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1. Company Snapshot

1.a. Company Description

Tenaris S.A., together with its subsidiaries, produces and sells seamless and welded steel tubular products; and provides related services for the oil and gas industry, and other industrial applications.The company offers steel casings, tubing products, mechanical and structural pipes, cold-drawn pipes, and premium joints and couplings; coiled tubing products for oil and gas drilling and workovers, and subsea pipelines; and umbilical tubing products; and tubular accessories.It also provides sucker rods, industrial equipment, heat exchangers, and utility conduits for buildings, as well as sells energy and raw materials.


In addition, it offers financial services.The company operates in North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.Tenaris S.A. was incorporated in 2001 and is based in Luxembourg, Luxembourg.


Tenaris S.A. is a subsidiary of Techint Holdings S.à r.l.

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1.b. Last Insights on TEN

Breaking News: Tenaris SA reported its Q4 earnings, showcasing a resilient performance amid geopolitical challenges. The company posted a 5% year-over-year sales increase and proposed a 7% dividend hike. This demonstrates financial stability and strategic expansion. The earnings release highlights the company's ability to navigate challenging market conditions. Tenaris's top and bottom-line numbers indicate a positive performance in the quarter ended December 2025. Analysts at various firms have given recommendations, with some suggesting to hold the stock.

1.c. Company Highlights

2. Tenaris' Resilience Shines in 2025 Despite Challenging Geopolitics

In the fourth quarter of 2025, Tenaris reported sales of $3 billion, a 5% year-over-year increase and a 1% sequential rise. EBITDA for the quarter was $717 million, with an EBITDA margin of 24%. The company's earnings per share (EPS) came in at $0.3779, beating analyst estimates of $0.3463. For the full year 2025, Tenaris achieved an EBITDA of $2.9 billion, a net income of $2 billion, and net sales of $12 billion. The company's free cash flow was $2 billion, which was distributed to shareholders through dividends and share buybacks.

Publication Date: Feb -20

📋 Highlights
  • Q4 2025 Sales & EBITDA Growth:: Sales reached $3 billion (+5% YoY), EBITDA hit $717 million (24% margin), and cash flow from operations totaled $787 million.
  • 2025 Annual Financial Performance:: Net sales of $12 billion, EBITDA of $2.9 billion, net income of $2 billion, and free cash flow of $2 billion distributed via dividends/share buybacks.
  • Argentina Market Expansion:: Added a third frac fleet, $4 billion in financing for Vaca Muerta infrastructure, and expects drilling growth in H2 2026 despite consolidation challenges.
  • International Market Stability:: Premium product demand drove offshore, Middle East, and gas projects, with stable pricing but spot tendering issues for lower-end applications.
  • 2026 Margin Outlook:: Hot-rolled coil cost headwinds of $35–40 million quarterly, but offshore projects (e.g., Sakarya) could push EBITDA margins to the top of 20–25% guidance.

Regional Performance

Tenaris faced challenges in the U.S. and Canada due to oil and gas industry consolidation and productivity improvements. However, the company raised the performance of its U.S. production and supply chain system. In Latin America, Tenaris saw opportunities in the Vaca Muerta fields, where domestic companies raised over $4 billion in financing to develop infrastructure and expand production operations. As Paolo Rocca mentioned, "the company completed the year with an EBITDA of $2.9 billion, a net income of $2 billion, and net sales of $12 billion."

Valuation and Outlook

With a P/E Ratio of 13.84 and an EV/EBITDA of 8.84, Tenaris' valuation appears reasonable. The company's dividend yield is 3.26%, and its free cash flow yield is 7.31%. Analysts estimate revenue growth at 2.6% for the next year. Tenaris' strong cash position and expected growth in the Vaca Muerta fields should support its financial performance. The company's net cash position was $3.3 billion, and it proposed a further increase in the annual dividend per share of 7%.

Operational Highlights

Tenaris is adding a third frac fleet in Argentina and sees opportunities for growth in the market, particularly with the addition of rigs by IOCs. The company's working capital is expected to be neutral in 2026, with some swings over the year. Tenaris is working to streamline its inventory levels, particularly in its Rig Direct programs. The company's offshore work is expected to materialize in the second half of the year, with projects such as Sakarya and Suriname.

Challenges and Opportunities

Tenaris faces challenges, including the impact of hot-rolled coil on ERW margins, which is expected to be around $35-40 million quarterly. However, the company's premium products are in strong demand, driven by offshore, Middle East, and gas development. Tenaris is also well-positioned to serve Chevron in Venezuela and expects to expand its activities in 2026. The company's ROE is 11.48%, and its ROIC is 10.12%, indicating a strong return on equity and invested capital.

