Tenaris (TEN) Q4 2025 earnings summary

Executive summary

• Net sales for 2025 were $11.98 billion, down 4% from 2024, with Q4 sales at $3 billion, up 5% year-over-year and 1% sequentially; U.S., Canada, and Argentina showed resilient performance.

• Full-year net income was $1.97 billion, down 5% from 2024; Q4 net income was $461 million, down 11% year-over-year.

• EBITDA for 2025 was $2.9 billion (24.2% margin), with Q4 EBITDA at $717 million (23.9% margin).

• Free cash flow for 2025 was $2 billion, with a year-end net cash position of $3.3 billion.

• Operations remained stable despite geopolitical disruptions, market volatility, and lower activity in key markets, supported by a diversified global presence.

Financial highlights

• Q4 EBITDA was $717 million (23.9% of sales), down 5% sequentially, impacted by 50% Section 232 tariffs in the U.S.

• Cash flow from operations in Q4 was $787 million; free cash flow for 2025 was $2 billion.

• Net cash position at year-end was $3.3 billion after $900 million in dividends and $1.36 billion in share buybacks.

• Proposed annual dividend of $0.89 per share ($1.78 per ADR), up 7% year-over-year, totaling approximately $900 million.

• Capital expenditures in 2025 were $617 million.

Outlook and guidance

• Q1 2026 expected to be stable with margins and results in line with Q4 2025; medium-term forecast remains uncertain due to market volatility.

• Slightly lower tariff costs anticipated in Q1 2026, with stable top line and margin data.

• International pricing remains stable, especially in premium segments; spot tendering for lower-end products shows slight deterioration.

• Offshore backlog strong, with higher revenues expected in H1 2026 versus H2 2025; long-term offshore cycle seen as positive.

• Argentina expected to see increased drilling and fracking activity in H2 2026 as financing translates into investments.