Tenaris SA 6-K, filed Jul 31, 2025
Tenaris SA (TS)
About this 6-K
Tenaris SA filed this 6-K on July 31, 2025.
FORM 6 - K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
As of July 30, 2025
TENARIS, S.A.
(Translation of Registrant's name into English)
26, Boulevard Royal, 4th floor
L-2449 Luxembourg
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or 40-F.
Form 20-F ✓ Form 40-F
The attached material is being furnished to the Securities and Exchange Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange Act of 1934, as amended. This report contains Tenaris’s Press Release announcing 2025 Second Quarter Results.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: July 30, 2025
Tenaris, S.A.
By: /s/ Giovanni Sardagna
Giovanni Sardagna
Investor Relations Officer
 |
 |
Giovanni Sardagna
Tenaris
1-888-300-5432
www.tenaris.com
Tenaris Announces 2025 Second Quarter Results
The financial and operational information contained in this press release is based on unaudited consolidated condensed interim financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Free Cash Flow, Net cash / debt and Operating working capital days. See exhibit I for more details on these alternative performance measures.
Luxembourg, July 30, 2025. - Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the quarter ended June 30, 2025 in comparison with its results for the quarter ended June 30, 2024.
Summary of 2025 Second Quarter Results
(Comparison with first quarter of 2025 and second quarter of 2024)
| 2Q 2025 | 1Q 2025 | 2Q 2024 | ||||||||||||||||||
| Net sales ($ million) | 3,086 | 2,922 | 6 | % | 3,322 | (7 | %) | |||||||||||||
| Operating income ($ million) | 583 | 550 | 6 | % | 512 | 14 | % | |||||||||||||
| Net income ($ million) | 542 | 518 | 5 | % | 348 | 56 | % | |||||||||||||
| Shareholders’ net income ($ million) | 531 | 507 | 5 | % | 335 | 59 | % | |||||||||||||
| Earnings per ADS ($) | 0.99 | 0.94 | 5 | % | 0.59 | 68 | % | |||||||||||||
| Earnings per share ($) | 0.50 | 0.47 | 5 | % | 0.29 | 68 | % | |||||||||||||
| EBITDA* ($ million) | 733 | 696 | 5 | % | 650 | 13 | % | |||||||||||||
| EBITDA margin (% of net sales) | 23.7 | % | 23.8 | % | 19.6 | % | ||||||||||||||
* EBITDA in 2Q 2024 includes a $171 million loss from the provision for ongoing litigation related to the acquisition of a participation in Usiminas. If this charge was not included EBITDA would have amounted to $821 million, or 24.7% of sales.
In the second quarter, our sales rose 6% sequentially reflecting an increase in North American OCTG prices and stable volumes. EBITDA and net income also rose. Margins remained in line with those of the previous quarter as cost of sales rose 5%, principally reflecting product mix differences and higher tariff payments.
Our free cash flow for the quarter amounted to $538 million and, after spending $600 million on dividends and $237 million on share buybacks, our net cash position amounted to $3.7 billion at June 30, 2025.
Market Background and Outlook
Oil prices have softened as OPEC+ accelerates the unwinding of its 2.2 Mb/d voluntary production cuts and demand growth is subdued amidst a high level of economic and geopolitical uncertainty. Drilling activity, however, has remained relatively resilient, although there has been some reduction in oil drilling in the United States, Canada and Saudi Arabia. Mexico, with the recent financing of Pemex, may start to recover some activity after its extended decline.
Following the recent increase in tariffs on imports of steel products from 25% to 50%, we expect U.S. OCTG imports to reduce from the high levels of the first half and U.S. OCTG prices to increase over time.
For the second half, as anticipated in our last conference call, our sales will show a moderate decline compared to the first half reflecting lower drilling activity and a lower contribution from line pipe projects. Our margins will also be affected by the recent increase in tariff costs.
