Tenaris (TEN) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales were $2.92 billion, down 15% year-over-year but up 3% sequentially, with net income at $506.9 million and EBITDA margin at 24%.

• Free cash flow reached $647 million, and net cash position increased to $4 billion after $237 million in share buybacks.

• Management changes included Guillermo Moreno appointed as President of US Operations.

• Total comprehensive income for Q1 2025 was $574.5 million, down from $877.4 million in Q1 2024.

• The company continued its share buyback program, repurchasing 12.3 million shares for $235 million in Q1 2025.

Financial highlights

• Gross profit for Q1 2025 was $1.0 billion, down from $1.31 billion in Q1 2024.

• Operating income was $550 million, a decrease from $811.7 million year-over-year.

• EBITDA margin was 24% in Q1 2025, with free cash flow at $647 million and net cash at $4 billion.

• Basic and diluted earnings per share were $0.47, compared to $0.64 in Q1 2024.

• Capital expenditures for Q1 2025 were $174 million.

Outlook and guidance

• Q2 2025 expected to be stable or slightly better than Q1, with a solid backlog supporting results.

• Anticipates reduction in US drilling activity and rig count in H2 2025 if oil prices remain near or below $60/barrel.

• Offshore and NOC projects expected to remain resilient due to long-term planning cycles.

• High uncertainty for H2 2025 and into 2026 due to macroeconomic and geopolitical factors.

• The board proposed an annual dividend of $0.83 per share ($1.66 per ADS), pending shareholder approval.