Tenaris (NYSE:TS) reported fourth-quarter 2025 sales of $3.0 billion, up 5% from the prior-year quarter and up 1% sequentially, as resilience in U.S. and Canadian rig-direct demand and the resumption of fracking and coiled tubing services in Argentina supported results. EBITDA declined 5% sequentially to $717 million, representing 24% of sales, with management noting the quarter reflected the full impact of 50% Section 232 tariffs in the United States.
For the full year 2025, Chairman and CEO Paolo Rocca said the company generated net sales of $12.0 billion, EBITDA of $2.9 billion, and net income of $2.0 billion. Free cash flow totaled $2.0 billion, which Rocca said was distributed to shareholders through dividends and share buybacks, while the company ended the year with a net cash position of $3.3 billion.
Quarterly cash flow, net cash, and shareholder returns
The board will propose an annual dividend of $0.89 per share ($1.78 per ADR), including the interim dividend of $0.29 per share ($0.58 per ADR) already paid. If approved, a remaining dividend of $0.60 per share ($1.20 per ADR) would be paid on May 20. Sardagna said the payout would be up 7% compared with the dividend per share of the corresponding period of the previous year, attributing the increase to the benefit of the buyback program.
On buybacks, Rocca reiterated that the current $1.2 billion program runs from May 2025 to May 2026 in two tranches, with the second $600 million tranche approved in October. He said any continuation beyond the existing authorization would depend on decisions by the shareholders’ meeting and board, considering cash availability and outlook at the time the second tranche is completed.
Outlook: first quarter expected in line with 4Q amid volatility
Responding to questions about near-term performance, Rocca said the company expects “relative stability” in the first quarter, with margins and overall results “more or less in line” with the fourth quarter. He emphasized that medium-term forecasting remains difficult given moving parts in energy markets and an unpredictable geopolitical backdrop, though he said the company did not see a specific issue that would disrupt operations in the second quarter at the time of the call.
Management also discussed efforts to offset tariff headwinds. Rocca said the company is continuously improving operational efficiency, including producing more steel in the U.S., and expects a “slightly lower” level of tariff impact in first-quarter results versus the fourth quarter. However, he noted that pipe price indices in North America have been moving slowly, particularly for welded pipe.
Tariffs, Pipe Logix, and raw material pressures in North America
Rocca described differing dynamics between Pipe Logix indices for seamless and welded products. He said the welded Pipe Logix has been pressured by imports of welded pipe made from flat-rolled products sourced from China, Southeast Asia, and elsewhere. In his view, this has also weighed on the seamless Pipe Logix.
Rocca said the rise in hot-rolled coil prices has not translated into a corresponding increase in welded pipe pricing due to import competition, but he called the situation “temporary” and suggested that anti-dumping actions could contribute over time to a gradual alignment of Pipe Logix with higher raw material costs.
Guillermo Moreno, president of U.S. operations, said volatility in hot-rolled coil prices combined with lower pricing for ERW pipes has put “a lot of pressure” on margins, with the impact expected to be reflected mainly in the second quarter. He added that the trajectory thereafter depends on Pipe Logix recovery and the expectation that imports will decline over time. When asked later about timing, Moreno said the company typically sees about a one-quarter lag between Pipe Logix movements and the prices reflected in Tenaris’ results, and he expected some reaction could begin in the third quarter, “but particularly” in the fourth quarter.
Rocca also addressed media reports about potential changes to U.S. steel and aluminum tariffs. He said the company had not seen a written definition of any changes, and he interpreted the comments as potentially focused on reshaping what is considered a “derivative” steel product under Section 232 rather than reducing the core 50% tariff level.
International pricing, offshore backlog execution, and regional developments
Chief Operating Officer Gabriel Podskubka said international pricing has generally been stable, with balanced supply and demand in premium segments such as sour service and high-technical pipelines. He said a significant portion of international business is under long-term agreements that include raw material formulas, supporting pricing stability. Podskubka noted some “slight deterioration” in spot tenders for lower-end applications, but said those are not the most important part of Tenaris’ international mix.
Rocca added that in Europe, the Carbon Border Adjustment Mechanism (CBAM) and proposed safeguard measures—described as raising tariffs to 50% and reducing quotas—could eventually be favorable for a segment of Tenaris’ European business tied to industrial power generation, though he said it was early to assess the impact.
On offshore, Podskubka said Tenaris is focused on executing a strong backlog of complex projects that require local deployments. He cited preparations for TotalEnergies’ Gran Morgu development in Suriname, where a new service base is being built and first shipments are expected to arrive in June, as well as thermal insulation coating production in Nigeria to support Shell’s Bonga North deepwater development. He said offshore revenues in the first half of 2026 are expected to be higher than the second half of 2025, and while additional awards for later periods depend on final investment decisions (FIDs), he said the company is confident the second half of 2026 will be “at least as positive” as the first half.
Rocca also pointed to industry projections for deepwater investment rising into 2027 and 2028, and said Tenaris is engaging early with customers on projects well ahead of FIDs.
Regionally, management provided updates on Latin America and the Middle East:
- Argentina: Rocca said domestic companies have raised more than $4 billion in financing to support development in Vaca Muerta, but he described the pace of activity as gradual. He expects increased drilling activity in the second half of 2026, noting consolidation among local players and reduced activity in the south, with Vaca Muerta remaining the core.
- Mexico: Rocca said the government has taken steps to support Pemex, including a $20 billion capitalization program, and that Pemex has accessed markets with government-backed financing. However, he said Tenaris does not yet have clear visibility on Pemex’s 2026 execution plans, and he described private-sector development as moving slowly.
- Middle East: Podskubka said activity remains high and Tenaris’ position is supported by long-term agreements in Saudi Arabia, the UAE, and Qatar, with expectations for shipments in early 2026 to be in line with the last two quarters of 2025. He noted a potential upside from a possible uptick in Saudi drilling later in 2026, though that remained to be confirmed.
- Venezuela: Podskubka said Tenaris is resuming service for Chevron and ramping up to support Chevron’s plan to accelerate rigs and tubular demand. He characterized the near-term as limited but said the company expects expansion into 2026, estimating about $50 million in revenue for 2026 with potential for higher opportunity in 2027 depending on how conditions evolve and whether other majors return.
On operations and sustainability, Rocca said Tenaris brought a second wind farm in Argentina into operation, and that the two wind farms now supply essentially all energy requirements for the company’s electric steel shop and Canadian operations. He also said safety and environmental performance indicators improved during the year.
Capital spending in 2026 is expected to be broadly in line with 2025 levels, with Rocca noting that planning currently suggests it could be lower, though he cautioned that additional needs can arise during the year.
About Tenaris (NYSE:TS)
Tenaris SA is a global manufacturer and supplier of steel tubular products and related services, primarily serving the oil and gas industry as well as other energy and industrial markets. Its product portfolio centers on seamless and welded steel pipes used for casing, tubing and line pipe applications, alongside a range of specialty and mechanical steel tubes. The company also provides value‑added technical solutions, including premium connections, heat treatment and surface protection, to support drilling, completion and production activities.
Tenaris operates an integrated industrial and commercial network that combines manufacturing, distribution and field services.