Analysis of 2025 Second Quarter Results
Tubes
The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:
| Tubes Sales volume (thousand metric tons) | 2Q 2025 | 1Q 2025 | 2Q 2024 | |||||||||||||||||
| Seamless | 803 | 775 | 4 | % | 805 | 0 | % | |||||||||||||
| Welded | 179 | 212 | (16 | %) | 228 | (21 | %) | |||||||||||||
| Total | 982 | 987 | (1 | %) | 1,033 | (5 | %) | |||||||||||||
The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:
| Tubes | 2Q 2025 | 1Q 2025 | 2Q 2024 | |||||||||||||||||
| (Net sales - $ million) | ||||||||||||||||||||
| North America | 1,403 | 1,244 | 13 | % | 1,439 | (2 | %) | |||||||||||||
| South America | 531 | 552 | (4 | %) | 599 | (11 | %) | |||||||||||||
| Europe | 215 | 208 | 3 | % | 269 | (20 | %) | |||||||||||||
| Asia Pacific, Middle East and Africa | 771 | 761 | 1 | % | 823 | (6 | %) | |||||||||||||
| Total net sales ($ million) | 2,920 | 2,765 | 6 | % | 3,130 | (7 | %) | |||||||||||||
| Services performed on third party tubes ($ million) | 110 | 101 | 8 | % | 102 | 7 | % | |||||||||||||
| Operating income ($ million) | 554 | 514 | 8 | % | 459 | 21 | % | |||||||||||||
| Operating margin (% of sales) | 19.0 | % | 18.6 | % | 14.7 | % | ||||||||||||||
Net sales of tubular products and services increased 6% sequentially and decreased 7% year on year. Sequentially, a 1% decline in volumes sold was offset by a 6% increase in average selling prices. In North America sales increased due to higher OCTG prices in the region and higher shipments to the US offshore. In South America sales decreased following a reduction in shipments to the Raia offshore project in Brazil compensated by the start of shipments for the Vaca Muerta Sur pipeline in Argentina and higher coating services in the Caribbean. In Europe sales were stable sequentially however year on year we had lower sales of offshore line pipe. In Asia Pacific, Middle East and Africa sales were stable as we had lower sales in Saudi Arabia, compensated by higher sales of offshore line pipe and coating services in sub-Saharan Africa and for a gas processing plant in Algeria.
Operating results from tubular products and services amounted to a gain of $554 million in the second quarter of 2025 compared to a gain of $514 million in the previous quarter and a gain of $459 million in the second quarter of 2024. Despite the increase in average selling prices margins remained in line with those of the previous quarter as cost of sales rose 5%, principally reflecting product mix differences and higher tariff payments.
Others
The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:
| Others | 2Q 2025 | 1Q 2025 | 2Q 2024 | |||||||||||||||||
| Net sales ($ million) | 166 | 157 | 6 | % | 192 | (14 | %) | |||||||||||||
| Operating income ($ million) | 29 | 36 | (21 | %) | 52 | (45 | %) | |||||||||||||
| Operating margin (% of sales) | 17.3 | % | 23.1 | % | 27.3 | % | ||||||||||||||
Net sales of other products and services increased 6% sequentially and decreased 14% year on year. Sequentially, sales increased mainly due to higher sales of oilfield services in Argentina, excess raw materials and energy sold to third parties which had a lower margin.
Selling, general and administrative expenses, or SG&A, amounted to $484 million, or 15.7% of net sales, in the second quarter of 2025, compared to $457 million, 15.6% in the previous quarter and $497 million, 15.0% in the second quarter of 2024. Sequentially, the increase in SG&A is mainly due to higher services and fees, taxes, and other expenses.
Other operating results amounted to a loss of $6 million in the second quarter of 2025, compared to a gain of $6 million in the previous quarter and a $170 million loss in the second quarter of 2024. In the second quarter of 2024 we recorded a $171 million loss from provision for ongoing litigation related to the acquisition of a participation in Usiminas.
Financial results amounted to a gain of $32 million in the second quarter of 2025, compared to a gain of $35 million in the previous quarter and a gain of $57 million in the second quarter of 2024. Financial result of the quarter is mainly attributable to a $54 million net finance income from the net return of our portfolio investments partially offset by foreign exchange and derivatives results.
