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Dec 31, 2024
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Tenaris Q4 2024 Earnings Report
Tenaris reported a decline in revenue and net income in Q4 2024, with a resilient performance in select regions offsetting weaker demand in others.
Key Takeaways
Tenaris' Q4 2024 results showed a decline in revenue and net income compared to the previous year. The company's net sales fell by 17%, and net income dropped by 55% year-over-year. Despite challenges in North and South America, sales remained stable in the Middle East and Turkey, while EBITDA was supported by a favorable product mix. The company generated $310 million in free cash flow and ended the quarter with a net cash position of $3.6 billion.
Net sales declined 17% year-over-year, totaling $2.85 billion.
Net income dropped by 55% to $519 million, reflecting weaker demand.
EBITDA reached $726 million, supported by a $67 million gain from litigation provision reversal.
Free cash flow of $310 million helped maintain a strong cash position of $3.6 billion.
Tenaris
Tenaris
Tenaris Revenue by Segment
Tenaris Revenue by Geographic Location
Revenue by Segment
Tubes Business Segment Revenue
CapyFin.comOther Products and Services Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comSouth America Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Pacific, Middle East and Africa Revenue
CapyFin.com Forward Guidance
Tenaris expects sales and EBITDA in Q1 2025 to remain in line with Q4 2024, with moderate growth anticipated in Q2 2025. The company foresees potential pricing impacts from US tariff changes, adding uncertainty to cost structures and market dynamics.
Positive Outlook
- Stable oil prices are expected to support continued investment in drilling activity.
- OCTG prices in North America have recovered by 9% from August lows.
- Increased gas drilling activity in the Middle East, particularly in Abu Dhabi.
- Expected improvement in sales to Argentina due to pipeline and LNG projects.
- Strong cash position enables continued investment and shareholder returns.
Challenges Ahead
- Ongoing uncertainties around US Section 232 tariffs may impact pricing.
- Lower drilling activity in Mexico due to financial constraints on Pemex.
- Declining pipeline project shipments in Argentina affecting sales.
- Weaker demand in North America despite stabilized drilling activity.
- Potential margin pressure from fluctuating steel prices.
Revenue & Expenses
Visualization of income flow from segment revenue to net income