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Tenaris S.A. Half-Year 2026 Filing Summary

Business Context and Reporting Period

This Form 6-K filing contains the unaudited interim management report and consolidated condensed financial statements for Tenaris S.A. for the six-month period ended June 30, 2026. Tenaris is a leading global manufacturer of steel pipe products and related services, primarily serving the oil and gas industry, with operations in the Americas, Europe, the Middle East, Asia, and Africa. The financial statements are prepared in accordance with IFRS and reviewed by Forvis Mazars.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue: Net sales increased 1% to $6.07 billion, driven by a 2% increase in average selling prices (notably in North America) which offset a 1% decrease in tubular product volumes.
• Profitability: Operating income declined 5% to $1.08 billion. The Tubes segment operating income dropped 5% primarily due to tariff costs in the United States. Gross margin decreased from 34.5% to 33.5%.
• Geographic Performance: North America sales rose 11% and Europe 14%, while sales in the Asia Pacific, Middle East, and Africa region fell 17% due to disruptions in the Middle East.
• Cash Flow: Operating cash flow decreased to $1.14 billion (from $1.49 billion) due to an $84 million increase in working capital. Free cash flow was $0.9 billion.
• Capital Allocation: The company paid $606 million in dividends and repurchased $90 million of shares in H1 2026. A total of 62.4 million treasury shares were cancelled in May 2026, reducing share capital.

Guidance, Outlook, and Risks

• Outlook: Management expects sales and EBITDA in the second half of 2026 to remain in line with the first half, despite lower Middle East shipments and higher raw material costs. The fourth quarter is expected to benefit from higher prices and volumes.
• Geopolitical Risks: The filing highlights significant uncertainty regarding the conflict in the Middle East (U.S./Israel vs. Iran). While a truce was announced in June 2026, hostilities resumed in July, keeping the Strait of Hormuz largely closed. This disrupts shipping, increases insurance/transport costs, and creates volatility in energy prices.
• Trade and Tariffs: The company faces ongoing impacts from U.S. tariffs on steel imports (increased to 50% in mid-2025) and new EU trade tools. Antidumping duty reviews in the U.S. for imports from Argentina and Mexico continue, with preliminary rulings in July 2026 favoring Tenaris regarding the scope of certain mechanical pipes.
• Legal Contingencies: A significant lawsuit by CSN regarding the 2012 Usiminas acquisition remains pending before the Supreme Federal Tribunal in Brazil, with a potential exposure of approximately $130.5 million if CSN prevails. Other proceedings include Petrobras-related civil claims and a U.S. patent infringement case.
• Acquisitions: Tenaris agreed to acquire Artrom Steel Tubes S.A. (Romania) for EUR 86 million, expected to close in Q4 2026, to expand its industrial pipe footprint in Europe.

Key Facts for Investor Verification

• Middle East Exposure: Verify the extent of operational disruption and cost inflation in the Middle East region given the ongoing conflict and closure of the Strait of Hormuz.
• Tariff Impact: Monitor the final outcome of U.S. Department of Commerce scope rulings regarding mechanical pipes and the potential for further tariff escalations or retaliatory measures.
• CSN Litigation: Track the status of the extraordinary appeal filed with the Brazilian Supreme Federal Tribunal regarding the Usiminas acquisition indemnification.
• Argentina FX Controls: Assess the impact of remaining foreign exchange restrictions in Argentina on the repatriation of earnings and the valuation of local assets.
• Share Count: Confirm the impact of the recent share cancellations (62.4 million shares) on future earnings per share calculations.