Tenaris (NYSE: TS) nine-month profit rises but operating income slips 3.1%

What happened

Tenaris, S.A. (NYSE: TS) lifted nine-month net sales 2.0% to $9.17 billion, but operating income slipped 3.1% to $1.68 billion. The nine months ended Sept. 30, 2026 are compared with the same period of 2025, when sales were $8.99 billion and operating income was $1.73 billion.

Income for the period still rose 4.3% to $1.58 billion, from $1.51 billion. Earnings per ADS reached $3.02 from $2.79. Equity earnings from non-consolidated companies, which the filing says mainly come from Ternium and Usiminas, climbed to $119.03 million from $37.73 million. Income tax fell to $321.28 million from $358.38 million.

On Aug. 5 the board approved an interim dividend of $0.59 per share, or $1.18 per ADS. It totals about $600 million and is payable Nov. 25 to holders of record Nov. 24.

Key numbers

Metric Latest Change Source
Net sales, nine months $9.17 billion from $8.99 billion, +2.0% Calculated from SEC 6-K
Operating income, nine months $1.68 billion from $1.73 billion, -3.1% Calculated from SEC 6-K
Income for the period, nine months $1.58 billion from $1.51 billion, +4.3% Calculated from SEC 6-K
Earnings per ADS, nine months $3.02 from $2.79, +8.2% Calculated from SEC 6-K
Net cash from operating activities, nine months $1.50 billion from $1.81 billion, -17.2% Calculated from SEC 6-K
Interim dividend per share $0.59 from $0.29, +103.4% Calculated from SEC 6-K

Read more: Tenaris (TS) company research

Why it matters

OptimistFi has argued that Tenaris's equity case turns on one question. Is the profit decline cyclical normalization or a structural loss of pricing power? These results point both ways. Gross profit was essentially unchanged at $3.10 billion in both periods. Selling, general and administrative expenses rose 3.4% to $1.42 billion.

The profit gain came from equity earnings and lower tax, not from operations. Sales also shifted by region. North America rose 12.8% to $4.75 billion, while Asia Pacific, Middle East and Africa fell 17.2% to $1.89 billion.

Operating cash flow fell 17.2% to $1.50 billion from $1.81 billion. Working capital was a $353.89 million outflow against $62.11 million a year earlier. Capital spending dropped to $334.38 million from $494.68 million.

The third quarter was steadier. Operating income edged up 0.1% to $597.52 million from $596.63 million. Still, over the nine months operating income fell on higher sales, so the pricing-power question stays open and the case stays mixed.

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What's next

The interim dividend is payable Nov. 25. That is more than double the $0.29 per share interim paid Nov. 26, 2025.

The next quarterly report will show whether operating income can rise above the third-quarter level. A gain on steady sales would favor the cyclical reading. Another decline would favor the structural one.

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Sources

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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.