Tenaris Q3 2026 earnings rise 15% to $521M
First-nine-month operating cash flow was $1.5 billion versus $1.8 billion a year earlier, while fourth-quarter sales and EBITDA are expected to increase.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Tenaris, S.A. (TS) reported third-quarter 2026 net sales of $3,102 million, up 5% from the prior quarter and 4% year over year. Net income was $521 million, up 6% sequentially and 15% year over year; EBITDA was $756 million, up 16% sequentially. EBITDA margin was 24.4%, compared with 21.9% in the second quarter.
Tubes sales were $2,927 million, up 4% sequentially, while Tubes operating income was $557 million, up from $465 million in the second quarter but down 6% from a year earlier. Third-quarter operating cash flow was $366 million and free cash flow was $268 million, including a $270 million increase in working capital. Net cash was $3.8 billion at September 30, 2026.
For the first nine months, operating cash flow was $1.5 billion versus $1.8 billion a year earlier, and free cash flow was $1.2 billion versus $1.3 billion. Tenaris expects fourth-quarter sales and EBITDA to increase; it says the quarter should set a new quarterly baseline going into 2027, assuming no significant change in the geopolitical context.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter net income increased 15% year over year to $521 million.
- Moderate pointThird-quarter EBITDA was $756 million, up 16% sequentially.
- Moderate pointThird-quarter sales increased 5% sequentially to $3,102 million.
Negative
- Moderate pointFirst-nine-month operating cash flow was $1.5 billion versus $1.8 billion in 2025.
- Moderate pointTubes operating income fell 6% year over year to $1,566 million.
Filing Explained
Tenaris says its first-nine-month share buybacks reduced outstanding shares and, alongside higher earnings from associated companies, contributed to
Key Figures
Key Terms
EBITDA financial
Free cash flow financial
Net cash / (debt) financial
Operating working capital days financial
FAQ
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What were TS's third-quarter 2026 earnings?
Why did Tenaris's third-quarter EBITDA margin recover?
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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 November 4, 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 Ö 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 Third 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: November 4, 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 Third 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 Standards 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, November 4, 2026. - Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the quarter ended September 30, 2026 in comparison with its results for the quarter ended September 30, 2025.
Summary of 2026 Third Quarter Results
(Comparison with second quarter of 2026 and third quarter of 2025)
| 3Q 2026 | 2Q 2026 | 3Q 2025 | |||
| Net sales ($ million) | 3,102 | 2,967 | 5% | 2,978 | 4% |
| Operating income ($ million) | 598 | 494 | 21% | 597 | 0% |
| Net income ($ million) | 521 | 492 | 6% | 453 | 15% |
| Shareholders’ net income ($ million) | 509 | 477 | 7% | 446 | 14% |
| Earnings per ADS ($) | 1.01 | 0.95 | 6% | 0.85 | 19% |
| Earnings per share ($) | 0.50 | 0.47 | 6% | 0.43 | 19% |
| EBITDA* ($ million) | 756 | 649 | 16% | 753 | 0% |
| EBITDA margin (% of net sales) | 24.4% | 21.9% | 25.3% | ||
*EBITDA in the third quarter of 2025 includes a $34 million gain recorded for the return of U.S. antidumping deposits paid on OCTG imports from Argentina for which the duty rate had been revised downwards. If this gain was not included EBITDA would have amounted to $719 million, or 24.1% of sales.
In the third quarter, our sales recovered 5% sequentially on higher demand in North America and an increase in shipments to customers in the Middle East. Our EBITDA margin also recovered sequentially, despite higher raw material, energy and logistic costs, reflecting a favorable product mix and efficient industrial performance, as well as the postponement of maintenance programs at some of our facilities. Net income increased 6% sequentially to $521 million, as the improvement in operating income was partially offset by a higher income tax charge and lower financial results and earnings from non-consolidated companies.
During the quarter, our free cash flow amounted to $268 million, which included an increase of $270 million in working capital, and our net cash position amounted to $3.8 billion at September 30, 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 responding to the increase in demand and higher raw material and logistic costs, while OCTG inventories are gradually drawn down.
In the Middle East, the conflict continues to cause disruption to shipping through the strait of Hormuz, although flows of oil have increased using ship-to-ship transfers. Drilling activity in the region has slowly started to recover as oil producers increase production and exports from the region.
In the fourth quarter, we expect an increase in our sales and EBITDA reflecting higher OCTG demand and prices in North America and an increase in shipments to offshore projects. The fourth quarter should set a new quarterly baseline for our sales and EBITDA going into 2027, assuming no significant change in the geopolitical context.
