Tenaris (TEN) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales reached $3.1 billion, up 6% year-over-year and 4% sequentially, despite Middle East disruptions from the Strait of Hormuz closure and Iran war.

• Net income rose 22% sequentially and 9% year-over-year to $564 million, with operating income at $584 million, reflecting improved profitability.

• Free cash flow was $503 million, and net cash position increased to $3.8 billion after $90 million in share buybacks.

• The company maintained operations in Saudi Arabia and UAE, while Kuwait, Qatar, and Iraq saw significant activity reductions.

• New CEO Gabriel Podskubka emphasized continuity, growth opportunities, and resilience amid geopolitical risks.

Financial highlights

• EBITDA margin held at 24% in Q1, with EBITDA at $735 million, up 3% sequentially and 6% year-over-year.

• Gross profit was $1.05 billion, up from $1.0 billion year-over-year; operating cash flow was $618 million and capital expenditure totaled $114 million.

• Average selling prices in the tubes segment increased 5% year-over-year and 1% sequentially.

• Section 232 tariffs impacted results by $110–$120 million in Q1, expected to remain steady through year-end.

• Canadian anti-dumping measures had a $14 million impact in Q1, with limited future effect.

Outlook and guidance

• Q2 revenues expected to decline mid to high single digits sequentially, mainly due to Middle East conflict and Strait of Hormuz closure.

• EBITDA margin projected to contract by a couple of points in Q2, with $32 million in higher logistics costs.

• Volumes and margins anticipated to recover in H2 2026, with Q4 likely approaching Q1 levels if the Strait reopens.

• North American activity and pricing expected to rise in H2, with rig count up about 10%.

• Proposed annual dividend of $0.89 per share (or $1.78 per ADS), totaling approximately $0.9 billion, pending shareholder approval.