Equity in earnings (losses) of non-consolidated companies generated a gain of $33 million in the second quarter of 2025, compared to a gain of $14 million in the previous quarter and a loss of $83 million in the second quarter of 2024. These results are mainly derived from our participation in Ternium (NYSE:TX) and in the second quarter of 2024 were negatively affected by an $83 million loss from the provision for ongoing litigation related to the acquisition of a participation in Usiminas on our Ternium investment.
Income tax charge amounted to $105 million in the second quarter of 2025, compared to $81 million in the previous quarter and $138 million in the second quarter of 2024. Sequentially, the higher income tax charge reflects better results at several subsidiaries.
Cash Flow and Liquidity of 2025 Second Quarter
Net cash generated by operating activities during the second quarter of 2025 was $673 million, compared to $821 million in the previous quarter and $0.9 billion in the second quarter of 2024. During the second quarter of 2025 cash generated by operating activities includes a net working capital reduction of $26 million.
With capital expenditures of $135 million, our free cash flow amounted to $538 million during the quarter. Following a dividend payment of $600 million and share buybacks of $237 million in the quarter, our net cash position amounted to $3.7 billion at June 30, 2025.
Analysis of 2025 First Half Results
| 6M 2025 | 6M 2024 | Increase/(Decrease) | ||||||||||
| Net sales ($ million) | 6,008 | 6,763 | (11 | %) | ||||||||
| Operating income ($ million) | 1,133 | 1,323 | (14 | %) | ||||||||
| Net income ($ million) | 1,060 | 1,098 | (4 | %) | ||||||||
| Shareholders’ net income ($ million) | 1,038 | 1,072 | (3 | %) | ||||||||
| Earnings per ADS ($) | 1.94 | 1.87 | 4 | % | ||||||||
| Earnings per share ($) | 0.97 | 0.93 | 4 | % | ||||||||
| EBITDA* ($ million) | 1,429 | 1,637 | (13 | %) | ||||||||
| EBITDA margin (% of net sales) | 23.8 | % | 24.2 | % |
* EBITDA in 6M 2024 includes a $171 million loss from the provision for ongoing litigation related to the acquisition of a participation in Usiminas. If this charge was not included EBITDA would have amounted to $1,808 million, or 26.7% of sales.
Our sales in the first half of 2025 decreased 11% compared to the first half of 2024 as volumes of tubular products shipped decreased 5% and tubes average selling prices decreased 7% due to price declines in North America. Following the decrease in sales, EBITDA margin declined from 26.7%, excluding a $171 million provision, to 23.8% and EBITDA declined 21%. While net income declined 4% year on year, earnings per share increased 4% following the reduction of outstanding shares due to the share buyback.
Cash flow provided by operating activities amounted to $1.5 billion during the first half of 2025, including a reduction in working capital of $250 million. After capital expenditures of $309 million, our free cash flow amounted to $1.2 billion. Following a dividend payment of $600 million and share buybacks for $474 million in the semester, our net cash position amounted to $3.7 billion at the end of June 2025.
The following table shows our net sales by business segment for the periods indicated below:
| Net sales ($ million) | 6M 2025 | 6M 2024 | Increase/(Decrease) | |||||||||||||||||
| Tubes | 5,686 | 95 | % | 6,421 | 95 | % | (11 | %) | ||||||||||||
| Others | 322 | 5 | % | 342 | 5 | % | (6 | %) | ||||||||||||
| Total | 6,008 | 6,763 | (11 | %) | ||||||||||||||||
Tubes
The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:
| Tubes Sales volume (thousand metric tons) | 6M 2025 | 6M 2024 | Increase/(Decrease) | |||||||||
| Seamless | 1,578 | 1,582 | 0 | % | ||||||||
| Welded | 390 | 496 | (21 | %) | ||||||||
| Total | 1,969 | 2,078 | (5 | %) |
The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:
| Tubes | 6M 2025 | 6M 2024 | Increase/(Decrease) | |||||||||
| (Net sales - $ million) | ||||||||||||
| North America | 2,647 | 3,028 | (13 | %) | ||||||||
| South America | 1,083 | 1,216 | (11 | %) | ||||||||
| Europe | 423 | 522 | (19 | %) | ||||||||
| Asia Pacific, Middle East and Africa | 1,532 | 1,656 | (7 | %) | ||||||||
| Total net sales ($ million) | 5,686 | 6,421 | (11 | %) | ||||||||
| Services performed on third parties tubes ($ million) | 211 | 294 | (28 | %) | ||||||||
| Operating income ($ million) | 1,068 | 1,245 | (14 | %) | ||||||||
| Operating margin (% of sales) | 18.8 | % | 19.4 | % |
Net sales of tubular products and services decreased 11% to $5,686 million in the first half of 2025, compared to $6,421 million in the first half of 2024 due to a 5% decrease in volumes and a 7% decrease in average selling prices due to price declines in North America. Average drilling activity in the first half of 2025 decreased 4% in the United States and Canada and 7% internationally compared to the first half of 2024.
