Tenaris SA ADR

Tenaris, the steel pipe manufacturer, will report its second-quarter earnings before the market opens on Thursday. Analysts expect revenue to grow 18.4% year over year, a reversal from the 9.7% decline in the same quarter last year. The company beat revenue expectations last quarter with $253 million, up 28.4% year on year, and also exceeded EPS and EBITDA estimates. Over the past month, Tenaris shares have risen 13.4%, and the average analyst price target is $46, compared to the current share price of $43.45. Peers in the infrastructure segment, such as Genesis Energy and Expand Energy, have already reported strong results, with Genesis Energy seeing 41% revenue growth and Expand Energy a 10.6% decline, both beating expectations.

Tenaris reported second-quarter results that reflect two contrasting trends: net sales fell 4% sequentially to $2,967 million and EBITDA slid 12% to $649 million, yet the company paid $606 million in dividends and ended June 30 with $3.6 billion in net cash. The decline was driven by the effective closure of the Strait of Hormuz for most of the quarter, which postponed shipments and hurt drilling activity in Iraq, Kuwait, and Qatar, while Saudi Arabia and the UAE fared better. In contrast, drilling demand is rising in the United States, Canada, and Argentina, with Europe's net sales climbing 25% sequentially and 24% year over year on deliveries to the Sakarya Black Sea development and higher OCTG sales in Turkey. Free cash flow reached $0.9 billion in the first half, and the board approved an interim dividend of $0.59 per share, or $1.18 per ADS, payable November 25. Tenaris expects second-half sales and EBITDA to stay roughly in line with the first half, with fourth-quarter gains from higher prices and volumes.

Tenaris has started operations at a new service center in Paramaribo, Suriname, to support TotalEnergies’s GranMorgu project, the country’s first major offshore development. The facility spans 74,500 square meters with a capacity of 15,000 tons and includes a logistics yard and an inspection line, operating under the Rig Direct service model to ensure material availability and supply chain efficiency. The center will provide integrated services for the supply of casing, tubing, and associated services, with digital tools such as PipeTracer for traceability and the Rig Direct Portal for real-time order and shipment tracking. Tenaris President for the Andean and Caribbean regions Duilio Pesce said the investment reflects confidence in Suriname’s institutions and local talent, while TotalEnergies Senior VP Americas Javier Rielo noted the project is progressing with drilling activities starting this year and represents a long-term industrial opportunity for the country.