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Tenaris Announces 2026 First Quarter Results
LUXEMBOURG, May 06, 2026 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) ("Tenaris") today announced its results for the quarter ended March 31, 2026 in comparison with its results for the quarter ended March 31, 2025.
Summary of 2026 First Quarter Results
(Comparison with the fourth and first quarter of 2025)
1Q 2026 4Q 2025 1Q 2025
Net sales ($ million) 3,100 2,995 4% 2,922 6%
Operating income ($ million) 584 554 5% 550 6%
Net income ($ million) 564 461 22% 518 9%
Shareholders' net income ($ million) 541 449 20% 507 7%
Earnings per ADS ($) 1.07 0.87 23% 0.94 14%
Earnings per share ($) 0.54 0.44 23% 0.47 14%
EBITDA ($ million) 735 717 3% 696 6%
EBITDA margin (% of net sales) 23.7% 23.9% 23.8%
Tenaris began the year strongly with sales rising by 4% sequentially despite the disruption in the Middle East since March caused by the Iran war and the closure of the Strait of Hormuz. Sales benefitted from seasonally higher activity in Canada, a limited recovery of activity in Mexico, higher offshore sales in Brazil, customer stock-building in North Africa and an advance of shipments in Saudi Arabia. Margins remained stable as higher costs from maintenance shutdowns were offset by lower tariff costs. Operating income and EBITDA rose in line with sales, while net income benefitted from improved results below the operating line.
During the quarter, our free cash flow amounted to $503 million and, after spending $90 million on share buybacks, our net cash position amounted to $3.8 billion at March 31, 2026.
Market Background and Outlook
The conflict in the Middle East and the prolonged closure of the strait of Hormuz has changed the outlook for the energy industry. Oil and LNG prices have risen and are likely to remain high for many months as available inventories are drawn down and demand and supply rebalancing takes place.
Oil and gas drilling activity in the Middle East, once the strait is reopened, will initially prioritize restoring production to previous levels and releasing any available spare production capacity. Activity in the rest of the world should benefit from increased investment in short cycle shale plays and the sanctioning of offshore projects. Over the longer term, there will be increased focus on security and diversification of supply.
In the United States, OCTG prices have started to respond to import tariffs and increases in raw material costs, in an environment where demand is expected to increase.
For the second quarter, our sales will be affected by lower shipments in the Middle East. Our margins will be impacted by higher logistics costs in addition to lower absorption of fixed costs. For the second half of 2026, we expect our sales and margins to recover, assuming the strait of Hormuz is reopened in the short term.
Analysis of 2026 First Quarter Results
Tubes
The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:
Tubes Sales volume (thousand metric tons) 1Q 2026 4Q 2025 1Q 2025
Seamless 784 776 1% 775 1%
Welded 211 193 9% 212 0%
Total 995 969 3% 987 1%
The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:
Tubes 1Q 2026 4Q 2025 1Q 2025
(Net sales - $ million)
North America 1,474 1,455 1% 1,244 19%
South America 531 501 6% 552 (4%)
Europe 214 187 15% 208 3%
Asia Pacific, Middle East and Africa 712 697 2% 761 (6%)
Total net sales ($ million) 2,931 2,839 3% 2,765 6%
Services performed on third party tubes ($ million) 109 107 2% 101 7%
Operating income ($ million) 545 516 6% 514 6%
Operating margin (% of sales) 18.6% 18.2% 18.6%
Net sales of tubular products and services increased 3% sequentially and increased 6% year on year. Volumes sold increased 3% sequentially while average selling prices remained stable. In North America higher sales of OCTG in Mexico and in Canada more than compensated for lower sales in the United States. In South America sales increased due to higher sales of OCTG in Brazil and of line pipe in Argentina. In Europe sales increased thanks to higher sales of mechanical products to distributors. In Asia Pacific, Middle East and Africa sales increased as deliveries to Algeria concentrated in this quarter plus a recovery in OCTG sales in Saudi Arabia following destocking more than offset some delayed shipments in the Middle East.
