Tenaris Announces 2024 Third Quarter Results

Summary of Key Points Core Viewpoint Tenaris S.A. reported its financial results for the third quarter of 2024, showing a decline in net sales and EBITDA compared to the previous year, while maintaining a strong cash position and announcing a follow-on share buyback program. Financial Performance - Net sales for Q3 2024 were $2,915 million, a decrease of 10% year-on-year and 12% sequentially [8][30] - EBITDA for Q3 2024 was $688 million, down 31% from $1,004 million in Q3 2023, with an EBITDA margin of 23.6% [8][30] - Net income for Q3 2024 was $459 million, a decrease of 16% compared to $547 million in Q3 2023 [8][30] - Free cash flow for Q3 2024 was $373 million, with a net cash position of $4.0 billion as of September 30, 2024 [5][26] Shareholder Returns - The board approved an interim dividend of $0.27 per share, totaling approximately $300 million [6] - A follow-on share buyback program of $700 million was announced, following a previous buyback of $1.2 billion [7][9] Market Conditions - Sales were impacted by lower prices in the Americas and reduced demand in the USA, Mexico, and Saudi Arabia [4][12] - The company anticipates lower sales and EBITDA in Q4 2024 due to ongoing pricing pressures and demand fluctuations [14] Segment Performance - Tubes segment net sales decreased 16% to $9,212 million in the first nine months of 2024 compared to $10,987 million in the same period of 2023 [31][34] - Operating income from tubular products was $1,772 million in the first nine months of 2024, down 48% from $3,403 million in the same period of 2023 [34] Cash Flow and Liquidity - Net cash generated from operating activities in Q3 2024 was $552 million, down from $935 million in Q2 2024 [25] - Capital expenditures for Q3 2024 were $179 million, leading to a free cash flow of $373 million [26][29] Outlook - The company expects a recovery in sales and EBITDA in 2025, driven by increased shipments in North America and the Middle East [14][12]