Tenaris Reports Mixed Q2 Results Amid Rising Drilling Demand and Hormuz Disruption
On August 5, Tenaris (NYSE:TS) reported second-quarter results showing a decline in net sales to $2.967 billion from the first quarter and an EBITDA drop of 12% to $649 million. Despite these declines, the company maintained strong financial health with $3.6 billion in net cash as of June 30 and paid out $606 million in dividends during the period. The mixed results were largely attributed to shipping disruptions at the Strait of Hormuz, which affected shipments across Asia Pacific, Middle East, and Africa regions by nearly a quarter compared to prior periods. Meanwhile, drilling activity increased globally—particularly in North America and Argentina—with rising OCTG prices helping offset higher costs elsewhere. In Europe, sales rose 25% sequentially due to offshore projects like the Sakarya Black Sea development. Tenaris also reported strong free cash flow of $900 million for H1 2026 and approved an interim dividend of $0.59 per share. Despite governance changes with two board resignations, market reaction remained muted as short interest remains low at just 2.23%.
Topics: dividend payout drilling demand earnings shipping disruption