Staff report

The ongoing U.S.-Iran conflict has challenged, but not hampered, seamless tube producer Vallourec, the multinational company said Tuesday in its first quarter earnings report.

Meanwhile, the company’s North American division is experiencing strong growth.

Citing resilient customer activity, the company said in a news release that no cancellations occurred in its primary Middle East markets. Select order postponements were reported, and shipping delays impacted invoicing procedures.

“While there is much uncertainty around the situation in 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 we see ahead,” said Philippe Guillemot, Vallourec’s CEO and board chairman.

“Our local presence in key markets, including Saudi Arabia and the UAE, enables us to continue serving our largest customers in the region. Meanwhile, our teams are working closely with customers to find alternative solutions for deliveries served from outside the region, mitigating the negative impact on our volumes.”

Vallourec’s North America tubes sector sustained strength in sales volumes thanks to its market share gains during 2025 and higher activity levels among certain customers, it reported. Increasing U.S. market prices are improving industry supply-demand conditions, more than offsetting increases in energy and raw material costs.

Vallourec, which has a production facility on U.S. Route 422 on the border of Youngstown and Girard, reported first quarter earnings of $220 million before taxes and associated costs. Second quarter earnings before taxes are estimated to be $175 million and $205 million.

“In the U.S., bookings remain highly robust, and we are seeing early signs of activity growth.” Guillemot said. “OCTG imports continue to decline, especially for seamless products, while new trade investigations will further enforce fair competition in the market. Improving fundamentals in this market will lead to pricing upside in the third quarter.”

Vallourec also confirmed its intention to return nearly 650 million euros ($761 million U.S.) to shareholders by August.