Q2 2025 Tenaris SA Earnings Call Transcript
Key Points
- Tenaris SA (TS) reported a sequential increase in sales by 6% to $3.1 billion, driven by higher North American OCTG prices and stable volumes.
- The company's EBITDA rose 5% sequentially to $733 million, maintaining a strong EBITDA margin close to 24%.
- Tenaris SA (TS) generated a solid free cash flow of $538 million, despite significant shareholder distributions.
- The company successfully delivered pipes and coatings for several complex line pipe projects globally, including projects in Brazil, Alaska, Nigeria, Angola, and the Mediterranean.
- Tenaris SA (TS) is well-positioned in the US market with a strong domestic production base, including the efficient seamless pipe mill at Bay City, which supports its competitive differentiation.
- Second-quarter sales were down 7% year-on-year, indicating challenges in maintaining growth compared to the previous year.
- The increase in US Section 232 tariffs from 25% to 50% has created market uncertainty and could impact prices and competitive dynamics.
- The company anticipates lower sales in the third quarter due to reduced invoicing in fracking operations and lower shipments of line pipe.
- There is a lack of visibility on the fourth quarter, with potential impacts from tariffs and uncertain price dynamics.
- Sales in South America, particularly Argentina, have been constrained by reduced rig counts and financing challenges, affecting growth in the region.
Good day, and thank you for standing by. Welcome to the second-quarter 2025 Tenaris SA earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Giovanni Sardagna, Investor Relations Officer. Please go ahead.
Thank you, Gigi, and welcome to Tenaris's 2025 second quarter conference call. Before we start, I would like to remind you that we will be discussing forward-looking information during the call and that our actual results may vary from those expressed or implied during this call. With me on the call today are Paolo Rocca, our Chairman and CEO; Carlos Gomez Alzaga, our newly appointed Chief Financial Officer; Gabriel Podskubka, our Chief Operating Officer; and Guillermo Moreno, President of our US Operations.
Before passing over the call to Paolo for his opening remarks, I would like to briefly comment our quarterly results. Our second-quarter sales reached $3
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