Core Viewpoint - Tenaris S.A. has successfully completed its USD 700 million Share Buyback Program, which was initiated on November 10, 2024, and concluded on March 4, 2025 [1][2]. Group 1: Share Buyback Program Details - The program resulted in the purchase of 36,862,132 ordinary shares, accounting for 3.17% of the total issued share capital at the start of the program, with a total expenditure of approximately €668,198,121, equivalent to USD 700 million [2]. - As of March 4, 2025, Tenaris holds 90,762,598 ordinary shares in treasury, which includes 53,900,466 shares acquired under a previous USD 1.2 billion Share Buyback Program, representing 7.81% of the total issued share capital [3]. - The company plans to cancel the treasury shares acquired through the recent buyback program in the future [3]. Group 2: Company Overview - Tenaris is recognized as a leading global supplier of steel tubes and related services, primarily serving the energy industry and other industrial applications [5].

Core Viewpoint - The article emphasizes the importance of value investing and highlights Tenaris (TS) as a strong value stock based on various financial metrics [2][8]. Company Analysis - Tenaris (TS) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for investors [4]. - The current P/E ratio for TS is 10.68, which is lower than the industry average of 12.44 [4]. - TS has a PEG ratio of 0.28, significantly lower than the industry average of 0.83, suggesting it may be undervalued relative to its expected earnings growth [5]. - The P/B ratio for TS is 1.31, which is comparable to the industry average of 1.33, indicating a solid valuation [6]. - TS's P/CF ratio stands at 7.79, lower than the industry average of 9.35, further supporting the notion of undervaluation based on cash flow [7]. - Overall, the financial metrics suggest that TS is likely undervalued, combined with a strong earnings outlook [8].

Financial Data and Key Metrics Changes - In Q4 2024, sales reached $2.8 billion, down 17% year-over-year and 2% sequentially, primarily due to lower volumes and average selling prices [4] - EBITDA for the quarter increased 6% sequentially to $726 million, with an EBITDA margin of 25.5% [4] - Net cash position decreased to $3.6 billion after dividend payments and share buybacks [6][11] - Free cash flow amounted to $2.2 billion, all distributed to shareholders through dividends and buybacks [11] Business Line Data and Key Metrics Changes - Average selling prices in the tubes operating segment decreased by 7% year-over-year and 1% sequentially [5] - EBITDA, excluding one-off effects, declined 4% sequentially to $659 million with a margin of 23% [5] Market Data and Key Metrics Changes - In North America, consolidation among major shale operators continued, with Tenaris strengthening service differentiation [12] - Sales in Mexico were affected by a steep decline in drilling activity due to Pemex's financial difficulties [16] - In Argentina, drilling activity in Vaca Muerta is ramping up, with pipeline investments expected to increase [17] Company Strategy and Development Direction - Tenaris aims to improve industrial efficiency and reduce environmental footprint through various investments [9] - The company is focusing on expanding its capabilities in the energy sector, particularly in Argentina and North America [12][17] - Investments include new electrical furnaces and wind farms to enhance renewable energy usage [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the energy sector's development in Argentina, anticipating increased rig activity and pipeline construction [33] - The company is preparing for potential changes in U.S. tariffs and their impact on pricing and market dynamics [46][60] - Management acknowledged the uncertainty in the geopolitical landscape and its potential effects on the market [20][21] Other Important Information - The Board proposed an annual dividend of $0.83 per share, a 38% increase from the previous year [6][11] - A tragic accident at the main plant in Argentina resulted in the loss of two employees, prompting a renewed focus on safety [9] Q&A Session Summary Question: Impact of U.S. tariffs on OCTG pricing and import trends - Management expects the introduction of 25% tariffs to gradually increase prices in the U.S. market, supporting domestic industry [26][27] Question: Growth prospects in Argentina's energy sector - Management is positive about increased investment and rig activity in Vaca Muerta, with expectations of a significant rise in operational rigs [33][34] Question: Sales and margins outlook for Q1 2025 - Management anticipates margins in Q1 2025 to be in line with Q4 2024, influenced by reduced volumes to Europe and price increases in the U.S. [44][46] Question: Share buyback program and potential acquisitions - The decision on the new buyback program will be made by the Board in April, considering market conditions and investment opportunities [50][60] Question: Activity recovery in Mexico - Management noted an unprecedented reduction in Pemex's production and rig count, expecting a policy reset in the second half of 2025 [63][66] Question: Supply-demand dynamics in North America - Management indicated a balanced supply-demand situation, with reduced imports and stable inventory levels [75][80] Question: Positioning in Saudi Arabia and the Middle East - Management highlighted stable drilling activity in the Middle East, particularly in gas, while noting uneven dynamics in oil production [88][92]