Operating results from tubular products and services amounted to a gain of $545 million in the first quarter of 2026 compared to a gain of $516 million in the previous quarter and a gain of $514 million in the first quarter of 2025. Tubes operating income in the first quarter of 2026 increased driven by higher volumes with stable margins. Cost of sales remained stable as higher costs from maintenance shutdowns were offset by lower tariffs and duties.
Others
The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:
Others 1Q 2026 4Q 2025 1Q 2025
Net sales ($ million) 169 156 9% 157 8%
Operating income ($ million) 39 38 4% 36 8%
Operating margin (% of sales) 23.2% 24.2% 23.1%
Net sales of other products and services increased 9% sequentially and increased 8% year on year. Sequentially, sales increased mainly due to higher sales of oilfield services in Argentina and higher sales of tubes for plumbing and construction applications, partially offset by lower sales of excess energy.
Selling, general and administrative expenses, or SG&A, amounted to $467 million, or 15.0% of net sales, in the first quarter of 2026, compared to $453 million, 15.1% in the previous quarter and $457 million, 15.6% in the first quarter of 2025. Sequentially, SG&A stayed flat as a percentage of sales.
Financial results amounted to a gain of $50 million in the first quarter of 2026, compared to a gain of $29 million in the previous quarter and a gain of $35 million in the first quarter of 2025. Financial result of the quarter is mainly attributable to a $53 million net finance income from the net return of our portfolio investments.
Equity in earnings of non-consolidated companies generated a gain of $33 million in the first quarter of 2026, compared to a gain of $20 million in the previous quarter and a gain of $14 million in the first quarter of 2025. These results are mainly derived from our participation in Ternium (NYSE:TX) and Usiminas.
Income tax charge amounted to $103 million in the first quarter of 2026, compared to $142 million in the previous quarter and $81 million in the first quarter of 2025. Income tax of the quarter declined mainly due to the positive effect from foreign exchange rate movements and inflation adjustment, mainly in Argentina.
Cash Flow and Liquidity of 2026 First Quarter
Net cash generated by operating activities during the first quarter of 2026 was $618 million, compared to $787 million in the previous quarter and $821 million in the first quarter of 2025. Cash generated by operating activities during the first quarter of 2026 is net of a working capital increase of $84 million.
With capital expenditures of $114 million, our free cash flow amounted to $503 million during the quarter. Following share buybacks of $90 million in the quarter, our net cash position amounted to $3.8 billion at March 31, 2026.
Conference call
Tenaris will hold a conference call to discuss the above reported results, on May 7, 2026, at 08:00 a.m. (Eastern Time). Following a brief summary, the conference call will be opened to questions.
To listen to the conference please join through one of the following options:
ir.tenaris.com/events-and-presentations or
https://edge.media-server.com/mmc/p/e5dnev3v
If you wish to participate in the Q&A session please register at the following link:
https://register-conf.media-server.com/register/BIc16f0602328e4ea7b7be9ef6cf51694c
Please connect 10 minutes before the scheduled start time.
A replay of the conference call will also be available on our webpage at: ir.tenaris.com/events-and-presentations
Some of the statements contained in this press release are "forward-looking statements". Forward-looking statements are based on management's current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to future oil and gas prices and their impact on investment programs by oil and gas companies.
