Tubacex, a Basque pipe maker, outlined the aims of its current strategic plan for 2022-2025, noting that most targets have been met and the order book remains robust at about 1.6 billion. The company presented a plan to generate between 1.2 and 1.4 billion in revenue by 2027 and to achieve an EBITDA surpassing 200 million. This update was shared during the group’s first Capital Markets Day held in Madrid. With a stronger emphasis on energy and mobility, Tubacex expects its Low Carbon unit to reach 100 million in sales by the end of 2027, positioning it as a major growth driver for the future. Additionally, the firm aims to bring its net debt to EBITDA ratio below two by 2027.
The current plan had previously forecasted sales of 1.0 to 1.2 billion by 2025. The revised projection, announced after the first nine months of the year, targets 1.2 to 1.4 billion in 2027, following a year to date figure of 642 million and a year-end 2023 closing near 900 million.
Tubacex chief executive Jesús Esmorís indicated that the company’s stock still has room to rise and confirmed plans to lift the dividend payout from 30 percent to 40 percent within the strategic plan review. The shares had gained as much as 50 percent in the current year, approaching three euros. The company has a capital base of 379 million. On share repurchases, Tubacex stated that such a move would be considered carefully and could be executed at any time, progressing in a prudent manner to benefit shareholders.
Esmorís highlighted that the transformation will be accompanied by a rebranded Strategic Plan review covering 2024-2027, titled NT2. The leadership will continue to stress sustainability, debt reduction, stable earnings, competitive gains, and greater diversification.
Alliance with the United Arab Emirates
Tubacex specializes in seamless alloy tubes and operates factories in Austria and the United States, employing more than 4,500 people worldwide. In recent years the group has broadened its footprint in Latin America and Asia and diversified its customer base. Llodio-based Tubacex recently signed a ten-year contract worth 1,000 million for a new facility in Abu Dhabi. The project includes a pipe and thread production site for Adnoc in Abu Dhabi and will create around 150 jobs with annual turnover between 150 and 200 million. The chief executive stated Tubacex would seek financial partners to co-invest and accelerate growth in tandem with its strategy.
The group stressed that its premium products and cost discipline are core strengths. It remains confident that these factors will help to sustain better margins as the company pivots. By the close of the plan, the Oil and Gas segment is expected to account for no more than one-third of business, while Tubacex positions itself as a leader in sustainability.
Emissions Reduction and Low-Carbon Growth
Becoming more sustainable is a central objective. Esmorís said Tubacex aims to be a leader in the Low Carbon business and projects 100 million in turnover by 2027 for the unit, with potential for substantial further gains. He also stressed that the vision extends over a 10- to 15-year horizon, anticipating stronger performance over time as technologies mature and regulatory conditions evolve.
The energy transition is expected to be supported by a platform of industrial solutions for carbon capture, storage and utilization as well as hydrogen technologies. Esmorís noted that progress in these areas will depend on technological advances and regulatory frameworks, but the direction is clear: Tubacex intends to accompany customers through the energy transition.
Energy transition momentum and market timing will influence execution, but the company believes the long-term trajectory remains intact. The leadership reiterated the focus on a sustainable model with a clear path to profitability, while pursuing diversification and the expansion of high-value segments across its global footprint.
In summary, Tubacex emphasizes a disciplined approach to growth, leveraging its premium product lineup, a strong balance sheet, and strategic partnerships to expand in energy-related markets. The company remains committed to increasing competitiveness, controlling costs, and strengthening its position as a reference in sustainable metal solutions for oil, gas, and other demanding industries.