Tenaris S.A.

Second-quarter sales were $3 billion, down 4% year over year and sequentially. Quarterly EBITDA was $649 million, down 12% sequentially, and net income was $492 million, also down 13% sequentially. Operating cash flow was $518 million, capital expenditure was $121 million, and free cash flow was $396 million. Net cash at quarter-end was $3.6 billion after a $606 million dividend payment. For the second half of 2026, management said it expects revenues and EBITDA to be in line with the first half, with Q3 more affected and Q4 showing an uptick.

Gabriel Podskubka said the quarter clearly reflected the Middle East conflict and the closure/disruption of the Strait of Hormuz, which raised logistics and energy costs and delayed shipments to Iraq, Kuwait and Qatar. He stressed that Tenaris remained resilient because of its global footprint, industrial efficiency, and exposure to strengthening drilling activity in the U.S., Canada and Argentina, plus improving offshore opportunities. His tone was confident but cautious: Q2 and Q3 should be similar, while Q4 could improve meaningfully if volumes, pricing and offshore project activity ramp as expected.

Giovanni Sardagna highlighted the hard numbers: $3 billion in sales, $649 million of EBITDA, $492 million of net income, $518 million of operating cash flow, $121 million of capex, $396 million of free cash flow, and $3.6 billion of net cash. He attributed weaker profitability to lower absorption of fixed costs plus higher raw material and logistics costs. He also noted the interim dividend of $0.59 per share, or $1.18 per ADS, amounting to about $600 million, paid on November 25.

Analysts focused on the enlarged dividend, asking whether Tenaris was shifting away from buybacks and whether the payout was sustainable. Management said the Board chose dividends because of the company’s strong balance sheet, steady cash generation, simplicity, and the desire to preserve liquidity of the shares, and said future returns should remain broadly in line with past levels while maintaining flexibility. Questions on Hormuz disruption and the second-half outlook led management to say the blocked Gulf backlog is now $130 million and that reopening would be an upside not included in base-case guidance; they also said Q2 and Q3 should be similar, with Q4 benefiting from higher volumes and pricing.