Consolidated Condensed Interim Income Statement
(all amounts in thousands of U.S. dollars) Three-month period ended March 31,
2026 2025
(Unaudited)
Net sales 3,100,458 2,922,212
Cost of sales (2,050,323) (1,920,855)
Gross profit 1,050,135 1,001,357
Selling, general and administrative expenses (466,591) (457,065)
Other operating income 6,429 11,788
Other operating expenses (6,109) (6,167)
Operating income 583,864 549,913
Finance income 64,769 78,444
Finance cost (11,664) (11,745)
Other financial results, net (2,706) (31,441)
Income before equity in earnings of non-consolidated companies and income tax 634,263 585,171
Equity in earnings of non-consolidated companies 33,376 14,035
Income before income tax 667,639 599,206
Income tax (103,481) (81,342)
Income for the period 564,158 517,864
Attributable to:
Shareholders' equity 540,701 506,931
Non-controlling interests 23,457 10,933
564,158 517,864
Consolidated Condensed Interim Statement of Financial Position
(all amounts in thousands of U.S. dollars) At March 31, 2026 At December 31, 2025
(Unaudited)
ASSETS
Non-current assets
Property, plant and equipment, net 6,174,660 6,205,082
Intangible assets, net 1,356,543 1,357,116
Right-of-use assets, net 141,896 144,557
Investments in non-consolidated companies 1,599,844 1,561,212
Other investments 676,953 758,085
Deferred tax assets 830,408 834,168
Receivables, net 135,715 10,916,019 139,211 10,999,431
Current assets
Inventories, net 3,606,922 3,602,058
Receivables and prepayments, net 184,740 268,798
Current tax assets 340,300 364,640
Contract assets 36,141 35,264
Trade receivables, net 2,001,088 1,920,840
Derivative financial instruments 11,966 1,875
Other investments 2,265,359 2,306,760
Cash and cash equivalents 1,152,130 9,598,646 572,647 9,072,882
Total assets 20,514,665 20,072,313
EQUITY
Shareholders' equity 17,094,388 16,599,191
Non-controlling interests 253,032 229,877
Total equity 17,347,420 16,829,068
LIABILITIES
Non-current liabilities
Borrowings 360 368
Lease liabilities 93,673 94,903
Derivative financial instruments - 207
Deferred tax liabilities 388,649 442,248
Other liabilities 316,965 310,707
Provisions 52,156 851,803 48,418 896,851
Current liabilities
Borrowings 331,091 305,354
Lease liabilities 48,393 48,346
Derivative financial instruments 8,950 14,123
Current tax liabilities 369,048 386,586
Other liabilities 385,417 377,088
Provisions 173,047 173,152
Customer advances 153,583 168,832
Trade payables 845,913 2,315,442 872,913 2,346,394
Total liabilities 3,167,245 3,243,245
Total equity and liabilities 20,514,665 20,072,313
Consolidated Condensed Interim Statement of Cash Flows
(all amounts in thousands of U.S. dollars) Three-month period ended March 31,
2026 2025
(Unaudited)
Cash flows from operating activities
Income for the period 564,158 517,864
Adjustments for:
Depreciation and amortization 151,440 146,406
Provision for the ongoing litigation related to the acquisition of participation in Usiminas 10,350 9,877
Income tax accruals less payments 1,046 (54,133)
Equity in earnings of non-consolidated companies (33,376) (14,035)
Interest accruals less payments, net 23,066 (8,423)
Changes in provisions (6,717) (2,393)
Changes in working capital (83,757) 223,817
Others, including net foreign exchange (8,565) 2,020
Net cash provided by operating activities 617,645 821,000
Cash flows from investing activities
Capital expenditures (114,479) (173,838)
Changes in advances to suppliers of property, plant and equipment 5,453 12,916
Acquisition of subsidiaries, net of cash acquired (4,507) -
Loan to joint ventures - (1,359)
Repayment of loan by joint ventures 68,788 -
Proceeds from disposal of property, plant and equipment and intangible assets 493 900
Changes in investments in securities 78,097 (225,636)
Net cash provided by (used in) investing activities 33,845 (387,017)
Cash flows from financing activities
Acquisition of treasury shares (89,562) (237,188)
Payments of lease liabilities (15,526) (14,655)
Proceeds from borrowings 248,430 347,570
Repayments of borrowings (221,802) (429,126)
Net cash used in financing activities (78,460) (333,399)
Increase in cash and cash equivalents 573,030 100,584
Movement in cash and cash equivalents
At the beginning of the period 572,444 660,798
Effect of exchange rate changes 6,630 (2,430)
Increase in cash and cash equivalents 573,030 100,584
At March 31, 1,152,104 758,952
Exhibit I - Alternative performance measures
Alternative performance measures should be considered in addition to, not as substitute for or superior to, other measures of financial performance prepared in accordance with IFRS.
