Tenaris (TEN) AI Stock Analysis

• Market Cap: €25.92B
• Dividend Yield: 4.46%
• Average Volume (3M): 1.99M
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.74
• 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: €21.62
• Price Target Upside: -10.59% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.52
• Revenue Forecast (FY): €10.20B

• Rating: 81 Outperform
• Price Target: €28.00 ▲(15.80% 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

Low leverage / strong balance sheet

Tenaris’s extremely low debt burden (debt ≈3% of equity) provides durable financial flexibility to withstand oilfield cycles, fund capex and working capital, maintain dividends or buybacks, and negotiate through downturns without pressured balance-sheet repair.

Robust free cash flow generation

Improving and sizable free cash flow, with operating cash flow above net income in 2025 and strong FCF growth, supports reinvestment in high‑spec tubulars, service capabilities, and shareholder returns while insulating the business from temporary revenue swings.

Specialized tubular products and integrated services

Tenaris’s focus on high-spec OCTG, premium connections and bundled services (threading, heat treatment, logistics) creates higher technical barriers to entry, customer stickiness and recurring revenue opportunities versus commodity steel suppliers, supporting sustainable margins.

Negative Factors

Cyclicality in end-market demand

Tenaris’s revenues are closely tied to rig counts, well completions and pipeline project timing; negative revenue growth and historical swings expose core earnings to multi-quarter volatility, making medium-term topline predictability challenging for planning and investment.

Normalized margins vs peak years

Margins and returns have rolled back from exceptionally strong 2022–2023 levels; this normalization indicates reduced structural tailwinds and means future cash flow and ROE will likely be more cyclical and constrained when activity softens.

Exposure to steel input and trade/tariff risks

The business’s cost base and competitiveness are sensitive to steel prices, input cost swings and tariff regimes; these structural supply‑chain and policy exposures can compress margins, disrupt supply agreements and raise working capital needs across cycles.

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 makes money mainly by selling steel tubular products and providing related services to energy customers. The largest revenue driver is typically OCTG: high-specification seamless (and some welded) casing, tubing, and accessories used in oil and gas wells; Tenaris earns revenue by manufacturing these products and selling them either directly to exploration and production companies or through distributors/supply agreements tied to drilling and completion programs. A second major stream is line pipe and other tubular products used for the transportation of oil and gas and for other industrial applications; revenue is recognized from shipments of these products to pipeline operators, engineering-procurement-construction (EPC) contractors, and industrial customers. In addition to product sales, Tenaris generates revenue from value-added services that can be bundled with pipe supply, such as threading and premium connections, heat treatment and other finishing operations, inspection, and integrated logistics (inventory management, yard services, and delivery coordination) designed to reduce customer well-site and project costs. Earnings are influenced by customer activity levels (rig counts and well completions), project timing in pipelines, product mix (including premium connection offerings), steel input costs and pricing, trade/tariff conditions, and the company’s ability to execute long-term supply arrangements and service models that increase share of customer spend beyond the base pipe.

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: 24.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 24.18 is above the 20-day moving average (MA) of 23.13, above the 50-day MA of 20.77, and above the 200-day MA of 17.10, indicating a bullish trend. The MACD of 0.89 indicates Positive momentum. The RSI at 73.86 is Negative, neither overbought nor oversold. The STOCH value of 91.39 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	€25.92B	10.18	11.48%	4.46%	-11.36%	-20.23%
SPM	73 Outperform	€6.73B	15.58	13.05%	6.99%	18.52%	29.29%
SRG	72 Outperform	€21.39B	11.74	17.62%	5.18%	-8.04%	30.49%
TRN	72 Outperform	€19.69B	7.46	14.70%	4.41%	10.18%	8.43%
ENI	67 Neutral	€70.01B	18.72	5.51%	6.39%	-5.46%	13.79%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%