Analysis of 2026 Third 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) | 3Q 2026 | 2Q 2026 | 3Q 2025 | ||
| Seamless | 780 | 768 | 2% | 780 | 0% |
| Welded | 196 | 179 | 10% | 199 | (1%) |
| Total | 976 | 946 | 3% | 979 | 0% |
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 | 3Q 2026 | 2Q 2026 | 3Q 2025 | ||
| (Net sales - $ million) | |||||
| North America | 1,652 | 1,471 | 12% | 1,450 | 14% |
| South America | 447 | 508 | (12%) | 520 | (14%) |
| Europe | 234 | 267 | (12%) | 189 | 24% |
| Asia Pacific, Middle East and Africa | 595 | 557 | 7% | 716 | (17%) |
| Total net sales ($ million) | 2,927 | 2,803 | 4% | 2,875 | 2% |
| Services performed on third party tubes ($ million) | 69 | 91 | (24%) | 109 | (37%) |
| Operating income ($ million) | 557 | 465 | 20% | 592 | (6%) |
| Operating margin (% of sales) | 19.0% | 16.6% | 20.6% | ||
Net sales of tubular products and services increased 4% sequentially and 2% year on year. Overall volumes increased 3% sequentially with a 2% increase in seamless volumes and a 10% increase in welded. Average selling prices increased 2% sequentially, excluding services performed on third party pipes. Sequentially, sales increased in North America, thanks to higher sales of OCTG in the region and higher sales of line pipe to distributors in the United States. In South America, sales declined due to lower sales of pipes for pipelines in Argentina and lower sales of coating services in Guyana. In Europe, sales declined due to lower sales of OCTG in Turkey and seasonally lower sales of mechanical pipe to distributors. In Asia Pacific, Middle East and Africa, sales increased due to deliveries to Kuwait and Iraq and higher sales in North Africa.
Operating results from tubular products and services amounted to a gain of $557 million in the third quarter of 2026 compared to a gain of $465 million in the previous quarter and a gain of $592 million in the third quarter of 2025. Operating income in the quarter improved sequentially following the improvement in sales, with higher absorption of fixed costs, lower maintenance expenses and a more efficient industrial performance offsetting an increase in raw material, logistic and energy costs.
Others
The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:
| Others | 3Q 2026 | 2Q 2026 | 3Q 2025 | ||
| Net sales ($ million) | 175 | 164 | 7% | 103 | 70% |
| Operating income ($ million) | 41 | 29 | 40% | 5 | 781% |
| Operating margin (% of sales) | 23.3% | 17.8% | 4.5% | ||
Net sales of other products and services increased 7% sequentially and 70% year on year. Sequentially sales increased mainly due to higher sales of excess raw materials and energy. In the third quarter of 2026 there were one-off gains of $11 million from the sale of land, recovery of tariffs and the reversion of provisions.
Selling, general and administrative expenses, or SG&A, amounted to $472 million, or 15.2% of net sales, in the third quarter of 2026, compared to $484 million, 16.3% in the previous quarter and $435 million, 14.6% in the third quarter of 2025. Sequentially, the decrease in SG&A is mainly due to lower labor costs, services and fees and provisions for contingencies, partially offset by higher logistic costs.
Financial results amounted to a gain of $22 million in the third quarter of 2026, compared to a gain of $32 million in the previous quarter and a gain of $37 million in the third quarter of 2025. Financial results of the quarter are mainly attributable to a $29 million net finance income from the return of our portfolio investments, net of a $7 million loss from foreign exchange transactions and derivatives.
Equity in earnings (losses) of non-consolidated companies generated a gain of $38 million in the third quarter of 2026, compared to a gain of $48 million in the previous quarter and a loss of $9 million in the third quarter of 2025. These results are mainly derived from our participation in Ternium (NYSE:TX).
Income tax charge amounted to $136 million in the third quarter of 2026, compared to $82 million in the previous quarter and $172 million in the third quarter of 2025.
Cash Flow and Liquidity of 2026 Third Quarter
Net cash generated by operating activities during the third quarter of 2026 was $366 million, compared to $518 million in the previous quarter and $318 million in the third quarter of 2025.
With capital expenditures of $98 million, our free cash flow amounted to $268 million during the quarter. Our net cash position amounted to $3.8 billion at September 30, 2026.
