Tenaris Announces 2026 First Quarter Results
Rhea-AI Summary
Tenaris (NYSE:TS) reported 1Q26 results: net sales $3,100M, operating income $584M, net income $564M and EBITDA $735M. Free cash flow was $503M, the company repurchased $90M of shares and closed the quarter with $3.8B net cash at March 31, 2026.
Sales rose sequentially on higher activity in Canada, Mexico, Brazil and North Africa; Q2 headwinds include lower Middle East shipments and higher logistics costs, with recovery expected in H2 if the Strait of Hormuz reopens.
AI-generated analysis. Not financial advice.
Positive
- Earnings per ADS rose 14% YoY to $1.07
- Generated $503 million free cash flow in 1Q26
- Ended 1Q26 with $3.8 billion net cash
- Repurchased $90 million of shares during the quarter
Negative
- Net cash from operations declined 24.8% QoQ to $618 million
- Guidance risk: lower shipments in the Middle East expected to reduce Q2 sales
- Expected margin pressure from higher logistics costs and lower fixed-cost absorption in Q2
News Market Reaction – TS
On the day this news was published, TS declined 5.56%, reflecting a notable negative market reaction. Our momentum scanner triggered 23 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $1.86B from the company's valuation, bringing the market cap to $31.52B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
TS gained about 1.89% while peers were mixed: NOV up 2.18%, SLB up 0.47%, FTI up 0.16%, but HAL and BKR slipped 0.16%. With no peers in momentum scanners and modest, mixed moves, trading appears more company-specific than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 10 | AGM announcement | Neutral | +0.8% | Scheduled AGM and EGM with related materials made available to shareholders. |
| Mar 30 | Annual report filing | Neutral | +1.7% | Filing and availability of 2025 Annual Report and Form 20-F to investors. |
| Mar 05 | PDMR transaction notice | Neutral | -0.3% | Disclosure of a managerial securities transaction under EU market abuse rules. |
| Feb 23 | Buyback tranche ended | Negative | +1.0% | Early termination of second USD 600m buyback tranche after large repurchases. |
| Feb 18 | Earnings and dividend | Positive | +7.9% | 4Q25 results with strong cash flow, net cash, and planned annual dividend. |
Recent news (AGM, filings, buyback updates, results) has usually seen modest positive reactions, with one divergence where a buyback tranche termination drew a small gain.
Over the last few months, Tenaris has focused on shareholder communications, capital returns and financial reporting. The company announced strong 4Q25 and annual 2025 results with a sizeable dividend and free cash flow, and it has been active with a USD 1.2 billion buyback program, including terminating the second tranche after substantial repurchases. Routine items like annual report filings and AGM convocations have drawn small positive price moves. Today’s 1Q26 earnings update continues this pattern of operational strength and cash generation.
Market Pulse Summary
The stock moved -5.6% in the session following this news. A negative reaction despite robust 1Q26 metrics would contrast with prior earnings, where strong 4Q25 results and cash generation saw a positive response. The quarter delivered net sales of $3.1bn, EBITDA of $735m and free cash flow of $503m alongside $3.8bn net cash. Pressure could stem from management’s guidance for lower 2Q sales and margins due to Middle Eastern disruptions and higher logistics costs, even if a recovery is anticipated in the second half of 2026.
Key Terms
ifrs financial
ebitda financial
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net cash / (debt) financial
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AI-generated analysis. Not financial advice.
The financial and operational information contained in this press release is based on unaudited consolidated condensed interim financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Free Cash Flow, Net cash / debt and Operating working capital days. See exhibit I for more details on these alternative performance measures.
LUXEMBOURG, May 06, 2026 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the quarter ended March 31, 2026 in comparison with its results for the quarter ended March 31, 2025.
Summary of 2026 First Quarter Results
(Comparison with the fourth and first quarter of 2025)
| 1Q 2026 | 4Q 2025 | 1Q 2025 | |||
| Net sales ($ million) | 3,100 | 2,995 | 2,922 | ||
| Operating income ($ million) | 584 | 554 | 550 | ||
| Net income ($ million) | 564 | 461 | 518 | ||
| Shareholders’ net income ($ million) | 541 | 449 | 507 | ||
| Earnings per ADS ($) | 1.07 | 0.87 | 0.94 | ||
| Earnings per share ($) | 0.54 | 0.44 | 0.47 | ||
| EBITDA ($ million) | 735 | 717 | 696 | ||
| EBITDA margin (% of net sales) | |||||
Tenaris began the year strongly with sales rising by
During the quarter, our free cash flow amounted to
Market Background and Outlook
The conflict in the Middle East and the prolonged closure of the strait of Hormuz has changed the outlook for the energy industry. Oil and LNG prices have risen and are likely to remain high for many months as available inventories are drawn down and demand and supply rebalancing takes place.
