Q4 2025 Tenaris SA Earnings Call

February 19, 2026

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.

Speaker #1: I would now like to hand the conference over to your speaker today, Giovanni Sardagna, Investor Relations Officer. Please go ahead.

Speaker #2: Thank you, Gigi, and welcome to Tenaris 2025 Fourth Quarter and Annual Results Conference Call. Before we start, I would like to remind you that we will be discussing forward-looking information during the call and that our actual results may vary from those expressed or implied during the call.

Giovanni Sardagna: Thank you, Gigi, and welcome to Tenaris's 2025 Q4 and Annual Results Conference Call. Before we start, I would like to remind you that we will be discussing forward-looking information during the call and that our actual results may vary from those expressed or implied during the call. With me on the call today are Paolo Rocca, our Chairman and CEO, Carlos Gómez Álzaga, our Chief Financial Officer, Gabriel Podskubka, our Chief Operating Officer, and Guillermo Moreno, President of our US operations. Before passing over the call to Paolo for his opening remarks, I would like to briefly comment our quarterly results.

Speaker #2: With me on the call today are Paolo Rocca, our Chairman and CEO; Carlos Gomez Alzaga, our Chief Financial Officer; Gabriel Podskórska, our Chief Operating Officer; and Guillermo Moreno, President of our U.S. Operations.

Speaker #2: Before passing over the call to Paolo for his opening remarks, I would like to briefly comment on our quarterly results. During the fourth quarter of 2025, sales reached $3 billion.

Giovanni Sardagna: During Q4 2025, sales reached $3 billion, up 5% compared with those of the corresponding quarter of the previous year, and 1% sequentially, as our sales to Rig Direct customers in the United States and Canada continued to show resilience, and in Argentina, we resumed our fracking and coil tubing services. Our EBITDA for the quarter was down 5% sequentially to $717 million or 24% of sales. These results include the full impact of the 50% Section 232 tariffs in the US. Average selling prices in our tube operating segment decreased by 1% compared to the corresponding quarter of last year and were flat sequentially. During the quarter, cash flow from operation was $787 million.

Speaker #2: Up 5% compared with those of the corresponding quarter of the previous year, and 1% sequentially. As our sales to rig direct customers in the United States and Canada continue to show resilience, and in Argentina we resume our fracking and coil tubing services.

Speaker #2: Our EBITDA for the quarter was down 5% sequentially to $717 million, or 24% of sales. These results include the full impact of the 50% Section 232 tariffs in the US.

Speaker #2: Average selling prices in our tube operating segment decreased by 1% compared to the corresponding quarter of last year and were flat sequentially. During the quarter, cash flow from operations was $787 million.

Giovanni Sardagna: Our net cash position at the end of the quarter decreased to $3.3 billion, following the payment of an interim dividend of $300 million in November last year, $537 million spent on share buybacks, and capital expenditure of $123 million during the quarter. The board of directors have decided to propose for the approval of the annual general shareholders meeting to be held at the beginning of May, the payment of an annual dividend of $0.89 per share, or $1.78 per ADR, which includes the interim dividend of $0.29 per share or $0.58 per ADR that we paid at the end of November of last year.If approved, a dividend of $0.60 per share or $1.20 per ADR will be paid on 20 May, up 7% compared to the dividend per share of the corresponding period of the previous year, thanks to the benefit of our buyback program. Now, I will ask Paolo to say a few words before we open the call to questions.

Giovanni Sardagna: Our net cash position at the end of the quarter decreased to $3.3 billion, following the payment of an interim dividend of $300 million in November last year, $537 million spent on share buybacks, and capital expenditure of $123 million during the quarter. The board of directors have decided to propose for the approval of the annual general shareholders meeting to be held at the beginning of May, the payment of an annual dividend of $0.89 per share, or $1.78 per ADR, which includes the interim dividend of $0.29 per share or $0.58 per ADR that we paid at the end of November of last year. If approved, a dividend of $0.60 per share or $1.20 per ADR will be paid on 20 May, up 7% compared to the dividend per share of the corresponding period of the previous year, thanks to the benefit of our buyback program. Now, I will ask Paolo to say a few words before we open the call to questions.

Speaker #2: Our net cash position at the end of the quarter decreased to $3.3 billion, following the payment of an interim dividend of $300 million in November last year, $537 million spent on share buybacks, and capital expenditure of $123 million during the quarter.

Speaker #2: The Board of Directors had decided to propose for the approval of the general annual shareholders' meeting to be held at the beginning of May.

Speaker #2: The payment of an annual dividend of $0.89 per share, or $1.78 per ADR, which includes the interim dividend of $0.29 per share, or $0.58 per ADR, that we paid at the end of November of last year.

Speaker #2: If approved, a dividend of $0.60 per share, or $1.20 per ADR, will be paid on May 20. This is up 7% compared to the dividend per share of the corresponding period of the previous year, thanks to the benefit of our buyback program.

Speaker #2: Now, I will ask Paolo to say a few words before we open the call to questions.

Speaker #3: Thank you, Giovanni, and good morning to all of you. 2025 was a year in which Tenaris demonstrated the resilience of its operations in the face of a disruptive geopolitical environment and lower activity in key markets.

Paolo Rocca: Thank you, Giovanni, and good morning to all of you. 2025 was a year in which Tenaris demonstrated the resilience of its operation in the face of a disruptive geopolitical environment and lower activity in key markets. Thanks to our extensive geographical presence, the depth of the service we offer to our customer, and the commitment of our employee, we were able to respond rapidly to the various situation we faced. Our results remained remarkably stable through the year, which we completed with an EBITDA of $2.9 billion, and a net income of $2 billion on net sales of $12 billion. Free cash flow amounted to $2 billion, all of which were distributed to shareholders through dividend and share buybacks.

Speaker #3: Thanks to our extensive geographical presence, the depth of the service we offer to our customers, and the commitment of our employees, we were able to respond rapidly to the various situations we faced.

Speaker #3: Our results remained remarkably stable through the year, which we completed with an EBITDA of $2.9 billion and a net income of $2 billion on net sales of $12 billion.

Speaker #3: Free cash flow amounted to $2 billion, all of which was distributed to shareholders through dividends and share buybacks. We are proposing a further increase of the annual dividend per share of 7% over that for the previous year.

Paolo Rocca: We are proposing a further increase of the annual dividend per share of 7% over that for the previous year. At the same time, we maintain a net cash position of $3.3 billion. In the US and Canada, the years was marked by further oil and gas industry consolidation and productivity improvement, a lower rig count, and the extension of Section 232 tariff to the import of all steel products, including the steel bars we require for our seamless pipe operation at Bay City, and their subsequent increase to 50%.

Speaker #3: At the same time, we maintain a net cash position of $3.3 billion. In the US and Canada, the year was marked by further oil and gas industry consolidation and productivity improvement.

Speaker #3: A lower recount and extension of Section 232 tariff to the import of all steel products, including the steel bars we require for our seamless pipe operation at Bay City, and their subsequent increase to 50%.

Speaker #3: In this environment, Tenaris raised the performance of its U.S. production and supply chain system with its coupled steel shop, main pipe production plants at Bay City, Hickman, and Ambridge, and various pipe processing facilities acting in concert to achieve record-level production and supply 90% of our U.S. sales.

