Tenaris to Commence a USD 600 million First Tranche of its USD 1.2 Billion Share Buyback Program

Rhea-AI Summary

Tenaris (NYSE: TS) has announced the commencement of a USD 600 million first tranche of its previously announced USD 1.2 billion share buyback program. The company has entered into a non-discretionary agreement with a primary financial institution that will independently manage the share purchases. The first tranche will begin on June 9, 2025, and conclude by December 8, 2025. The program will operate under applicable regulations, including during closed periods, with purchased shares to be cancelled. This initiative follows shareholder approval obtained at the May 6, 2025 general meeting. Tenaris, a leading global supplier of steel tubes for the energy industry, aims to execute this significant capital return program while maintaining compliance with Market Abuse Regulation 596/2014 and Commission Delegated Regulation (EU) 2016/1052.

Positive

• Substantial USD 1.2 billion total share buyback program demonstrates strong financial position
• First tranche of USD 600 million to be executed within 6 months shows commitment to shareholder returns
• Independent execution by bank ensures compliance and continuous operation during closed periods
• Share cancellation will reduce share count and potentially increase earnings per share

Negative

• Significant cash outlay of USD 600 million may reduce funds available for operational growth or acquisitions
• Program execution subject to market conditions and regulatory risks

Insights

Financial Analyst

Tenaris' $1.2B buyback signals strong financial position and shareholder value focus; first $600M tranche launches June 9.

Tenaris has announced a substantial $1.2 billion share buyback program, with the first tranche of $600 million set to commence on June 9, 2025. This significant capital return initiative will run through December 8, 2025 for the initial phase. The company has structured this as a non-discretionary agreement with a financial institution that will make independent trading decisions, ensuring compliance with market regulations even during closed periods.

The scale of this buyback represents a meaningful commitment to shareholder returns. For context, Tenaris is a leading global supplier of steel tubes primarily serving the energy industry. Share repurchases of this magnitude typically signal management's confidence in the company's financial strength and future prospects. By reducing the number of outstanding shares, the buyback should mechanically increase earnings per share, assuming stable business performance.

Notably, the repurchased shares will be cancelled rather than held as treasury stock, permanently reducing the share count. This approach typically has a more direct and lasting impact on per-share metrics than temporary repurchases. The buyback was authorized by shareholders at their May meeting, demonstrating proper corporate governance procedures. The structured approach with a financial intermediary also reflects careful compliance with market regulations, including during closed periods when insiders might otherwise be restricted from trading.

LUXEMBOURG, June 06, 2025 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) announced today that pursuant to its Share Buyback Program (the “Program”) announced on May 27, 2025, covering up to USD 1.2 billion, it has entered into a non-discretionary buyback agreement with a primary financial institution (the “Bank”).

The Bank will make its trading decisions concerning the timing of the purchases of Tenaris’s ordinary shares independently of and uninfluenced by Tenaris. The Program will be executed in compliance with applicable rules and regulations, including the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052 (the “Regulations”). Under the buyback agreement, purchases of shares may continue during any closed periods of Tenaris in accordance with the Regulations.

This first tranche of the Program will cover up to USD 600 million (excluding customary transaction fees) and will start on June 9, 2025, and end no later than December 8, 2025. Ordinary shares purchased under the Program will be cancelled in due course.

Any buyback of ordinary shares pursuant to the Program will be carried out under the authority granted by the general meeting of shareholders held on May 6, 2025.

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.

Tenaris is a leading global supplier of steel tubes and related services for the world’s energy industry and certain other industrial applications.

Giovanni Sardagna        
Tenaris
1-888-300-5432
www.tenaris.com

FAQ

What is the size of Tenaris (TS) share buyback program announced for 2025?

Tenaris announced a total share buyback program of USD 1.2 billion, with the first tranche being USD 600 million.

When will Tenaris (TS) start its USD 600 million share buyback tranche?

The first tranche of the share buyback will start on June 9, 2025, and end no later than December 8, 2025.

How will Tenaris (TS) execute its share buyback program?

Tenaris will execute the buyback through a non-discretionary agreement with a primary financial institution that will make independent trading decisions.

What will happen to the shares purchased in Tenaris (TS) buyback program?

The ordinary shares purchased under the program will be cancelled in due course.

Does Tenaris (TS) have shareholder approval for the buyback program?

Yes, the buyback program is being carried out under authority granted by the general meeting of shareholders held on May 6, 2025.