Operating results from tubular products and services amounted to a gain of $1,068 million in the first half of 2025 compared to a gain of $1,245 million in the first half of 2024. In first six months of 2024 our Tubes operating income included a $171 million charge for litigations related to the acquisition of a participation in Usiminas and a $39 million gain from the positive resolution of legal claims in Mexico and Brazil. The decline in operating results is mainly due to the decline in average selling prices and the corresponding impact on margins.
Others
The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:
| Others | 6M 2025 | 6M 2024 | Increase/(Decrease) | |||||||||
| Net sales ($ million) | 322 | 342 | (6 | %) | ||||||||
| Operating income ($ million) | 65 | 78 | (17 | %) | ||||||||
| Operating margin (% of sales) | 20.2 | % | 23.0 | % |
Net sales of other products and services decreased 6% to $322 million in the first half of 2025, compared to $342 million in the first half of 2024. The decline in sales is related to lower sales of sucker rods, coiled tubing and excess raw materials, partially offset by an increase in the sale of oilfield services in Argentina.
Operating results from other products and services amounted to a gain of $65 million in the first half of 2025, compared to a gain of $78 million in the first half of 2024. Results were mainly derived from our oilfield services business in Argentina and from the sale of sucker rods.
Selling, general and administrative expenses, or SG&A, declined from $1,005 million in the first half of 2024 to $941 million in the first half of 2025, however they increased from 14.9% to 15.7% of sales. The decline in SG&A expenses is mainly due to lower taxes, labor costs and depreciation and amortization.
Other operating results amounted to a loss of $50 thousand in the first half of 2025, compared to a loss of $157 million in the first half of 2024. In the first six months of 2024 we recorded a $171 million loss from provision for ongoing litigation related to the acquisition of a participation in Usiminas.
Financial results amounted to a gain of $67 million in the first half of 2025, compared to a gain of $32 million in the first half of 2024. While net finance income increased in the first six months of 2025 due to a stronger net financial position, foreign exchange results were negative, compared to the positive impact recorded in the same period of 2024. In the first half of 2024 other financial results were negatively affected by a cumulative loss of the U.S. dollar denominated Argentine bond previously recognized in other comprehensive income.
Equity in earnings (losses) of non-consolidated companies generated a gain of $47 million in the first half of 2025, compared to a loss of $34 million in the first half of 2024. These results were mainly derived from our equity investment in Ternium (NYSE:TX) and in the first six months of 2024 were negatively affected by an $83 million loss from the provision for ongoing litigation related to the acquisition of a participation in Usiminas on our Ternium investment.
Income tax amounted to a charge of $187 million in the first half of 2025, compared to $223 million in the first half of 2024. The lower income tax charge reflects the reduction in results at several subsidiaries.
Cash Flow and Liquidity of 2025 First Half
Net cash provided by operating activities during the first half of 2025 amounted to $1.5 billion (including a reduction in working capital of $250 million), compared to cash provided by operations of $1.8 billion (net of a reduction in working capital of $276 million) in the first half of 2024.