Oil and gas drilling activity in the Middle East, once the strait is reopened, will initially prioritize restoring production to previous levels and releasing any available spare production capacity. Activity in the rest of the world should benefit from increased investment in short cycle shale plays and the sanctioning of offshore projects. Over the longer term, there will be increased focus on security and diversification of supply.
In the United States, OCTG prices have started to respond to import tariffs and increases in raw material costs, in an environment where demand is expected to increase.
For the second quarter, our sales will be affected by lower shipments in the Middle East. Our margins will be impacted by higher logistics costs in addition to lower absorption of fixed costs. For the second half of 2026, we expect our sales and margins to recover, assuming the strait of Hormuz is reopened in the short term.
Analysis of 2026 First Quarter Results
Tubes
The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:
| Tubes Sales volume (thousand metric tons) | 1Q 2026 | 4Q 2025 | 1Q 2025 | ||||
| Seamless | 784 | 776 | 775 | ||||
| Welded | 211 | 193 | 212 | ||||
| Total | 995 | 969 | 987 | ||||
The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:
| Tubes | 1Q 2026 | 4Q 2025 | 1Q 2025 | |||
| (Net sales - $ million) | ||||||
| North America | 1,474 | 1,455 | 1,244 | |||
| South America | 531 | 501 | 552 | ( | ||
| Europe | 214 | 187 | 208 | |||
| Asia Pacific, Middle East and Africa | 712 | 697 | 761 | ( | ||
| Total net sales ($ million) | 2,931 | 2,839 | 2,765 | |||
| Services performed on third party tubes ($ million) | 109 | 107 | 101 | |||
| Operating income ($ million) | 545 | 516 | 514 | |||
| Operating margin (% of sales) | ||||||
Net sales of tubular products and services increased
Operating results from tubular products and services amounted to a gain of
Others
The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:
| Others | 1Q 2026 | 4Q 2025 | 1Q 2025 | |||
| Net sales ($ million) | 169 | 156 | 157 | |||
| Operating income ($ million) | 39 | 38 | 36 | |||
| Operating margin (% of sales) | ||||||
Net sales of other products and services increased
Selling, general and administrative expenses, or SG&A, amounted to
Financial results amounted to a gain of
Equity in earnings of non-consolidated companies generated a gain of
Income tax charge amounted to
Cash Flow and Liquidity of 2026 First Quarter
Net cash generated by operating activities during the first quarter of 2026 was
With capital expenditures of
Conference call
Tenaris will hold a conference call to discuss the above reported results, on May 7, 2026, at 08:00 a.m. (Eastern Time). Following a brief summary, the conference call will be opened to questions.
To listen to the conference please join through one of the following options:
ir.tenaris.com/events-and-presentations or
https://edge.media-server.com/mmc/p/e5dnev3v
If you wish to participate in the Q&A session please register at the following link:
https://register-conf.media-server.com/register/BIc16f0602328e4ea7b7be9ef6cf51694c
Please connect 10 minutes before the scheduled start time.
A replay of the conference call will also be available on our webpage at: ir.tenaris.com/events-and-presentations
Some of the statements contained in this press release are “forward-looking statements”. Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to future oil and gas prices and their impact on investment programs by oil and gas companies.
