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]

Core Points - ExxonMobil has recognized Tenaris as its 2024 Supplier of the Year for demonstrating superior performance and high standards in meeting business needs [1][2] - Tenaris has been a long-term supplier to ExxonMobil, providing OCTG solutions and services, and supporting drilling projects globally [2] - The award criteria included competitiveness, service quality, delivery commitments, sustainability, and performance across safety and environmental standards [2] Company Performance - Tenaris reported revenues of US $14.9 billion in 2023 and employs approximately 29,000 people worldwide [2] - The company operates an integrated network of manufacturing, research, and service facilities across the Americas, Europe, the Middle East, Asia, and Africa [2] Leadership Statements - Rebecca Vest, ExxonMobil Vice President of Procurement, highlighted Tenaris's commitment to delivering valuable outcomes [2] - Paolo Rocca, Tenaris Chairman and CEO, emphasized the company's dedication to building strong business relationships and engineering solutions that add value [2][5]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Tenaris (TS) as a strong value stock based on its favorable metrics and Zacks Rank [2][4][6] Company Analysis - Tenaris (TS) has a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock's Forward P/E ratio is 11.24, which is lower than the industry's average of 13.04, suggesting it may be undervalued [4] - Over the past 52 weeks, TS's Forward P/E has fluctuated between a high of 11.97 and a low of 5.90, with a median of 8.64 [4] Cash Flow Metrics - TS has a P/CF ratio of 6.42, which is attractive compared to the industry's average P/CF of 7.21, indicating strong cash flow relative to its valuation [5] - The P/CF ratio for TS has ranged from a high of 6.44 to a low of 4.12 over the past year, with a median of 4.88 [5] Investment Outlook - The combination of TS's favorable valuation metrics and strong earnings outlook positions it as a compelling value stock at the moment [6]