Royal Van Leeuwen, a well-established player in the global pipe distribution industry, has shown impressive resilience in 2024 despite facing challenging market conditions. The company's performance reflects its strategic focus on key sectors and large-scale projects, particularly in energy and infrastructure. While overall market volumes were lower than in previous years and prices continued their downward trend, Van Leeuwen managed to remain profitable, showing that it can thrive even in difficult circumstances.
Financial Performance:
The company reported total revenue of €1.3 billion ($1.76 billion) for 2024, which is a decrease from the €1.6 billion reported in 2023. This revenue decline is largely attributed to the weak market conditions, where demand was lower and the global price of steel continued to drop throughout the year.
• Operating Result: €22 million (down from €60 million in 2023).
• Net Result: €14 million (down from €43 million in 2023).
While the decrease in operating and net results was expected given the market situation, the positive net result in an otherwise difficult year highlights the company’s effective cost management and strategic project acquisitions.
Energy Segment Performance:
One of the most significant drivers of Van Leeuwen's performance in 2024 was its focus on the energy sector, where the company capitalized on several large projects in Europe and Asia. These contracts were particularly important in boosting the company’s revenue and compensating for slower performance in other market segments.
Van Leeuwen supplied material for large-scale ethane cracker projects in Antwerp and participated in significant energy infrastructure initiatives in Europe and Asia. These projects, often involving large volumes of high-quality steel, remain a critical focus for the company as the global demand for energy infrastructure grows, particularly in the renewables and oil & gas sectors.
Strategic Investments in Infrastructure:
Beyond securing large contracts, Van Leeuwen invested heavily in enhancing its operational capacity, with a significant focus on improving storage and production efficiency. One of the standout achievements was the commissioning of a monorail system at its main site in Zwijndrecht. This system is now recognized as the world's largest pipe sorting centre, spanning an impressive 315 meters.
This investment in automation and infrastructure serves to increase the company’s logistics efficiency while enabling it to better serve the increasing demand for steel pipes in the energy, infrastructure, and manufacturing sectors. The monorail system facilitates faster and more precise sorting of materials, reducing delivery times and improving overall productivity.
Leadership Transition:
On April 9, 2025, Peter Rietberg, the Chairman of the Management Board, announced his departure after several years of leadership. He was succeeded by Joop Sassen, who has been with the company since 1992.
This leadership transition is expected to ensure continuity and stability as Van Leeuwen navigates its future growth strategies. Sassen’s long tenure at the company brings an in-depth understanding of its operations and a deep connection with its global network of customers and suppliers. His experience will likely play a crucial role in executing the company's future growth initiatives, particularly in energy, sustainability, and technological innovation.
Global Presence and Workforce Strength:
Royal Van Leeuwen operates with a global footprint, spanning 70 branches across 32 countries, including major markets in Europe, the Middle East, Asia, Australia, and North America. With approximately 2,250 employees, the company enjoys a broad and diverse market presence. This global reach allows Van Leeuwen to serve a wide array of customers, from energy companies and infrastructure developers to manufacturers and construction firms.
Having such an extensive network provides Van Leeuwen with an advantageous position in terms of supply chain management, allowing it to quickly respond to market shifts and customer demands across different regions. This geographic spread not only mitigates regional risks but also enables the company to leverage localized expertise in each market it serves.
Sustainability and Future Growth:
Looking forward, Royal Van Leeuwen is focused on sustainability and long-term growth. In a market increasingly driven by environmental concerns, the company recognizes the importance of providing low-carbon and sustainable solutions to its customers, especially in sectors like energy and infrastructure. The company’s commitment to sustainability is reflected in its large-scale contracts involving CO₂-reduced steel and efforts to ensure that its operations align with global environmental standards.
Furthermore, as the company shifts to capitalize on green technologies, it is also poised to expand its product offerings to meet the evolving needs of its customers. Van Leeuwen’s investment in automation and advanced sorting systems is also aligned with a broader push toward Industry 4.0, ensuring that its infrastructure is equipped to handle the technological demands of the future.
Challenges and Market Outlook:
Despite its resilient performance in 2024, Van Leeuwen faces ongoing challenges in the market, particularly with regard to price volatility and global economic uncertainty. The fluctuating demand for steel, along with potential disruptions in the supply chain, may continue to affect its performance in the short term.
However, the company remains optimistic about the future, particularly in sustainable energy projects, where it anticipates growing demand for high-quality steel pipes and advanced materials. The company is also exploring opportunities in emerging markets and is committed to maintaining its leadership position by continuing to deliver value-added services and innovative solutions to its global customers.
Key Takeaways:
• 2024 Revenue: Van Leeuwen reported a €1.3 billion revenue, down from €1.6 billion in 2023, driven by weak market conditions.
• Operating and Net Results: The company posted €22 million in operating profit and €14 million in net profit, down from the previous year.
• Energy Sector Success: Strong performance in the energy sector, with key projects like the ethane cracker in Antwerp contributing to revenue.
• Infrastructure Investments: Van Leeuwen commissioned the world’s largest pipe sorting centre with a 315-meter monorail system to enhance operational efficiency.
• Leadership Change: Peter Rietberg stepped down as Chairman, succeeded by Joop Sassen, a long-term company veteran.
• Global Reach: The company operates 70 branches across 32 countries, with 2,250 employees, positioning itself well in international markets.
• Sustainability Focus: Van Leeuwen is committed to offering sustainable steel solutions and pursuing opportunities in green technologies.
• Challenges Ahead: The company faces market volatility and economic uncertainty, but is confident in its long-term growth prospects.
