PJSC TMK (TMK or the Group), a leading supplier of steel pipes, pipe solutions and related services for various sectors of the economy, announces consolidated results of operations for the first half of 2025, in accordance with International Financial Reporting Standards (IFRS).
In the first half of 2025, the situation on the Russian steel pipe market remained difficult. The Bank of Russia's tight monetary policy limited investment and hampered development projects for most pipe-consuming industries. Factors such as external economic restrictions, limited oil production due to the fulfillment of obligations under the OPEC+ deal, difficulty in finding new markets for gas sales, and postponement of major industrial and infrastructure projects. All this has led to consumers focusing on reducing costs and minimizing stocks of raw materials, including pipe products. Nevertheless, some market segments showed an increase in demand. The need to keep the equipment in working order ensured stable demand from the energy, chemical, gas and oil processing industries.
Even in conditions of low demand for pipe products, TMK managed to demonstrate stable financial results. The negative effect of the decrease in sales was partially offset by a reduction in business expenses, as well as lower prices for basic raw materials, which led to an 18.9% increase in operating profit. Adjusted EBITDA (hereinafter referred to as EBITDA margin) remained almost unchanged (-2.1% YoY), while the EBITDA margin increased by 2.4 percentage points to 19.0%. In the reporting half of the year, TMK continued to work on reducing its debt burden – the company's total debt[1]decreased by 27.1 billion rubles and amounted to 349.8 billion rubles as of June 30, 2025. The growth of financial expenses against the background of the tight monetary policy of the Bank of Russia continued to put pressure on the Group's net result.
TMK retains its leading position in the market, has a balanced order portfolio and the ability to respond quickly to changes in demand by reorienting its production facilities. The Company consistently implements a program to improve operational efficiency and strives to achieve greater managerial flexibility and transparency. In the first half of 2025, TMK began the process of switching to a single share by joining eight key controlled companies and converting them into branches. The relevant decision was approved by the shareholders and participants of TMK and the affiliated companies. Optimization of the corporate structure of the Group will contribute to the improvement of
