Core Insights - The company emphasized strong cash generation, reporting $63 million in cash after acquisitions, dividend increases, and share buybacks, with a healthy balance sheet [1] - Hunting reported 2025 EBITDA of $135.7 million, with turnover flat year-on-year at just over $1 billion, and improved profit margins due to a focus on higher-margin products and cost actions [2] - Management highlighted geopolitical uncertainty in the Middle East but framed it as reinforcing the importance of energy security and long-term demand for oilfield services [3] Financial Performance - The company achieved EBITDA of $135.7 million and ended 2024 with $63 million in cash, with working capital reduced to 33% of sales after a $65 million inventory reduction [6][7] - Gross profit, EBITDA, and operating profit margins improved by around one percentage point, reflecting strategic focus on higher-margin product lines [2] Strategic Actions - Hunting reshaped its portfolio through acquisitions of Flexible Engineered Solutions and Organic Oil Recovery, while exiting Rival Downhole, and announced additional cost savings of approximately $15 million [5][11] - The company is progressing with a buyback program of $60 million, with an additional $40 million planned, alongside a targeted dividend growth rate of 13% per annum [14][15] Market Outlook - Management expects strong order momentum with a tender pipeline exceeding $1 billion, forecasting a significant increase in the order book from $358 million to approximately $500 million by Q3 [6][8] - The company cited strong profitability in key segments, particularly OCTG, which represented over 46% of sales, and noted high tender activity in subsea services [16][17] Operational Improvements - The Titan segment showed operational improvement, with margins increasing from 0% last year to around 6% in 2025, with a goal to reach 15% [18] - The company is also expanding its non-oil and gas activities, with significant work in space, nuclear, and power generation sectors [19] Future Guidance - Guidance for 2026 remains unchanged, with expected EBITDA of $145 million to $155 million and an EBITDA margin of 13% to 14%, alongside a projected increase in CapEx to $40 million to $50 million [20]

Financial Data and Key Metrics Changes - In Q4 2025, sales reached $3 billion, a 5% increase year-over-year and a 1% increase sequentially, driven by resilient sales to rig direct customers in the U.S. and Canada [4] - EBITDA for the quarter was $717 million, down 5% sequentially, representing 24% of sales, impacted by 50% Section 232 tariffs in the U.S. [4] - The net cash position decreased to $3.3 billion after dividend payments, share buybacks, and capital expenditures [5] - The company proposed an annual dividend of $0.89 per share, a 7% increase compared to the previous year [6] Business Line Data and Key Metrics Changes - Average selling prices in the tube operating segment decreased by 1% year-over-year and were flat sequentially [4] - The U.S. production and supply chain system achieved a record level of production, with 90% of U.S. sales coming from this system [10] Market Data and Key Metrics Changes - In the U.S. and Canada, the oil and gas industry saw consolidation and productivity improvements, with a lower rig count impacting operations [9] - In Latin America, domestic companies raised over $4 billion for infrastructure and production expansion in the Vaca Muerta fields [12] - The Middle East saw a long-term agreement for OCTG supply to Qatar's Northwest Field development, with enhanced Rig Direct services in the UAE [13] Company Strategy and Development Direction - The company aims to enhance operational efficiency and digital integration while reducing environmental impact [13][14] - Tenaris is focusing on offshore projects and expects to renew its order backlog as new offshore projects are sanctioned globally [11] - The company is investing in expanding its fracking and coiled tubing service business in Argentina [12] Management's Comments on Operating Environment and Future Outlook - Management noted the resilience of operations amid geopolitical disruptions and lower activity in key markets, with a stable performance expected in Q1 2026 [8][19] - The company anticipates a gradual increase in drilling activity in Argentina in the second half of 2026, driven by increased investment confidence [44] - Management expressed caution regarding long-term forecasts due to market volatility but indicated a stable outlook for margins and results in the near term [19][20] Other Important Information - The company is actively monitoring pricing pressures in international markets, with stability observed in premium products [29] - The company is assessing competitive dynamics in Argentina following a tender loss to an Indian company, considering potential anti-dumping actions [87] Q&A Session Questions and Answers Question: Outlook for Q1 and beyond - Management indicated relative stability in performance for Q1, with