Paolo Rocca: In this environment, Tenaris raised the performance of its US production and supply chain system with its coupled steel shop, main pipe production plants at Bay City, at Hickman, and Enbridge, and various pipe processing facilities acting in concert to achieve a record level of production and supply, 90% of our US sales. In both the US and Canada, we strengthened our market position and extended the differentiation we offer under our rig direct service model. As customers targeted operational efficiency, we continue to develop and roll out our run ready and well integrity services, that support them by increasing safety and reliability at the well site. Major oil and gas companies are seeking new production reserves to meet a more resilient long-term demand outlook, and are looking beyond the shales with their faster decline curves to deepwater development and exploration in frontier region.

Speaker #3: In both the US and Canada, we strengthened our market position and extended the differentiation we offer under our Rig Direct® Service Model. As customers targeted operational efficiency, we continue to develop and roll out our run-ready and well-integrated services that support them by increasing safety and reliability at the wellsite.

Speaker #3: Major oil and gas companies are seeking new production reserves to meet a more resilient long-term demand outlook. And they're looking beyond the shales with their fast-decline curves to deepwater development and exploration in frontier regions.

Paolo Rocca: Tenaris, with its capacity to develop product for complex operations and to support fast-track development with service and the supply of advanced coated line pipe solution at scale, is working with most of these companies as they develop such projects. As new offshore projects are sanctioned around the world, we see many opportunities to renew our order backlog while we execute on existing commitments. Currently, we are delivering casing for Shell's Sparta Twenty-K project in the US deepwater, extending our services for ExxonMobil's operation in Guyana, and preparing a service base for TotalEnergies' GranMorgu development in Suriname, while planning the production of seamless and welded line pipe and coating for the third phase of TPAO Sakarya gas development in the Black Sea.

Speaker #3: TENARIS, with its capacity to develop products for complex operations and to support fast-track developments, with service and the supply of advanced coated line pipe solutions at scale, is working with most of these companies as they develop such projects.

Speaker #3: As new offshore projects are sanctioned around the world, we see many opportunities to renew our order backlog, while we execute on existing commitments. Currently, we are delivering casing for Shell Sparta 20K project in the US deep water.

Speaker #3: Extending our services for ExxonMobil's operation in Guyana, and preparing a service base for TotalEnergies' Grand Morgue development in Suriname, while planning the production of seamless and welded line pipe and coating for the third phase of TPAO Sakarya gas development in the Black Sea.

Speaker #3: In Latin America, the Mexican government is taking steps to address the financial difficulties of Pemex, which took a toll on oil and gathering activity in the country last year.

Paolo Rocca: In Latin America, the Mexican government is taking steps to address the financial difficulties of Pemex, which took a toll on oil and gas drilling activity in the country last year, while in Argentina, domestic companies have been able to raise more than $4 billion in financing to develop infrastructure and expand production operation in the Vaca Muerta shales. We supplied the Vaca Muerta South Pipeline and are currently supplying the Duplica Norte Pipeline. We are also investing to expand our new fracking and coil tubing service business and expect to put a third set of equipment to work before the end of the year. In Venezuela, following the intervention of the US government, we are resuming our service to Chevron operation and building up our service capability in the country to support any increase in drilling activity.

Speaker #3: While in Argentina, domestic companies have been able to raise more than $4 billion in financing to develop infrastructure and expand production and operations in the Vaca Muerta shales.

Speaker #3: We supplied the Vaca Muerta sewer pipeline and are currently supplying the Duplicar Norte pipeline. We are also investing to expand our new fracking and coal tubing service business, and expect to put a third set of equipment to work before the end of the year.

Speaker #3: In Venezuela, following the intervention of the US government, we are resuming our service to Chevron operations and building up our service capability in the country to support any increase in drilling activity.

Speaker #3: In the Middle East, we continue to consolidate our presence with the award of a long-term agreement for the supply of OCTG to the Northwest Field development in Qatar.

Paolo Rocca: In the Middle East, we continue to consolidate our presence with the award of a long-term agreement for the supply of OCTG to the Northwest Field development in Qatar, while in the Emirates, we enhance our Rig Direct service to ADNOC, delivering a record amount of OCTG. In Saudi Arabia, conventional drilling activity was also reduced during the year. We completed an expansion at our local large-diameter facility, from which we are supplying line pipe for the development of gas infrastructure, in addition to the OCTG we supply for Aramco drilling operation. Our global integrated industrial and supply chain operation have been key to our ability to respond effectively to the different events we faced during the year. We continue to invest in enhancing the efficiency and digital integration of these operations, as well as reducing their environmental impact.

Speaker #3: While in the Emirates, we enhanced our Rick Direct Service to ATNOC, delivering a record amount of OCTG. In Saudi Arabia, conventional drilling activity was reduced during the year.

Speaker #3: We completed an expansion at our local large diameter facility, from which we are supplying line pipe for the development of gas infrastructure. In addition to the OCTG, we supply for Aramco drilling operations.

Speaker #3: Our global integrated industrial and supply chain operations have been key to our ability to respond effectively to the different events we face during the year.

Speaker #3: We continue to invest in enhancing the efficiency and digital integration of these operations, as well as reducing their environmental impact. We made further progress toward our mid-term target of reducing the carbon emission intensity of our operations.

Paolo Rocca: We made further progress toward our midterm target of reducing the carbon emission intensity of our operations, as we brought our second wind farm in Argentina into operation. The two wind farms now supply essentially all of the energy requirement for our electric steel shop and operation in Canada. As an industrial company, our commitment to the safety of our employees and to the environmental sustainability in our communities is absolute. Also, our indicators have improved this year. We continue to reinforce our preventive action and monitor our performance in this aspect. Tenaris, with its presence across the world, competitive differentiation in product and service, the quality and compliance of its operations and the financial strength to support the strategy, remains well-placed to confront an unpredictable and volatile future.

Speaker #3: As we brought our second wind farm in Argentina into operation, the two wind farms now supply essentially all of the energy requirement for our electric steel shop and operation in Canada.

Speaker #3: As an industrial company, our commitment to the safety of our employees and to the environment's sustainability in our communities is absolute. Also, our indicator has improved this year; we continue to reinforce our preventive action and monitor our performance in disaster.

Speaker #3: Tenaris, with its presence across the world, competitive differentiation in product and service, the quality and compliance of its operations, and the financial strength to support its strategy, remains well-placed to confront an unpredictable and volatile future.

Speaker #3: I would like to thank all our employees and the communities who sustain our operation for their constant commitment and engagement that have made possible our results and achievements this year.

Paolo Rocca: I would like to thank all our employees and the communities who sustain our operation for their constant commitment and engagement that have made possible our results and achievement this year. I would also like to thank our customer and our supplier for their ongoing trust and support. Thank you very much, and we are open to any questions you may have.

Speaker #3: I would also like to thank our customer and our supplier for their ongoing trust and support. Thank you very much, and we are open to any questions you may have.

Giovanni Sardagna: As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Mark Bianchi from TD Cowen.

Operator: As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Mark Bianchi from TD Cowen.

Speaker #2: As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again.

Speaker #2: Please stand by while we compile the Q&A roster. Our first question comes from the line of Mark Bianchi from TD Cowen.

