What were the key takeaways from Tenaris’s earnings call?

What were the key takeaways from Tenaris's earnings call?

What does Tenaris do and what are its main business segments?

What is the revenue and EPS growth rate for Tenaris year over year?

Did Tenaris beat or miss consensus estimates last quarter?

What is Tenaris's gross profit margin?

What guidance did Tenaris's management provide for the next earnings period?

What is Tenaris's latest dividend and current dividend yield?

- **Q3 EBITDA Beats Expectations**: $753 million (25% margin) driven by U.S. rig-direct sales and Argentina wind farm efficiency.
- **Argentina Recovery**: Midterm election victory unlocks $750M Tecpetrol bond issuance; 2026 Vaca Muerta LNG project to boost OCTG demand.
- **U.S. Tariff Impact**: $40M Q4 EBITDA drag from tariffs, offset by 90% domestic OCTG production.
- **Middle East Growth**: 2026 Saudi Jafurah and UAE ADNOC unconventional gas projects to add $1B+ in line pipe backlog.
- **Cash Return Focus**: 11% annualized cash return (dividends + buybacks) supported by $1.2B buyback program.

**【Management Opening Remarks】**
- Q3 2025 sales reached $3 billion, up 2% YoY but down 3% sequentially due to lower North Sea and Middle East shipments, offset by resilient U.S./Canada rig-direct sales.
- EBITDA was $753 million (25% margin), including a $34 million one-off gain from U.S. antidumping duty refunds. Adjusted EBITDA (excluding gain) was $719 million (24% margin).
- Free cash flow was $133 million, with $351 million in share buybacks reducing net cash to $3.5 billion. An interim dividend of $0.29/share ($0.58/ADR) was approved, up 7% YoY.

**【CEO Commentary】**
- U.S./Canada: 90% of OCTG produced domestically; record production at Bay City, Hickman, and Sault Ste. Marie mills. New British Columbia service yard supports Montney shale expansion.
- Argentina: Post-midterm election, Vaca Muerta shale activity resumes with 30% stock market rally and 400bps country risk reduction. New 95MW wind farm in Campana powers steel production, achieving 100% renewable energy.
- Offshore: Strong backlog for 2026 deliveries, including Sakarya Black Sea project and GranMorgu development in Suriname.
- Europe: Benefits from EU steel safeguard measures; boiler/heat exchanger pipe production at full capacity.

**【CFO Financial Commentary】**
- Tariffs: $150 million/quarter impact on U.S. steel imports, with $40 million incremental Q4 EBITDA drag from tariffs entering COGS.
- Working capital: $300 million increase in receivables due to delayed PEMEX payments, expected to normalize in Q4.
- Capital allocation: $1.2 billion buyback program (60% completed) and 11% annualized cash return (dividends + buybacks).

**【Q&A Highlights】**
- **Argentina Outlook**: Election victory supports Vaca Muerta LNG projects; 2026 rig count expected to rise. Frac fleet expansion to capitalize on shale gas demand.
- **U.S. Margins**: Q4 EBITDA ~$710 million (flat YoY), with $40 million tariff impact. Welded pipe mix (35% of sales) expected to revert to 25% in 2026 as pipeline projects wind down.
- **Middle East**: Saudi Jafurah unconventional gas development and UAE ADNOC 300-well/year program drive OCTG demand. 2026 line pipe backlog exceeds $1 billion.
- **Mexico**: PEMEX refinancing may enable 2026 drilling recovery; Trion project with Woodside adds deepwater expertise.
- **Inventory**: U.S. ERW inventories at 7 months (vs. 5x normal), expected to decline 20% by Q2 2026 as tariffs reduce imports.

Tenaris S.A. (TS) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TS

TS fundamentals

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