Tenaris Reports Mixed Q3 2024 Financial Results

Tenaris ( (TS) ) has released its Q3 earnings. Here is a breakdown of the information Tenaris presented to its investors.

Tenaris S.A. is a leading global manufacturer and supplier of steel pipes and related services, primarily serving the energy industry with a focus on oil and gas exploration and production. Headquartered in Luxembourg, the company operates in various international markets and is recognized for its advanced manufacturing processes and a broad range of solutions for the energy sector.

In the third quarter of 2024, Tenaris reported a mixed performance with a slight decline in net sales compared to the previous quarters. The company’s net income saw a significant recovery from the previous quarter despite the lower sales, mainly due to improvements in operating income and a strong cash flow position.

Key financial highlights include net sales of $2.9 billion and an operating income of $537 million for the quarter. Net income increased by 32% sequentially, reaching $459 million. The company’s EBITDA margin remained relatively stable at 23.6%, despite challenging market conditions, particularly in North America and the Middle East, affecting pricing and demand.

Tenaris continues to maintain a robust financial position with a positive net cash balance of $4.0 billion, supported by a strong free cash flow generation of $373 million during the quarter. The company announced a $700 million follow-on share buyback program, reflecting its confidence in future cash flow generation and financial health.

Looking ahead, Tenaris anticipates a challenging fourth quarter with expected lower sales and EBITDA due to continued market pressures. However, the company remains optimistic about a rebound in 2025, driven by increased shipments in North America and the Middle East, along with a recovery in prices in the U.S. market.