[Analyst] (TD Cowen): Hi, thank you. I wanted to start by asking about the outlook here in Q1, and maybe you could talk about, to the extent you're comfortable, how things progress beyond Q1. When you talked about being close to current levels in Q4, is that... Should we interpret that as meaning flat? And are there any nuances with volume and price that we should be thinking about as we build that out? And then any comments sort of beyond Q1 would be great.

Marc Bianchi: Hi, thank you. I wanted to start by asking about the outlook here in Q1, and maybe you could talk about, to the extent you're comfortable, how things progress beyond Q1. When you talked about being close to current levels in Q4, is that... Should we interpret that as meaning flat? And are there any nuances with volume and price that we should be thinking about as we build that out? And then any comments sort of beyond Q1 would be great.

Speaker #3: Hi, thank you. I wanted to start by asking about the outlook here in the first quarter, and maybe you could talk about, to the extent you're comfortable, how things progress beyond the first quarter. When you talked about being close to current levels in the fourth quarter.

Speaker #3: Should we interpret that as meaning flat? And are there any nuances with volume and price that we should be thinking about as we build that out? And then any comments sort of beyond first quarter would be great.

Paolo Rocca: Well, thank you, Mark. Well, within our visibility today and considering many parts moving in the energy market, and also in general, geopolitical environment, I think it is not easy to have a medium-term forecast. Now, what we see is a relative stability of our performance and our position in the market during the first quarter. And it is not so easy. We do not see today point that should disrupt our operation, even in the second quarter. But for the time being, as we say, we feel comfortable in forecasting a first quarter in which the level of margin and, in general, the results we can get are more or less in line with the forecast.

Speaker #4: Well, thank you, Mark. Well, within our visibility today, and considering many parts moving in the energy market and also in the environment in general, the geopolitical environment, I think it is not easy to have a medium-term forecast now.

Speaker #4: What we see is a relative stability of our performance and our position in the market during the first quarter. And it is not so easy—we do not see today a point that should disrupt our operation, even in the second quarter.

Speaker #4: But for the time being, as we say, we feel comfortable in forecasting first quarter, in which the level of margin and, in general, the results we can get are more or less in line with the forecast.

Speaker #4: But it's difficult to have a more long-term forecast, considering the volatility of the environment in which we are moving.

Paolo Rocca: It's difficult to have a more long-term forecast, considering the volatility of the environment in which we are moving.

Speaker #3: Yeah, makes sense. Thank you for that. And then the other one, maybe somewhat related—the margin resilience in the fourth quarter was quite good.

[Analyst] (TD Cowen): Yep. Makes sense. Thank you for that. Then the other one, maybe somewhat related, the margin resilience in the fourth quarter was quite good. And I'm curious how much of that benefited from some of the actions that you're taking. I think you mentioned couple in the press release to try to offset some of the tariff headwind that you've experienced. I think previously we talked about that being something like $140 million, a quarter of tariff costs that you're having to deal with. So I'm curious, how much progress did you make on that in Q4, and what is the opportunity going forward?

Marc Bianchi: Yep. Makes sense. Thank you for that. Then the other one, maybe somewhat related, the margin resilience in the fourth quarter was quite good. And I'm curious how much of that benefited from some of the actions that you're taking. I think you mentioned couple in the press release to try to offset some of the tariff headwind that you've experienced. I think previously we talked about that being something like $140 million, a quarter of tariff costs that you're having to deal with. So I'm curious, how much progress did you make on that in Q4, and what is the opportunity going forward?

Speaker #3: And I'm curious, how much of that benefited from some of the actions that you're taking? I think you mentioned COPPL in the press release, to try to offset some of the tariff headwind that you've experienced.

Speaker #3: I think previously we talked about that being something like $140 million a quarter of tariff cost that you're having to deal with. So I'm curious, how much progress did you make on that in Q4, and what is the opportunity going forward?

Speaker #4: Well, we are, let's say, continuously operating in the efficiency of our operation, including our capacity to produce most steel in the US, so we expect for the first quarter of next year that a lower level of tariff will get into our EFRS.

Paolo Rocca: Well, we are, let's say, continuously operating in the efficiency of our operation, including our capacity to produce more steel in the US. So we expect for Q1 of next year, that a lower level of tariff will get into our EFRs. Because in the end, we are operating on this, even in the past few months, and we think that what is getting into our results in Q1 will be relatively slightly lower of what we have in Q4.

Speaker #4: Because in the end, we are operating on this even in the past few months. And we think that what is getting into our results in the first few will be relatively slightly lower than what we have in the fourth Q.

Speaker #4: But on the other side, the indicator of prices in North America, I mean, in spite of the impact on the hot roll coils and other products of the steel industry, are moving relatively slow in the pipe business.

Paolo Rocca: But on the other side, the indicator of prices in North America, I mean, are not in spite of the impact on the hot-rolled coils and other products of the steel industry, are moving relatively slow in the pipe business, and especially in welded pipe. So considering the impact of slightly lower tariff and where we are in terms of Pipe Logix, and so, I think in all what is moving around in the world, I think this is the component that justify our vision of a relatively stable top line and margin data for Q1.

Speaker #4: And especially in welded pipe. So, considering the impact of slightly lower tariff, and where we are in terms of pipelogic and so on, I think what is moving around in the world—I think this is the component that justifies our vision of a relatively stable top line and margin data for the first quarter.

Speaker #3: Great. Thank you very much. I'll turn it back.

[Analyst] (TD Cowen): Great. Thank you very much. I'll turn it back.

Marc Bianchi: Great. Thank you very much. I'll turn it back.

Speaker #2: Thank you. One moment for our next question. Our next question comes from the line of Matt Smith from Bank of America.

Giovanni Sardagna: Thank you. One moment for our next question. Our next question comes from the line of Matt Smith from Bank of America.

Speaker #5: Hi there. Good morning. Good afternoon. My first question is around the international business and pricing. Have you seen any signs at all of pricing pressure, given how some of the international benchmarks have traded down?

[Analyst] (Bank of America): Hi there. Good morning. Good afternoon. My first question was around the international business, and on pricing. Just whether you have seen any signs at all of pricing pressure, given how some of the international benchmarks have traded down, I guess, since summer 2025. Any color you could give on different regions could be useful. Thank you.

Matt Smith: Hi there. Good morning. Good afternoon. My first question was around the international business, and on pricing. Just whether you have seen any signs at all of pricing pressure, given how some of the international benchmarks have traded down, I guess, since summer 2025. Any color you could give on different regions could be useful. Thank you.

Speaker #5: I guess, since summer 2025, any color you could give on different regions could be useful. Thank you.

Paolo Rocca: ... Thank you, Matt. I would say that, as you know, our business, globally is, composed of many different niche, high demanding product, different region, different level of service. So, I would say to some extent that the price impact is more easy to understand and project in North America than internationally. But by the way, I will ask Gabriel to give you a vision of what we see in front of us on the ground.

Speaker #4: Thank you, Matt. I would say that, as you know, our business globally is composed of many different niches: high-demanding products, different regions, different levels of service.

Speaker #4: So I would say, to some extent, that the price impact is more easy to understand and project in North America than internationally. But, by the way, I will ask Gabriel to give you a vision of what we see in front of us on the ground.

