Tenaris S.A. Q4 2025 Earnings Call Summary

1Key Financial Results and Metrics

Sales: $3 billion for Q4 2025, up 5% year-over-year and 1% sequentially.

EBITDA: $717 million (24% of sales), down 5% sequentially.

Net Income: $2 billion for the full year, with total net sales of $12 billion.

Free Cash Flow: $2 billion for the year, fully distributed to shareholders via dividends and share buybacks.

Net Cash Position: Decreased to $3.3 billion after a $300 million interim dividend and $537 million in share buybacks.

Proposed Annual Dividend: $0.89 per share, a 7% increase from the previous year.

2Strategic Updates and Business Highlights

Rig Direct Services: Continued resilience in sales to Rig Direct customers in the U.S. and Canada, with a focus on operational efficiency and safety.

Geographical Presence: Strengthened market position in the U.S. and Canada, with record production levels achieved.

International Projects: Engaging in significant offshore projects, including Shell's Sparta 20K and TotalEnergies' GranMorgu development.

Investment in Argentina: Expansion of fracking and coiled tubing services, with plans to deploy a third set of equipment by year-end.

Sustainability Initiatives: Progress towards reducing carbon emissions, including operational enhancements and renewable energy investments.

3Forward Guidance and Outlook

Q1 2026 Expectations: Anticipated stability in performance, with margins and results expected to be in line with Q4 2025.

Long-Term Projections: Positive outlook for offshore investments, with potential increases in drilling activity in Argentina and the Middle East.

Market Dynamics: Monitoring of pricing pressures in international markets, particularly in the context of raw material costs and competition.

4Challenges and Points of Concern

Tariff Impacts: Full impact of 50% Section 232 tariffs in the U.S. continues to affect margins, with ongoing efforts to improve operational efficiency.

Pricing Pressure: Potential downward pressure on pricing, particularly for lower-end applications, and the need to navigate competitive bidding environments.

Geopolitical Risks: Ongoing geopolitical uncertainties and their impact on market conditions and operational stability.

Working Capital Management: Expected swings in working capital, particularly driven by accounts receivable and inventory management.

5Notable Q&A Insights

Pricing Outlook: Margins are expected to remain stable, but there are concerns about the lag in price adjustments relative to raw material cost increases.

Argentina's Market: Increased confidence in investment post-elections, with expectations of higher drilling activity in the latter half of 2026.

Venezuela Opportunities: Potential for revenue growth as Chevron ramps up drilling, with Tenaris positioned to benefit from increased activity.

Buyback Philosophy: Continued commitment to share buybacks, with future decisions dependent on cash availability and market conditions.

U.S. Shale Industry: Discussion on the evolving dynamics of the shale industry, with operators increasing efficiency despite a declining rig count. This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, challenges, and insights from the Q&A session, providing a comprehensive overview of Tenaris S.A.'s performance and outlook.