Capital expenditures amounted to $309 million in the first half of 2025, compared to $333 million in the first half of 2024. Free cash flow amounted to $1.2 billion in the first half of 2025, compared to $1.5 billion in the first half of 2024.
Following a dividend payment of $600 million in May 2025 and share buybacks of $474 million during the first half of 2025, our net cash position amounted to $3.7 billion at the end of June 2025.
Conference call
Tenaris will hold a conference call to discuss the above reported results, on July 31, 2025, at 08:00 a.m. (Eastern Time). Following a brief summary, the conference call will be opened to questions.
To listen to the conference please join through one of the following options:
ir.tenaris.com/events-and-presentations or
https://edge.media-server.com/mmc/p/dy4pxaxk
If you wish to participate in the Q&A session please register at the following link:
https://register-conf.media-server.com/register/BI13b7d2b9dcce43d79257fc8cfbdde30c
Please connect 10 minutes before the scheduled start time.
A replay of the conference call will also be available on our webpage at: ir.tenaris.com/events-and-presentations
Some of the statements contained in this press release are “forward-looking statements”. Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to future oil and gas prices and their impact on investment programs by oil and gas companies.
Consolidated Condensed Interim Income Statement
| (all amounts in thousands of U.S. dollars) | Three-month period ended June 30, | Six-month period ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Net sales | 3,085,672 | 3,321,677 | 6,007,884 | 6,763,221 | ||||||||||||
| Cost of sales | (2,013,639 | ) | (2,143,614 | ) | (3,934,494 | ) | (4,277,666 | ) | ||||||||
| Gross profit | 1,072,033 | 1,178,063 | 2,073,390 | 2,485,555 | ||||||||||||
| Selling, general and administrative expenses | (483,633 | ) | (496,688 | ) | (940,698 | ) | (1,004,820 | ) | ||||||||
| Other operating income | 4,317 | 9,461 | 16,105 | 25,485 | ||||||||||||
| Other operating expenses | (9,983 | ) | (179,127 | ) | (16,150 | ) | (182,847 | ) | ||||||||
| Operating income | 582,734 | 511,709 | 1,132,647 | 1,323,373 | ||||||||||||
| Finance Income | 63,669 | 68,884 | 142,113 | 125,173 | ||||||||||||
| Finance Cost | (9,712 | ) | (15,722 | ) | (21,457 | ) | (36,305 | ) | ||||||||
| Other financial results, net | (22,294 | ) | 4,021 | (53,735 | ) | (56,447 | ) | |||||||||
| Income before equity in earnings of non-consolidated companies and income tax | 614,397 | 568,892 | 1,199,568 | 1,355,794 | ||||||||||||
| Equity in earnings (losses) of non-consolidated companies | 32,651 | (82,519 | ) | 46,686 | (34,340 | ) | ||||||||||
| Income before income tax | 647,048 | 486,373 | 1,246,254 | 1,321,454 | ||||||||||||
| Income tax | (105,342 | ) | (138,147 | ) | (186,684 | ) | (223,003 | ) | ||||||||
| Income for the period | 541,706 | 348,226 | 1,059,570 | 1,098,451 | ||||||||||||
| Attributable to: | ||||||||||||||||
| Shareholders' equity | 531,323 | 335,186 | 1,038,254 | 1,072,166 | ||||||||||||
| Non-controlling interests | 10,383 | 13,040 | 21,316 | 26,285 | ||||||||||||
| 541,706 | 348,226 | 1,059,570 | 1,098,451 | |||||||||||||
Consolidated Condensed Interim Statement of Financial Position
| (all amounts in thousands of U.S. dollars) | At June 30, 2025 | At December 31, 2024 | ||||||||||||||
| (Unaudited) | ||||||||||||||||
| ASSETS | ||||||||||||||||
| Non-current assets | ||||||||||||||||
