Tenaris (TEN) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales were $3.1 billion, up 6% sequentially but down 7% year-over-year; EBITDA rose 5% sequentially to $733 million with a margin near 24%.

• Net income for Q2 2025 was $542 million, up 5% sequentially and 59% year-over-year; EPS increased 5% sequentially and 68% year-over-year.

• Free cash flow for Q2 2025 was $538 million, supporting $837 million in shareholder distributions through dividends and share buybacks.

• The company delivered on major global projects, including Equinor Raia (Brazil), ConocoPhillips Willow (Alaska), Shell Bonga (Nigeria), TotalEnergies Ndungu (Angola), and Chevron Leviathan (Mediterranean).

• Net sales for H1 2025 were $6.01 billion, down 11% year-over-year; net income was $1.06 billion, a 4% decrease from the prior year.

Financial highlights

• Average selling prices in the tubes segment decreased 2% year-over-year but increased 6% sequentially.

• EBITDA for H1 2025 was $1.43 billion, down 13% year-over-year; Q2 2025 EBITDA margin was 23.7%.

• Free cash flow for Q2 2025 was $538 million; net cash position at June 30, 2025, was $3.7 billion.

• Net cash provided by operating activities in H1 2025 was $1.49 billion; capital expenditures totaled $309 million.

• Basic and diluted EPS for H1 2025 were $0.99, compared to $0.97 in the prior year.

Outlook and guidance

• Q3 2025 sales expected to decline by high single digits due to lower fracking invoicing and reduced line pipe shipments.

• Margins for Q3 projected slightly below Q2 but within the 20–25% range; Q4 margins expected to be lower, with uncertainty due to tariffs and pricing.

• Sales and margins in H2 2025 anticipated to decline moderately due to lower drilling activity and higher tariffs.

• Offshore project deliveries will be lower until a new wave of projects in 2026, which is expected to see a strong backlog.

• Management notes ongoing uncertainty due to U.S. steel tariffs, trade negotiations, and evolving market conditions.