Tenaris (TEN) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 were $2.97 billion, down 4% sequentially and year-over-year, mainly due to shipment delays to the Middle East from the closure of the Strait of Hormuz.

• EBITDA for Q2 2026 was $649 million, down 12% sequentially and 11% year-over-year, with net income at $492 million, down 13% year-over-year, impacted by lower fixed cost absorption and higher raw material and logistics costs.

• Despite disruptions, operations in Saudi Arabia and the UAE continued, while shipments to Iraq, Kuwait, and Qatar were postponed.

• Investments are ongoing in the U.S., Canada, and Argentina to expand capacity and support increased drilling activity.

• Interim dividend of $0.59 per share ($1.18 per ADS) was approved for payment in November 2026.

Financial highlights

• For the first half of 2026, net sales were $6.07 billion (up 1% year-over-year), EBITDA $1.39 billion (down 3%), and net income $1.06 billion (flat year-over-year).

• Q2 2026 net income was $492 million, and earnings per share were $0.47, down 4% year-over-year.

• Free cash flow for Q2 2026 was $396 million; net cash position at quarter-end was $3.6 billion after $606 million in dividend payments.

• Operating cash flow for H1 2026 was $1.14 billion, down from $1.49 billion year-over-year.

• Capital expenditures were $121 million in Q2 2026 and $236 million in H1 2026.

Outlook and guidance

• Sales and EBITDA for the second half of 2026 are expected to remain in line with the first half, with a stronger fourth quarter anticipated due to higher volumes and some pricing improvement.

• The reopening of the Strait of Hormuz is considered an upside scenario, with $130 million in backlog ready to ship if conditions improve.

• Q3 is expected to be affected by seasonality and product mix, while Q4 should benefit from higher prices and volumes.

• The company expects continued volatility in energy prices and supply chains due to ongoing Middle East conflict and global trade tensions.

• Closing of the Artrom Steel Tubes S.A. acquisition is expected in Q4 2026, pending regulatory approvals.