Tenaris ( (TS) ) has released its Q1 earnings. Here is a breakdown of the information Tenaris presented to its investors.
Tenaris S.A. is a leading global manufacturer and supplier of steel pipes and related services primarily for the energy industry, known for its extensive range of products and global reach.
In its first quarter of 2025 earnings report, Tenaris reported a mixed financial performance with a slight increase in net sales compared to the previous quarter, but a notable decline compared to the same period last year. The company highlighted strong cash flow generation and an increase in its net cash position.
Key financial metrics showed net sales of $2.92 billion, a 3% increase from the previous quarter but a 15% decrease year-over-year. Operating income and net income remained relatively stable compared to the previous quarter but were significantly lower than the same period last year. The EBITDA margin decreased to 23.8% from 28.7% a year ago, reflecting changes in product and market mix.
Tenaris’s strategic focus on cash flow resulted in a free cash flow of $647 million, supported by a reduction in working capital. The company also increased its net cash position to $4 billion, despite spending $237 million on share buybacks. Looking ahead, Tenaris expects a slight increase in sales and stable EBITDA margins in the second quarter, amid a changing oil and gas market environment.
Overall, Tenaris remains optimistic about maintaining its operational efficiency and financial strength, with expectations of stable sales volumes and recovering average selling prices in the near term.