Tenaris S.A. (NYSE: TS) Q2 2026 results show profit, cash and dividend

Rhea-AI Filing Summary

Tenaris S.A. reported Q2 2026 net sales of $2,967 million and income for the period of $492 million, slightly below prior periods as shipments to Middle East customers were postponed due to the effective closure of the strait of Hormuz. EBITDA was $649 million with a 21.9% margin, down from 23.7%.

The Tubes segment generated net sales of $2,803 million and operating income of $465 million, with total volumes down 5% sequentially, led by welded products and the Asia Pacific, Middle East and Africa region. Free cash flow reached $396 million in the quarter, and net cash stood at about $3.6 billion at June 30, 2026.

For the first half of 2026, net sales were $6,067 million and earnings per share $1.01, up 4% year on year, while EBITDA of $1,385 million was modestly lower, partly reflecting U.S. tariff costs. The board approved an interim dividend of $0.59 per share ($1.18 per ADS), around $600 million, and expects second-half sales and EBITDA to remain broadly in line with the first half.

Positive

• None.

Negative

• Q2 EBITDA declined 12% sequentially to $649 million and 11% year on year, with the EBITDA margin falling to 21.9% from 23.7%, as higher logistics and raw material costs and lower fixed-cost absorption compressed profitability.

Key Figures

Net sales Q2 2026: 2,966,626 thousand U.S. dollars Net income Q2 2026: 492,135 thousand U.S. dollars EBITDA Q2 2026: 649,331 thousand U.S. dollars +5 more

8 metrics

Net sales Q2 2026 2,966,626 thousand U.S. dollars Consolidated net sales for the three-month period ended June 30, 2026

Net income Q2 2026 492,135 thousand U.S. dollars Income for the period for the three-month period ended June 30, 2026

EBITDA Q2 2026 649,331 thousand U.S. dollars EBITDA for the three-month period ended June 30, 2026

EBITDA margin Q2 2026 21.9 % EBITDA margin as a percentage of net sales in the second quarter of 2026

Free cash flow Q2 2026 396,069 thousand U.S. dollars Free cash flow for the three-month period ended June 30, 2026

Net cash position June 30, 2026 $3.6 billion Net cash position at June 30, 2026 mentioned in the liquidity discussion

Interim dividend per share 2026 0.59 U.S. dollars per share Board-approved interim dividend for 2026, equivalent to $1.18 per ADS

Net sales 6M 2026 6,067,084 thousand U.S. dollars Consolidated net sales for the six-month period ended June 30, 2026

Key Terms

EBITDA, Free cash flow, Net cash / (debt), Operating working capital days, +1 more

5 terms

EBITDA financial

"this press release includes non-IFRS alternative performance measures i.e., EBITDA"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

Free cash flow financial

"During the quarter, our free cash flow amounted to $396 million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

Net cash / (debt) financial

"Net cash / (debt) is a non-IFRS alternative performance measure"

Net cash/(debt) is a simple balance of a company’s liquid money (cash and equivalents) minus what it owes (short- and long-term debt); a positive number means more cash than debt, a negative number means net debt. Think of it like your bank balance after subtracting loans: it shows how much financial cushion a company has to pay bills, invest, return money to shareholders, or withstand downturns, so investors use it to gauge risk and flexibility.

Operating working capital days financial

"Operating working capital days is a non-IFRS alternative performance measure"

OCTG technical

"In the United States, OCTG prices have been increasing in response to higher demand"

OCTG stands for oil country tubular goods, the steel pipes and related fittings used to line and support oil and gas wells from the surface down into the earth. Think of them as the backbone and plumbing of a well: their quality and quantity affect how quickly and cheaply energy producers can drill and produce, so shifts in OCTG demand or prices signal changes in drilling activity and can materially impact the revenues and prospects of suppliers and oilfield service companies.

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FAQ

What were Tenaris (TS) net sales and net income in Q2 2026?

Tenaris (TS) reported Q2 2026 net sales of $2,967 million and income for the period of $492 million. Sales fell 4% sequentially as shipments to Middle East customers were postponed amid the effective closure of the strait of Hormuz.

How did Tenaris (TS) EBITDA and margin perform in Q2 2026?