Speaker #5: Yeah. Thank you, Paolo. Good morning, Matt. On the pricing on the international markets, we see, in general, some stability—a balanced demand and supply—especially on the premium products, where we are mainly focused.

Gabriel Podskubka: Yeah. Thank you, Paolo. Good morning, Matt. On the pricing on international markets, we see in general some stability, a balanced demand and supply, especially on the premium products where we are mainly focused. So, premium, sour service, high technical, qualified pipelines. This demand is quite strong, driven by offshore, by Middle East, in south gas and sour service development. So we see the demand on these segments, quite stable. We have, in many cases, long-term agreements. They have some formulas related to raw materials. So I would say that the majority of our backlog and our business in international market are driven by stability in the pricing.

Speaker #5: So, premium sour service, high technical qualified pipelines—this demand is quite strong, driven by offshore, by the Middle East, in gas and sour service developments.

Speaker #5: So, we see the demand in these segments as quite stable. We have, in many cases, long-term agreements that have some formulas related to raw materials.

Speaker #5: So, I would say that the majority of our backlog and our business in the international market are driven by stability in the pricing. It is true that there are some spot tendering where we're seeing a slight deterioration in the environment, especially when we are talking about lower-end applications.

Gabriel Podskubka: It is true that there are some spot tendering, where we're seeing a slight deterioration in environment, especially when we are talking about of lower end applications, but this is not the most important part of our business, and this is something that we monitor. So I would say, given all the moving pieces and the increasing component of our offshore during 2026, in our international mix, I would say that pricing in the international market are quite stable for Tenaris.

Speaker #5: But this is not the most important part of our business, and this is something that we monitor. So I would say, given all the moving pieces and the increasing component of our offshore during 2026 in our international mix, I would say that pricing in the international market is quite stable for Tenaris.

Speaker #3: Thank you, Gabriel. Let me just add one point, on which maybe there is the European—in Europe, maybe it's early to perceive the impact.

Paolo Rocca: Thank you, Gabriel. Let me just add one point on which maybe that is the European. In Europe, maybe it's early to perceive the impact, but the CBAM and the safeguard that is supposed to raise the quota, to raise the tariff to 50% and reduce the quota by almost 50%, may have a favorable impact on a relatively important segment of our international business that is all supported by the industrial power gen activity into Europe. To some extent, I think in the view of the overall, say, future of our operation, maybe not immediately, but we should be able to maybe improve our situation and pricing in Europe.

Speaker #3: But the CBAM and the safeguard that is supposed to raise the quota, to raise the tariff to 50%, and reduce the quota by almost 50%, may have a favorable impact on a relatively important segment of our international business.

Speaker #3: There is also support from industrial power gen activity in Europe. To some extent, I think, in view of the overall future of our operation—maybe not immediately—but we should be able to maybe improve our situation in pricing in Europe.

Speaker #3: And also, this reflects—with the present exchange rate—gets into our top line relatively well.

Paolo Rocca: Also, this reflects with the present exchange rate, getting to our top line relatively well.

Speaker #5: Perfect. Well, thank you for all that color. I wanted to ask the second question around the buyback, if I could. So, I appreciate the current tranche of $600 million.

[Analyst] (Bank of America): Perfect. Well, thank you for all that color. I wanted to ask a second question around the buyback, if I could. So I appreciate the current tranche of $600 million is still ongoing. We'll have to sort of await the next announcement later in the year. So just wanted to ask, you know, check whether your philosophy around the buyback has changed at all since last year, or should we very much expect this to continue to be a material component of shareholder returns in the near future? Thank you.

Matt Smith: Perfect. Well, thank you for all that color. I wanted to ask a second question around the buyback, if I could. So I appreciate the current tranche of $600 million is still ongoing. We'll have to sort of await the next announcement later in the year. So just wanted to ask, you know, check whether your philosophy around the buyback has changed at all since last year, or should we very much expect this to continue to be a material component of shareholder returns in the near future? Thank you.

Speaker #5: It's still ongoing, and we'll have to sort of await the next announcement later in the year. So I just wanted to ask and check whether your philosophy around the buyback has changed at all since last year, or should we very much expect this to continue to be a material component of shareholder returns in the near future?

Speaker #5: Thank you.

Speaker #4: Yes, thank you, Matt. As you were saying, the General Assembly and the Board decided on a program of share buyback of $1.2 billion from May 2025 until May 2026.

Paolo Rocca: Yes, thank you, Matt. As you were saying, you know, with the general assembly and the board decided for a program of share buyback of $1.2 billion from May 2025 until May 2026, divided in two tranche. The second tranche has been approved again in October. Now, the decision obviously is to the assembly and the board for the decision on this ground. But the, let's say the factor that were relevant for the decision on the shareholder didn't change so much.

Speaker #4: Divided into two tranches, the second tranche has been approved again in October. Now, the decision, obviously, is to the assembly and the board for the decision on this ground.

Speaker #4: But the, let's say, de facto what was relevant for the decision on the shareholder didn't change so much. So we will see if, in the assembly in May, and the board after this, they should decide on this—when the second tranche of $600 million should be closed.

Paolo Rocca: We will see if, in the assembly in May and the board, the success after this should decide on this, when the second tranche of $600 million will be, should be closed. They will consider the different factors, the level of cash availability in the company, the perspective of this, and on this basis, they will consider a possibility to continue the program of share buyback.

Speaker #4: They will consider the different factors, the level of cash availability in the company, and the perspective of this. And on this basis, they will consider a possibility to continue the program of share buyback.

[Analyst] (Bank of America): Perfect. Well, thank you very much for all that color. Happy to pass it on.

Matt Smith: Perfect. Well, thank you very much for all that color. Happy to pass it on.

Speaker #5: Perfect. Well, thank you very much for all that color. Happy to pass it on.

Speaker #2: Thank you. One moment for our next question. Our next question comes from the line of Arun Jayaraman from JPMorgan.

Giovanni Sardagna: Thank you. One moment for our next question. Our next question comes from the line of Arun Jayaram from JP Morgan.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Arun Jayaram from JP Morgan.

Speaker #6: Good morning, Paolo and team. I was wondering if we could talk about your expectations around potentially getting to an inflection point in the pipe logics pricing indices, just given your thoughts on import trends, and when and where do you expect us to see that pricing inflection point?

Arun Jayaram: Good morning, Paolo and team. I was wondering if we could talk about your expectations around potentially getting to an inflection point in the Pipe Logix pricing indices, just given your thoughts on, you know, import trends and where, when and where could you expect us to see that pricing inflection point? Because it continues to trend down, call it, in low, you know, percentage points at this point, looking at the most recent pricing data.

Speaker #6: Because it continues to trend down—call it in low percentage points at this point—looking at the most recent pricing data.

Paolo Rocca: ... Yes, thank you, Arun. Well, you know, the factors that are, let's say, having an impact on the Pipe Logix are different. But you should also consider that there is a Pipe Logix for seamless and a Pipe Logix for welded. What we see is that, to some extent, the Pipe Logix for welded is having a drag down on the overall impact, something that maybe we, we're not estimating, fully estimating before. Why? When we saw the hot-rolled coil index going up as it is going up today, we were considering that this should have driven an increase in the, in the welded pipe.

Speaker #4: Yes, thank you, Arun. Well, de facto, there is, let's say, happening an impact on the pipe logic—are different. But you should also consider that there is a pipe logic for seamless and a pipe logic for welded.

