third quarter.
“We are seeing certain customers preparing to increase drilling activity,” Philippe Guillemot told analysts during a conference call discussing the tube manufacturer’s first-quarter earnings. This, combined with lower imports and recently announced trade investigations, should result in improved market pricing that would reflect during the third quarter of this year, he said.
Vallourec manufactures oil country tubular goods – or OCTG – products mostly for the oil and gas market. The company, based in Meudon, France, operates a seamless tube mill along Martin Luther King Jr. Boulevard in Youngstown. Last year, the company announced a $48 million investment in a new premium threading line at the Youngstown site.
Vallourec also has plants and a presence in South America, Europe, Africa and Southeast Asia.
Guillemot said the oil rig count across the U.S. remained stable during the first quarter and had not yet reacted to higher oil prices driven by the conflict with Iran. Recent market trends and order activity among Vallourec’s U.S. customers “suggest a higher level of activity” through the second half of the year.
Exploration related to the natural gas market fell slightly during the quarter, the chairman said, but this sector is expected to improve. “We expect gas-related drilling to be well supported by increasing demand for U.S. LNG [liquified natural gas],” he said.
Moreover, seamless tube spot pricing has increased every month in 2026, Guillemot said. In April, seamless market prices hit $2,574 per ton.
“Overall, we see a positive oil and gas market ahead,” he said.
Vallourec Group – including international holdings – recorded revenues of $975 million, down 7% compared with the same period in 2025. However, the company reported earnings before interest, tax and amortization (EBITA) at $220 million, or 22.6% of revenues – an improvement over $216 million, or 20.1%, of revenues reported in the first quarter of 2025.
Vallourec also said EBITA is expected to range between $175 million and $205 million during the second quarter of 2026, reflecting a “longer period of disruption in the Middle East compared to the first quarter, with cost-overruns due to the war to be mostly compensated after the second quarter.”
“While there is much uncertainty surrounding the Middle East and the impact on global economic growth, I am confident that our business can adapt more rapidly than before and take advantage of the improving medium-term outlook that we see ahead,” Guillemot said. “In international markets outside the Middle East, we see high levels of tendering activity for offshore and deep-water projects, which underpins our expectation for higher bookings in the second half of 2026 and beyond.”
Pictured at top: Vallourec’s seamless tube mill in Youngstown.