Q2 2026 EBITDA was $649 million with an EBITDA margin of 21.9%. This compared with 23.7% in both Q1 2026 and Q2 2025, reflecting higher unit logistics costs, rising raw material costs and lower absorption of fixed costs.

What dividend did Tenaris (TS) declare with its Q2 2026 results?

The board approved an interim dividend of $0.59 per share, or $1.18 per ADS, totaling approximately $600 million. This comes on top of a previously paid dividend of $606 million during the first half of 2026.

What is Tenaris (TS) net cash position and free cash flow for 2026 so far?

Tenaris reported a net cash position of about $3.6 billion at June 30, 2026, using its net cash / (debt) measure. Free cash flow reached $396 million in Q2 and $0.9 billion in the first half, after $236 million of capital expenditures.

How did the Tubes segment of Tenaris (TS) perform by region in Q2 2026?

In Q2 2026, Tubes net sales were $2,803 million, down 4% sequentially. North America was broadly stable, South America and Europe moved modestly, while Asia Pacific, Middle East and Africa declined 22% as deliveries to Kuwait and Iraq were postponed and North Africa normalized.

What outlook did Tenaris (TS) give for the second half of 2026?

Tenaris expects second-half 2026 sales and EBITDA to remain broadly in line with the first half. Management anticipates continued impact from lower Middle East shipments and higher raw material costs, with Q3 affected by seasonality and mix, and Q4 helped by higher prices and volumes.

What board and governance changes did Tenaris (TS) announce?

Tenaris announced the resignation of Jaime Serra Puche from the Board and Audit Committee and changes to vice chair responsibilities. Alicia Móndolo joins as Vice Chair over Sustainability, Risk Management and Compliance, and Maria Novales-Flamarique joins the Audit Committee.

FORM 6 - K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a - 16 or 15d - 16 of

the Securities Exchange Act of 1934

As of August 5, 2026

TENARIS, S.A.

(Translation of Registrant's name into English)

26, Boulevard Royal, 4th floor

L-2449 Luxembourg

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or 40-F.

Form 20-F   ✓   Form 40-F      

The attached material is being furnished to the Securities and Exchange Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange Act of 1934, as amended. This report contains Tenaris’s Press Release announcing 2026 Second Quarter Results.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 5, 2026

Tenaris, S.A.

By: /s/ Giovanni Sardagna

Giovanni Sardagna

Investor Relations Officer

Giovanni Sardagna

Tenaris

1-888-300-5432

www.tenaris.com

Tenaris Announces 2026 Second Quarter Results

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 IFRS Accounting 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, August 5, 2026. - Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the quarter ended June 30, 2026 in comparison with its results for the quarter ended June 30, 2025.

Summary of 2026 Second Quarter Results

(Comparison with first quarter of 2026 and second quarter of 2025)

		2Q 2026				1Q 2026								2Q 2025
Net sales ($ million)			2,967				3,100				(4	%)			3,086				(4	%)
Operating income ($ million)			494				584				(15	%)			583				(15	%)
Net income ($ million)			492				564				(13	%)			542				(9	%)
Shareholders’ net income ($ million)			477				541				(12	%)			531				(10	%)
Earnings per ADS ($)			0.95				1.07				(11	%)			0.99				(4	%)
Earnings per share ($)			0.47				0.54				(11	%)			0.50				(4	%)
EBITDA ($ million)			649				735				(12	%)			733				(11	%)
EBITDA margin (% of net sales)			21.9	%			23.7	%							23.7	%
Weighted average shares outstanding (thousands)			1,009,640				1,010,193								1,068,721
Outstanding shares at the end of the period (thousands)			1,009,640				1,009,640								1,058,901

In the second quarter, our sales decreased 4% sequentially reflecting, to a large extent, the postponement of shipments to customers in the Middle East due to the effective closure of the strait of Hormuz for most of the period. Our EBITDA margin also decreased with higher unitary logistic costs, lower absorption of fixed costs and rising raw material costs.

 

During the quarter, our free cash flow amounted to $396 million and, after spending $606 million on dividends, our net cash position amounted to $3.6 billion at June 30, 2026.

