TS — Tenaris S.A.

Tenaris S.A. Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Sales: $3 billion, up 5% year-over-year and 1% sequentially.
• EBITDA: $717 million (24% of sales), down 5% sequentially.
• Net Income: Part of a total annual net income of $2 billion on 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 $300 million in interim dividends and $537 million in share buybacks.
• Proposed Dividend: $0.89 per share, a 7% increase from the previous year.

2. Strategic Updates and Business Highlights

• Operational Resilience: Tenaris maintained stable operations despite geopolitical disruptions and lower market activity, particularly in the U.S. and Canada.
• Rig Direct Model: Continued strengthening of market position through enhanced services, particularly in North America.
• Investment in Infrastructure: Expansion of fracking and coiled tubing services in Argentina, with plans for a third set of equipment by year-end.
• International Projects: Active involvement in significant offshore projects, including Shell's Sparta 20K and TotalEnergies' GranMorgu development.
• Sustainability Initiatives: Progress towards reducing carbon emissions, including operational enhancements and the commissioning of wind farms in Argentina.

3. Forward Guidance and Outlook

• Q1 2026 Outlook: Expected stability in performance, with margins and results anticipated to be in line with Q4 2025.
• Long-Term Projections: Positive outlook for offshore projects and potential increases in drilling activity in Argentina and Venezuela, with expectations of improved market conditions in the second half of 2026.
• Working Capital: Anticipated neutrality in working capital for 2026, with some fluctuations expected due to receivables and sales increases.

4. Challenges and Points of Concern

• Tariff Impact: The full impact of the 50% Section 232 tariffs in the U.S. continues to pressure margins, particularly in the welded pipe segment.
• Pricing Pressure: Concerns over pricing stability in international markets, especially for lower-end applications, with potential impacts from imports.
• Market Volatility: Difficulty in forecasting due to geopolitical uncertainties and fluctuating energy market dynamics.
• Competition in Argentina: Increased competition from international players, notably an Indian company winning a pipeline contract, raising concerns about pricing pressures.

5. Notable Q&A Insights

• Pricing Trends: The Pipe Logix pricing indices are under pressure, particularly for welded products, with expectations for a gradual recovery.
• Venezuela Opportunities: Short-term revenue potential of $50 million, with significant upside expected in 2027 as more international oil companies potentially return.
• CapEx Expectations: Anticipated to remain stable or slightly lower than 2025 levels, with flexibility for new needs as they arise.
• U.S. Shale Industry: Continued efficiency improvements in the U.S. shale sector, with a stable market outlook for 2026 despite declining rig counts.

This summary encapsulates Tenaris's financial performance, strategic initiatives, and outlook while addressing challenges and insights from the Q&A session.