Renta 4 | Tubos Reunidos has informed the National Securities Market Commission (CNMV) that its viability is at risk due to several factors, including the impact of US tariffs and the failure to reach agreements to restructure its debt and secure new financing.
The company is working on a Viability Plan focused on: i) adapting to the reduction in activity due to the 50% tariffs in the US from June 2025, ii) debt renegotiation, iii) securing new short-term financing, and iv) seeking strategic alliances.
The situation has been exacerbated by the lack of agreement with the Works Council regarding a Redundancy Plan (ERE), which has led to the suspension of operations at the Amurrio plant.
As highlighted in the press, the company could file for insolvency in the coming weeks.
Tubos Reunidos confirms in its statement that, should the objectives of its plan not be achieved, the possibility of filing for voluntary insolvency cannot be ruled out.
Assessment: Negative impact on share price. Since the tightening of US tariffs last July, when uncertainty surrounding the company rose substantially, we decided to place our recommendation and target price under review, pending clarification of Tubos Reunidos’ strategy to offset the impact on its primary revenue market.
