Tenaris (TEN) AI Stock Analysis

• Market Cap: €22.62B
• Dividend Yield: 4.46%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.78
• Revenue Growth: -11.36%
• EPS Growth: -20.23%
• Country: IT
• Employees: 25,874
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.37
• Shares Outstanding: 1,071,994,900
• 10 Day Avg. Volume: 1,699,035
• 30 Day Avg. Volume: 1,992,083
• PEG Ratio: 2.05
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 1.64
• P/FCF Ratio: 9.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €19.08
• Price Target Upside: -15.58% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 81 Outperform
• Price Target: €27.00 ▲(19.47% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by strong financial performance (conservative leverage and solid free cash flow) and supportive valuation (moderate P/E and good dividend yield). Technicals are positive on trend, but very overbought momentum readings temper the overall rating due to increased near-term volatility risk.

Positive Factors

Balance sheet strength

Very low net debt (debt ~3% of equity) gives Tenaris durable financial flexibility. This reduces refinancing risk through commodity cycles, supports capital expenditure and shareholder returns, and allows the company to withstand prolonged industry downturns without distress.

Cash generation and FCF growth

Strong and improving operating cash flow and ~33% free cash flow growth underpin sustainable internal funding for maintenance capex, selective growth projects and buybacks. Consistent cash conversion since 2022 provides a reliable source to fund strategy through cycles.

Integrated products and resilient end-market sales

Tenaris’s combination of tubular products, premium connections and integrated services creates higher switching costs and cross-sell opportunities with major oil & gas operators. Resilient Rig Direct volumes and restarted service offerings support more stable, diversified revenue streams.

Negative Factors

Cyclical profitability normalization

Earnings and margins have normalized from 2022–2023 highs, signaling persistent cyclicality. This reduces the predictability of returns and means multi-year planning must account for swings in commodity-driven demand and pricing that can materially compress margins.

Revenue growth volatility

Negative recent revenue growth evidences sensitivity to end-market cycles. Volatile top-line trends can depress capacity utilization and operating leverage, making long-term margin sustainability and investment timing more uncertain across 2–6 month to multi-year horizons.

Regulatory and operational cost risk

Exposure to high Section 232 tariffs creates structural cost pressure and can erode competitiveness in affected markets. Combined with demonstrated operational disruption (transformer outage), this raises the risk that external policy or plant incidents will materially and persistently weigh on margins.

Tenaris Business Overview & Revenue Model

Company Description

Tenaris S.A., together with its subsidiaries, produces and sells seamless and welded steel tubular products; and provides related services for the oil and gas industry, and other industrial applications. The company offers steel casings, tubing products, mechanical and structural pipes, cold-drawn pipes, and premium joints and couplings; coiled tubing products for oil and gas drilling and workovers, and subsea pipelines; and umbilical tubing products; and tubular accessories. It also provides sucker rods, industrial equipment, heat exchangers, and utility conduits for buildings, as well as sells energy and raw materials. In addition, it offers financial services. The company operates in North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. Tenaris S.A. was incorporated in 2001 and is based in Luxembourg, Luxembourg. Tenaris S.A. is a subsidiary of Techint Holdings S.à r.l.

How the Company Makes Money

Tenaris generates revenue primarily through the sale of its steel pipes and related services to the oil and gas sector, which constitutes a significant portion of its business. The company operates on a revenue model that includes direct sales to energy companies, as well as contracts for long-term supply agreements. Key revenue streams include the sale of seamless and welded pipes, premium connections, and value-added services such as technical support and supply chain management. Additionally, Tenaris benefits from strategic partnerships and alliances with major oil and gas operators, enhancing its market position and creating opportunities for large-scale contracts. Factors contributing to its earnings include the global demand for energy, ongoing investments in energy infrastructure, and the company's ability to innovate and adapt its product offerings to meet the evolving needs of the market.

Tenaris Financial Statement Overview

Summary

High financial quality overall: very strong balance sheet with minimal leverage and solid cash generation. The main constraint is cyclical normalization—profitability and margins are down from the 2023 peak and recent growth is modest.

Income Statement

Profitability is strong on the latest annual results (2025), with healthy gross and net profit margins (about 34% and 16%) and solid operating profitability. However, the earnings profile has cooled versus the 2023 peak, with notably lower margins and profits than 2022–2023, and revenue growth was modest in 2025 (~5.5%) after a flat 2024. The longer-term trajectory is positive versus 2020–2021, but results appear more cyclical and normalized after an exceptionally strong 2023.

Balance Sheet

The balance sheet is a clear strength: leverage is very low (debt is only ~3% of equity in 2025), supported by a large equity base and substantial assets. Returns on equity remain healthy (~12% in 2025) though down materially from 2022–2023 levels, signaling some normalization in profitability rather than financial stress. Overall, the company appears well-positioned to withstand industry cycles given minimal debt burden.

Cash Flow

Cash generation is strong and improving in the most recent year, with solid operating cash flow and free cash flow in 2025, and robust free cash flow growth (~33%). Cash conversion is generally good (free cash flow below net income but still substantial), and operating cash flow exceeds net income in 2025. The key watch-out is volatility across the cycle—2021 showed weak operating cash flow and negative free cash flow—though performance has been consistently strong since 2022.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.47B	12.52B	14.87B	11.76B	6.52B
Gross Profit	4.29B	4.39B	6.47B	4.67B	1.91B
EBITDA	3.03B	3.16B	5.29B	3.82B	1.86B
Net Income	2.01B	2.04B	3.92B	2.55B	1.10B
Balance Sheet
Total Assets	20.07B	20.45B	21.08B	17.55B	14.45B
Cash, Cash Equivalents and Short-Term Investments	2.88B	3.05B	3.61B	1.53B	715.98M
Total Debt	543.94M	582.32M	203.96M	840.94M	448.22M
Total Liabilities	3.24B	3.64B	4.05B	3.52B	2.34B
Stockholders Equity	16.60B	16.59B	16.84B	13.91B	11.96B
Cash Flow
Free Cash Flow	2.13B	2.16B	3.78B	769.87M	-125.52M
Operating Cash Flow	2.77B	2.87B	4.40B	1.17B	119.08M
Investing Cash Flow	-265.01M	-1.40B	-2.69B	-163.56M	267.90M
Financing Cash Flow	-2.58B	-2.40B	-1.13B	-178.34M	-647.96M

Tenaris Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:TEN, the sentiment is Positive. The current price of 22.6 is above the 20-day moving average (MA) of 20.13, above the 50-day MA of 18.48, and above the 200-day MA of 16.33, indicating a bullish trend. The MACD of 1.07 indicates Negative momentum. The RSI at 72.49 is Negative, neither overbought nor oversold. The STOCH value of 82.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:TEN.

Tenaris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	81 Outperform	€22.62B	13.01	12.14%	4.46%	-11.36%	-20.23%
SPM	73 Outperform	€6.81B	20.65	13.05%	6.99%	18.52%	29.29%
SRG	72 Outperform	€21.16B	15.15	17.62%	5.18%	-8.04%	30.49%
TRN	72 Outperform	€19.90B	17.99	19.67%	4.41%	10.18%	8.43%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ENI	63 Neutral	€55.95B	20.27	5.51%	6.39%	-5.46%	13.79%