Tenaris Announces 2026 First Quarter Results
May 06, 2026
The financial and operational information contained in this press release is based on unaudited consolidated condensed interim financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Free Cash Flow, Net cash / debt and Operating working capital days. See exhibit I for more details on these alternative performance measures.
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