results expected to be in line with Q4 [19] Question: Margin resilience and tariff impacts - Management noted ongoing efficiency improvements and expected a slight reduction in tariff impacts in Q1 [22][23] Question: Pricing pressure in international markets - Management observed stability in premium product pricing, with some pressure in lower-end applications [30] Question: Buyback philosophy - Management confirmed ongoing share buyback programs, with decisions to be made based on cash availability and market conditions [36] Question: Pipe Logix pricing indices - Management discussed the impact of welded pipe imports on pricing indices and anticipated a gradual alignment with higher hot-rolled coil prices [41][42] Question: Argentina's market dynamics - Management highlighted increased investment confidence post-elections and expected a gradual increase in drilling activity in 2026 [44][46] Question: Venezuela opportunities - Management indicated potential for $50 million in revenue from Venezuela in 2026, with upside potential depending on market developments [90] Question: Middle East and Mexico outlook - Management noted ongoing high activity levels in the Middle East and gradual improvements in Pemex's situation in Mexico [100][98]

Financial Data and Key Metrics Changes - In Q4 2025, sales reached $3 billion, a 5% increase year-over-year and a 1% increase sequentially, driven by resilient sales to rig direct customers in the U.S. and Canada [3] - EBITDA for the quarter was $717 million, down 5% sequentially, representing 24% of sales, impacted by 50% Section 232 tariffs in the U.S. [3] - The net cash position decreased to $3.3 billion due to a $300 million interim dividend, $537 million in share buybacks, and $123 million in capital expenditures [4] - Free cash flow for the year was $2 billion, fully distributed to shareholders through dividends and buybacks [6] Business Line Data and Key Metrics Changes - Average selling prices in the tube operating segment decreased by 1% year-over-year and were flat sequentially [3] - The U.S. production and supply chain system achieved a record level of production, with 90% of U.S. sales coming from enhanced operational efficiency [8] Market Data and Key Metrics Changes - In the U.S. and Canada, the oil and gas industry saw consolidation and productivity improvements, with a lower rig count impacting operations [7] - In Latin America, domestic companies raised over $4 billion for infrastructure and production expansion in the Vaca Muerta fields, while in Venezuela, services to Chevron resumed [11] - The Middle East saw a long-term agreement for OCTG supply to Qatar and enhanced Rig Direct services in the UAE, with a focus on reducing environmental impact [12][13] Company Strategy and Development Direction - Tenaris aims to enhance its operational efficiency and digital integration while reducing environmental impact, with a commitment to sustainability [13] - The company is focusing on offshore projects and expects to renew its order backlog as new projects are sanctioned globally [10] - The strategy includes increasing the annual dividend by 7% and maintaining a strong cash position to support shareholder returns [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a stable performance for Q1 2026, with no immediate disruptions expected [18] - The geopolitical environment and energy market volatility make medium-term forecasts challenging, but a stable margin and top-line performance are anticipated [19] - The company is monitoring pricing pressures in international markets, particularly in premium products, while maintaining a stable pricing outlook [27][29] Other Important Information - The company is investing in expanding its fracking and coil tubing services in Argentina, anticipating increased drilling activity by the end of 2026 [11][19] - Tenaris is positioned to benefit from potential increases in offshore investments, with significant projected investments in deepwater projects for 2027 [55][56] Q&A Session Summary Question: Outlook for Q1 and beyond - Management indicated a stable performance in Q1 2026, with results expected to be in line with Q4 2025 [18] Question: Impact of tariffs on margins - Management noted ongoing efficiency improvements and a slight reduction in tariff impacts expected in Q1 2026 [21] Question: Pricing pressure in international markets - Management observed stability in premium product pricing, with some pressure in lower-end applications [27] Question: Buyback program philosophy - The buyback program remains a key component of shareholder returns, with decisions pending on future tranches [32] Question: Argentina's drilling activity - Management expects increased drilling activity in Argentina in the second half of 2026, driven by improved investment confidence [42] Question: Venezuela opportunities - Short-term revenue potential in Venezuela is estimated at $50 million for 2026, with expectations for growth as more companies resume operations [87]