Tenaris (NYSE:TS) Q4 2025 Earnings call February 19, 2026 07:30 AM ET Company ParticipantsCarlos Gómez Álzaga - CFOGabriel Podskubka - COOGiovanni Sardagna - Investor Relations OfficerGuillermo Moreno - President, U.S. OperationsPaolo Rocca - Chairman and CEOConference Call ParticipantsAlessandro Pozzi - Senior Equity Research AnalystArun Jayaram - Senior Equity Research AnalystJamie Franklin - VP of Energy Equity Research and Senior AnalystKévin Roger - Head of Energy Equipment & Services and Senior Equity ...

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]