Tenaris SA

The financial and operational information contained in this press release is based on unaudited consolidated condensed interim financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS.Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Free Cash Flow, Net cash / debt and Operating working capital days. See exhibit I for more details on these alternative performance measures.

LUXEMBOURG, April 30, 2025 (GLOBE NEWSWIRE) -- Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the quarter ended March 31, 2025 in comparison with its results for the quarter ended March 31, 2024.

Summary of 2025 First Quarter Results

(Comparison with fourth and first quarter of 2024)

1Q 2025 4Q 2024 1Q 2024 Net sales ($ million) 2,922 2,845 3% 3,442 (15%) Operating income ($ million) 550 558 (2%) 812 (32%) Net income ($ million) 518 519 0% 750 (31%) Shareholders’ net income ($ million) 507 516 (2%) 737 (31%) Earnings per ADS ($) 0.94 0.94 0% 1.27 (26%) Earnings per share ($) 0.47 0.47 0% 0.64 (26%) EBITDA* ($ million) 696 726 (4%) 987 (29%) EBITDA margin (% of net sales) 23.8% 25.5%  28.7%   *EBITDA in the fourth quarter of 2024 included a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. If this charge was not included EBITDA would have amounted to $659 million, or 23.2% of sales.

In the first quarter, our sales were buoyed by seasonal volumes in Canada and higher onshore sales in the USA while our average selling price declined. This was due to market and product mix effects with lower sales of OCTG premium products in Mexico, Turkey and Saudi Arabia and lower sales of seamless line pipe for offshore projects. On a comparable basis our EBITDA rose 6% and net income remained in line with the results of the previous quarter.

During the quarter, free cash flow amounted to $647 million following a reduction in working capital of $224 million. After spending $237 million on share buybacks, our net cash position increased to $4.0 billion at March 31, 2025.

Market Background and Outlook

Oil and gas drilling activity has been stable in most parts of the world so far this year. Over the last month, however, the outlook for oil demand and prices has changed with a decline in expectations for global economic growth and the announcement by OPEC+ that it would increase production. Oil and gas companies are likely to adjust their investment plans over the short term in response to a lower oil and gas price environment while maintaining their medium and long term plans for development of major projects.

Story Continues

US OCTG reference prices have continued to increase following the extension of tariffs to imports of all steel products. These and further increases should offset much of the impact of the tariffs and higher steel and scrap purchase costs on our US operations.

For the second quarter, we expect our sales to show a small increase as our average selling price recovers and volumes remain close to the level of the first quarter and our EBITDA margin should be in line with the first quarter.

Analysis of 2025 First Quarter Results

Tubes

The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:

Tubes Sales volume (thousand metric tons) 1Q 2025 4Q 2024 1Q 2024 Seamless 775 748 4% 777 0% Welded 212 164 29% 269 (21%) Total 987 913 8% 1,046 (6%)

The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:

Tubes 1Q 2025 4Q 2024 1Q 2024 Net sales ($ million)  North America 1,244 1,131 10% 1,590 (22%) South America 552 595 (7%) 617 (11%) Europe 208 341 (39%) 253 (17%) Asia Pacific, Middle East and Africa 761 629 21% 833 (9%) Total net sales ($ million) 2,765 2,695 3% 3,292 (16%) Services performed on third party tubes ($ million) 101 93 9% 192 (47%) Operating income ($ million) 514 533 (4%) 785 (35%) Operating margin (% of sales) 18.6% 19.8%  23.9%

Net sales of tubular products and services increased 3% sequentially and decreased 16% year on year. Volumes sold increased 8% sequentially while average selling prices decreased 5% due principally to product and market mix effects. In North America sales increased as higher seasonal sales in Canada and higher sales to US Rig Direct® customers more than outweighed a further steep decline in sales in Mexico. In South America sales declined due to lower shipments to the Raia offshore project and lower prices in Argentina. In Europe, following a quarter with an exceptionally high level of sales, sales declined to a more stable level. In Asia Pacific, Middle East and Africa sales increased due to higher sales in the UAE, shipments of welded pipes for a pipeline in Saudi Arabia, and sales of line pipe for a gas processing plant in Africa.