Analysis of 2026 First Nine Months Results
| 9M 2026 | 9M 2025 | Increase/(Decrease) | |
| Net sales ($ million) | 9,169 | 8,986 | 2% |
| Operating income ($ million) | 1,675 | 1,729 | (3%) |
| Net income ($ million) | 1,578 | 1,512 | 4% |
| Shareholders’ net income ($ million) | 1,527 | 1,484 | 3% |
| Earnings per ADS ($) | 3.02 | 2.79 | 8% |
| Earnings per share ($) | 1.51 | 1.39 | 8% |
| EBITDA* ($ million) | 2,141 | 2,183 | (2%) |
| EBITDA margin (% of net sales) | 23.3% | 24.3% |
*EBITDA in 9M 2025 includes a $34 million gain from the return of U.S. antidumping deposits paid on OCTG imports from Argentina for which the duty rate had been revised downwards. If this gain was not included EBITDA in 9M 2025 would have amounted to $2,149 million, or 23.9% of sales.
Our sales in the first nine months of 2026 increased 2% compared to the first nine months of 2025 as our Tubes sales increased 1% mainly due to higher prices in North America and our Others sales increased 19% mainly due to higher sales of oilfield services in Argentina. On a comparable basis EBITDA decreased slightly while earnings per share increased 8% following higher results from associated companies and the reduction of outstanding shares due to the share buyback.
Cash flow provided by operating activities amounted to $1.5 billion during the first nine months of 2026, net of an increase in working capital of $354 million. After capital expenditures of $334 million, our free cash flow amounted to $1.2 billion. Following a dividend payment of $606 million and share buybacks for $90 million in the first nine months, our net cash position amounted to $3.8 billion at the end of September 2026.
The following table shows our net sales by business segment for the periods indicated below:
| Net sales ($ million) | 9M 2026 | 9M 2025 | Increase/(Decrease) | ||
| Tubes | 8,662 | 94% | 8,560 | 95% | 1% |
| Others | 507 | 6% | 426 | 5% | 19% |
| Total | 9,169 | 8,986 | 2% | ||
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) | 9M 2026 | 9M 2025 | Increase/(Decrease) |
| Seamless | 2,332 | 2,359 | (1%) |
| Welded | 586 | 589 | (1%) |
| Total | 2,918 | 2,948 | (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 | 9M 2026 | 9M 2025 | Increase/(Decrease) |
| (Net sales - $ million) | |||
| North America | 4,597 | 4,097 | 12% |
| South America | 1,486 | 1,603 | (7%) |
| Europe | 715 | 612 | 17% |
| Asia Pacific, Middle East and Africa | 1,864 | 2,248 | (17%) |
| Total net sales ($ million) | 8,662 | 8,560 | 1% |
| Services performed on third party tubes ($ million) | 268 | 320 | (16%) |
| Operating income ($ million) | 1,566 | 1,660 | (6%) |
| Operating margin (% of sales) | 18.1% | 19.4% |
Net sales of tubular products and services increased 1% to $8,662 million in the first nine months of 2026, compared to $8,560 million in the first nine months of 2025 as a 2% increase in average selling prices was partially offset by a 1% decrease in volumes. Average drilling activity in the first nine months of 2026 increased 1% in the United States and Canada and remained flat internationally compared to the first nine months of 2025.
Operating results from tubular products and services amounted to a gain of $1,566 million in the first nine months of 2026 compared to a gain of $1,660 million in the first nine months of 2025. During 2026 our operating results were impacted by higher tariff costs in the United States.
Others
The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:
| Others | 9M 2026 | 9M 2025 | Increase/(Decrease) |
| Net sales ($ million) | 507 | 426 | 19% |
| Operating income ($ million) | 109 | 70 | 57% |
| Operating margin (% of sales) | 21.5% | 16.4% |
Net sales of other products and services increased 19% to $507 million in the first nine months of 2026, compared to $426 million in the first nine months of 2025. The increase is mainly due to higher sales of oilfield services in Argentina and higher sales of excess raw materials.
Operating results from other products and services amounted to a gain of $109 million in the first nine months of 2026, compared to a gain of $70 million in the first nine months of 2025. These results were primarily driven by our oilfield services business in Argentina and by sales of sucker rods, coiled tubing and pipes for plumbing applications.
Selling, general and administrative expenses, or SG&A, amounted to $1,423 million in the first nine months of 2026 and $1,376 million in the first nine months of 2025, representing 15.5% and 15.3% of sales, respectively.