Speaker #4: What we see is that, to some extent, the pipe logic for welded is having a drag down on the overall impact—something that maybe we were not fully estimating before.

Speaker #4: Why? When we saw the hot rolled coil index going up as it is going up today, we were considering that this should have driven an increase in the welded pipe.

Paolo Rocca: But the import of welded pipe coming in based on the Chinese or Southeast Asia or other sources, flat product, is, let's say, containing movement in the Pipe Logix for welded. And this is, to some extent, having also an impact on the Pipe Logix for seamless product. Now, the hot-rolled coil went up so much that is clearing the way for some import in the welded product, and putting under stress the producer of welded product based on hot-rolled coils coming from the US. In my view, this is kind of temporary because anti-dumping action against import, importation, or import of welded will contribute to the gradual alignment of the Pipe Logix to the higher level of the hot roll.

Speaker #4: But the import of welded pipe coming in based on the Chinese or Southeast Asia or other sources’ flat product is, let's say, containing movement in the pipe logic for welded.

Speaker #4: And this is, to some extent, also having an impact on the pipe logic for seamless product. Now, the hot roll coil went up so much, there is clear, in the way, for some import in the welded product and putting under stress the producer of welded product based on hot roll coils coming from the US.

Speaker #4: In my view, this is kind of temporary because anti-dumping action against importation or import of welded will contribute to a gradual alignment of the pipe logic to the higher level of the hot roll.

Paolo Rocca: But this is not something that we can anticipate immediately for Q1, but over time, should be acting, should be a factor.

Speaker #4: But this is not something that we can anticipate immediately for the first quarter. But over time, it should be acting, should be a factor.

Speaker #5: Great. And my follow-up, Paolo, I was wondering if you could just provide us your thoughts on how Argentina could play out in 2026 versus 2025.

Arun Jayaram: Great. And my follow-up, Paolo, I was wondering if you could just provide us your thoughts on how Argentina could play out in 2026 versus 2025. I know that you're adding a third frack fleet in Argentina, but give us a sense of how you see things progressing in the ground, because we have seen some IOCs adding rigs in that market.

Speaker #5: I know that you're adding a third frac fleet in Argentina, but give us a sense of how you see things progressing on the ground, because we have seen some IOCs adding rigs in that market.

Paolo Rocca: Well, let me tell you that, as I was saying in the previous conference, or after the election in Argentina, November, the confidence on the investment community is increasing in Argentina, and even the oil and gas companies have been able to finance more than $4 billion, collect financing from different tools that will be used to, let's say, promote and carry on investment planned during 2026. This process has been relatively gradual, but I think that over the second part of 2026, and also following the biggest investment in the infrastructure, we will see this collection of financial capability will transform into a higher level of drilling in the country.

Speaker #4: Well, let me tell you that, as I was saying in the previous conference tour, after the election in Argentina in November, the confidence in the Western community is increasing in Argentina.

Speaker #4: And even the oil and gas companies have been able to finance more than $4 billion, collect financing from different tools that will be used to, let's say, promote and carry on investment plans during 2026.

Speaker #4: This process has been relatively gradual, but I think that over the second part of '26, and also following the biggest investment in the infrastructure, we will see this collection of financial capability will transform into a higher level of drilling in the country.

Speaker #4: This has been slower than probably we were expecting one year ago. Because opportunity is there, but also the level of country risk stayed a little higher after the election than we maybe were estimating.

Paolo Rocca: This has been slower than probably we were expecting one year ago, because opportunity are there, but also the level of country risk stayed a little higher after the election than we maybe we're estimating. And this is maybe slowing down, or at least is making more gradual, the pickup or increase. Also, you know, some of these resources have been used for consolidation in the industry, especially by local player. And after this consolidation, investment will go in operation, in the development. Because first, some of the acquisition has been completed, and gradually, in this field, drilling will increase. I would expect in the second half of 2026, we will see something moving in this sense.

Speaker #4: And this is maybe slowing down, or at least making more gradual, the pickup of the increase. Also, some of these resources have been used for consolidation.

Speaker #4: In the industry, especially by local players. And after this consolidation, the investment will go into operations, into development. First, some of the acquisitions have been completed.

Speaker #4: And gradually, in this field, drilling will increase. I would expect in the second half of 2026, we will see something moving in this sense.

Arun Jayaram: Great. Thank you.

Speaker #4: I remember part of the drilling containment has been coming by the reduction of the operation in the south part of the country. This is obvious.

Paolo Rocca: Part of the drilling containment has been coming by the reduction of the operation in the south part of the country. Now, this is obvious. There has been a closure of operation in the south, so, the key and the core of it, of everything, will be Vaca Muerta.

Speaker #4: There has been a closure of operation in the south. So the key and the core of it, of everything, will be Vaca Muerta.

Speaker #5: Thanks, Paolo.

Arun Jayaram: Thanks, Paolo.

Speaker #1: Thank you. One moment for our next question. Our next question comes from the line of Sebastian Ersken from Rothschild & Company Redburn.

Giovanni Sardagna: Thank you. One moment for our next question. Our next question comes to the line of Sebastian Sherwin from Rothschild and Company, Redburn.

Sebastian Sherwin: Yeah, hi, good morning, and thanks for taking my questions. I'd like to just start on the margin trajectory for Tenaris in 2026. I think, Paolo, you mentioned earlier about the impact of kind of hot-rolled coil on the ERW margins. I mean, looking at that, I think in the US, those have compressed about sort of $350 a ton since August. So I guess that would equate to something like a sort of $35 to 40 million quarterly cost headwind, but that will take a while to show up. So when does that flow through into COGS, or is it something we shouldn't really be thinking about as a meaningful impact? Any color there would be helpful.

Sébastien Sherwin: Yeah, hi, good morning, and thanks for taking my questions. I'd like to just start on the margin trajectory for Tenaris in 2026. I think, Paolo, you mentioned earlier about the impact of kind of hot-rolled coil on the ERW margins. I mean, looking at that, I think in the US, those have compressed about sort of $350 a ton since August. So I guess that would equate to something like a sort of $35 to 40 million quarterly cost headwind, but that will take a while to show up. So when does that flow through into COGS, or is it something we shouldn't really be thinking about as a meaningful impact? Any color there would be helpful.

Speaker #5: Yeah, hi. Good morning, and thanks for taking my questions. I'd like to just start on the margin trajectory for Tenaris in 2026. And I think, Paolo, you mentioned earlier about the impact of hot roll coil on ERW margins.

Speaker #5: I mean, looking at that, I think in the US, those have compressed about sort of 350 dollars a ton since August. So I guess that would equate as something like a sort of 35, 40 million dollar quarterly cost headwind.

Speaker #5: But that will take a while to show up. So, when does that flow through into COGS? Or is it something we shouldn't really be thinking about as a meaningful impact?

Speaker #5: Any color there would be helpful. And then, I guess on top of that, and more positively, when we look into the second half of the year, you've obviously got a lot of offshore work to materialize.

Sebastian Sherwin: And then I guess on top of that, and more positively, when we look into the second half of the year, you've obviously got a lot of offshore work to materialize. So you mentioned Sakarya, you know, Suriname, and presumably, obviously, that's high margin. So can we expect you to operate at the top end of your kind of 20 to 25% EBITDA margin guidance? Is that realistic, going forward through the rest of the year and a kind of second half waiting?

