Sales Performance and Revenue Decline: Tenaris reported Q1 2025 sales of $2.9 billion, down 15% year-on-year but up 3% sequentially. The decline was attributed to lower sales of premium OCTG (Oil Country Tubular Goods) products across regions like Mexico, Turkey, and Saudi Arabia, alongside a drop in seamless line pipe sales for offshore projects. The average selling price in the Tubes operating segment decreased by 11% YOY and 5% sequentially.

EBITDA and Free Cash Flow: Although sales declined, the company saw a 6% increase in comparable EBITDA, maintaining a margin of 24%, thanks to improved operational performance and better absorption of fixed costs. Free cash flow for the quarter was a robust $647 million, contributing to a net cash position of $4 billion, up from $3.6 billion at the end of 2024.

Challenges from Oil Price Fluctuations: The CEO highlighted concerns regarding oil prices, which have dropped below $60 per barrel due to increased production by OPEC+, potentially leading to a slowdown in North American shale drilling activity. This environment may pressure capital expenditures (CapEx) from oil companies, especially in the US, and investors should expect a reduction in activity and drilling rigs in the second half of 2025.