BIT$TS

Tenaris Group · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Tenaris Q4 sales hold at $2.85B as Middle East shipments offset Americas weakness; net income rises on litigation provision reversal

Tenaris reported fourth-quarter 2024 net sales of $2.85 billion, down 17% year over year but only 2% below Q3 as the company advanced Middle East and Turkey shipments despite softer demand in Mexico, Argentina, and Saudi Arabia. Operating income was $558 million and net income $519 million, up 13% sequentially, helped by a $67 million partial reversal of a Usiminas litigation provision. EBITDA was $726 million (25.5% margin), or $659 million excluding that gain. Earnings were $0.47 per share and $0.94 per ADS. Free cash flow was $310 million in the quarter and net cash stood at $3.6 billion after dividends and buybacks. Management expects Q1 2025 sales and EBITDA in line with Q4 before a moderate second-quarter increase, while flagging tariff uncertainty.

  • Q4 net sales were $2.85B (-17% YoY, -2% vs Q3) with resilient Middle East volumes offsetting weaker Americas demand
  • Net income rose to $519M (+13% QoQ) aided by a $67M partial reversal of Usiminas litigation provisions
  • Q4 EBITDA was $726M (25.5% margin); adjusted EBITDA excluding the litigation gain was $659M
  • Earnings were $0.47 per share and $0.94 per ADS; free cash flow was $310M with $3.6B net cash at year-end
  • Board intends to propose a $0.83 annual dividend ($1.12 per ADS balance) subject to May 2025 shareholder approval

Headline financials

Total Revenue

$2.85B

Previous: $3.42B-16.7%
EPS (adj)

$0.94

Previous: $1.92-51.0%
EBITDA

$726M

No prior period
EBITDA margin

25.5%

No prior period
Free cash flow

$310M

No prior period
Net Income

$519M

Previous: $4B-87.0%
Operating Income

$558M

Previous: $4.32M+12827.4%

Revenue & EPS history

Tenaris · Revenue · Quarterly

$2.85B

Q4 2024-16.7%vs Q4 2023
Beat estimate in 14 of 14 quarters(100%)
ActualEstimate

Revenue by segment

Tenaris · $2.85B total across 2 segments · Q4 2024

  • Tubes
    $2.7B
  • Others
    $150M

Forward guidance

Management expects Q1 2025 sales and EBITDA (excluding extraordinary items) in line with Q4 2024, with a moderate increase in Q2, while noting high uncertainty from potential U.S. tariff changes.

Tailwinds

  • OCTG reference prices in North America recovered about 9% from August 2024 lows
  • Middle East gas drilling and Abu Dhabi oil activity remain supportive

Headwinds

  • Tariff and trade-policy uncertainty could affect costs and pricing beyond Q2
  • Residual North American price declines and mixed regional drilling activity

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+1.1%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+0.8%

Avg return

30 days after

51%

25 / 49 earnings

Positive

+20.7%

Q4 2020

Best reaction

-8.4%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+9.1%+8.8%+12.2%
Q1 2025-1.6%+2.3%+4.4%
Q4 2024-0.7%-6.6%+0.8%
Q1 2024-7.3%-12.9%-6.8%
Q2 2024-8.4%-10.7%-5.5%
Q4 2023+9.1%+12.3%+22.7%
Q3 2023+10.5%+13.0%+11.3%
Q2 2023-5.1%-2.6%-3.9%
Q1 2023-2.5%+1.0%-9.8%
Q4 2022+5.1%-0.3%-19.2%
Q3 2022+7.0%+6.9%+9.7%
Q2 2022-6.0%-3.3%+2.7%
Q1 2022+1.3%+2.2%+16.7%
Q4 2021-1.6%-3.6%+6.1%
Q3 2021+4.1%+10.2%-12.7%
Q2 2021-3.3%-1.7%-3.0%
Q1 2021-3.4%+1.6%+5.3%
Q4 2020+20.7%+18.7%+24.2%
Q3 2020+16.0%+27.1%+64.4%
Q2 2020-0.7%-0.7%-6.8%
Q1 2020+4.8%+3.8%-3.0%
Q4 2019+4.4%-5.1%-47.4%
Q3 2019-5.0%+5.1%-0.4%
Q2 2019-2.2%-6.7%-13.7%
Q1 2019+0.9%-2.4%-14.0%
Q4 2018+2.9%+1.7%+8.6%
Q3 2018+5.2%+4.9%-17.0%
Q2 2018-7.0%-6.7%-8.7%
Q1 2018-0.0%+0.5%+0.5%
Q4 2017+3.4%+8.6%+0.3%
Q3 2017+12.2%+12.6%+9.0%
Q2 2017-7.2%-7.9%-13.5%
Q1 2017-3.2%-4.4%-5.0%
Q4 2016-3.4%-2.1%-6.5%
Q3 2016+3.7%+4.0%+22.2%
Q2 2016+5.0%+7.0%+6.1%
Q1 2016-0.1%
Q4 2015-1.2%
Q3 2015-2.2%
Q2 2015+4.0%
Q1 2015+1.9%
Q4 2014-3.8%
Q4 2013-3.4%
Q2 2012+2.0%
Q4 2011+2.1%
Q4 2010+0.7%
Q2 2011+0.8%
Q3 2010+2.5%
Q2 2010-7.7%

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