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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

Tenaris S.A.'s recent performance was driven by strong Q2 earnings, with revenue and EPS surpassing Wall Street estimates. The company's share buyback program, announced in May, has been progressing, with a USD 600 million first tranche commenced in June. This move is expected to enhance shareholder value by reducing outstanding shares. Additionally, Tenaris's controlling shareholder, San Faustin, has crossed a voting rights threshold, triggering a notice requirement under the Luxembourg Transparency Law.

1.c. Company Highlights

2. Tenaris' Q3 2025 Earnings: A Resilient Performance Amidst Market Volatility

Tenaris reported a 2% year-on-year increase in sales to $3 billion, down 3% sequentially due to lower sales to the North Sea and Middle East. The average selling prices decreased 1% year-on-year and sequentially. EBITDA was up 3% sequentially to $753 million, with a 25% EBITDA margin. Notably, EBITDA included a $34 million gain from the return of U.S. antidumping deposits. The company's EPS came in at $0.3675, slightly below estimates of $0.3687. Free cash flow was $133 million, and net cash declined to $3.5 billion after share buybacks.

Publication Date: Nov -15

📋 Highlights
  • Q3 Sales Performance:: Year-on-year sales rose 2% to $3 billion but fell 3% sequentially due to reduced North Sea and Middle East sales, with average prices down 1% both YoY and sequentially.
  • EBITDA & Margins:: EBITDA increased 3% sequentially to $753 million, achieving a 25% margin, though including a $34 million gain from U.S. antidumping deposits; adjusted EBITDA is expected to decline in Q4 due to tariffs (estimated $40 million impact).
  • Free Cash Flow & Cash Position:: Generated $133 million in free cash flow, with net cash reserves dropping to $3.5 billion after executing share buybacks.
  • Strategic Expansion:: Canada’s Sault Ste. Marie mill became a leading supplier of seamless and welded pipe, supporting offshore projects like TPAO Sakarya, while Argentina’s Vaca Muerta shale investment rose with a new 95-MW wind farm.
  • Market Outlook Challenges:: Tariffs on U.S. steel imports (50%) and US government shutdown delays will pressure Q4 costs, while Middle East growth is expected in 2026 from GCC and Qatar LNG projects (GCC capacity growth).

Operational Highlights

The company's strong customer portfolio and efficient operations enabled it to maintain sales in the United States and Canada, despite a slowdown in drill rig activity. Tenaris has invested in its Sault Ste. Marie mill in Canada, which is now a leading supplier of seamless and welded pipe. The company is also gearing up for offshore projects, including the TPAO Sakarya deepwater development in the Black Sea. As Paolo Rocca mentioned, "Tenaris has built a unique industrial and commercial position, with competitive differentiation in key markets and efficient industrial performance."

Regional Outlook

In Argentina, the Congressional midterm election has marked an important turning point, with the expectation of a substantial increase in investment in the Vaca Muerta shale play. The company's energy production in Argentina has increased, including a new 95-megawatt wind farm. The election results have led to a reduction in country risk, making it easier for financial operators to support initiatives and businesses in Argentina.

Valuation and Growth Prospects

Tenaris trades at a P/E Ratio of 11.0, P/B Ratio of 1.33, and EV/EBITDA of 7.33. Analysts estimate next year's revenue growth at 1.0%. The company's ROE stands at 11.86%, and ROIC is 10.11%. With a Dividend Yield of 4.07%, Tenaris offers an attractive return to investors. The company's focus on expanding its production capacity and improving operational efficiency is expected to drive growth in the coming quarters.

Challenges Ahead

The company expects single-digit EBITDA growth in the fourth quarter due to the impact of tariffs on its cost of sales. The 50% tariff on steel imports will affect EBITDA, estimated to be in the range of $40 million. However, Tenaris is taking steps to reduce this impact by increasing production in the US and expanding production in pipe. The company's efforts to manage working capital needs, including speeding up receivables from areas like the Middle East, will also help mitigate the impact of tariffs.

3. NewsRoom

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Tenaris (BIT:TEN): Assessing Valuation After Recent Share Price Momentum

Nov -07

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Tenaris to Commence a USD 600 million Second Tranche of its USD 1.2 Billion Share Buyback Program

Nov -02

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Tenaris SA (TS) Q3 2025 Earnings Call Highlights: Resilient Performance Amid Market Challenges

Oct -31

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Tenaris (TS) Reports Q3 Earnings: What Key Metrics Have to Say

Oct -29

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Italy's Tenaris posts surprise 2% rise in sales on stable US, Canada drilling

Oct -29

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European Dividend Stocks To Consider For Your Portfolio

Oct -24

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DeepOcean and partners to launch new subsea flowline heating technology

Oct -22

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Tenaris S.A. (TS) Returns $600M to Shareholders through Buybacks

Oct -19

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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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PKN ORLEN

A-Score: 6.7/10

Value: 8.7

Growth: 3.3

Quality: 4.6

Yield: 8.1

Momentum: 9.0

Volatility: 6.7

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Tenaris

A-Score: 6.7/10

Value: 7.2

Growth: 7.0

Quality: 7.0

Yield: 6.9

Momentum: 6.0

Volatility: 6.3

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A-Score: 6.7/10

Value: 7.1

Growth: 5.6

Quality: 2.5

Yield: 8.8

Momentum: 8.0

Volatility: 8.3

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Eni

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Value: 7.5

Growth: 4.8

Quality: 3.2

Yield: 8.8

Momentum: 5.0

Volatility: 9.3

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A-Score: 6.1/10

Value: 7.3

Growth: 4.7

Quality: 5.1

Yield: 8.8

Momentum: 2.0

Volatility: 9.0

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A-Score: 5.8/10

Value: 7.6

Growth: 5.3

Quality: 3.9

Yield: 3.1

Momentum: 8.0

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

17.64$

Current Price

17.64$

Potential

-0.00%

Expected Cash-Flows