Tenaris (TEN) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 were $12.52 billion, down 16% year-over-year, with net income at $2.1 billion, reflecting lower prices and volumes, especially in the Americas and Europe, but record sales in the Middle East.

• EBITDA for 2024 was $3.1 billion, down 37% year-over-year, with margins declining to 24.4% from 32.7%.

• Major operational achievements included the integration of Mattr's pipe coating business and expansion of digital well integrity solutions.

• Significant shareholder returns were delivered through $1.4 billion in share buybacks and $758 million in dividends.

• A fatal accident at the Argentina plant prompted renewed safety initiatives.

Financial highlights

• Q4 2024 net sales were $2.85 billion, down 17% year-over-year and 2% sequentially.

• Q4 EBITDA was $726 million (25.5% margin), including a $67 million gain from litigation provision reversal; adjusted EBITDA was $659 million (23.2% margin).

• Full-year 2024 EBITDA reached $3.1 billion, net income $2.1 billion, and net sales $12.5 billion.

• Free cash flow for 2024 was $2.2 billion, with a net cash position of $3.6 billion at year-end.

• Basic and diluted EPS was $1.81 in 2024, down from $3.32 in 2023.

Outlook and guidance

• Q1 2025 sales and EBITDA (excluding extraordinary effects) expected to be in line with Q4 2024, with moderate improvement in Q2.

• US tariff changes and global trade flows introduce uncertainty for costs and prices beyond Q2.

• Board proposes a $0.83 per share annual dividend, including interim dividend already paid.

• Visibility for Q2 and beyond is limited due to market uncertainties and potential tariff changes.