Tenaris S.A.(US:TS)2026-03-31 21:01Financial Performance - Net sales for Q4 2025 reached $2,995 million, a 1% increase from Q3 2025 and a 5% increase from Q4 2024[11]. - Operating income for Q4 2025 was $554 million, a 7% decrease from Q3 2025 and a 1% decrease from Q4 2024[11]. - Total net sales for 2025 were $11,981 million, a 4% decrease from 2024[28]. - Operating income for 2025 was $2,283 million, a 6% decrease from 2024[28]. - Income for the twelve-month period ended December 31, 2025, was $1,973,279, a decrease of 5% compared to $2,076,773 in 2024[47]. - EBITDA for the twelve-month period ended December 31, 2025, was $2,899,386, down 5% from $3,051,703 in 2024[53]. Cash Flow and Liquidity - Free cash flow for Q4 2025 amounted to $665 million, with a net cash position of $3.3 billion as of December 31, 2025[13][27]. - Cash flow from operating activities for 2025 was $2.6 billion, with free cash flow of $2.0 billion after capital expenditures[30]. - Net cash provided by operating activities in 2025 was $2.6 billion, compared to $2.9 billion in 2024, indicating a decrease in operational cash flow[41]. - Free cash flow amounted to $2.0 billion in 2025, down from $2.2 billion in 2024, highlighting a reduction in cash generation[41]. - Net cash as of December 31, 2025, was $3,321,973, down from $3,609,108 in 2024[60]. - Net cash provided by operating activities for the twelve-month period was $2,599,580, a decrease of 9% from $2,866,218 in 2024[47]. Segment Performance - Tubes sales volume in Q4 2025 was 969 thousand metric tons, a 1% decrease from Q3 2025 but a 6% increase year-on-year[18]. - Net sales for the Tubes segment in Q4 2025 were $2,839 million, a 1% decrease sequentially but a 5% increase year-on-year[18]. - Tubes business segment net sales decreased by 4% to $11,400 million in 2025 from $11,907 million in 2024, primarily due to a decrease in average selling prices[32]. - Operating income for the Tubes segment was $2,176 million in 2025, down from $2,305 million in 2024, reflecting a decline in average selling prices and the cost of Section 232 tariffs[33]. - The Others business segment net sales decreased by 6% to $581 million in 2025 from $617 million in 2024, primarily due to lower sales of sucker rods[34]. Expenses and Investments - Selling, general and administrative expenses (SG&A) decreased to $1,828 million in 2025, representing 15.3% of sales, compared to $1,905 million or 15.2% of sales in 2024[36]. - Income tax expense increased to $501 million in 2025 from $480 million in 2024, indicating a rise in tax obligations[40]. - Capital expenditures were $617 million in 2025, down from $694 million in 2024, reflecting a reduction in investment spending[41]. - Capital expenditures for the twelve-month period ended December 31, 2025, were $617,183, down from $693,956 in 2024[57]. Shareholder Returns - Proposed annual dividend of $0.89 per share, totaling approximately $900 million, subject to shareholder approval[17]. - Dividends paid for the twelve-month period increased to $900,361 from $757,786 in 2024, reflecting a commitment to returning value to shareholders[57]. Operational Efficiency - Operating working capital days improved to 137 days in 2025 from 145 days in 2024, indicating enhanced operational efficiency[64]. - Changes in working capital resulted in a net cash inflow of $47,772 for the twelve-month period, a significant decrease from $286,917 in 2024[47]. Equity and Investments - Total equity increased to $16,829 million at the end of 2025 from $16,813 million at the end of 2024, reflecting a slight growth in shareholder value[46]. - Equity in earnings of non-consolidated companies increased to $58 million in 2025 from $9 million in 2024, indicating improved performance from equity investments[39]. Financing Activities - The company reported a net cash used in financing activities of $2,477,832 for the twelve-month period, compared to $2,399,429 in 2024, indicating increased financing activities[57].