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Tenaris Q3 Profit Rises 15% to $521M as North American Pipe Demand Strengthens
Tenaris reported higher revenue and net income in the third quarter of 2026, supported by stronger North American oilfield pipe demand and increased deliveries to customers in the Middle East.
Key Points
- Net income: Up 15% year over year to $521 million.
- Revenue: Increased 4% to $3.102 billion.
- Pipe shipments: Rose 3% quarter over quarter to 976,000 metric tons.
- North American Tubes sales: Increased 12% sequentially to $1.652 billion.
SEATTLE (Scrap Monster): Global steel pipe manufacturer Tenaris reported a 15% year-over-year increase in third-quarter net income to $521 million, supported by improving demand for oil country tubular goods (OCTG) in North America and higher shipments to Middle Eastern customers.
Net sales rose 4% to $3.102 billion, while operating income remained essentially unchanged at $598 million. EBITDA edged higher to $756 million from $753 million a year earlier, although the EBITDA margin narrowed from 25.3% to 24.4%.
North American Demand Drives Quarterly Recovery
Tenaris's Tubes segment generated $2.927 billion in revenue, an increase of 4% from the second quarter. Total pipe shipments rose 3% sequentially to 976,000 metric tons.
North American Tubes sales climbed 12% quarter over quarter to $1.652 billion, supported by stronger OCTG demand and higher line pipe deliveries to U.S. distributors.
Sales in Asia Pacific, the Middle East and Africa increased 7% sequentially, helped by deliveries to Kuwait and Iraq and higher sales in North Africa. South American and European sales declined compared with the previous quarter.
SCRAPMONSTER EDGE | STEEL MARKET ANALYSIS
Sequential Recovery Is Stronger Than Annual Growth Suggests
Although Tenaris's EBITDA was nearly unchanged year over year, it increased 16% from the second quarter, while the EBITDA margin improved by 2.5 percentage points to 24.4%.
That improvement came despite higher raw material, energy and logistics costs. Tenaris attributed the recovery partly to product mix, industrial performance and the postponement of maintenance at certain facilities.
Industry takeaway: Stronger OCTG demand and rising North American pipe sales are positive indicators for steel producers and industrial suppliers. However, increased pipe shipments do not automatically translate into equivalent increases in scrap consumption or purchasing prices.
Tenaris Maintains $3.8 Billion Net Cash Position
The company generated $268 million in free cash flow during the quarter and reported a net cash position of $3.8 billion as of September 30, 2026.
For the first nine months of 2026, net sales increased 2% to $9.169 billion, while net income rose 4% to $1.578 billion. EBITDA declined 2% to $2.141 billion.
Tenaris Expects Higher Sales and EBITDA in Q4
Tenaris expects sales and EBITDA to improve in the fourth quarter, supported by higher North American OCTG demand and pricing, along with increased deliveries for offshore projects.
The company noted that drilling activity has been strengthening in the United States, Canada and Argentina. However, its outlook remains dependent on geopolitical conditions, including continuing shipping disruptions affecting the Middle East.
For additional context on Tenaris's U.S. manufacturing operations, see Tenaris Reopens Koppel Lines, Strengthens U.S. Steel Pipe Production.
Also Read: Tenaris to Acquire Artrom Steel Tubes Plant in Romania.
Source: Tenaris, Third Quarter 2026 Financial Results, November 4, 2026. Financial figures are in U.S. dollars. EBITDA, free cash flow and net cash are non-IFRS performance measures.