Interim Dividend Payment

Our board of directors approved the payment of an interim dividend of $0.59 per share ($1.18 per ADS), or approximately $600 million, according to the following timetable:

• Payment date: November 25, 2026

• Record date: November 24, 2026

• Ex-dividend for securities listed in the United States: November 24, 2026

• Ex-dividend for securities listed in Europe and Mexico: November 23, 2026

Market Background and Outlook

Oil and gas drilling activity has been increasing in the USA, Canada and Argentina. In addition, customers around the world are moving forward with investments in cost-competitive offshore projects, as the industry increases its focus on security and diversification of supply.

In the United States, OCTG prices have been increasing in response to higher demand and to offset higher raw material and logistic costs.

In the Middle East, the conflict continues to cause disruption to shipping through the strait of Hormuz. Drilling activity in Iraq, Kuwait and Qatar has been severely affected, while, in Saudi Arabia and the UAE, it has been largely maintained.

In the second half, we expect our sales and EBITDA to remain in line with the first half, despite sales continuing to be affected by lower shipments to the Middle East and higher raw material costs. There may be some upside if the shipping disruption at the strait of Hormuz ends before the end of the year. The third quarter will be additionally affected by seasonality and product mix effects, while the fourth quarter will benefit from higher prices and volumes in most regions.

Changes in the Company's Board of Directors

The Company’s Board of Directors has been informed at its most recent meeting that Mr. Jaime Serra Puche has resigned as a member of the Board and of its Audit Committee, for personal reasons, and that, due to other commitments, Mr. Germán Curá has resigned as Vice Chair responsible for overseeing Tenaris’s Sustainability Strategy but will continue to serve as a director.

Pursuant to the authority granted to the Board of Directors under Luxembourg law and the Company's articles of association, the Board has appointed Ms. Alicia Móndolo as a member of the Board until the Company’s next shareholders meeting and as Vice Chair responsible for overseeing the Company's Sustainability Strategy, Risk Management and Compliance, and Ms. Maria Novales-Flamarique as a member of the Audit Committee.

 

These changes will be effective upon the publication of the Company's unaudited financial statements for the second quarter of 2026. Following such changes, the Board of Directors will be composed of ten members, as follows: Mr. Paolo Rocca, Chairman; Mr. Guillermo Vogel, Vice Chair responsible for overseeing Financial Reporting and Investor Relations; Ms. Alicia Móndolo, Vice Chair responsible for overseeing Sustainability, Risk Management and Compliance; Ms. Monica Tiuba; Mr. Simon Ayat; Ms. Maria Novales-Flamarique; Mr. Gianfelice Rocca; Mr. Roberto Bonatti; Mr. Germán Curá; and Ms. Molly Montgomery. Each of Ms. Tiuba, Mr. Ayat, Ms. Novales-Flamarique and Ms. Montgomery qualify as independent directors.

The Audit Committee will be composed of Ms. Monica Tiuba, as Chair, Mr. Simon Ayat and Ms. Maria Novales-Flamarique.

 

Analysis of 2026 Second 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)		2Q 2026				1Q 2026								2Q 2025
Seamless			768				784				(2	%)			803				(4	%)
Welded			179				211				(15	%)			179				0	%
Total			946				995				(5	%)			982				(4	%)

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		2Q 2026				1Q 2026								2Q 2025
(Net sales - $ million)
North America			1,471				1,474				0	%			1,403				5	%
South America			508				531				(4	%)			531				(4	%)
Europe			267				214				25	%			215				24	%
Asia Pacific, Middle East and Africa			557				712				(22	%)			771				(28	%)
Total net sales ($ million)			2,803				2,931				(4	%)			2,920				(4	%)
Services performed on third party tubes ($ million)			91				109				(16	%)			110				(17	%)
Operating income ($ million)			465				545				(15	%)			554				(16	%)
Operating margin (% of sales)			16.6	%			18.6	%							19.0	%

Net sales of tubular products and services decreased 4% sequentially and year on year, in line with the volume variation as average selling prices remained stable. Sequentially, in North America, higher sales of OCTG in the United States largely compensated for lower OCTG sales in Canada and Mexico. In South America, lower sales of OCTG in Brazil were partially compensated by an increase in Guyana, Suriname and Venezuela, while, in Argentina, lower sales for pipelines were compensated by higher sales of OCTG. In Europe, we had higher sales of OCTG in Turkey and the start of deliveries of offshore line pipe to the Sakarya Black Sea development. In Asia Pacific, Middle East and Africa, sales declined with the postponement of deliveries to Kuwait and Iraq and lower deliveries to North Africa following a concentration of such deliveries in the previous quarter.