| Property, plant and equipment, net | 6,168,254 | 6,121,471 | ||||||||||||||
| Intangible assets, net | 1,362,262 | 1,357,749 | ||||||||||||||
| Right-of-use assets, net | 147,197 | 148,868 | ||||||||||||||
| Investments in non-consolidated companies | 1,575,101 | 1,543,657 | ||||||||||||||
| Other investments | 1,009,677 | 1,005,300 | ||||||||||||||
| Deferred tax assets | 835,954 | 831,298 | ||||||||||||||
| Receivables, net | 152,215 | 11,250,660 | 205,602 | 11,213,945 | ||||||||||||
| Current assets | ||||||||||||||||
| Inventories, net | 3,486,537 | 3,709,942 | ||||||||||||||
| Receivables and prepayments, net | 244,958 | 179,614 | ||||||||||||||
| Current tax assets | 415,626 | 332,621 | ||||||||||||||
| Contract assets | 60,182 | 50,757 | ||||||||||||||
| Trade receivables, net | 1,892,116 | 1,907,507 | ||||||||||||||
| Derivative financial instruments | 2,676 | 7,484 | ||||||||||||||
| Other investments | 2,482,514 | 2,372,999 | ||||||||||||||
| Cash and cash equivalents | 572,289 | 9,156,898 | 675,256 | 9,236,180 | ||||||||||||
| Total assets | 20,407,558 | 20,450,125 | ||||||||||||||
| EQUITY | ||||||||||||||||
| Shareholders' equity | 16,583,542 | 16,593,257 | ||||||||||||||
| Non-controlling interests | 211,117 | 220,578 | ||||||||||||||
| Total equity | 16,794,659 | 16,813,835 | ||||||||||||||
| LIABILITIES | ||||||||||||||||
| Non-current liabilities | ||||||||||||||||
| Borrowings | 4,361 | 11,399 | ||||||||||||||
| Lease liabilities | 94,170 | 100,436 | ||||||||||||||
| Derivative financial instruments | 1,552 | — | ||||||||||||||
| Deferred tax liabilities | 472,640 | 503,941 | ||||||||||||||
| Other liabilities | 296,990 | 301,751 | ||||||||||||||
| Provisions | 61,746 | 931,459 | 82,106 | 999,633 | ||||||||||||
| Current liabilities | ||||||||||||||||
| Borrowings | 319,919 | 425,999 | ||||||||||||||
| Lease liabilities | 53,917 | 44,490 | ||||||||||||||
| Derivative financial instruments | 9,254 | 8,300 | ||||||||||||||
| Current tax liabilities | 298,803 | 366,292 | ||||||||||||||
| Other liabilities | 792,982 | 585,775 | ||||||||||||||
| Provisions | 156,387 | 119,344 | ||||||||||||||
| Customer advances | 139,751 | 206,196 | ||||||||||||||
| Trade payables | 910,427 | 2,681,440 | 880,261 | 2,636,657 | ||||||||||||
| Total liabilities | 3,612,899 | 3,636,290 | ||||||||||||||
| Total equity and liabilities | 20,407,558 | 20,450,125 | ||||||||||||||
Consolidated Condensed Interim Statement of Cash Flows
| (all amounts in thousands of U.S. dollars) | Three-month period ended June 30, | Six-month period ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Cash flows from operating activities | ||||||||||||||||
| Income for the period | 541,706 | 348,226 | 1,059,570 | 1,098,451 | ||||||||||||
| Adjustments for: | ||||||||||||||||
| Depreciation and amortization | 150,002 | 138,509 | 296,408 | 313,951 | ||||||||||||
| Bargain purchase gain | — | (2,211 | ) | — | (2,211 | ) | ||||||||||
| Provision for the ongoing litigation related to the acquisition of participation in Usiminas | 8,650 | 170,610 | 18,527 | 170,610 | ||||||||||||
| Income tax accruals less payments | (36,660 | ) | (84,340 | ) | (90,793 | ) | (113,562 | ) | ||||||||
| Equity in earnings (losses) of non-consolidated companies | (32,651 | ) | 82,519 | (46,686 | ) | 34,340 | ||||||||||
| Interest accruals less payments, net | (4,616 | ) | (14,573 | ) | (13,039 | ) | (2,635 | ) | ||||||||