Core Insights - Tenaris S.A. reported a revenue of $2.85 billion for the quarter ended December 2024, reflecting a decrease of 16.7% year-over-year [1] - The company's EPS was $0.94, down from $1.92 in the same quarter last year, but exceeded the consensus estimate of $0.71 by 32.39% [1] - The revenue surpassed the Zacks Consensus Estimate of $2.7 billion, indicating a positive surprise of 5.45% [1] Financial Performance Metrics - Tubes Sales volume - Seamless was reported at 748 Kmt, slightly above the estimated 740.69 Kmt [4] - Total Tubes Sales volume reached 913 Kmt, exceeding the average estimate of 889.82 Kmt [4] - Tubes Sales volume - Welded was 164 Kmt, surpassing the estimated 149.13 Kmt [4] - Net sales for Tubes in North America were $1.13 billion, above the average estimate of $1.08 billion, but represented a year-over-year decline of 24.7% [4] - Net sales for Tubes in Asia Pacific, Middle East, and Africa were $629 million, below the estimated $747.05 million [4] - Net sales for Tubes in Europe were $341 million, exceeding the average estimate of $280.57 million, reflecting a year-over-year increase of 12.9% [4] - Net sales for Tubes in South America were $595 million, above the average estimate of $440.60 million, with a year-over-year change of 0.9% [4] - Revenues from Other segments were $150 million, exceeding the average estimate of $141.24 million, but showing a year-over-year decline of 30.9% [4] - Total Revenues from Tubes were $2.70 billion, surpassing the average estimate of $2.55 billion, with a year-over-year decrease of 15.7% [4] Stock Performance - Tenaris shares returned +0.4% over the past month, compared to the Zacks S&P 500 composite's +2.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Summary of 2024 Fourth Quarter Results - Net sales for Q4 2024 were $2,845 million, a decrease of 2% from Q3 2024 and a decrease of 17% from Q4 2023 [3] - Operating income increased by 4% sequentially to $558 million but decreased by 32% year-on-year [3] - Net income rose by 13% sequentially to $519 million but fell by 55% compared to Q4 2023 [3] - EBITDA for Q4 2024 was $726 million, a 6% increase from Q3 2024 but a 26% decrease from Q4 2023 [3] - The EBITDA margin improved to 25.5% from 23.6% in Q3 2024, but decreased from 28.6% in Q4 2023 [3] Summary of 2024 Annual Results - Total net sales for 2024 were $12,524 million, down 16% from 2023 [5] - Operating income for the year was $2,419 million, a decrease of 44% year-on-year [5] - Net income for 2024 was $2,077 million, down 48% from 2023 [5] - EBITDA for the year was $3,052 million, a decline of 37% compared to 2023 [5] - The EBITDA margin for 2024 was 24.4%, down from 32.7% in 2023 [5] Cash Flow and Liquidity - Free cash flow for Q4 2024 was $310 million, with a net cash position of $3.6 billion at year-end [4][26] - Cash flow from operating activities for 2024 was $2.9 billion, down from $4.4 billion in 2023 [37] - Capital expenditures for 2024 totaled $694 million, compared to $619 million in 2023 [37] Market Background and Outlook - Oil prices have remained stable, with OPEC+ maintaining production cuts amid limited global demand growth [11] - Natural gas prices in Europe and the US have risen due to cold weather and supply disruptions [11] - The company expects sales and EBITDA to be stable in Q1 2025, with moderate growth anticipated in Q2 [15] Tubes Business Segment - Tubes net sales for 2024 were $11,907 million, a decrease of 16% from 2023 [27] - Seamless pipe sales volume decreased by 4% year-on-year, while welded pipe sales volume decreased by 11% [28] - Operating income from the Tubes segment was $2,305 million in 2024, down 45% from 2023 [29] Others Business Segment - Net sales from the Others segment were $617 million in 2024, a decrease of 10% from 2023 [30] - Operating income for the Others segment was $113 million, down 15% year-on-year [30] Chief Financial Officer Transition - Effective May 2, 2025, Mr. Carlos Gomez Alzaga will become the Chief Financial Officer, succeeding Ms. Alicia Mondolo [8][9]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Tenaris (TS) as a potentially undervalued stock based on various valuation metrics [2][4][7]. Valuation Metrics - Tenaris has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4][7]. - The stock's P/E ratio is 12.20, which is lower than the industry average of 13.75, suggesting it may be undervalued [4]. - The P/B ratio for Tenaris is 1.29, compared to the industry average of 1.43, indicating an attractive valuation [5]. - Tenaris's P/CF ratio stands at 6.62, which is also lower than the industry's average of 7.46, further supporting its undervaluation [6]. Historical Performance - Over the past 52 weeks, Tenaris's Forward P/E has fluctuated between a high of 12.43 and a low of 6.99, with a median of 9.13 [4]. - The P/B ratio has ranged from a high of 1.38 to a low of 0.95, with a median of 1.12 over the past year [5]. - The P/CF ratio has seen a high of 6.75 and a low of 4.13, with a median of 5.20 during the same period [6].

