Tenaris (TEN) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales were $3.09 billion, up 6% sequentially but down 7% year-over-year, with EBITDA rising 5% sequentially to $733 million and a margin of 23.7%.

• Net income for Q2 2025 was $542 million, up 5% sequentially and 59% year-over-year; EPS increased 5% sequentially and 68% year-over-year.

• Free cash flow for Q2 2025 was $538 million, with $837 million distributed to shareholders via dividends and buybacks; net cash position at June 30, 2025, was $3.7 billion.

• H1 2025 net sales were $6.01 billion, down 11% year-over-year; net income was $1.06 billion, a 4% decrease from the prior year.

• Operating income for H1 2025 was $1.13 billion, down 14% year-over-year, reflecting lower sales and higher costs.

Financial highlights

• Q2 2025 EBITDA margin was 23.7%; H1 2025 EBITDA margin was 23.8%.

• Gross profit for H1 2025 was $2.07 billion, down from $2.49 billion year-over-year.

• Basic and diluted EPS for H1 2025 were $0.99, compared to $0.97 in the prior year.

• Net cash position at June 30, 2025, was $3.7 billion after significant shareholder distributions.

• Free cash flow for Q2 2025 was $538 million; H1 2025: $1.18 billion.

Outlook and guidance

• Q3 2025 expected to see a high single-digit decline in sales due to lower fracking invoicing and reduced line pipe shipments.

• Margins for Q3 expected slightly below Q2 but within the 20–25% range; Q4 margins may be lower, depending on tariff impacts and price adjustments.

• H2 2025 sales and margins anticipated to decline moderately due to lower drilling activity and higher tariffs.

• 2026 offshore project backlog is strong, with new awards in Suriname, Brazil, and Nigeria, supporting future growth.

• Management notes ongoing uncertainty due to U.S. steel tariffs, trade negotiations, and evolving market conditions.