Financial results amounted to a gain of $104 million in the first nine months of 2026, compared to a gain of $104 million in the first nine months of 2025. Financial results of the first nine months are mainly attributable to a $123 million net finance income from the net return of our portfolio investments.
Equity in earnings (losses) of non-consolidated companies generated a gain of $119 million in the first nine months of 2026, compared to a gain of $38 million in the first nine months of 2025. These results are mainly derived from our participation in Ternium (NYSE:TX).
Income tax amounted to a charge of $321 million in the first nine months of 2026, compared to $358 million in the first nine months of 2025.
Cash Flow and Liquidity of 2026 First Nine Months
Net cash provided by operating activities during the first nine months of 2026 amounted to $1.5 billion (net of an increase in working capital of $354 million), compared to cash provided by operations of $1.8 billion (including an increase in working capital of $62 million) in the first nine months of 2025.
Capital expenditures amounted to $334 million in the first nine months of 2026, compared to $495 million in the first nine months of 2025. Free cash flow amounted to $1.2 billion in the first nine months of 2026, compared to $1.3 billion in the first nine months of 2025.
Following a dividend payment of $606 million in May 2026 and share buybacks of $90 million during the first nine months of 2026, our net cash position amounted to $3.8 billion at the end of September 2026.
Conference call
Tenaris will hold a conference call to discuss the above reported results, on November 5, 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/g8dg3gut
If you wish to participate in the Q&A session please register at the following link:
https://register-conf.media-server.com/register/BIfa12a674640146cd8deb50112f9f5b36
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 September 30, | Nine-month period ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Net sales | 3,102,349 | 2,978,140 | 9,169,433 | 8,986,024 | ||||||||||||
| Cost of sales | (2,033,518 | ) | (1,946,125 | ) | (6,065,807 | ) | (5,880,619 | ) | ||||||||
| Gross profit | 1,068,831 | 1,032,015 | 3,103,626 | 3,105,405 | ||||||||||||
| Selling, general and administrative expenses | (472,057 | ) | (434,969 | ) | (1,422,755 | ) | (1,375,667 | ) | ||||||||
| Other operating income | 7,637 | 7,226 | 16,868 | 23,331 | ||||||||||||
| Other operating expenses | (6,896 | ) | (7,641 | ) | (22,358 | ) | (23,791 | ) | ||||||||
| Operating income | 597,515 | 596,631 | 1,675,381 | 1,729,278 | ||||||||||||
| Finance income | 40,290 | 56,181 | 158,029 | 198,294 | ||||||||||||
| Finance cost | (11,507 | ) | (9,636 | ) | (35,077 | ) | (31,093 | ) | ||||||||
| Other financial results, net | (6,867 | ) | (9,877 | ) | (18,529 | ) | (63,612 | ) | ||||||||
| Income before equity in earnings of non-consolidated companies and income tax | 619,431 | 633,299 | 1,779,804 | 1,832,867 | ||||||||||||
| Equity in earnings (losses) of non-consolidated companies | 37,690 | (8,955 | ) | 119,029 | 37,731 | |||||||||||
| Income before income tax | 657,121 | 624,344 | 1,898,833 | 1,870,598 | ||||||||||||
| Income tax | (135,859 | ) | (171,698 | ) | (321,278 | ) | (358,382 | ) | ||||||||
| Income for the period | 521,262 | 452,646 | 1,577,555 | 1,512,216 | ||||||||||||
| Attributable to: | ||||||||||||||||
| Shareholders' equity | 509,107 | 445,694 | 1,526,945 | 1,483,948 | ||||||||||||
| Non-controlling interests | 12,155 | 6,952 | 50,610 | 28,268 | ||||||||||||
| 521,262 | 452,646 | 1,577,555 | 1,512,216 | |||||||||||||
Consolidated Condensed Interim Statement of Financial Position
| (all amounts in thousands of U.S. dollars) | At September 30, 2026 | At December 31, 2025 | ||||||||||||||
| (Unaudited) | ||||||||||||||||
| ASSETS | ||||||||||||||||
| Non-current assets | ||||||||||||||||
