Tenaris Announces 2025 First Quarter Results

Core Viewpoint - Tenaris S.A. reported its financial results for the first quarter of 2025, showing a decline in net income and EBITDA compared to the same period in 2024, while experiencing a slight increase in net sales compared to the previous quarter [2][3][4]. Financial Performance - Net sales for Q1 2025 were $2,922 million, a 3% increase from Q4 2024 but a 15% decrease from Q1 2024 [3]. - Operating income was $550 million, down 2% from Q4 2024 and down 32% from Q1 2024 [3]. - Net income remained stable at $518 million, unchanged from Q4 2024 but down 31% from Q1 2024 [3]. - EBITDA for Q1 2025 was $696 million, a 4% decrease from Q4 2024 and a 29% decrease from Q1 2024, with an EBITDA margin of 23.8% [3][4]. Sales and Market Dynamics - Sales were supported by seasonal volumes in Canada and higher onshore sales in the USA, despite a decline in average selling prices due to market and product mix effects [4]. - The Tubes segment saw an 8% increase in sales volumes sequentially, with seamless pipe sales at 775 thousand metric tons and welded pipe sales at 212 thousand metric tons [8]. - Net sales in North America increased by 10% sequentially, while South America and Europe experienced declines [8]. Cash Flow and Liquidity - Free cash flow for Q1 2025 was $647 million, following a reduction in working capital of $224 million [5][18]. - The net cash position increased to $4.0 billion as of March 31, 2025, after share buybacks of $237 million [5][18]. Market Outlook - The oil and gas drilling activity has remained stable, but the outlook for oil demand and prices has shifted due to lower global economic growth expectations and OPEC+ production increases [6]. - US OCTG reference prices have risen due to extended tariffs on steel imports, which is expected to mitigate the impact of higher costs on US operations [7]. Operational Efficiency - Selling, general and administrative expenses (SG&A) were $457 million, representing 15.6% of net sales, slightly up from 15.7% in the previous quarter [12]. - Operating working capital days increased to 134 days from 131 days year-on-year, indicating a slight decline in operational efficiency [38].