Sébastien Sherwin: And then I guess on top of that, and more positively, when we look into the second half of the year, you've obviously got a lot of offshore work to materialize. So you mentioned Sakarya, you know, Suriname, and presumably, obviously, that's high margin. So can we expect you to operate at the top end of your kind of 20 to 25% EBITDA margin guidance? Is that realistic, going forward through the rest of the year and a kind of second half waiting?

Speaker #5: So you mentioned Zacharia, Suriname, and presumably, obviously, that's high margin. So, can we expect you to operate at the top end of your kind of 20% to 25% EBITDA margin going?

Speaker #5: Is that realistic going forward through the rest of the year, and a kind of second-half waiting?

Speaker #4: Maybe, Gabriel, you can give an overview or part of the question.

Paolo Rocca: Maybe, well, maybe, Gabriel, you can give an overview of part of the question.

Speaker #5: Sure.

Gabriel Podskubka: Sure.

Speaker #4: And then eventually, we will ask Guillermo. On the other part of it.

Paolo Rocca: Then eventually we will ask Guillermo.

Gabriel Podskubka: Yeah.

Paolo Rocca: On the other part with.

Gabriel Podskubka: Sure, Paolo. Good morning, Sebastian. Going to you, the part of your question related to offshore and how they will play out during 2026. I would say that the market in the offshore is quite operating at high levels. We have a strong backlog that we need to execute. As Paolo commented in the opening remarks, we are getting ready to deliver this impeccable execution. These are complex projects that require local deployments. You mentioned the Suriname project. We are building the new service base in Suriname. The first shipments will arrive in June, so we are ready to deploy the OCTG and the Rig Direct services there into the second half of the year. We are also, for example, producing today thermal insulation coating in Nigeria to support the Shell Bonga North deepwater development.

Speaker #5: Sure. Paolo, good morning. Sebastian, going to the part of your question related to offshore and how they will play out during 2026, I would say that the market in the offshore is quite operating at high levels.

Speaker #5: We have a strong backlog that we need to execute. As Paolo commented in the opening remarks, we are getting ready to deliver this impeccable execution.

Speaker #5: These are complex projects that require local deployments. You mentioned the Suriname project. We are building the new service base. In Suriname, the new the first shipments we are arriving in June.

Speaker #5: So, we are ready to deploy the OCDG and the Rig Direct® services there into the second half of the year. We are also, for example, producing today thermal insulation coating in Nigeria.

Speaker #5: To support the shell bongar north deep water development. So these are an important part of our focus and attention is on delivering this high backlog of orders.

Gabriel Podskubka: So these are an important part of our focus, and attention is on delivering these high-value backlog of orders, and we expect revenues in the offshore in the first half of 2026 to be higher than the second half of 2025. When we talk about the second half, it's true, we have an important backlog of Sakarya and other projects. Some of these awards, additional awards require FIDs. We see some of the FIDs being announced towards the end of this year or even in 2027. So this will depend. So we don't have fully confirmed the backlog of second half of 2026, but we are confident that it would be at least as positive as the first half of 2026. So overall, I would say the offshore contribution will be important for Tenaris.

Speaker #5: And we expect revenues in offshore in the first half of 2026 to be higher than the second half of 2025. We will talk about the second half; this is true.

Speaker #5: We have an important backlog of Zacharia and other projects. Some of these awards—additional awards—require FIDs. We see some of the FIDs being announced towards the end of this year.

Speaker #5: Or even in 2027. So this will depend. So we don't have fully confirmed the backlog of second half of 2026. But we are confident that it will be at least as positive as the first half of 2026.

Speaker #5: So, overall, I would say the offshore contribution will be important for Tenaris. And if you look at the industry projections, the level of FIDs in deepwater that we are seeing for 2027 are pretty strong.

Gabriel Podskubka: If you look at the industry projections, the available level of FIDs of deepwater that we are seeing for 2027 are pretty strong, higher than the average of 25 and 26, and we are engaging with our customers early on in those projects, much earlier than the FID. So we believe that we're in an offshore cycle that is gonna be sustained for multiple years.

Speaker #5: Higher than the average of 25 and 26. And we are engaging with our customers early on in those projects much earlier than the FID.

Speaker #5: So, we believe that we are in an offshore cycle that is going to be sustained for a one-year period.

Speaker #4: Yes. This is very important. When we look at the estimate of the investment in deep offshore for 2027 and 2028, the number apparently estimation are showing level of investment in the range of 120 billion in 2028.

Paolo Rocca: Yes. You know, this is very important. When we look at the estimate of the investment in deep offshore for 2027 and 2028, the number, apparently estimation, are showing level of investment in the range of $120 billion in 2028. There are almost 3 times some of the low-end years in the past 2, 3 years. So long term look promising for this. Now, Guillermo, maybe you can add on the US operation, US region.

Speaker #4: There are almost three times some of the low-end years in the past two, three years. So long term, look promising for this. Now, Guillermo, maybe you can add on the US operation.

Speaker #4: US vision.

Gabriel Podskubka: Yeah. Thank you, Paolo, and good morning, Sebastian. Well, regarding your question about the trajectory of margins in the US and particularly for our ERW pipes, clearly the recent increase of prices of the Hot-Rolled Coil and still the reduction of prices for the same products is putting a lot of pressure on our margins. And that are going to be reflected mainly in Q2.

Guillermo Moreno: Yeah. Thank you, Paolo, and good morning, Sebastian. Well, regarding your question about the trajectory of margins in the US and particularly for our ERW pipes, clearly the recent increase of prices of the Hot-Rolled Coil and still the reduction of prices for the same products is putting a lot of pressure on our margins. And that are going to be reflected mainly in Q2.For the following quarters, with all the volatility that we are seeing, it's more difficult to forecast, as Paolo explained before, and will depend mainly on the ability of the Pipe Logix to recover, that we think that eventually will, based on the push of the cost, hot-rolled coil and the scrap, and also because of the expectation that the import will continue to go down in the future.

Speaker #5: Yeah. Thank you, Paolo. And good morning, Sebastian. Well, regarding your question about the trajectory of margins in the US and particularly for our ERW pipes, clearly, the recent increase of prices of the hot roll coil and still the reduction of prices for the same products is putting a lot of pressure on our margins.

Speaker #5: And that is going to that are going to be reflected mainly in the second quarter. For the following quarters, with all the volatility that we are seeing, it's more difficult to forecast, as Paolo explained before.

Gabriel Podskubka: For the following quarters, with all the volatility that we are seeing, it's more difficult to forecast, as Paolo explained before, and will depend mainly on the ability of the Pipe Logix to recover, that we think that eventually will, based on the push of the cost, hot-rolled coil and the scrap, and also because of the expectation that the import will continue to go down in the future.

Speaker #5: But and will depend mainly on the ability of the pipe logics to recover. That we think that eventually will, based on the push of the cost, hot roll coil, and the scrap, and also because of the expectation that the imports will continue to go down in the future.

Speaker #1: Thank you very much. I really appreciate the color. I'll hand that back now. Thank you. One moment for our next question. Our next question comes from the line of Steven Jangaro from Stifel.