| Changes in provisions | 628 | (6,277 | ) | (1,765 | ) | (4,732 | ) | |||||||||
| Changes in working capital | 26,499 | 285,066 | 250,316 | 275,518 | ||||||||||||
| Others, including net foreign exchange | 19,589 | 17,672 | 21,609 | 52,448 | ||||||||||||
| Net cash provided by operating activities | 673,147 | 935,201 | 1,494,147 | 1,822,178 | ||||||||||||
| Cash flows from investing activities | ||||||||||||||||
| Capital expenditures | (135,454 | ) | (161,318 | ) | (309,292 | ) | (333,415 | ) | ||||||||
| Changes in advances to suppliers of property, plant and equipment | (18,769 | ) | (13,467 | ) | (5,853 | ) | (10,515 | ) | ||||||||
| Cash decrease due to deconsolidation of subsidiaries | (1,848 | ) | — | (1,848 | ) | — | ||||||||||
| Acquisition of subsidiaries, net of cash acquired | — | 25,946 | — | 25,946 | ||||||||||||
| Loan to joint ventures | — | (1,391 | ) | (1,359 | ) | (2,745 | ) | |||||||||
| Proceeds from disposal of property, plant and equipment and intangible assets | 56,829 | 723 | 57,729 | 6,135 | ||||||||||||
| Dividends received from non-consolidated companies | 41,348 | 53,136 | 41,348 | 53,136 | ||||||||||||
| Changes in investments in securities | 94,299 | (277,085 | ) | (131,337 | ) | (1,036,752 | ) | |||||||||
| Net cash used in investing activities | 36,405 | (373,456 | ) | (350,612 | ) | (1,298,210 | ) | |||||||||
| Cash flows from financing activities | ||||||||||||||||
| Dividends paid | (600,317 | ) | (458,556 | ) | (600,317 | ) | (458,556 | ) | ||||||||
| Dividends paid to non-controlling interest in subsidiaries | (27,264 | ) | — | (27,264 | ) | — | ||||||||||
| Changes in non-controlling interests | — | (5 | ) | — | 1,115 | |||||||||||
| Acquisition of treasury shares | (236,744 | ) | (492,322 | ) | (473,932 | ) | (803,386 | ) | ||||||||
| Payments of lease liabilities | (15,392 | ) | (16,614 | ) | (30,047 | ) | (33,382 | ) | ||||||||
| Proceeds from borrowings | 128,874 | 365,149 | 476,443 | 1,195,096 | ||||||||||||
| Repayments of borrowings | (145,831 | ) | (418,521 | ) | (574,956 | ) | (1,172,599 | ) | ||||||||
| Net cash used in financing activities | (896,674 | ) | (1,020,869 | ) | (1,230,073 | ) | (1,271,712 | ) | ||||||||
| Decrease in cash and cash equivalents | (187,122 | ) | (459,124 | ) | (86,538 | ) | (747,744 | ) | ||||||||
| Movement in cash and cash equivalents | ||||||||||||||||
| At the beginning of the period | 758,952 | 1,323,056 | 660,798 | 1,616,597 | ||||||||||||
| Effect of exchange rate changes | (338 | ) | (15,237 | ) | (2,768 | ) | (20,158 | ) | ||||||||
| Decrease in cash and cash equivalents | (187,122 | ) | (459,124 | ) | (86,538 | ) | (747,744 | ) | ||||||||
| At June 30, | 571,492 | 848,695 | 571,492 | 848,695 | ||||||||||||
Exhibit I – Alternative performance measures
Alternative performance measures should be considered in addition to, not as substitute for or superior to, other measures of financial performance prepared in accordance with IFRS.
EBITDA, Earnings before interest, tax, depreciation and amortization.
EBITDA provides an analysis of the operating results excluding depreciation and amortization and impairments, as they are recurring non-cash variables which can vary substantially from company to company depending on accounting policies and the accounting value of the assets. EBITDA is an approximation to pre-tax operating cash flow and reflects cash generation before working capital variation. EBITDA is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt.