Consolidated Condensed Interim Income Statement
| (all amounts in thousands of U.S. dollars) | Three-month period ended March 31, | |
| 2026 | 2025 | |
| (Unaudited) | ||
| Net sales | 3,100,458 | 2,922,212 |
| Cost of sales | (2,050,323) | (1,920,855) |
| Gross profit | 1,050,135 | 1,001,357 |
| Selling, general and administrative expenses | (466,591) | (457,065) |
| Other operating income | 6,429 | 11,788 |
| Other operating expenses | (6,109) | (6,167) |
| Operating income | 583,864 | 549,913 |
| Finance income | 64,769 | 78,444 |
| Finance cost | (11,664) | (11,745) |
| Other financial results, net | (2,706) | (31,441) |
| Income before equity in earnings of non-consolidated companies and income tax | 634,263 | 585,171 |
| Equity in earnings of non-consolidated companies | 33,376 | 14,035 |
| Income before income tax | 667,639 | 599,206 |
| Income tax | (103,481) | (81,342) |
| Income for the period | 564,158 | 517,864 |
| Attributable to: | ||
| Shareholders' equity | 540,701 | 506,931 |
| Non-controlling interests | 23,457 | 10,933 |
| 564,158 | 517,864 | |
Consolidated Condensed Interim Statement of Financial Position
| (all amounts in thousands of U.S. dollars) | At March 31, 2026 | At December 31, 2025 | ||
| (Unaudited) | ||||
| ASSETS | ||||
| Non-current assets | ||||
| Property, plant and equipment, net | 6,174,660 | 6,205,082 | ||
| Intangible assets, net | 1,356,543 | 1,357,116 | ||
| Right-of-use assets, net | 141,896 | 144,557 | ||
| Investments in non-consolidated companies | 1,599,844 | 1,561,212 | ||
| Other investments | 676,953 | 758,085 | ||
| Deferred tax assets | 830,408 | 834,168 | ||
| Receivables, net | 135,715 | 10,916,019 | 139,211 | 10,999,431 |
| Current assets | ||||
| Inventories, net | 3,606,922 | 3,602,058 | ||
| Receivables and prepayments, net | 184,740 | 268,798 | ||
| Current tax assets | 340,300 | 364,640 | ||
| Contract assets | 36,141 | 35,264 | ||
| Trade receivables, net | 2,001,088 | 1,920,840 | ||
| Derivative financial instruments | 11,966 | 1,875 | ||
| Other investments | 2,265,359 | 2,306,760 | ||
| Cash and cash equivalents | 1,152,130 | 9,598,646 | 572,647 | 9,072,882 |
| Total assets | 20,514,665 | 20,072,313 | ||
| EQUITY | ||||
| Shareholders' equity | 17,094,388 | 16,599,191 | ||
| Non-controlling interests | 253,032 | 229,877 | ||
| Total equity | 17,347,420 | 16,829,068 | ||
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Borrowings | 360 | 368 | ||
| Lease liabilities | 93,673 | 94,903 | ||
| Derivative financial instruments | - | 207 | ||
| Deferred tax liabilities | 388,649 | 442,248 | ||
| Other liabilities | 316,965 | 310,707 | ||
| Provisions | 52,156 | 851,803 | 48,418 | 896,851 |
| Current liabilities | ||||
| Borrowings | 331,091 | 305,354 | ||
| Lease liabilities | 48,393 | 48,346 | ||
| Derivative financial instruments | 8,950 | 14,123 | ||
| Current tax liabilities | 369,048 | 386,586 | ||
| Other liabilities | 385,417 | 377,088 | ||
| Provisions | 173,047 | 173,152 | ||
| Customer advances | 153,583 | 168,832 | ||
| Trade payables | 845,913 | 2,315,442 | 872,913 | 2,346,394 |
| Total liabilities | 3,167,245 | 3,243,245 | ||
| Total equity and liabilities | 20,514,665 | 20,072,313 | ||
Consolidated Condensed Interim Statement of Cash Flows
| (all amounts in thousands of U.S. dollars) | Three-month period ended March 31, | ||
| 2026 | 2025 | ||
| (Unaudited) | |||
| Cash flows from operating activities | |||
| Income for the period | 564,158 | 517,864 | |
| Adjustments for: | |||
| Depreciation and amortization | 151,440 | 146,406 | |
| Provision for the ongoing litigation related to the acquisition of participation in Usiminas | 10,350 | 9,877 | |
| Income tax accruals less payments | 1,046 | (54,133) | |
| Equity in earnings of non-consolidated companies | (33,376) | (14,035) | |
| Interest accruals less payments, net | 23,066 | (8,423) | |
| Changes in provisions | (6,717) | (2,393) | |
| Changes in working capital | (83,757) | 223,817 | |
| Others, including net foreign exchange | (8,565) | 2,020 | |
| Net cash provided by operating activities | 617,645 | 821,000 | |
| Cash flows from investing activities | |||
| Capital expenditures | (114,479) | (173,838) | |
| Changes in advances to suppliers of property, plant and equipment | 5,453 | 12,916 | |
| Acquisition of subsidiaries, net of cash acquired | (4,507) | - | |
| Loan to joint ventures | - | (1,359) | |
| Repayment of loan by joint ventures | 68,788 | - | |
| Proceeds from disposal of property, plant and equipment and intangible assets | 493 | 900 | |
| Changes in investments in securities | 78,097 | (225,636) | |
| Net cash provided by (used in) investing activities | 33,845 | (387,017) | |
| Cash flows from financing activities | |||
| Acquisition of treasury shares | (89,562) | (237,188) | |
| Payments of lease liabilities | (15,526) | (14,655) | |
| Proceeds from borrowings | 248,430 | 347,570 | |
| Repayments of borrowings | (221,802) | (429,126) | |
| Net cash used in financing activities | (78,460) | (333,399) | |
| Increase in cash and cash equivalents | 573,030 | 100,584 | |
| Movement in cash and cash equivalents | |||
| At the beginning of the period | 572,444 | 660,798 | |
| Effect of exchange rate changes | 6,630 | (2,430) | |
| Increase in cash and cash equivalents | 573,030 | 100,584 | |
| At March 31, | 1,152,104 | 758,952 | |
Exhibit I – Alternative performance measures
Alternative performance measures should be considered in addition to, not as substitute for or superior to, other measures of financial performance prepared in accordance with IFRS.