3. NewsRoom

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Tenaris SA (TS) Q4 2025 Earnings Call Highlights: Resilient Performance Amid Geopolitical Challenges

Feb -19

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Tenaris (TS) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -19

Source:

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Assessing Tenaris (BIT:TEN) Valuation As Q4 2025 Earnings Outlook Draws More Attention

Feb -18

Source:

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Is Kaiser Aluminum (KALU) Outperforming Other Industrial Products Stocks This Year?

Feb -18

Source:

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Deere Set to Report Q1 Earnings: Here's What to Expect for the Stock

Feb -17

Source: zacks.com

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Kraft Heinz, Braskem, and Tenaris to headline OMP Conference São Paulo 2026

Feb -17

Source:

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Unveiling Tenaris (TS) Q4 Outlook: Wall Street Estimates for Key Metrics

Feb -12

Source:

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European Dividend Stocks To Consider In February 2026

Feb -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.73%)

6. Segments

Tubes

Expected Growth: 4.73%

Tenaris S.A.'s tubes segment growth of 4.73% is driven by increasing demand for oil country tubular goods (OCTG) from shale operators, rising global energy demand, and growing investments in pipeline infrastructure. Additionally, Tenaris' focus on premium products, such as high-strength tubes, and its expanding presence in the Middle East and Asia also contribute to its growth.

Other

Expected Growth: 4.78%

Tenaris S.A.'s 4.78% growth is driven by increasing demand for premium pipes in shale plays, rising drilling activities in the Middle East and Latin America, and growing sales of high-value products such as OCTG and line pipes. Additionally, the company's focus on operational efficiency, cost reduction, and strategic acquisitions also contribute to its growth momentum.

7. Detailed Products

Seamless Pipes

Tenaris S.A. offers a wide range of seamless pipes for the oil and gas industry, designed to withstand high pressure and corrosive environments.

Welded Pipes

Tenaris S.A. provides high-quality welded pipes for the energy industry, featuring advanced coating and lining options.

Premium Connections

Tenaris S.A. offers a range of premium connections for the oil and gas industry, designed for high-performance and reliability.

Coated Pipes

Tenaris S.A. provides coated pipes with advanced corrosion protection, suitable for harsh environments and extreme temperatures.

Rig Direct

Tenaris S.A.'s Rig Direct service provides a comprehensive solution for drilling and completion operations, including pipe supply and logistics management.

Technical Services

Tenaris S.A. offers a range of technical services, including pipe inspection, maintenance, and repair.

8. Tenaris S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Tenaris S.A. operates in the oil and gas industry, which is highly dependent on steel pipes. While there are substitutes available, such as plastic pipes, they are not yet widely adopted, and steel pipes remain the dominant choice. Therefore, the threat of substitutes is medium.

Bargaining Power Of Customers

Tenaris S.A.'s customers are primarily large oil and gas companies, which have significant bargaining power due to their size and purchasing power. This gives them the ability to negotiate prices and terms, making the bargaining power of customers high.

Bargaining Power Of Suppliers

Tenaris S.A. is a large company with a significant market share, which gives it bargaining power over its suppliers. Additionally, the company has a diversified supply chain, which reduces its dependence on any one supplier, making the bargaining power of suppliers low.

Threat Of New Entrants

The oil and gas industry is highly capital-intensive, and entering the market requires significant investment in equipment, technology, and personnel. This barrier to entry makes it difficult for new companies to enter the market, reducing the threat of new entrants.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with several large companies competing for market share. Tenaris S.A. faces intense competition from companies such as Vallourec, Nippon Steel, and Sumitomo, which drives the intensity of rivalry high.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.09%
Debt Cost 11.52%
Equity Weight 95.91%
Equity Cost 11.52%
WACC 11.52%
Leverage 4.26%

11. Quality Control: Tenaris S.A. passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Repsol

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Value: 8.0

Growth: 5.6

Quality: 2.6

Yield: 8.8

Momentum: 9.5

Volatility: 8.3

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PKN ORLEN

A-Score: 7.1/10

Value: 8.9

Growth: 3.3

Quality: 5.0

Yield: 8.1

Momentum: 10.0

Volatility: 7.0

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Eni

A-Score: 7.0/10

Value: 7.3

Growth: 4.8

Quality: 3.4

Yield: 8.8

Momentum: 8.0

Volatility: 9.7

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TotalEnergies

A-Score: 6.7/10

Value: 7.0

Growth: 4.7

Quality: 5.1

Yield: 8.8

Momentum: 5.5

Volatility: 9.0

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Tenaris

A-Score: 6.2/10

Value: 6.4

Growth: 7.0

Quality: 7.1

Yield: 6.9

Momentum: 3.5

Volatility: 6.3

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A-Score: 5.9/10

Value: 6.7

Growth: 5.3

Quality: 4.1

Yield: 3.1

Momentum: 9.0

Volatility: 7.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

22.14$

Current Price

22.14$

Potential

-0.00%

Expected Cash-Flows