Tenaris S. A. (TS)

Tenaris, a maker of steel pipe for oil and gas wells, reported second-quarter net sales of $2,967 million, down 4 percent from the first quarter 2.

The company said shipments to Middle East customers were postponed because the strait of Hormuz was effectively closed for most of the period 2.

Operating income fell to $494 million from $584 million, and the Tubes segment's operating margin slipped to 16.6 percent from 18.6 percent 2.

Net cash stood at $3.6 billion on 30 June 2026 after $606 million of dividends in the quarter 2.

On 6 May 2026 the board named Gabriel Podskubka chief executive, and Paolo Rocca stays as chairman 37.

The Buenos Aires Herald reported that the change followed harsh public criticism of Rocca by Argentina's president, after Tenaris lost a pipeline bid 8.

Tenaris began in 1948 with the formation of Siderca, then Argentina's only maker of seamless steel pipe, founded by the predecessor of its controlling shareholder San Faustin 1.

The business acquired Siat, an Argentine welded pipe maker, in 1986 4. In the early 1990s it began to grow beyond Argentina into a global business through a series of strategic investments 4.

In 1994 it brought Rig Direct, a service that delivers pipe to the customer's rig just in time, to Pemex in Mexico 1.

The present Luxembourg company was established on 17 December 2001 and Paolo Rocca has been its chief executive since 2002 1. It became a public company in 2002 3.

Two large US purchases followed: Maverick Tube in 2006 and Hydril, a maker of premium connections, in 2007 4. In January 2012 Confab and three Ternium subsidiaries acquired stakes in Usiminas, a Brazilian flat steel maker 1.

Net sales were $5,289 million in 2017, $7,659 million in 2018 and $7,294 million in 2019 4.

On 2 January 2020 Tenaris acquired IPSCO, a US maker of seamless and welded pipe, from TMK for about $1,067 million 4. Then oil prices collapsed in March 2020, US drilling fell sharply, and Tenaris closed many US facilities 1.

It recorded impairment charges of about $622 million on its US operations as of 31 March 2020, and net sales fell to $5,147 million that year 45.

Sales then recovered to $6,521 million in 2021 and $11,763 million in 2022 5. In 2022 tubular sales rose 86 percent, with volumes up 26 percent and average selling prices up 47 percent 5.

Net sales peaked at $14,869 million in 2023, then eased to $12,524 million in 2024 and $11,981 million in 2025 1.

Tubes operating results fell from $4,183 million in 2023 to $2,305 million in 2024, mainly because average selling prices declined 1.

At the end of 2023 it acquired the global pipe-coating business of Mattr, and in 2025 a scrap processing business in Beaver Falls, Pennsylvania 1.

Steel pipe for the energy industry

The Tubes segment is the one major business and sells steel tubular products and related services, mainly for the oil and gas industry 1.

Casing supports the walls of a well, tubing carries oil and gas to the surface, and line pipe moves them to refineries and storage tanks 1.

Premium joints and couplings are special connections that join lengths of casing and tubing in high-pressure wells, sold under the TenarisHydril brand 1.

Tubes net sales were $11,400 million in 2025, down 4 percent on lower average selling prices, and Tubes operating results were a gain of $2,176 million 1.

In the latest quarter sales volume was 946 thousand metric tons, 4 percent below a year earlier, and North America was the largest region at $1,471 million 2.

Rig Direct manages the pipe supply from mill to rig for customers under long-term agreements, with digital and technical services added 1.

Other products and services

The Others segment covers oilfield and hydraulic fracturing services, sucker rods, coiled tubing, plumbing and construction tubes, and surplus energy and raw materials 1.

It had net sales of $581 million in 2025, about 5 percent of the total 1.

Plants

The Bay City mill in Texas is a greenfield seamless mill on 552 hectares that cost $1.8 billion and rolls up to 823,000 tons a year 1.

In Mexico, the Veracruz plant near Pemex's drilling operations has an installed capacity of 1,230,000 tons of seamless pipe a year 1.

In Argentina, the Campana plant near Buenos Aires has an effective capacity of 794,000 tons of seamless pipe a year 1.

People and control

Gabriel Podskubka became chief executive in May 2026 after serving as chief operating officer since 2023, and Paolo Rocca remains chairman 3.

The workforce fell by about one thousand in 2025, mostly on the shop floor 1.

Rivals

The annual report names Vallourec of France, Nippon Steel, JFE, US Steel, Interpipe of Ukraine, ArcelorMittal and Chinese producers among its main competitors 1.

Nippon Steel completed its acquisition of US Steel in June 2025, the report says 1.

Current problems

The United States extended a 25 percent tariff to virtually all steel imports on 12 March 2025 and raised it to 50 percent on 4 June 2025 1.

Tenaris attributes the 2025 fall in Tubes operating income mainly to lower average selling prices and the cost of those tariffs 1.

In Brazil, CSN sued Confab and three Ternium subsidiaries over the 2012 Usiminas purchase, and Tenaris recorded a $107 million provision in 2024 for the litigation 1.

The Buenos Aires Herald reported on 30 January 2026 that Tenaris lost a bid to supply pipe for a US$15 billion gas export project in Argentina to India's Welspun 9.

Drilling in Iraq, Kuwait and Qatar has been severely affected by the Middle East conflict, while in Saudi Arabia and the UAE it has been largely maintained, the company said 2.

The umbrella, in words

San Faustin controls Tenaris through its subsidiary Techint Holdings, owning 64.37 percent of the share capital and 68.34 percent of the votes as of 28 February 2026 1.

A foundation called RP STAK holds the votes that control San Faustin, and the report says no person or group controls RP STAK 1.

The exhibit of principal subsidiaries lists Algoma Tubes in Canada, Confab in Brazil, Hydril in the US and Oilfield Services in Argentina, each 100 percent owned at the end of 2025 6.

Tenaris owns 50 percent of Exiros, a Dutch procurement company, and its affiliate Ternium owns the other 50 percent 16.

Tenaris owns 11.46 percent of Ternium, a flat steel maker controlled by San Faustin, and 22 percent of Techgen, a gas-fired power plant in Mexico 1.

Through Confab, Tenaris is part of the T/T Group, which owns 92.9 percent of the Usiminas control group, Confab's part being 9.8 percent 1.

TenarisShawcor is the pipe-coating business bought from Mattr 1.

For the second half the company expects sales and EBITDA in line with the first half, with sales still affected by lower shipments to the Middle East and higher raw material costs 2.

It expects the third quarter to be affected by seasonality and product mix, and the fourth quarter to benefit from higher prices and volumes in most regions 2.

The company said conditions could improve if the shipping disruption at the strait of Hormuz ends before the end of the year 2.

The board approved an interim dividend of $0.59 per share, about $600 million, payable on 25 November 2026 to holders on record on 24 November 2.

Capital spending was $617 million in 2025, and the first stage of the yard expansion in Midland, Texas, is due to be completed in 2026, the annual report says 1.

Its goal is to cut the carbon emissions intensity of its operations by 30 percent by 2030, against a 2018 baseline 1.

Tenaris expects the energy transition to create new markets for its products, including geothermal wells, hydrogen transport and storage, and carbon capture 1.