Operating results from tubular products and services amounted to a gain of $465 million in the second quarter of 2026 compared to a gain of $545 million in the previous quarter and a gain of $554 million in the second quarter of 2025. Operating income in the quarter decreased due to higher unitary logistic costs, lower absorption of fixed costs and rising raw material costs.

 

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		2Q 2026				1Q 2026								2Q 2025
Net sales ($ million)			164				169				(3	%)			166				(1	%)
Operating income ($ million)			29				39				(26	%)			29				1	%
Operating margin (% of sales)			17.8	%			23.2	%							17.3	%

Net sales of other products and services decreased 3% sequentially and decreased 1% year on year. Sequentially sales declined mainly due to lower sales of oilfield services in Argentina.

Selling, general and administrative expenses, or SG&A, amounted to $484 million, or 16.3% of net sales, in the second quarter of 2026, compared to $467 million, 15.0% in the previous quarter and $484 million, 15.7% in the second quarter of 2025. Sequentially, the increase in SG&A is mainly due to higher services and fees and increased unitary logistic costs associated to the closure of the strait of Hormuz.

Financial results amounted to a gain of $32 million in the second quarter of 2026, compared to a gain of $50 million in the previous quarter and a gain of $32 million in the second quarter of 2025. Financial results of the quarter are mainly attributable to a $41 million net finance income from the net return of our portfolio investments, net of a $9 million loss from foreign exchange transactions and derivatives.

Equity in earnings of non-consolidated companies generated a gain of $48 million in the second quarter of 2026, compared to a gain of $33 million in the previous quarter and a gain of $33 million in the second quarter of 2025. These results are mainly derived from our participation in Ternium (NYSE:TX) and Usiminas.

Income tax charge amounted to $82 million in the second quarter of 2026, compared to $103 million in the previous quarter and $105 million in the second quarter of 2025.

Cash Flow and Liquidity of 2026 Second Quarter

Net cash generated by operating activities during the second quarter of 2026 was $518 million, compared to $618 million in the previous quarter and $673 million in the second quarter of 2025.

 

With capital expenditures of $121 million, our free cash flow amounted to $396 million during the quarter. Following a dividend payment of $606 million in the quarter, our net cash position amounted to $3.6 billion at June 30, 2026.

Analysis of 2026 First Half Results

		6M 2026				6M 2025					Increase/(Decrease)
Net sales ($ million)			6,067				6,008				1	%
Operating income ($ million)			1,078				1,133				(5	%)
Net income ($ million)			1,056				1,060				0	%
Shareholders’ net income ($ million)			1,018				1,038				(2	%)
Earnings per ADS ($)			2.02				1.94				4	%
Earnings per share ($)			1.01				0.97				4	%
EBITDA ($ million)			1,385				1,429				(3	%)
EBITDA margin (% of net sales)			22.8	%			23.8	%
Weighted average shares outstanding (thousands)			1,009,956				1,072,974
Outstanding shares at the end of the period (thousands)			1,009,640				1,058,901

Our sales in the first half of 2026 increased 1% compared to the first half of 2025 as volumes of tubular products shipped decreased 1% and tubes average selling prices increased 2% driven by price increases in North America while sales in the Others segment increased 3%. EBITDA in the first half of 2026 was negatively affected by the impact of tariff costs in the United States. Earnings per share increased 4% following the reduction of outstanding shares due to the share buyback.

Cash flow provided by operating activities amounted to $1.1 billion during the first half of 2026, net of an increase in working capital of $84 million. After capital expenditures of $236 million, our free cash flow amounted to $0.9 billion. Following a dividend payment of $606 million and share buybacks for $90 million in the semester, our net cash position amounted to $3.6 billion at the end of June 2026.