EBITDA, Earnings before interest, tax, depreciation and amortization.
EBITDA provides an analysis of the operating results excluding depreciation and amortization and impairments, as they are recurring non-cash variables which can vary substantially from company to company depending on accounting policies and the accounting value of the assets. EBITDA is an approximation to pre-tax operating cash flow and reflects cash generation before working capital variation. EBITDA is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt.
EBITDA is calculated in the following manner:
EBITDA = Net income for the period + Income tax charges +/- Equity in Earnings (losses) of non-consolidated companies +/- Financial results + Depreciation and amortization +/- Impairment charges/(reversals).
EBITDA is a non-IFRS alternative performance measure.
| (all amounts in thousands of U.S. dollars) | Three-month period ended March 31, | |
| 2026 | 2025 | |
| Income for the period | 564,158 | 517,864 |
| Income tax charge | 103,481 | 81,342 |
| Equity in earnings of non-consolidated companies | (33,376) | (14,035) |
| Financial Results | (50,399) | (35,258) |
| Depreciation and amortization | 151,440 | 146,406 |
| EBITDA | 735,304 | 696,319 |
Free Cash Flow
Free cash flow is a measure of financial performance, calculated as operating cash flow less capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.
Free cash flow is calculated in the following manner:
Free cash flow = Net cash (used in) provided by operating activities - Capital expenditures.
Free cash flow is a non-IFRS alternative performance measure.
| (all amounts in thousands of U.S. dollars) | Three-month period ended March 31, | |
| 2026 | 2025 | |
| Net cash provided by operating activities | 617,645 | 821,000 |
| Capital expenditures | (114,479) | (173,838) |
| Free cash flow | 503,166 | 647,162 |
Net Cash / (Debt)
This is the net balance of cash and cash equivalents, other current investments and fixed income investments held to maturity less total borrowings. It provides a summary of the financial solvency and liquidity of the company. Net cash / (debt) is widely used by investors and rating agencies and creditors to assess the company’s leverage, financial strength, flexibility and risks.
Net cash/ debt is calculated in the following manner:
Net cash = Cash and cash equivalents + Other investments (Current and Non-Current)+/- Derivatives hedging borrowings and investments - Borrowings (Current and Non-Current).
Net cash/debt is a non-IFRS alternative performance measure.
| (all amounts in thousands of U.S. dollars) | At March 31, | |
| 2026 | 2025 | |
| Cash and cash equivalents | 1,152,130 | 770,208 |
| Other current investments | 2,265,359 | 2,581,761 |
| Non-current investments | 669,940 | 1,007,444 |
| Derivatives hedging borrowings and investments | 665 | - |
| Current borrowings | (331,091) | (345,183) |
| Non-current borrowings | (360) | (7,437) |
| Net cash / (debt) | 3,756,643 | 4,006,793 |
Operating working capital days
Operating working capital is the difference between the main operating components of current assets and current liabilities. Operating working capital is a measure of a company’s operational efficiency, and short-term financial health.
Operating working capital days is calculated in the following manner:
Operating working capital days = [(Inventories + Trade receivables – Trade payables – Customer advances) / Annualized quarterly sales ] x 365.
Operating working capital days is a non-IFRS alternative performance measure.
| (all amounts in thousands of U.S. dollars) | At March 31, | |
| 2026 | 2025 | |
| Inventories | 3,606,922 | 3,519,237 |
| Trade receivables | 2,001,088 | 1,842,313 |
| Customer advances | (153,583) | (228,086) |
| Trade payables | (845,913) | (831,716) |
| Operating working capital | 4,608,514 | 4,301,748 |
| Annualized quarterly sales | 12,401,832 | 11,688,848 |
| Operating working capital days | 136 | 134 |
Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com