EBITDA is calculated in the following manner:
EBITDA = Net income for the period + Income tax charges +/- Equity in Earnings (losses) of non-consolidated companies +/- Financial results + Depreciation and amortization +/- Impairment charges/(reversals).
EBITDA is a non-IFRS alternative performance measure.
| (all amounts in thousands of U.S. dollars) | Three-month period ended June 30, | Six-month period ended June 30, | |||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Income for the period | 541,706 | 348,226 | 1,059,570 | 1,098,451 | |||||||||||
| Income tax charge | 105,342 | 138,147 | 186,684 | 223,003 | |||||||||||
| Equity in earnings (losses) of non-consolidated companies | (32,651 | ) | 82,519 | (46,686 | ) | 34,340 | |||||||||
| Financial Results | (31,663 | ) | (57,183 | ) | (66,921 | ) | (32,421 | ) | |||||||
| Depreciation and amortization | 150,002 | 138,509 | 296,408 | 313,951 | |||||||||||
| EBITDA | 732,736 | 650,218 | 1,429,055 | 1,637,324 | |||||||||||
Free Cash Flow
Free cash flow is a measure of financial performance, calculated as operating cash flow less capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.
Free cash flow is calculated in the following manner:
Free cash flow = Net cash (used in) provided by operating activities - Capital expenditures.
Free cash flow is a non-IFRS alternative performance measure.
| (all amounts in thousands of U.S. dollars) | Three-month period ended June 30, | Six-month period ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net cash provided by operating activities | 673,147 | 935,201 | 1,494,147 | 1,822,178 | ||||||||||||
| Capital expenditures | (135,454 | ) | (161,318 | ) | (309,292 | ) | (333,415 | ) | ||||||||
| Free cash flow | 537,693 | 773,883 | 1,184,855 | 1,488,763 | ||||||||||||
Net Cash / (Debt)
This is the net balance of cash and cash equivalents, other current investments and fixed income investments held to maturity less total borrowings. It provides a summary of the financial solvency and liquidity of the company. Net cash / (debt) is widely used by investors and rating agencies and creditors to assess the company’s leverage, financial strength, flexibility and risks.
Net cash/ debt is calculated in the following manner:
Net cash = Cash and cash equivalents + Other investments (Current and Non-Current)+/- Derivatives hedging borrowings and investments - Borrowings (Current and Non-Current).
Net cash/debt is a non-IFRS alternative performance measure.
| (all amounts in thousands of U.S. dollars) | At June 30, | |||||||
| 2025 | 2024 | |||||||
| Cash and cash equivalents | 572,289 | 850,236 | ||||||
| Other current investments | 2,482,514 | 2,452,375 | ||||||
| Non-current investments | 1,002,523 | 1,120,834 | ||||||
| Derivatives hedging borrowings and investments | (3,698 | ) | — | |||||
| Current borrowings | (319,919 | ) | (559,517 | ) | ||||
| Non-current borrowings | (4,361 | ) | (21,386 | ) | ||||
| Net cash / (debt) | 3,729,348 | 3,842,542 | ||||||
Operating working capital days
Operating working capital is the difference between the main operating components of current assets and current liabilities. Operating working capital is a measure of a company’s operational efficiency, and short-term financial health.
Operating working capital days is calculated in the following manner:
Operating working capital days = [(Inventories + Trade receivables – Trade payables – Customer advances) / Annualized quarterly sales ] x 365.
Operating working capital days is a non-IFRS alternative performance measure.
| (all amounts in thousands of U.S. dollars) | At June 30, | |||||||
| 2025 | 2024 | |||||||
| Inventories | 3,486,537 | 3,834,623 | ||||||
| Trade receivables | 1,892,116 | 2,185,425 | ||||||
| Customer advances | (139,751 | ) | (298,158 | ) | ||||
| Trade payables | (910,427 | ) | (1,020,453 | ) | ||||
| Operating working capital | 4,328,475 | 4,701,437 | ||||||
| Annualized quarterly sales | 12,342,688 | 13,286,708 | ||||||
| Operating working capital days | 128 | 129 | ||||||