The following table shows our net sales by business segment for the periods indicated below:

Net sales ($ million)		6M 2026							6M 2025									Increase/(Decrease)
Tubes			5,734			95	%			5,686				95	%			1	%
Others			333			5	%			322				5	%			3	%
Total			6,067							6,008								1	%

 

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)		6M 2026				6M 2025					Increase/(Decrease)
Seamless			1,553				1,578				(2	%)
Welded			389				390				0	%
Total			1,942				1,969				(1	%)

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		6M 2026				6M 2025					Increase/(Decrease)
(Net sales - $ million)
North America			2,945				2,648				11	%
South America			1,039				1,083				(4	%)
Europe			481				423				14	%
Asia Pacific, Middle East and Africa			1,269				1,532				(17	%)
Total net sales ($ million)			5,734				5,686				1	%
Services performed on third party tubes ($ million)			199				211				(5	%)
Operating income ($ million)			1,010				1,068				(5	%)
Operating margin (% of sales)			17.6	%			18.8	%

Net sales of tubular products and services increased 1% to $5,734 million in the first half of 2026, compared to $5,686 million in the first half of 2025 due to a 1% decrease in volumes and a 2% increase in average selling prices driven by price increases in North America. Average drilling activity in the first half of 2026 declined 3% in the United States and Canada and 2% internationally compared to the first half of 2025.

Operating results from tubular products and services amounted to a gain of $1,010 million in the first half of 2026 compared to a gain of $1,068 million in the first half of 2025. The decline in operating results is mainly due to the impact of tariff costs in the United States.

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		6M 2026				6M 2025					Increase/(Decrease)
Net sales ($ million)			333				322				3	%
Operating income ($ million)			68				65				5	%
Operating margin (% of sales)			20.5	%			20.2	%

Net sales of other products and services increased 3% to $333 million in the first half of 2026, compared to $322 million in the first half of 2025. The increase is mainly due to additional sales of excess raw materials.

Operating results from other products and services amounted to a gain of $68 million in the first half of 2026, compared to a gain of $65 million in the first half of 2025. These results were primarily driven by our oilfield services business in Argentina and by sales of sucker rods, pipes for plumbing applications, and coiled tubing.

 

Selling, general and administrative expenses, or SG&A, amounted to $951 million in the first half of 2026 and $941 million in the first half of 2025 in both cases representing 15.7% of sales.

Other operating results amounted to a loss of $6 million in the first half of 2026, compared to a loss of $50 thousand in the first half of 2025. The six million loss is mainly due to the provision for ongoing litigation related to the acquisition of a participation in Usiminas.

Financial results amounted to a gain of $83 million in the first half of 2026, compared to a gain of $67 million in the first half of 2025. Financial results of the semester are mainly attributable to a $94 million net finance income from the net return of our portfolio investments.

Equity in earnings of non-consolidated companies generated a gain of $81 million in the first half of 2026, compared to a gain of $47 million in the first half of 2025. These results are mainly derived from our participation in Ternium (NYSE:TX) and Usiminas.

Income tax amounted to a charge of $185 million in the first half of 2026, compared to $187 million in the first half of 2025.

Cash Flow and Liquidity of 2026 First Half

Net cash provided by operating activities during the first half of 2026 amounted to $1.1 billion (net of an increase in working capital of $84 million), compared to cash provided by operations of $1.5 billion (including a reduction in working capital of $250 million) in the first half of 2025.

Capital expenditures amounted to $236 million in the first half of 2026, compared to $309 million in the first half of 2025. Free cash flow amounted to $0.9 billion in the first half of 2026, compared to $1.2 billion in the first half of 2025.

Following a dividend payment of $606 million in May 2026 and share buybacks of $90 million during the first half of 2026, our net cash position amounted to $3.6 billion at the end of June 2026.

Tenaris Files Half-Year Report

Tenaris S.A. announces that it has filed its half-year report for the six-month period ended June 30, 2026 with the Luxembourg Stock Exchange. The half-year report can be downloaded from the Luxembourg Stock Exchange’s website at www.luxse.com and from Tenaris’s website at ir.tenaris.com.

Holders of Tenaris’s shares and ADSs, and any other interested parties, may request a hard copy of the half-year report, free of charge, at 1-888-300-5432 (toll free from the United States) or 52-229-989-1159 (from outside the United States).