Operating results from tubular products and services amounted to a gain of $514 million in the first quarter of 2025 compared to a gain of $533 million in the previous quarter and a gain of $785 million in the first quarter of 2024. Operating income in the fourth quarter of 2024 included a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. Excluding this gain Tubes operating income would have amounted to $467 million (17.3% of sales) in the fourth quarter of 2024. On a comparable basis, margins improved as the decline in average selling prices was offset by lower costs due to higher utilization of production capacity and lower raw materials and variable costs.

Others

The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:

Others 1Q 2025 4Q 2024 1Q 2024 Net sales ($ million) 157 150 5% 150 4% Operating income ($ million) 36 25 44% 26 38% Operating margin (% of sales) 23.1% 16.8%  17.5%

Net sales of other products and services increased 5% sequentially and increased 4% year on year. Sequentially, sales increased mainly due to higher sales of sucker rods and oil services in Argentina.

Selling, general and administrative expenses, or SG&A, amounted to $457 million, or 15.6% of net sales, in the first quarter of 2025, compared to $446 million, or 15.7% in the previous quarter and $508 million, or 14.8% in the first quarter of 2024. Sequentially, the increase in SG&A is mainly due to higher shipment costs partially offset by a decrease in taxes, provisions and others.

Other operating results amounted to a gain of $6 million in the first quarter of 2025, compared to a gain of $81 million in the previous quarter and a $12 million gain in the first quarter of 2024. The fourth quarter of 2024 included a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas.

Financial results amounted to a gain of $35 million in the first quarter of 2025, compared to a gain of $48 million in the previous quarter and a loss of $25 million in the first quarter of 2024. Financial result of the quarter is mainly attributable to a $67 million net finance income from the net return of our portfolio investments offset by net foreign exchange losses of $15 million and $16 million in fees paid in connection with the collection of $242 million from Pemex.

Equity in earnings of non-consolidated companies generated a gain of $14 million in the first quarter of 2025, compared to a gain of $35 million in the previous quarter and a gain of $48 million in the first quarter of 2024. These results are mainly derived from our participation in Ternium (NYSE:TX). During the fourth quarter of 2024 the result from Ternium´s investment included a $43 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas, while in the first quarter of 2025 it includes a $5 million loss related to the same ongoing litigation.

Income tax charge amounted to $81 million in the first quarter of 2025, compared to $123 million in the previous quarter and $85 million in the first quarter of 2024. The quarter income tax charge reflects the positive net effect from foreign exchange rate movements and inflation adjustments on deferred tax assets and liabilities, mainly in Argentina, and the recognition of other deferred tax assets.

Cash Flow and Liquidity of 2025 First Quarter

Net cash generated by operating activities during the first quarter of 2025 was $821 million, compared to $492 million in the previous quarter and $887 million in the first quarter of 2024. During the first quarter of 2025 cash generated by operating activities includes a net working capital reduction of $224 million.

With capital expenditures of $174 million, our free cash flow amounted to $647 million during the quarter. Following share buybacks of $237 million in the quarter, our net cash position increased to $4.0 billion at March 31, 2025.

Conference call

Tenaris will hold a conference call to discuss the above reported results, on May 1, 2025, at 08:00 a.m. (Eastern Time). Following a brief summary, the conference call will be opened to questions.

To listen to the conference please join through one of the following options: 
ir.tenaris.com/events-and-presentations or 
https://edge.media-server.com/mmc/p/gu6ip3ag/

If you wish to participate in the Q&A session please register at the following link: 
https://register-conf.media-server.com/register/BIf49770ff47c94e2587121e780b6acb85

Please connect 10 minutes before the scheduled start time.

A replay of the conference call will also be available on our webpage at: ir.tenaris.com/events-and-presentations

Some of the statements contained in this press release are “forward-looking statements”. Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to future oil and gas prices and their impact on investment programs by oil and gas companies.