EBITDA, Earnings before interest, tax, depreciation and amortization.
EBITDA provides an analysis of the operating results excluding depreciation and amortization and impairments, as they are recurring non-cash variables which can vary substantially from company to company depending on accounting policies and the accounting value of the assets. EBITDA is an approximation to pre-tax operating cash flow and reflects cash generation before working capital variation. EBITDA is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt.
EBITDA is calculated in the following manner:
EBITDA = Net income for the period + Income tax charges +/- Equity in Earnings (losses) of non-consolidated companies +/- Financial results + Depreciation and amortization +/- Impairment charges/(reversals).
EBITDA is a non-IFRS alternative performance measure.
(all amounts in thousands of U.S. dollars) Three-month period ended March 31,
2026 2025
Income for the period 564,158 517,864
Income tax charge 103,481 81,342
Equity in earnings of non-consolidated companies (33,376) (14,035)
Financial Results (50,399) (35,258)
Depreciation and amortization 151,440 146,406
EBITDA 735,304 696,319
Free Cash Flow
Free cash flow is a measure of financial performance, calculated as operating cash flow less capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.
Free cash flow is calculated in the following manner:
Free cash flow = Net cash (used in) provided by operating activities - Capital expenditures.
Free cash flow is a non-IFRS alternative performance measure.
(all amounts in thousands of U.S. dollars) Three-month period ended March 31,
2026 2025
Net cash provided by operating activities 617,645 821,000
Capital expenditures (114,479) (173,838)
Free cash flow 503,166 647,162
Net Cash / (Debt)
This is the net balance of cash and cash equivalents, other current investments and fixed income investments held to maturity less total borrowings. It provides a summary of the financial solvency and liquidity of the company. Net cash / (debt) is widely used by investors and rating agencies and creditors to assess the company's leverage, financial strength, flexibility and risks.
Net cash/ debt is calculated in the following manner:
Net cash = Cash and cash equivalents + Other investments (Current and Non-Current)+/- Derivatives hedging borrowings and investments - Borrowings (Current and Non-Current).
Net cash/debt is a non-IFRS alternative performance measure.
(all amounts in thousands of U.S. dollars) At March 31,
2026 2025
Cash and cash equivalents 1,152,130 770,208
Other current investments 2,265,359 2,581,761
Non-current investments 669,940 1,007,444
Derivatives hedging borrowings and investments 665 -
Current borrowings (331,091) (345,183)
Non-current borrowings (360) (7,437)
Net cash / (debt) 3,756,643 4,006,793
Operating working capital days
Operating working capital is the difference between the main operating components of current assets and current liabilities. Operating working capital is a measure of a company's operational efficiency, and short-term financial health.
Operating working capital days is calculated in the following manner:
Operating working capital days = [(Inventories + Trade receivables - Trade payables - Customer advances) / Annualized quarterly sales ] x 365.
Operating working capital days is a non-IFRS alternative performance measure.
(all amounts in thousands of U.S. dollars) At March 31,
2026 2025
Inventories 3,606,922 3,519,237
Trade receivables 2,001,088 1,842,313
Customer advances (153,583) (228,086)
Trade payables (845,913) (831,716)
Operating working capital 4,608,514 4,301,748
Annualized quarterly sales 12,401,832 11,688,848
Operating working capital days 136 134
Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com
COMTEX_478656089/2241/2026-05-06T16:56:18