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Jun 30, 2025
Tenaris Q2 2025 Earnings Report
Tenaris's Q2 2025 earnings showed sequential growth in sales, EBITDA, and net income, driven by higher North American OCTG prices and stable volumes.
Key Takeaways
Tenaris reported a strong second quarter in 2025, with net sales increasing by 6% sequentially to $3.086 billion. This growth was primarily fueled by higher OCTG prices in North America and stable volumes. The company also saw increases in operating income, net income, and EBITDA, while maintaining margins in line with the previous quarter despite rising costs of sales.
Net sales increased by 6% sequentially to $3.086 billion, primarily due to higher North American OCTG prices.
Operating income rose by 6% sequentially to $583 million, and net income increased by 5% to $542 million.
EBITDA grew by 5% sequentially to $733 million, with EBITDA margin at 23.7%.
Free cash flow for the quarter was $538 million, contributing to a net cash position of $3.7 billion at quarter-end.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Tenaris anticipates a moderate decline in sales for the second half of the year compared to the first half, primarily due to lower drilling activity and a reduced contribution from line pipe projects. Margins are also expected to be impacted by increased tariff costs.
Positive Outlook
- Recent increase in tariffs on steel products from 25% to 50% is expected to reduce U.S. OCTG imports.
- U.S. OCTG prices are anticipated to increase over time following tariff adjustments.
- Mexico's drilling activity may recover after an extended decline, supported by recent Pemex financing.
- Despite softening oil prices, drilling activity has remained relatively resilient.
- The company's strong net cash position provides financial flexibility.
Challenges Ahead
- Oil prices have softened due to OPEC+ accelerating the unwinding of production cuts.
- Demand growth is subdued amidst high economic and geopolitical uncertainty.
- Some reduction in oil drilling has been observed in the United States, Canada, and Saudi Arabia.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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