Financial Position - Tenaris has a very solid financial base with a significant amount of cash and almost no debt, enabling it to provide good dividends and engage in share repurchases [1]

Summary of Key Points from the Conference Call Transcript Industry Overview - The focus is on the Energy Services & Equipment sector in North America, with particular attention to companies like GTLS (Chart Industries), NBR (Nabors Industries), NOV (National Oilwell Varco), and TS (Tenaris) [1][2][6]. Core Insights and Arguments - **Earnings Estimates Revision**: The 2025 and 2026 EBITDA estimates for GTLS, NBR, NOV, and TS have been lowered by 2% and 4% respectively, indicating a cautious outlook for these companies [4][19]. - **M&A Activity**: Baker Hughes (BKR) is reportedly preparing a bid to acquire GTLS, which would value GTLS at approximately $210 per share, a 22% premium over its recent closing price of $171.65. This acquisition could significantly impact GTLS's market position [5][19]. - **Market Sentiment**: The near-term outlook for GTLS and TS is constructive due to their exposure to gas and non-oil & gas sectors, while NBR is viewed cautiously due to declining activity in North America and Saudi Arabia [9][19]. - **Performance Metrics**: NOV's 2Q results showed a revenue increase of 2%, but EBITDA decreased by 4%, leading to expectations of a modestly negative market reaction. The guidance for 3Q indicates a revenue increase of 1% but a further EBITDA decline of 2% [9][13]. Additional Important Insights - **Tariff Impacts**: The potential impacts of tariffs on the companies' operations and pricing strategies are a key focus area, especially given the current geopolitical climate [9]. - **Capital Allocation**: Companies are expected to discuss their capital allocation plans, including updates on 2025 capex and shareholder returns, which are critical for investor confidence [9][13]. - **Market Conditions**: The overall market conditions for oilfield services (OFS) are soft, particularly in the US land, Saudi Arabia, Mexico, and offshore deepwater markets, which could affect pricing and activity levels [9][19]. - **Stock Ratings and Price Targets**: The current stock ratings and price targets for the companies are as follows: - GTLS: Overweight, PT $225.00 - NOV: Overweight, PT $15.00 - NBR: Overweight, PT $50.00 - TS: Underweight, PT $34.00 [10][19]. Conclusion - The Energy Services & Equipment sector is facing a mix of challenges and opportunities, with M&A activity potentially reshaping the landscape. Companies are navigating soft market conditions while focusing on strategic capital allocation and managing tariff impacts. The upcoming earnings reports will be critical in assessing the health and outlook of these firms.

Financial Data and Key Metrics Changes - The company's second quarter sales reached EUR 3.1 billion, down 7% year-on-year but up 6% sequentially, primarily due to increased North American OCTG prices and stable volumes [4] - EBITDA for the quarter was up 5% sequentially to USD 733 million, with an EBITDA margin close to 24% [4] - Operating cash flow was USD 673 million, with capital expenditure of USD 135 million, resulting in a free cash flow of USD 538 million [5] - The net cash position amounted to EUR 3.7 billion at the end of the quarter after dividend payments and share buybacks [5] Business Line Data and Key Metrics Changes - Average selling prices in the Tubes operating segment decreased by 2% compared to the same quarter last year but increased by 6% sequentially [4] - The cost of sales rose by 5%, mainly due to product mix differences and higher tariff payments [5] Market Data and Key Metrics Changes - The U.S. Section 232 tariff on steel imports increased from 25% to 50%, creating market uncertainty and affecting competitive dynamics [8] - The company expects that the current broad-based tariff approach will eventually shift to a more specific product-based approach, impacting prices once excess inventories are drawn down [9] Company Strategy and Development Direction - The company is well-positioned to serve the U.S. market with its strong domestic production base and efficient seamless pipe mill [9] - The company is focusing on expanding its service bases in emerging markets like Suriname and the Vaca Muerta shale play in Argentina, which are key growth areas [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted that while drilling activity has slowed in several areas, sales rose sequentially, indicating a solid industrial and commercial position [6] - The company anticipates lower sales in the third quarter due to various factors, including lower invoicing in fracking operations and reduced shipments of line pipe [18][20] - Management expressed confidence in the long-term outlook for the offshore market, with a positive backlog building for 2026 [24][26] Other Important Information - The company has set up local service bases to support operations in the Guyana-Suriname Basin and is involved in developing pipeline infrastructure in Argentina [11][12] - The company is actively monitoring the M&A environment and is open to opportunities that align with its growth strategy [102] Q&A Session Summary Question: Outlook for 2025 considering tariff impacts and activity levels - Management expects lower sales in the third quarter due to various factors, including lower invoicing in fracking operations and reduced shipments of line pipe [18][20] Question: Insights on project pipeline for 2026 - Management indicated a positive outlook for the offshore market and is building an important backlog for 2026, with several projects expected to be sanctioned soon [24][26] Question: Margin expectations for Q3 and Q4 - Management expects margins to be slightly below the current quarter but within the range of 20% to 25% [37] Question: Sales outlook in Argentina - Management noted a reduction in rigs operating in Argentina and a cautious approach to investments in Vaca Muerta, impacting overall sales [39][42] Question: Impact of imports on market share - Management indicated that imports represent a significant share of demand in the U.S., and the increased tariffs are expected to impact prices and market dynamics [47] Question: Update on Pemex and its impact on operations - Management expressed optimism about Pemex's financial situation and its potential to increase operational activity, which could positively impact sales [72][73] Question: Exposure to gas markets in the U.S. - Management confirmed exposure to gas markets, particularly in Haynesville and Appalachia, with expectations for growth in these areas [80][81] Question: Current inventory levels and pricing dynamics - Management noted that inventory levels have increased due to elevated imports, which is putting pressure on prices [88]