 

Conference call

Tenaris will hold a conference call to discuss the above reported results, on August 6, 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/mebw5wg6

If you wish to participate in the Q&A session please register at the following link:

https://register-conf.media-server.com/register/BIdf3a3ac7cf144c3f80f84a3c0df4fbe9

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

 

Consolidated Condensed Interim Income Statement

(all amounts in thousands of U.S. dollars)		Three-month period ended June 30,								Six-month period ended June 30,
		2026				2025				2026				2025
		(Unaudited)								(Unaudited)
Net sales			2,966,626				3,085,672				6,067,084				6,007,884
Cost of sales			(1,981,966	)			(2,013,639	)			(4,032,289	)			(3,934,494	)
Gross profit			984,660				1,072,033				2,034,795				2,073,390
Selling, general and administrative expenses			(484,107	)			(483,633	)			(950,698	)			(940,698	)
Other operating income			2,791				4,317				9,231				16,105
Other operating expenses			(9,342	)			(9,983	)			(15,462	)			(16,150	)
Operating income			494,002				582,734				1,077,866				1,132,647
Finance income			52,970				63,669				117,739				142,113
Finance cost			(11,906	)			(9,712	)			(23,570	)			(21,457	)
Other financial results, net			(8,956	)			(22,294	)			(11,662	)			(53,735	)
Income before equity in earnings of non-consolidated companies and income tax			526,110				614,397				1,160,373				1,199,568
Equity in earnings of non-consolidated companies			47,963				32,651				81,339				46,686
Income before income tax			574,073				647,048				1,241,712				1,246,254
Income tax			(81,938	)			(105,342	)			(185,419	)			(186,684	)
Income for the period			492,135				541,706				1,056,293				1,059,570
Attributable to:
Shareholders' equity			477,137				531,323				1,017,838				1,038,254
Non-controlling interests			14,998				10,383				38,455				21,316
			492,135				541,706				1,056,293				1,059,570

 

Consolidated Condensed Interim Statement of Financial Position

(all amounts in thousands of U.S. dollars)		At June 30, 2026						At December 31, 2025
		(Unaudited)
ASSETS
Non-current assets
Property, plant and equipment, net			6,147,589						6,205,082
Intangible assets, net			1,355,974						1,357,116
Right-of-use assets, net			147,129						144,557
Investments in non-consolidated companies			1,619,204						1,561,212
Other investments			1,089,080						758,085
Deferred tax assets			813,183						834,168
Receivables, net			116,296			11,288,455			139,211			10,999,431
Current assets
Inventories, net			3,716,159						3,602,058
Receivables and prepayments, net			168,406						268,798
Current tax assets			383,643						364,640
Contract assets			29,537						35,264
Trade receivables, net			1,927,777						1,920,840
Derivative financial instruments			14,570						1,875
Other investments			2,225,725						2,306,760
Cash and cash equivalents			557,057			9,022,874			572,647			9,072,882
Total assets						20,311,329						20,072,313
EQUITY
Shareholders' equity						16,962,791						16,599,191
Non-controlling interests						255,872						229,877
Total equity						17,218,663						16,829,068
LIABILITIES
Non-current liabilities
Borrowings			357						368
Lease liabilities			98,226						94,903
Derivative financial instruments			—						207
Deferred tax liabilities			395,239						442,248
Other liabilities			321,569						310,707
Provisions			59,429			874,820			48,418			896,851
Current liabilities
Borrowings			301,534						305,354
Lease liabilities			46,833						48,346
Derivative financial instruments			5,363						14,123
Current tax liabilities			270,253						386,586
Other liabilities			443,284						377,088
Provisions			155,029						173,152
Customer advances			129,925						168,832
Trade payables			865,625			2,217,846			872,913			2,346,394
Total liabilities						3,092,666						3,243,245
Total equity and liabilities						20,311,329						20,072,313

 