| Property, plant and equipment, net | 6,102,335 | 6,205,082 | ||||||||||||||
| Intangible assets, net | 1,352,357 | 1,357,116 | ||||||||||||||
| Right-of-use assets, net | 150,084 | 144,557 | ||||||||||||||
| Investments in non-consolidated companies | 1,652,701 | 1,561,212 | ||||||||||||||
| Other investments | 1,170,663 | 758,085 | ||||||||||||||
| Deferred tax assets | 834,364 | 834,168 | ||||||||||||||
| Receivables, net | 129,287 | 11,391,791 | 139,211 | 10,999,431 | ||||||||||||
| Current assets | ||||||||||||||||
| Inventories, net | 3,939,555 | 3,602,058 | ||||||||||||||
| Receivables and prepayments, net | 205,183 | 268,798 | ||||||||||||||
| Current tax assets | 359,463 | 364,640 | ||||||||||||||
| Contract assets | 19,780 | 35,264 | ||||||||||||||
| Trade receivables, net | 2,059,505 | 1,920,840 | ||||||||||||||
| Derivative financial instruments | 15,753 | 1,875 | ||||||||||||||
| Other investments | 2,145,322 | 2,306,760 | ||||||||||||||
| Cash and cash equivalents | 806,457 | 9,551,018 | 572,647 | 9,072,882 | ||||||||||||
| Total assets | 20,942,809 | 20,072,313 | ||||||||||||||
| EQUITY | ||||||||||||||||
| Shareholders' equity | 16,853,172 | 16,599,191 | ||||||||||||||
| Non-controlling interests | 267,977 | 229,877 | ||||||||||||||
| Total equity | 17,121,149 | 16,829,068 | ||||||||||||||
| LIABILITIES | ||||||||||||||||
| Non-current liabilities | ||||||||||||||||
| Borrowings | 356 | 368 | ||||||||||||||
| Lease liabilities | 97,265 | 94,903 | ||||||||||||||
| Derivative financial instruments | - | 207 | ||||||||||||||
| Deferred tax liabilities | 389,895 | 442,248 | ||||||||||||||
| Other liabilities | 333,459 | 310,707 | ||||||||||||||
| Provisions | 57,808 | 878,783 | 48,418 | 896,851 | ||||||||||||
| Current liabilities | ||||||||||||||||
| Borrowings | 336,573 | 305,354 | ||||||||||||||
| Lease liabilities | 51,012 | 48,346 | ||||||||||||||
| Derivative financial instruments | 7,810 | 14,123 | ||||||||||||||
| Current tax liabilities | 263,773 | 386,586 | ||||||||||||||
| Other liabilities | 975,495 | 377,088 | ||||||||||||||
| Provisions | 160,989 | 173,152 | ||||||||||||||
| Customer advances | 165,391 | 168,832 | ||||||||||||||
| Trade payables | 981,834 | 2,942,877 | 872,913 | 2,346,394 | ||||||||||||
| Total liabilities | 3,821,660 | 3,243,245 | ||||||||||||||
| Total equity and liabilities | 20,942,809 | 20,072,313 | ||||||||||||||
Consolidated Condensed Interim Statement of Cash Flows
| (all amounts in thousands of U.S. dollars) | Three-month period ended September 30, | Nine-month period ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Cash flows from operating activities | ||||||||||||||||
| Income for the period | 521,262 | 452,646 | 1,577,555 | 1,512,216 | ||||||||||||
| Adjustments for: | ||||||||||||||||
| Depreciation and amortization | 158,558 | 156,841 | 465,327 | 453,249 | ||||||||||||
| Provision for the ongoing litigation related to the acquisition of participation in Usiminas | 4,331 | 6,907 | 19,972 | 25,434 | ||||||||||||
| Income tax accruals less payments | (21,489 | ) | 26,979 | (119,929 | ) | (63,814 | ) | |||||||||
| Equity in earnings of non-consolidated companies | (37,690 | ) | 8,955 | (119,029 | ) | (37,731 | ) | |||||||||
| Interest accruals less payments/collections, net | 16,075 | 1,730 | 33,158 | (11,309 | ) | |||||||||||
| Changes in provisions | 8 | (19,160 | ) | (22,745 | ) | (20,925 | ) | |||||||||
| Changes in working capital | (270,166 | ) | (312,422 | ) | (353,886 | ) | (62,106 | ) | ||||||||
| Others, including net foreign exchange | (4,831 | ) | (4,221 | ) | 20,805 | 17,388 | ||||||||||
| Net cash provided by operating activities | 366,058 | 318,255 | 1,501,228 | 1,812,402 | ||||||||||||
| Cash flows from investing activities | ||||||||||||||||
| Capital expenditures | (98,449 | ) | (185,384 | ) | (334,384 | ) | (494,676 | ) | ||||||||