Financial Data and Key Metrics Changes - Second quarter sales reached EUR 3.1 billion, down 7% year-on-year but up 6% sequentially, mainly due to increased North American OCTG prices and stable volumes [4] - EBITDA for the quarter was up 5% sequentially to USD 733 million, with an EBITDA margin close to 24% [4] - Operating cash flow was USD 673 million, with capital expenditure of USD 135 million, resulting in free cash flow of USD 538 million [5] - Net cash position amounted to EUR 3.7 billion at the end of the quarter after dividend payments and share buybacks [5] Business Line Data and Key Metrics Changes - Average selling prices in the Tubes operating segment decreased by 2% year-on-year but increased by 6% sequentially [4] - The company expects lower sales in the third quarter due to reduced invoicing in fracking operations and lower shipments of line pipe [16][20] Market Data and Key Metrics Changes - The U.S. Section 232 tariff on steel products increased from 25% to 50%, creating market uncertainty and affecting pricing dynamics [7] - The company anticipates that the current broad-based tariff approach will eventually shift to a more specific product-based approach [7] - The company noted that imports are expected to decrease as excess inventories are drawn down [8] Company Strategy and Development Direction - The company is focused on maintaining a strong U.S. domestic production base and enhancing its Rig Direct service to differentiate itself in the market [8] - The company is building local service bases in the Guyana Suriname Basin to support operations for major clients [11] - The acquisition of Shawcor is expected to enhance the company's ability to serve clients with a competitive offer and short lead times [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's solid industrial and commercial position despite a slowdown in drilling activity in some regions [6] - The outlook for the third quarter includes expectations of lower sales and invoicing due to various factors, including maintenance activities [20] - Management indicated that while the rig count in North America may not see a strong reduction, pricing dynamics will be influenced by tariff impacts [18] Other Important Information - The company has received significant project awards, including for the supply of casing and tubing for major projects in Brazil, Alaska, Nigeria, Angola, and the Mediterranean [9][11] - The company is optimistic about the development of the Vaca Muerta shale play in Argentina, despite current challenges [12][41] Q&A Session Summary Question: Outlook for 2025 considering tariff impacts and activity levels - Management noted that visibility for the third quarter is clearer, but the fourth quarter remains uncertain due to tariff negotiations and market dynamics [16][20] Question: Margins outlook for Q3 and Q4 - Management expects margins to be slightly below the current quarter but within the range of 20% to 25% [38] Question: Sales outlook in Argentina - Management indicated that the situation in Argentina is affected by reduced rig counts and cautious investment approaches [41] Question: Impact of imports on market share - Management stated that imports represent a significant share of demand in the U.S., and the tariff will impact pricing and market dynamics [49] Question: Potential for bringing forward share buybacks - Management confirmed that the second tranche of share buybacks will be considered in the upcoming Board meeting [51] Question: Sensitivity of revenues generated in Mexico - Management provided insights into the number of rigs operated by Pemex and the potential for increased shipments in the future [100] Question: Expectations for the Middle East market - Management noted that while Saudi Arabia has seen reduced activity, other regions in the Middle East are maintaining stable drilling levels [71] Question: Exposure to gas markets in the U.S. - Management highlighted the company's growing activity in gas markets, particularly in Haynesville and Appalachia [86] Question: Inventory levels and pricing dynamics - Management discussed the impact of increased imports on inventory levels and pricing pressures in the U.S. market [92]