Sebastian Sherwin: Thank you very much. I really appreciate the color. I'll, I'll hand it back now.

Sébastien Sherwin: Thank you very much. I really appreciate the color. I'll, I'll hand it back now.

Giovanni Sardagna: Thank you. One moment for our next question. Our next question comes from the line of Stephen Gengaro from Stifel.

Speaker #6: Thank you. Thanks for taking the question. Good morning, everybody. So two things for me, really. One is, can you talk a little bit about your expectations in 2026 for any material changes in working capital as we sort of try to think about free cash flow generation?

Stephen Gengaro: Thank you. Thanks for taking the question. Good morning, everybody. So two things for me, really. One is, can you talk a little bit about your expectations in 2026 for any, any material changes in working capital as we sort of try to think about free cash flow generation? And then maybe aligned with that, what level of cash do you feel like you need on the balance sheet to run the business? Like, at what level's excess versus what's sort of normal, necessary operational cash?

Speaker #6: And then maybe aligned with that, what level of cash do you feel like you need on the balance sheet to run the business? What levels excess versus what's sort of normal necessary operational cash?

Speaker #4: Thank you, Steven. Well, in general, remember, it's not only a question of the capital we need to run the business, but we also need to have always in mind the capital we need to have available for any expansion or opportunity that may come in front of us.

Paolo Rocca: Thank you, Stephen. Well, in general, remember, it's not only a question of the capital we need to run the business, but we also need to have always in mind that the capital we need to have available for any expansion or opportunity that may come in front of us. This is an important consideration for the board, for everybody, when we consider financial strategy in the flows to the shareholder. But as far as the working capital is concerned, I would ask Carlos an overall view, because there are some area, like the receivable from some of the clients that is improving. And so, you can give us a view of how you see this.

Speaker #4: This is an important consideration for the Board, for everybody, when we consider financial strategy, in the flows to the shareholder. But as far as the working capital is concerned, I would ask Carlos for an overall view, because there are some areas like the receivable from some of the clients.

Speaker #4: There is improvement. And so you can give us a view of how you see this.

Carlos Gómez Álzaga: Sure. Thanks, Paolo. Okay, for the 2026, we expect to be quite neutral in working capital, but we will have some swings over the year, no? Especially in Q1, we're expecting an increase in working capital, mainly driven by our accounts receivable. As you saw during Q4, we have a big reduction in receivables, mainly driven by collections in some way, big collections from Pemex. I think with Pemex, we have arrived to a level that from now on will maintain or increase a little bit. So we won't be seeing a working capital reduction coming from there. And then we are seeing also some terms we are negotiating with customers in the US that might impact a little bit our working capital needs. And also, we are seeing some slight increase in sales for the sales quarter, Q1, that will also imply an increase in accounts receivable.

Speaker #5: Sure. Thanks, Paolo. Okay. For 2026, we expect to be quite neutral in working capital, but we will have some swings over the year, no?

Speaker #5: Especially in first quarter. We're expecting an increase in working capital, mainly driven by our accounts receivable. As you saw during the fourth quarter, we have a big reduction in receivables, mainly driven by collections in some big collections from Pemex.

Speaker #5: I think with Pemex, we have arrived to a level that from now on will maintain or increase a little bit. So we won't be seeing a working capital reduction coming from there.

Speaker #5: And then we are seeing also some terms we're negotiating sometimes with customers in the US that might impact a little bit our working capital needs.

Carlos Gómez Álzaga: And then we are seeing also some terms we are negotiating with customers in the US that might impact a little bit our working capital needs. And also, we are seeing some slight increase in sales for the sales quarter, Q1, that will also imply an increase in accounts receivable.

Speaker #5: And also, we are seeing some slight increase in sales for the sales score. So the first quarter, that will also imply an increase in accounts receivable.

Speaker #5: Okay.

Stephen Gengaro: Okay, great.

Paolo Rocca: In terms of inventory, maybe for managing our, you know, in our balance sheet, the service component of the company is very visible. We have the fixed capital that is slightly higher than our working capital, because in the end, we have a lot of inventory to support our service strategy and our Rig Direct strategy. You think, Gabriel, we can imagine some reduction of this, some streamlining inventory, or do you imagine a stable situation here?

Speaker #4: In terms of inventory, maybe for managing it in our balance sheet, the service component of the company is very visible. We have the fixed capital.

Speaker #4: There is slightly higher than the our working capital because in the end, we have a lot of inventory to support our service strategy and our rig direct strategy.

Speaker #4: Do you think, Gabriel, we can imagine some reduction of this streamlining inventory, or will we be able to easily imagine a stable situation here?

Speaker #5: In general, Paolo, we are always looking for opportunities to improve. This is the case. In all our rig direct programs, we are managing and balancing the ability to supply and have the right stock at the right moment.

Carlos Gómez Álzaga: In general, Paolo, we are always looking for opportunities to improve, and this is the case. In all our rig direct programs, we are managing and balancing the ability to supply and have the right stock at the right moment and have efficient working capital. So this is a constant work. We have done an improvement during the year that will continue this year on the working process material. So this is something on related to our industrial efficiency, where we have been improving, and we have more room to improve. And then there is a part of steel, as we have this important LSAW pipelines, that we need to buy the steel in anticipation. So typically, there is a longer lead time on these large pipelines that are also reflected throughout the year.

Gabriel Podskubka: In general, Paolo, we are always looking for opportunities to improve, and this is the case. In all our rig direct programs, we are managing and balancing the ability to supply and have the right stock at the right moment and have efficient working capital. So this is a constant work. We have done an improvement during the year that will continue this year on the working process material. So this is something on related to our industrial efficiency, where we have been improving, and we have more room to improve. And then there is a part of steel, as we have this important LSAW pipelines, that we need to buy the steel in anticipation. So typically, there is a longer lead time on these large pipelines that are also reflected throughout the year. This is an area of attention, and we always think there is room for improvement.

Speaker #5: And have efficient working capital. So this is a constant work. We have done an improvement during the year that we will continue this year.

Speaker #5: On the working process, material. So this is something related to our industrial efficiency, where we have been improving, and we have more room to improve.

Speaker #5: And then there is a part of steel, as we have this important LSAW pipelines that we need to buy the steel in anticipation. So typically, there is a longer lead time on these large pipelines that are also reflected throughout the year.

Speaker #5: But this is an area of attention, and we always think that there is room for improvement.

Carlos Gómez Álzaga: This is an area of attention, and we always think there is room for improvement.

Speaker #4: Is it important for projects like Sacagaya?

Paolo Rocca: This is important for projects like Sakarya.

Speaker #5: For example?

Carlos Gómez Álzaga: For example.

Gabriel Podskubka: For example.

Paolo Rocca: Long term, a long period of time.

Speaker #4: Long term, long period of time.

Carlos Gómez Álzaga: Yes.

Gabriel Podskubka: Yes.

Speaker #5: Yes.

Speaker #4: And also our operation may demand working capital for serving Adnoc. We have a long operation and stock demands.

Paolo Rocca: And also our operation may demand working capital for serving ADNOC. You know, with a long operation and the stock demand,

Carlos Gómez Álzaga: We are serving every month 550 rigs worldwide, so this requires to have the right material close to these rigs.

Speaker #5: We are serving 550 rigs worldwide every month, so this requires having the right material close to these rigs.

