Tenaris S.A. Q4 FY2025 earnings call

2025 was a year of resilience in face of geopolitical disruptions and market challenges. In U.S. and Canada, despite oil and gas industry consolidation, lower rig count, and 50% Section 232 tariffs, Tenaris raised U.S. production and supply chain performance. In Latin America, Argentina saw domestic companies raise financing for infrastructure and production, Venezuela resumed service to Chevron. In Middle East, consolidated presence with long-term agreements. Global integrated operations key, with progress on reducing carbon emissions and commitment to safety and environmental sustainability.

Fourth quarter 2025 sales reached $3 billion, up 5% year-over-year and 1% sequentially. EBITDA for the quarter was $717 million, down 5% sequentially, or 24% of sales. Tube operating segment average selling prices decreased 1% year-over-year and were flat sequentially. Full-year 2025 net sales were $12 billion, EBITDA was $2.9 billion, net income was $2 billion, and free cash flow was $2 billion.

First quarter performance expected to be close to fourth quarter levels. 2026 working capital expected to be neutral with swings, first quarter working capital to increase mainly due to accounts receivable. CapEx expected to be in line with 2025, possibly slightly lower.

Uncertainty around trade tariffs, such as potential changes in derivative definitions under U.S. 232 tariffs. Competition in Argentina market and impact of imports on Pipe Logix pricing.

Q: Marc Bianchi asked about first quarter outlook and beyond.

A: Paolo Rocca said first quarter performance expected to be in line with fourth quarter, but medium-term forecast difficult due to market volatility.

Q: Matthew Smith asked about international pricing.

A: Gabriel Podskubka said international premium product pricing stable with long-term agreements, some spot tendering for lower end applications monitored.

Q: Arun Jayaram asked about Pipe Logix pricing inflection point.

A: Paolo Rocca said factors affecting Pipe Logix, welded Pipe Logix dragging down, hot-rolled coil increase may lead to alignment over time but not immediate.

Q: Sebastian Erskine asked about margin trajectory and offshore work.

A: Gabriel Podskubka said offshore backlog strong with Suriname project and others, Guillermo Moreno said ERW margin impact from hot-rolled coil to be reflected in second quarter.

Q: Stephen Gengaro asked about working capital and cash balance.

A: Carlos Gomez Alzaga said 2026 working capital expected neutral with swings, first quarter working capital to increase due to accounts receivable.

Q: Alessandro Pozzi asked about raw material impact, line pipe cadence, Argentina competition, and Venezuela opportunities.

A: Guillermo Moreno said margin impact from hot-rolled coil to be seen in Q3/Q4, line pipe cadence stable, Argentina tender analyzed for trade practices, Gabriel Podskubka said Venezuela opportunities with Chevron ramping up and potential for other majors.

Q: Luigi De Bellis asked about Middle East and Mexico evolution.

A: Paolo Rocca said Mexico plans slow to materialize, Gabriel Podskubka said Middle East activity high with strong position, possible rig count uptick in Saudi.

Q: Marco Cristofori asked about shale industry in U.S.

A: Guillermo Moreno said shale productivity high with less rigs but more production, difficult to predict plateau.

Q: Kevin Roger asked about U.S. tariff reduction impact.

A: Paolo Rocca said focus on derivative definition change rather than tariff level change.

Q: Jamie Franklin asked about Argentina fracking services trend and CapEx.

A: Paolo Rocca said Argentina fracking activity to increase in second half of 2026, CapEx expected in line with 2025, possibly slightly lower