Core Viewpoint - Tenaris (TS) is identified as a strong value stock with a Zacks Rank of 2 (Buy) and an "A" grade for Value, indicating it is likely undervalued in the current market [4][7]. Valuation Metrics - TS has a Forward P/E ratio of 12.01, which is lower than the industry average of 13.23, suggesting it may be undervalued [4]. - The P/B ratio for TS is 1.27, compared to the industry's average P/B of 1.39, indicating an attractive valuation relative to its book value [5]. - TS's P/CF ratio stands at 6.51, which is favorable compared to the industry average of 7.16, further supporting the notion of undervaluation based on cash flow [6]. Historical Performance - Over the past 52 weeks, TS's Forward P/E has fluctuated between a high of 12.01 and a low of 5.90, with a median of 9.03 [4]. - The P/B ratio for TS has ranged from a high of 1.38 to a low of 0.95, with a median of 1.11 over the last 12 months [5]. - TS's P/CF ratio has varied between a high of 6.69 and a low of 4.12, with a median of 5.04 during the past year [6].

Core Points - ExxonMobil has awarded Tenaris the title of 2024 Supplier of the Year, recognizing its performance and alignment with ExxonMobil's values [1][2] - Tenaris has shown superior performance globally, particularly in ExxonMobil's operations in Guyana and the Permian region, meeting high standards and business needs [2] - The award criteria include competitiveness, service quality, delivery commitments, sustainability, and performance in safety, security, health, and environment [3] Company Overview - Tenaris is a leading global manufacturer and supplier of steel pipe products and related services for the energy industry, with revenues of US $14.9 billion in 2023 [5] - The company employs around 29,000 people and operates an integrated network of manufacturing, research, and service facilities across the Americas, Europe, the Middle East, Asia, and Africa [5] - Tenaris serves major oil and gas companies and supports ExxonMobil in various drilling projects, both onshore and offshore, including deepwater exploration [2][5]

ExxonMobil names Tenaris its 2024 Supplier of the Year Luca Zanotti, Tenaris US President, and Guillermo Moreno, Chief Commercial Officer for the US, received the award on behalf of Tenaris. HOUSTON, Dec. 16, 2024 (GLOBE NEWSWIRE) -- ExxonMobil has named Tenaris its 2024 Supplier of the Year, recognizing the company’s performance, competitiveness and high standards as consistent with ExxonMobil’s values and expectations. “Over the past year, Tenaris has consistently demonstrated superior performance glo ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-a ...