Tenaris (TEN) Q4 2025 earnings summary

Executive summary

• Q4 2025 sales reached $2.99 billion, up 5% year-over-year and 1% sequentially, with annual net sales at $11.98 billion, down 4% from 2024; net income for Q4 was $461 million and for the year $1.97 billion, both down from prior periods.

• EBITDA for Q4 was $717 million (23.9% margin), and for the year $2.9 billion (24.2% margin); free cash flow for 2025 was $2.0 billion, with a year-end net cash position of $3.3 billion.

• Operations remained stable despite geopolitical disruptions, tariffs, and lower activity in key markets, supported by a strong global presence and service depth.

• Shareholder returns were robust, with $900 million in dividends and $1.36 billion in share buybacks distributed in 2025.

• Basic and diluted EPS for 2025 was $1.83, compared to $1.81 in 2024.

Financial highlights

• Q4 operating income was $554 million, down 7% sequentially and 1% year-over-year; annual operating income was $2.28 billion, down 6% from 2024.

• Gross profit margin in 2025 was 34.4%; Q4 EBITDA margin was 23.9%, and annual EBITDA margin was 24.2%.

• Cash flow from operations in 2025 was $2.60 billion; cash and cash equivalents at year-end were $572.6 million.

• Net cash position at year-end was $3.3 billion after dividends and buybacks.

• SG&A expenses in 2025 were $1.83 billion (15.3% of sales).

Outlook and guidance

• Q1 2026 sales and margins are expected to remain close to Q4 2025 levels; medium-term forecasts remain difficult due to market volatility.

• Offshore backlog and project execution are expected to drive higher revenues in H1 2026 versus H2 2025, with continued strong offshore cycle into 2027.

• Board proposes a $0.89 per share annual dividend (approx. $900 million), including $0.29 interim already paid.

• Argentina drilling activity anticipated to pick up in H2 2026 as financing translates into increased operations.

• Middle East activity remains high, with potential uptick in Saudi drilling in H2 2026.