Core Insights - Tenaris S.A. reported a revenue of $3.09 billion for the quarter ended June 2025, reflecting a decrease of 7.1% year-over-year, while EPS increased to $0.99 from $0.59 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $3.01 billion by 2.54%, and the EPS also surpassed the consensus estimate of $0.88 by 12.5% [1] Financial Performance Metrics - Tubes Sales volume for Seamless was 803.00 Kmt, exceeding the average estimate of 778.36 Kmt [4] - Total Tubes Sales volume reached 982.00 Kmt, slightly above the average estimate of 978.87 Kmt [4] - Welded Tubes Sales volume was 179.00 Kmt, below the average estimate of 200.50 Kmt [4] - Net sales for Tubes in North America were $1.4 billion, surpassing the average estimate of $1.26 billion, but showing a year-over-year decline of 0.5% [4] - Net sales for Tubes in Asia Pacific, Middle East, and Africa were $771 million, below the estimated $809.92 million, representing a 4.8% decline year-over-year [4] - Net sales for Tubes in Europe were $215 million, slightly above the average estimate of $208.36 million, but down 19.5% year-over-year [4] - Net sales for Tubes in South America were $531 million, below the average estimate of $566.22 million, reflecting an 8.8% decline year-over-year [4] - Revenues from Other segments were $166 million, exceeding the average estimate of $157.38 million, but down 34.4% year-over-year [4] - Total Revenues from Tubes were $2.92 billion, above the average estimate of $2.86 billion, but down 4.9% year-over-year [4] - Operating income from Other segments was $29 million, slightly below the average estimate of $32 million [4] - Operating income from Tubes was $554 million, in line with the average estimate of $551.36 million [4] Stock Performance - Tenaris shares returned +3.2% over the past month, compared to the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Tenaris S.A. reported its financial results for the second quarter of 2025, showing a sequential increase in net sales and operating income compared to the first quarter of 2025, but a decline compared to the same quarter in 2024 [2][3][4]. Financial Performance - Net sales for Q2 2025 were $3,086 million, a 6% increase from Q1 2025 but a 7% decrease from Q2 2024 [3][4]. - Operating income rose to $583 million in Q2 2025, up 6% sequentially and 14% year-on-year [3][4]. - Net income for Q2 2025 was $542 million, reflecting a 5% increase from Q1 2025 and a 56% increase from Q2 2024 [3][4]. - EBITDA for Q2 2025 was $733 million, a 5% increase from Q1 2025 and a 13% increase from Q2 2024 [3][4]. Segment Analysis - Tubes segment net sales increased 6% sequentially to $2,920 million but decreased 7% year-on-year [9][10]. - Seamless pipe sales volume was 803 thousand metric tons in Q2 2025, a 4% increase from Q1 2025, while welded pipe sales volume decreased by 16% [9][10]. - North America saw a 13% increase in net sales for the Tubes segment compared to Q1 2025, driven by higher OCTG prices [9][10]. Cash Flow and Liquidity - Free cash flow for Q2 2025 was $538 million, with a net cash position of $3.7 billion as of June 30, 2025 [5][18]. - Cash generated from operating activities was $673 million in Q2 2025, down from $821 million in Q1 2025 [17][18]. Market Outlook - Oil prices have softened due to OPEC+ production cuts and subdued demand growth amid economic uncertainty [6][7]. - U.S. OCTG imports are expected to decline due to increased tariffs, which may lead to higher prices over time [7]. Operational Efficiency - Selling, general and administrative expenses (SG&A) were $484 million, representing 15.7% of net sales in Q2 2025, slightly up from 15.6% in Q1 2025 [12]. - Operating working capital days were 128 days as of June 30, 2025, compared to 129 days in the previous year [53].