Consolidated Condensed Interim Statement of Cash Flows

(all amounts in thousands of U.S. dollars)		Three-month period ended June 30,								Six-month period ended June 30,
		2026				2025				2026				2025
		(Unaudited)								(Unaudited)
Cash flows from operating activities
Income for the period			492,135				541,706				1,056,293				1,059,570
Adjustments for:
Depreciation and amortization			155,329				150,002				306,769				296,408
Provision for the ongoing litigation related to the acquisition of participation in Usiminas			5,291				8,650				15,641				18,527
Income tax accruals less payments			(99,486	)			(36,660	)			(98,440	)			(90,793	)
Equity in earnings of non-consolidated companies			(47,963	)			(32,651	)			(81,339	)			(46,686	)
Interest accruals less payments/collections, net			(5,983	)			(4,616	)			17,083				(13,039	)
Changes in provisions			(16,036	)			628				(22,753	)			(1,765	)
Changes in working capital			37				26,499				(83,720	)			250,316
Others, including net foreign exchange			34,201				19,589				25,636				21,609
Net cash provided by operating activities			517,525				673,147				1,135,170				1,494,147
Cash flows from investing activities
Capital expenditures			(121,456	)			(135,454	)			(235,935	)			(309,292	)
Changes in advances to suppliers of property, plant and equipment			4,530				(18,769	)			9,983				(5,853	)
Cash decrease due to deconsolidation of subsidiaries			—				(1,848	)			—				(1,848	)
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			518				56,829				1,011				57,729
Dividends received from non-consolidated companies			29,863				41,348				29,863				41,348
Changes in investments in securities			(364,472	)			94,299				(286,375	)			(131,337	)
Net cash used in investing activities			(451,017	)			36,405				(417,172	)			(350,612	)
Cash flows from financing activities			—				—				—				—
Dividends paid			(605,790	)			(600,317	)			(605,790	)			(600,317	)
Dividends paid to non-controlling interest in subsidiaries			(1,232	)			(27,264	)			(1,232	)			(27,264	)
Acquisition of treasury shares			—				(236,744	)			(89,562	)			(473,932	)
Payments of lease liabilities			(18,137	)			(15,392	)			(33,663	)			(30,047	)
Proceeds from borrowings			107,802				128,874				356,232				476,443
Repayments of borrowings			(137,232	)			(145,831	)			(359,034	)			(574,956	)
Net cash used in financing activities			(654,589	)			(896,674	)			(733,049	)			(1,230,073	)
Decrease in cash and cash equivalents			(588,081	)			(187,122	)			(15,051	)			(86,538	)
Movement in cash and cash equivalents
At the beginning of the period			1,152,104				758,952				572,444				660,798
Effect of exchange rate changes			(7,040	)			(338	)			(410	)			(2,768	)
Decrease in cash and cash equivalents			(588,081	)			(187,122	)			(15,051	)			(86,538	)
At June 30,			556,983				571,492				556,983				571,492

 

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 June 30,								Six-month period ended June 30,
		2026				2025				2026				2025
Income for the period			492,135				541,706				1,056,293				1,059,570
Income tax charge			81,938				105,342				185,419				186,684
Equity in earnings of non-consolidated companies			(47,963	)			(32,651	)			(81,339	)			(46,686	)
Financial Results			(32,108	)			(31,663	)			(82,507	)			(66,921	)
Depreciation and amortization			155,329				150,002				306,769				296,408
EBITDA			649,331				732,736				1,384,635				1,429,055

 

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 June 30,								Six-month period ended June 30,
		2026				2025				2026				2025
Net cash provided by operating activities			517,525				673,147				1,135,170				1,494,147
Capital expenditures			(121,456	)			(135,454	)			(235,935	)			(309,292	)
Free cash flow			396,069				537,693				899,235				1,184,855

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 June 30,
		2026				2025
Cash and cash equivalents			557,057				572,289
Other current investments			2,225,725				2,482,514
Non-current investments			1,082,192				1,002,523
Derivatives hedging borrowings and investments			1,265				(3,698	)
Current borrowings			(301,534	)			(319,919	)
Non-current borrowings			(357	)			(4,361	)
Net cash / (debt)			3,564,348				3,729,348

 

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 June 30,
		2026				2025
Inventories			3,716,159				3,486,537
Trade receivables			1,927,777				1,892,116
Customer advances			(129,925	)			(139,751	)
Trade payables			(865,625	)			(910,427	)
Operating working capital			4,648,386				4,328,475
Annualized quarterly sales			11,866,504				12,342,688
Operating working capital days			143				128