Tenaris Q2 2025: Navigating Contradictions Amid Tariff Impacts and Market Uncertainties

Impact of tariffs and import trends, sales outlook and market conditions, Argentina's energy sector development, M&A opportunities and strategy, and Mexico's market and activity recovery are the key contradictions discussed in Tenaris's latest 2025Q2 earnings call.



Sales and Margin Trends:
- Tenaris reported sales of $3.1 billion for Q2 2025, down 7% year-on-year but up 6% sequentially.
- The average selling prices in the Tubes operating segment decreased 2% year-on-year but increased 6% sequentially.
- The EBITDA for the quarter was up 5% sequentially to $733 million, with an EBITDA margin of 24%.
- The decline in sales was attributed to lower drilling activity in certain regions, while the sequential increase was due to higher North American OCTG prices.

Tariff Impact and Trade Uncertainty:
- Tenaris faces increased uncertainty due to tariffs, particularly the Section 232 tariffs on imports, which rose to 50% from 25%.
- The company expects this to change the competitive environment, favoring domestic supply and potentially impacting prices.
- The negotiation of reciprocal tariffs is ongoing, which may modify the tariff approach from a broad-based to a product-specific one.

Project Pipeline and Global Opportunities:
- Tenaris has secured major new projects, including the Suriname GranMorgu project, which is expected to contribute significantly to offshore deliveries in 2026.
- The company is expanding its presence in the Vaca Muerta shale play in Argentina, supplying casing, tubing, and other services.
- The successful delivery of pipes and coatings for complex projects like the ConocoPhillips Willow project and Shell's Bonga project highlights Tenaris' ability to meet global demand.