Tenaris S.A.

What they do

Tenaris produces and sells seamless and welded steel tubular products, primarily for oil and gas drilling, completion, and production. The company also serves industrial and other markets with its Tubes segment, which is its largest reporting segment. Its operations span multiple countries, including Argentina, Mexico, the United States, Italy, Romania, Canada, Brazil, Colombia, Saudi Arabia, and Indonesia.

Revenue drivers

• Tubes segment — The Tubes segment is the primary revenue generator, supplying tubular products and services to oil and gas operators and industrial customers. It includes products for oil and gas processing plants and industrial applications.
• Geographic markets — Revenue is diversified across North America, South America, Europe, the Middle East, Africa, and Asia-Pacific, reducing dependence on any single region. The largest sales contributions typically come from regions with active drilling activity.
• Key customers — Major customers include national oil companies and international operators. For example, Petróleos Mexicanos (PEMEX) is a notable customer, and the company also has related-party transactions with Ternium and Usiminas.
• Services and value-added products — Beyond basic pipe, Tenaris provides premium connections, coating, and digital services that enhance well performance, which can command higher margins.

Recent performance

In fiscal year 2025, Tenaris reported net sales of $4.2 billion, a decline from $5.4 billion in 2024 and $5.5 billion in 2023. Cost of sales was $3.1 billion in 2025, down from $3.9 billion in 2024. The company recorded a net loss attributable to owners of the parent of $2.4 billion in 2025, compared to net income of $1.2 billion in 2024 and $1.6 billion in 2023. The loss was driven by impairment and other charges, reflecting a challenging market environment.

Strategy

Tenaris focuses on maintaining a global manufacturing footprint and leveraging its integrated production process to lower costs. The company invests in research and development to introduce premium products and digital solutions. It also pursues selective acquisitions and partnerships, such as the 2023 purchase of an additional stake in Usiminas from Ternium and Techint. Management prioritizes operational efficiency and financial flexibility to navigate cyclical energy markets.

Risks

• Oil and gas price volatility — Demand for Tenaris's products is directly tied to upstream exploration and production spending, which fluctuates with oil and natural gas prices.
• Geopolitical and trade disruptions — Operations are spread across many countries, exposing the company to tariffs, sanctions, and political instability, including in Argentina and the Middle East.
• Impairment risk — Asset impairments, such as the goodwill and property, plant, and equipment write-downs recorded in 2025, can significantly impact profitability.
• Related-party concentrations — A portion of revenue comes from related parties like Ternium and Usiminas, and a significant customer like PEMEX, which could concentrate credit and operational risks.

Outlook

Management expects market conditions to remain challenging, with a continued focus on cost discipline and capital allocation. The company is monitoring energy demand trends and adjusting its product mix accordingly. While no specific guidance was provided, Tenaris anticipates that its diversified geographic base and premium product offerings will support recovery as drilling activity improves.