[Tenaris Share Buyback Program Report](index=1&type=section&id=Tenaris%20Share%20Buyback%20Program%20Report) This report details Tenaris's share buyback program, including its overview, weekly repurchase activities, and treasury share status [Program Overview](index=3&type=section&id=Program%20Overview) Tenaris initiated a USD 1.2 billion share buyback program, with the first tranche targeting up to USD 600 million for open market repurchases - The company initiated a **USD 1.2 billion** Share Buyback Program, with the first tranche allocated for up to **USD 600 million**[9](index=9&type=chunk) [Weekly Repurchase Details (June 23 - June 27, 2025)](index=3&type=section&id=Weekly%20Repurchase%20Details%20%28June%2023%20-%20June%2027%2C%202025%29) During the week of June 23-27, 2025, Tenaris repurchased 4,935,098 ordinary shares for a total consideration of €76.75 million (USD 89.28 million) Share Repurchases from June 23 to June 27, 2025 | Date | Trading Venue | Shares Purchased | Weighted Average Price (EUR) | Purchases in EUR | Purchases in USD | | :--- | :--- | :--- | :--- | :--- | :--- | | 23-jun-25 | MTAA, CEUX | 894,504 | 15.8790 | 14,203,830 | 16,382,698 | | 24-jun-25 | MTAA, CEUX, LOFX, AQEU | 1,209,831 | 15.4430 | 18,687,222 | 21,700,562 | | 25-jun-25 | MTAA, CEUX, TQEX, AQEU | 1,230,763 | 15.4426 | 18,996,011 | 22,085,934 | | 26-jun-25 | MTAA, CEUX, TOEX, AQEU | 900,000 | 15.4207 | 15,420,605 | 17,504,445 | | 27-jun-25 | MTAA, CEUX | 600,000 | 15.7309 | 9,438,260 | 11,058,338 | | **Total** | | **4,935,098** | **15.5523** | **76,751,928** | **89,281,976** | [Treasury Shares and Future Intentions](index=3&type=section&id=Treasury%20Shares%20and%20Future%20Intentions) As of June 27, 2025, Tenaris held 1.28% of its issued share capital in treasury, with plans to cancel shares acquired through the buyback program - As of June 27, 2025, the company held **13,694,268** ordinary shares in treasury, which constitutes **1.28%** of its total issued share capital[10](index=10&type=chunk) - Tenaris plans to cancel the treasury shares acquired under the buyback program[10](index=10&type=chunk)

Core Points - Tenaris S.A. announced that its controlling shareholder, San Faustin S.A., has crossed a voting rights threshold due to the company's share buyback program [1] - San Faustin owns 713,605,187 shares, representing 66.82% of Tenaris's voting rights following share repurchases from June 9 to June 13, 2025 [2] - The control structure of Tenaris remains unchanged as confirmed by San Faustin [2] Company Overview - Tenaris is a leading global supplier of steel tubes and related services for the energy industry and other industrial applications [3]

Core Insights - The article emphasizes the importance of conducting thorough due diligence before making investment decisions, highlighting that past performance does not guarantee future results [3]. Group 1 - The content expresses that the author's opinions are personal and do not constitute investment recommendations [2]. - It is noted that the author has no financial positions in the companies mentioned, indicating a lack of conflict of interest [1]. - The article clarifies that the views expressed may not reflect those of the platform as a whole, underscoring the diversity of opinions among contributors [3].

Group 1 - Tenaris S.A. announced a Share Buyback Program covering up to USD 1.2 billion, with a non-discretionary buyback agreement with a primary financial institution [1][2] - The buyback program will be executed in compliance with applicable regulations, allowing purchases during closed periods [2] - The first tranche of the program will cover up to USD 600 million and will commence on June 9, 2025, ending no later than December 8, 2025 [3] Group 2 - Ordinary shares purchased under the program will be cancelled in due course, following the authority granted by the general meeting of shareholders held on May 6, 2025 [3] - Tenaris is recognized as a leading global supplier of steel tubes and related services for the energy industry and other industrial applications [5]