Consolidated Condensed Interim Income Statement  (all amounts in thousands of U.S. dollars) Three-month period ended March 31,  2025 2024 Unaudited Net sales 2,922,212 3,441,544 Cost of sales (1,920,855) (2,134,052) Gross profit 1,001,357 1,307,492 Selling, general and administrative expenses (457,065) (508,132) Other operating income 11,788 16,024 Other operating expenses (6,167) (3,720) Operating income 549,913 811,664 Finance Income 78,444 56,289 Finance Cost (11,745) (20,583) Other financial results, net (31,441) (60,468) Income before equity in earnings of non-consolidated companies and income tax 585,171 786,902 Equity in earnings of non-consolidated companies 14,035 48,179 Income before income tax 599,206 835,081 Income tax (81,342) (84,856) Income for the period 517,864 750,225  Attributable to:  Shareholders' equity 506,931 736,980 Non-controlling interests 10,933 13,245 517,864 750,225

Consolidated Condensed Interim Statement of Financial Position  (all amounts in thousands of U.S. dollars) At March 31, 2025  At December 31, 2024 Unaudited  ASSETS  Non-current assets  Property, plant and equipment, net 6,183,251   6,121,471  Intangible assets, net 1,359,463   1,357,749  Right-of-use assets, net 147,606   148,868  Investments in non-consolidated companies 1,574,156   1,543,657  Other investments 1,014,502   1,005,300  Deferred tax assets 838,912   831,298  Receivables, net 197,411 11,315,301  205,602 11,213,945 Current assets  Inventories, net 3,519,237   3,709,942  Receivables and prepayments, net 174,294   179,614  Current tax assets 360,416   332,621  Contract assets 51,736   50,757  Trade receivables, net 1,842,313   1,907,507  Derivative financial instruments 4,083   7,484  Other investments 2,581,761   2,372,999  Cash and cash equivalents 770,208 9,304,048  675,256 9,236,180 Total assets  20,619,349   20,450,125 EQUITY  Shareholders' equity  17,164,683   16,593,257 Non-controlling interests  231,994   220,578 Total equity  17,396,677   16,813,835 LIABILITIES  Non-current liabilities  Borrowings 7,437   11,399  Lease liabilities 91,148   100,436  Deferred tax liabilities 472,789   503,941  Other liabilities 300,116   301,751  Provisions 68,969 940,459  82,106 999,633 Current liabilities  Borrowings 345,183   425,999  Lease liabilities 54,061   44,490  Derivative financial instruments 1,945   8,300  Current tax liabilities 304,019   366,292  Other liabilities 377,238   585,775  Provisions 139,965   119,344  Customer advances 228,086   206,196  Trade payables 831,716 2,282,213  880,261 2,636,657 Total liabilities  3,222,672   3,636,290 Total equity and liabilities  20,619,349   20,450,125

Consolidated Condensed Interim Statement of Cash Flows  (all amounts in thousands of U.S. dollars) Three-month period ended March 31, 2025 2024 (Unaudited)  Cash flows from operating activities  Income for the period 517,864 750,225 Adjustments for:  Depreciation and amortization 146,406 175,442 Provision for the ongoing litigation related to the acquisition of participation in Usiminas 9,877 - Income tax accruals less payments (54,133) (29,222) Equity in earnings of non-consolidated companies (14,035) (48,179) Interest accruals less payments, net (8,423) 11,938 Changes in provisions (2,393) 1,545 Changes in working capital 223,817 (9,548) Others, including net foreign exchange 2,020 34,776 Net cash provided by operating activities 821,000 886,977  Cash flows from investing activities  Capital expenditures (173,838) (172,097) Changes in advances to suppliers of property, plant and equipment 12,916 2,952 Loan to joint ventures (1,359) (1,354) Proceeds from disposal of property, plant and equipment and intangible assets 900 5,412 Changes in investments in securities (225,636) (759,667) Net cash used in investing activities (387,017) (924,754)  Cash flows from financing activities  Changes in non-controlling interests - 1,120 Acquisition of treasury shares (237,188) (311,064) Payments of lease liabilities (14,655) (16,768) Proceeds from borrowings 347,570 829,947 Repayments of borrowings (429,126) (754,078) Net cash used in financing activities (333,399) (250,843)  Increase (decrease) in cash and cash equivalents 100,584 (288,620)  Movement in cash and cash equivalents  At the beginning of the period 660,798 1,616,597 Effect of exchange rate changes (2,430) (4,921) Increase (decrease) in cash and cash equivalents 100,584 (288,620) At March 31, 758,952 1,323,056