| Changes in advances to suppliers of property, plant and equipment | (13,036 | ) | 4,937 | (3,053 | ) | (916 | ) | |||||||||
| Cash decrease due to deconsolidation of subsidiaries | - | - | - | (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 | 11,784 | 391 | 12,795 | 58,120 | ||||||||||||
| Dividends received from non-consolidated companies | - | - | 29,863 | 41,348 | ||||||||||||
| Changes in investments in securities | (28,010 | ) | 214,247 | (314,385 | ) | 82,910 | ||||||||||
| Net cash used in investing activities | (127,711 | ) | 34,191 | (544,883 | ) | (316,421 | ) | |||||||||
| Cash flows from financing activities | ||||||||||||||||
| Dividends paid | - | - | (605,790 | ) | (600,317 | ) | ||||||||||
| Dividends paid to non-controlling interest in subsidiaries | (5,090 | ) | (3,000 | ) | (6,322 | ) | (30,264 | ) | ||||||||
| Acquisition of treasury shares | - | (351,463 | ) | (89,562 | ) | (825,395 | ) | |||||||||
| Payments of lease liabilities | (17,019 | ) | (16,615 | ) | (50,682 | ) | (46,662 | ) | ||||||||
| Proceeds from borrowings | 159,575 | 95,998 | 515,808 | 572,441 | ||||||||||||
| Repayments of borrowings | (124,098 | ) | (92,143 | ) | (483,133 | ) | (667,099 | ) | ||||||||
| Net cash used in financing activities | 13,368 | (367,223 | ) | (719,681 | ) | (1,597,296 | ) | |||||||||
| Increase (decrease) in cash and cash equivalents | 251,715 | (14,777 | ) | 236,664 | (101,315 | ) | ||||||||||
| Movement in cash and cash equivalents | ||||||||||||||||
| At the beginning of the period | 556,983 | 571,492 | 572,444 | 660,798 | ||||||||||||
| Effect of exchange rate changes | (2,407 | ) | (9,754 | ) | (2,817 | ) | (12,522 | ) | ||||||||
| Increase (decrease) in cash and cash equivalents | 251,715 | (14,777 | ) | 236,664 | (101,315 | ) | ||||||||||
| At September 30, | 806,291 | 546,961 | 806,291 | 546,961 | ||||||||||||
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 September 30, | Nine-month period ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Income for the period | 521,262 | 452,646 | 1,577,555 | 1,512,216 | ||||||||||||
| Income tax charge | 135,859 | 171,698 | 321,278 | 358,382 | ||||||||||||
| Equity in earnings (losses) of non-consolidated companies | (37,690 | ) | 8,955 | (119,029 | ) | (37,731 | ) | |||||||||
| Financial Results | (21,916 | ) | (36,668 | ) | (104,423 | ) | (103,589 | ) | ||||||||
| Depreciation and amortization | 158,558 | 156,841 | 465,327 | 453,249 | ||||||||||||
| EBITDA | 756,073 | 753,472 | 2,140,708 | 2,182,527 | ||||||||||||
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 September 30, | Nine-month period ended September 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net cash provided by operating activities | 366,058 | 318,255 | 1,501,228 | 1,812,402 | ||||||||||||
| Capital expenditures | (98,449 | ) | (185,384 | ) | (334,384 | ) | (494,676 | ) | ||||||||
| Free cash flow | 267,609 | 132,871 | 1,166,844 | 1,317,726 | ||||||||||||
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 September 30, | |||||||
| 2026 | 2025 | |||||||
| Cash and cash equivalents | 806,457 | 547,183 | ||||||
| Other current investments | 2,145,322 | 2,442,088 | ||||||
| Non-current investments | 1,163,945 | 823,781 | ||||||
| Derivatives hedging borrowings and investments | 863 | (2,179 | ) | |||||
| Current borrowings | (336,573 | ) | (325,338 | ) | ||||
| Non-current borrowings | (356 | ) | (2,251 | ) | ||||
| Net cash / (debt) | 3,779,658 | 3,483,284 | ||||||
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 September 30, | |||||||
| 2026 | 2025 | |||||||
| Inventories | 3,939,555 | 3,506,607 | ||||||
| Trade receivables | 2,059,505 | 2,146,036 | ||||||
| Customer advances | (165,391 | ) | (182,924 | ) | ||||
| Trade payables | (981,834 | ) | (830,173 | ) | ||||
| Operating working capital | 4,851,835 | 4,639,546 | ||||||
| Annualized quarterly sales | 12,409,396 | 11,912,560 | ||||||
| Operating working capital days | 143 | 142 | ||||||