Tenaris SA (TW1) Q2 2026 Earnings Report

The call balanced near-term challenges — notably the Strait of Hormuz disruption, higher raw material and logistics costs, and sequential declines in EBITDA and net income — with multiple operational strengths: solid free cash flow, a healthy net cash position, substantial industrial investments (U.S. and Canada), record production at Bay City, growing offshore backlog and a favorable North American activity/pricing backdrop. Management expects Q2 and Q3 to be roughly similar with a meaningful recovery in Q4 (volumes >1 million tons and potential upside from a ~$130 million backlog if navigability is restored). Given the combination of resilient cash generation, strategic investments and clear late-year upside offsetting near-term margin pressures, the tone is constructive but cautious.

Tenaris said it expects second‑half revenues and EBITDA to be broadly in line with the first half (Q2 sales $3.0bn, Q2 EBITDA $649m, Q2 net income $492m), with Q3 similar to Q2 and a meaningful uptick in Q4 as volumes rise (above 1.0 million tonnes) and raw‑material–driven price increases feed through; the company noted a $130m backlog for Iraq/Kuwait/Qatar (premium‑margin material) that would take ~70–90 days to ship and could be an upside to Q4, and reaffirmed stronger pricing trends (PipeLogix ~+9% YTD with at least another ~5% expected by year‑end, with Tenaris’ prices lagging by one quarter). Operationally, U.S. activity has risen ~10% (+~50 rigs) with another ~10–15 rigs expected, Canada is being supported by a C$230m (~$230m) mill expansion, Argentina now has 42 rigs (9 added YTD), and the company pointed to robust cash generation (operating cash flow $518m, capex $121m, free cash flow $396m) and a strong balance sheet (net cash ~$3.6bn) while the Board approved an interim dividend of $0.59/share (~$600m to be paid Nov 25).