- Tenaris (TS, Financial) announces a $1.2 billion share buyback program, representing 6.9% of outstanding shares.
- The program, backed by strong cash flow, aims to cancel repurchased shares, potentially enhancing shareholder value.
- Set to commence in June 2025, the buyback will be completed within a year under market regulatory compliance.
Tenaris S.A. (TS) is poised to initiate an ambitious share repurchase program valued at up to $1.2 billion. This initiative will encompass approximately 74 million shares, equating to 6.9% of the company's total outstanding shares. The Board of Directors has approved this decision, which is aimed at leveraging the company's robust cash flow and strong balance sheet to enhance shareholder value.
The buyback program is scheduled for launch in June 2025 and is expected to be completed within a year. It will be executed through a primary financial institution. Notably, the company plans to cancel the repurchased shares, effectively reducing the total share count and potentially increasing earnings per share, thereby supporting stock price appreciation.
Operating under the authority granted during the May 6, 2025, annual general meeting, Tenaris is allowed to repurchase up to 10% of its shares. The program remains flexible with the potential for adjustments in response to market conditions and will adhere to all relevant regulatory compliances, including the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052.
This strategic move underscores Tenaris’s confidence in its long-term value creation, solidified by strong cash flow generation and business stability. As a leading supplier in the steel tube sector catering to the global energy industry, Tenaris’s decision to prioritize returning excess capital to shareholders highlights its commitment to fostering shareholder returns amid fluctuating market dynamics.
