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Tenaris posts mixed quarter as Hormuz disruption hits shipments
The company cut sequential net sales to $2,967 million, but still generated $649 million of EBITDA, paid $606 million in dividends, and ended June 30 with $3.6 billion in net cash.
Tenaris reported second quarter results that reflected two competing forces, with drilling demand strengthening in several regions while a shipping disruption tied to the Strait of Hormuz hurt sales. The steel pipe maker said net sales fell 4% quarter over quarter to $2,967 million, and EBITDA declined 12% to $649 million.
Tenaris pointed to rising drilling activity in the United States, Canada, and Argentina, along with customer push toward offshore projects as the industry emphasizes security and supply diversification. It also noted higher OCTG pricing, which it said was aimed at meeting demand and offsetting higher raw material and logistics costs.
Europe strengthened sequentially, with net sales rising 25% from the prior quarter and 24% year over year as Tenaris began deliveries of offshore line pipe to the Sakarya Black Sea development and booked higher OCTG sales in Turkey. In the first half of 2026, Tenaris reported free cash flow of $0.9 billion, while the board approved an interim dividend of $0.59 per share, or $1.18 per ADS, payable November 25 to holders of record as of November 24, and it bought back $90 million of stock.
In contrast, Tenaris said its Asia Pacific, Middle East, and Africa region delivered weaker results, with net sales down 22% sequentially and 28% year over year to $557 million. The company attributed the decline to the effective closure of the Strait of Hormuz for most of the quarter, which postponed shipments and severely affected drilling activity in Iraq, Kuwait, and Qatar, contributing to margin pressure as the EBITDA margin fell to 21.9% from 23.7% a year earlier.