Key Highlights

● Net sales were $2,967 million, down 4% from the second quarter of 2025.

● EBITDA was $649 million, a margin of 21.9% against 23.7%.

● Net cash stood at about $3.6 billion at June 30, 2026.

● The interim dividend is $0.59 per share, or $1.18 per ADS.

Tenaris S.A. (NYSE:TS) is a Luxembourg-incorporated manufacturer of seamless and welded steel pipes and related services for the energy industry, supplying oil and gas drilling, completion and offshore projects as well as industrial customers. Tenaris reports in US dollars, and its American depositary shares trade on the New York Stock Exchange under the ticker TS. The S&P 500 Energy sector index is a natural comparison for the group.

Second-quarter results

Tenaris published its second-quarter 2026 results on August 5, 2026. Net sales were $2,967 million, down 4% from both the first quarter of 2026 and the second quarter of 2025. Operating income fell 15% to $494 million, and EBITDA was $649 million, a margin of 21.9% against 23.7% in both comparison periods. Net income was $492 million, of which $477 million was attributable to shareholders, equal to $0.47 per share or $0.95 per ADS. For the first half, net sales were $6,067 million, up 1%, while operating income of $1,078 million was down 5% and net income of $1,056 million was flat.

Cash flow, balance sheet and dividend

Free cash flow was $396 million in the quarter, from operating cash flow of $518 million less capital expenditure of $121 million, and $899 million for the first half. Net cash stood at about $3.6 billion at June 30, 2026 after $606 million of dividends paid in May. The board approved an interim dividend of $0.59 per share, or $1.18 per ADS, a total of about $600 million. ADS holders on record on November 24, 2026 will receive payment on November 25, and the US ex-dividend date is November 24.

No shares were repurchased in the second quarter, after $90 million of buybacks in the first half, and shares outstanding were 1,009.6 million at June 30, down from 1,058.9 million a year earlier. Net cash is the main support for distributions, though the board decides each payment.

Sector conditions and outlook

Management attributed the sales decline mainly to postponed shipments to Middle East customers, because shipping through the Strait of Hormuz was effectively closed for most of the quarter. Drilling in Iraq, Kuwait and Qatar was severely affected, while Saudi Arabia and the United Arab Emirates held up largely. Tubes shipments were 946 thousand tonnes, down 5% from the previous quarter. Higher logistics and raw material costs, lower fixed-cost absorption and US tariff costs squeezed margins.

Against that, the company reported rising drilling in the United States, Canada and Argentina, advancing offshore projects and increasing US oil country tubular goods prices. For the second half, management expects sales and EBITDA broadly in line with the first half, with possible upside if the Hormuz disruption ends before year-end. It flagged seasonal and product-mix headwinds in the third quarter and better prices and volumes in most regions in the fourth. That is guidance, not a result.

Hormuz Disruption and Board Changes

The main risks are visible in the results: geopolitical disruption to Middle East deliveries, volatile steel input costs, trade measures such as US tariffs, and the cyclical link between oil and gas drilling activity and demand for pipe. In governance news, director Jaime Serra Puche resigned, Germán Curá stepped down as Vice Chair for Sustainability but remains a director, and Alicia Móndolo joined the board in that role.