Exhibit I – Alternative performance measures

Alternative performance measures should be considered in addition to, not as substitute for or superior to, other measures of financial performance prepared in accordance with IFRS.

EBITDA, Earnings before interest, tax, depreciation and amortization.

EBITDA provides an analysis of the operating results excluding depreciation and amortization and impairments, as they are recurring non-cash variables which can vary substantially from company to company depending on accounting policies and the accounting value of the assets. EBITDA is an approximation to pre-tax operating cash flow and reflects cash generation before working capital variation. EBITDA is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt.

EBITDA is calculated in the following manner:

EBITDA = Net income for the period + Income tax charges +/- Equity in Earnings (losses) of non-consolidated companies +/- Financial results + Depreciation and amortization +/- Impairment charges/(reversals).

EBITDA is a non-IFRS alternative performance measure.

(all amounts in thousands of U.S. dollars) Three-month period ended March 31,  2025 2024 Income for the period 517,864 750,225 Income tax charge 81,342 84,856 Equity in earnings of non-consolidated companies (14,035) (48,179) Financial Results (35,258) 24,762 Depreciation and amortization 146,406 175,442 EBITDA 696,319 987,106

Free Cash Flow

Free cash flow is a measure of financial performance, calculated as operating cash flow less capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.

Free cash flow is calculated in the following manner:

Free cash flow = Net cash (used in) provided by operating activities - Capital expenditures.

Free cash flow is a non-IFRS alternative performance measure.

(all amounts in thousands of U.S. dollars) Three-month period ended March 31,  2025 2024 Net cash provided by operating activities 821,000 886,977 Capital expenditures (173,838) (172,097) Free cash flow 647,162 714,880

Net Cash / (Debt)

This is the net balance of cash and cash equivalents, other current investments and fixed income investments held to maturity less total borrowings. It provides a summary of the financial solvency and liquidity of the company. Net cash / (debt) is widely used by investors and rating agencies and creditors to assess the company’s leverage, financial strength, flexibility and risks.

Net cash/ debt is calculated in the following manner:

Net cash = Cash and cash equivalents + Other investments (Current and Non-Current)+/- Derivatives hedging borrowings and investments - Borrowings (Current and Non-Current).

Net cash/debt is a non-IFRS alternative performance measure.

(all amounts in thousands of U.S. dollars) At March 31, 2025 2024 Cash and cash equivalents 770,208 1,323,350 Other current investments 2,581,761 2,248,863 Non-current investments 1,007,444 976,206 Current borrowings (345,183) (608,278) Non-current borrowings (7,437) (28,122) Net cash / (debt) 4,006,793 3,912,019

Operating working capital days

Operating working capital is the difference between the main operating components of current assets and current liabilities. Operating working capital is a measure of a company’s operational efficiency, and short-term financial health.

Operating working capital days is calculated in the following manner:

Operating working capital days = [(Inventories + Trade receivables – Trade payables – Customer advances) / Annualized quarterly sales ] x 365.

Operating working capital days is a non-IFRS alternative performance measure.

(all amounts in thousands of U.S. dollars) At March 31, 2025 2024 Inventories 3,519,237 3,911,719 Trade receivables 1,842,313 2,303,293 Customer advances (228,086) (239,342) Trade payables (831,716) (1,041,434) Operating working capital 4,301,748 4,934,236 Annualized quarterly sales 11,688,848 13,766,176 Operating working capital days 134 131

Giovanni Sardagna
Tenaris
 1-888-300-5432
www.tenaris.com

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