Paolo Rocca: Serving 550 rigs every day implies to keep all the inventory, even in remote region or at least like in the Gulf. But still, you know, working every day to understand how we can-

Speaker #4: Serving 550 rigs every day implies to keep all the inventory even in remote region or at least the life in the goal. But still, working every day to understand how we can optimize this.

Carlos Gómez Álzaga: Optimize

Gabriel Podskubka: Optimize

Paolo Rocca: ... optimize this, but by the way. Okay, thank you.

Speaker #4: But, by the way, okay. Thank you.

Speaker #5: Thank you. No, that's very helpful. Thank you. Thanks for all the color.

Stephen Gengaro: Thank you. No, that's very helpful. Thank you. Thanks for all the color.

Speaker #1: Thank you. One moment for our next question. Our next question comes from the line of Alessandro Pozzi from Mediobanca.

Giovanni Sardagna: Thank you. One moment for our next question. Our next question comes from the line of Alessandro Pozzi, from Mediobanca.

Operator: Hi, thank you for taking the questions. The first one is really going back to the Q2 guidance. You mentioned a bit of an impact from higher raw material costs. I was wondering if you could perhaps quantify or give a sense of what that could be in Q2. And also, as we look throughout the year, I was wondering if there is any quarter where we could see an impact from mix, for example, more line pipe versus seamless, and having an idea of the cadence of line pipe volumes, I think could be quite interesting. And also on maintenance, whether you have any big maintenance quarters. And second question on Argentina. Can you comment on the level of competition that you've seen there?

Alessandro Pozzi: Hi, thank you for taking the questions. The first one is really going back to the Q2 guidance. You mentioned a bit of an impact from higher raw material costs. I was wondering if you could perhaps quantify or give a sense of what that could be in Q2. And also, as we look throughout the year, I was wondering if there is any quarter where we could see an impact from mix, for example, more line pipe versus seamless, and having an idea of the cadence of line pipe volumes, I think could be quite interesting. And also on maintenance, whether you have any big maintenance quarters. And second question on Argentina. Can you comment on the level of competition that you've seen there? We've seen an Indian company getting a contract for a pipeline, and I was wondering your thoughts about the competition there, as volumes, as you pointed out, are going up, possibly from second half. Thank you.

Speaker #7: Hi. Thank you for taking the questions. The first one is really going back to the Q2 guidance. You mentioned a bit of an impact from higher raw material costs.

Speaker #7: I was wondering if you could perhaps quantify or give a sense of what that could be in Q2. And also, as we look throughout the year, I was wondering if there is any quarter where we could see an impact from mix, for example, more line pipe versus seamless, and having an idea of the cadence of line pipe volumes.

Speaker #7: I think it could be quite interesting. And also on maintenance, whether you have any big maintenance quarters. Second question, on Argentina, can you comment on the level of competition, the you've seen there?

Speaker #7: We've seen an Indian company getting a contract for a pipeline, and I was wondering your thoughts about the competition there, as volumes, as you pointed out, are going up—possibly from the second half.

Operator: We've seen an Indian company getting a contract for a pipeline, and I was wondering your thoughts about the competition there, as volumes, as you pointed out, are going up, possibly from second half. Thank you.

Speaker #7: Thank you.

Speaker #4: Thank you, Alexandro. Well, on the first point, there is, let's say, the impact of the raw. When we look at the medium term, in terms of this, we always keep following basically four points.

Paolo Rocca: Thank you, Alessandro. Well, on the first point, there is, let's say, the impact of the raw. You know, when we look at the medium term, in terms of this, we always follow basically four points: the Pipe Logix for seamless, the Pipe Logix for welded, the cost of hot-rolled coil, and the cost of scrap. So on these four variables that are moving, are acting on our, let's say, the indicator in the formula of our contract many times, and also the costs that are underlying. Up to now, I mean, what we see is an increase in the hot-rolled coils. That is, not followed by the Pipe Logix in welded, because there is import from companies that could stay below the line of price, even paying 50%. This is sitting in our, to some extent, in our margin, but we think that this will be the reaction by the Pipe Logix, some anti-dumping action to contain import. And I will ask Guillermo, if you see this happening in medium term, I mean, when we can recover the increased cost of the hot-rolled coils in our top line?

Speaker #4: The pipe logic for seamless, the pipe logic for welded, the cost of hot roll coil, and the cost of the scrap. So on these four variables, they are moving.

Speaker #4: We are acting on the indicator in the formula of our contract, many times, and also the costs that are underlying. Up to now, I mean, what we see is an increase in the hot rolled coils.

Speaker #4: There is not followed by the pipe logic in welded because there is import from companies that could stay below the line of price even paying 50%.

Speaker #4: This is hitting in our to some extent in our margin. But we think that this would be a reaction by the pipe logic. Some anti-dumping action to contain import.

Paolo Rocca: This is sitting in our, to some extent, in our margin, but we think that this will be the reaction by the Pipe Logix, some anti-dumping action to contain import. And I will ask Guillermo, if you see this happening in medium term, I mean, when we can recover the increased cost of the hot-rolled coils in our top line?

Speaker #4: And I will ask Guillermo if he sees this happening in the medium term. I mean, when can we recover the increased cost of hot roll coils in our top line?

Speaker #5: Yeah. I think that I'm following what I said before. I mean, remember, there is always a lag between the pipe logics and how they reflect in our prices.

Gabriel Podskubka: Yeah, I think that, following what I said before, I mean, remember, there is always a lag between the Pipe Logix and how they reflect in our prices. So normally, we have one quarter delay. And while the impact of the hot-rolled coils, it comes sooner than that. Our expectation would be that we should start to see some reaction in Q3, but particularly in Q4.

Guillermo Moreno: Yeah, I think that, following what I said before, I mean, remember, there is always a lag between the Pipe Logix and how they reflect in our prices. So normally, we have one quarter delay. And while the impact of the hot-rolled coils, it comes sooner than that. Our expectation would be that we should start to see some reaction in Q3, but particularly in Q4.

Speaker #5: So, normally, we have a one-quarter delay, and while the impact of the hot roll coils comes sooner than that, our expectation would be that we should start to see some reaction in Q3, but particularly in Q4.

Speaker #4: Yes, thank you, Guillermo. Now, on the line pipe seamless, after the acquisition of Shoko, the line pipe for us is very relevant, and I think we are very competitive.

Paolo Rocca: Yep. Thank you, Guillermo. Now, on the line pipe seamless, after the acquisition of Vallourec, the line pipe for us is very relevant, and we are, I think, very competitive. But maybe, Gabriel-

Speaker #4: But maybe, Gabriel, you see some changes in the balance between two?

Gabriel Podskubka: Yeah.

Paolo Rocca: You see, some changes in the balance between two?

Speaker #5: Yes. Paolo, Alessandro, regarding your question about the cadence of the pipeline projects, I would say that it's quite stable during the four quarters of this year.

Gabriel Podskubka: Yes, Paolo. Alessandro, regarding your question about the cadence of the pipeline projects, I would say that it's quite stable during the four quarters of this year. This is the visibility that we have today, and pretty much in line in volumes with what we had on 2025, where we had important projects like Sakarya. I mean, like, Raia in 2025 in Brazil. This year, we are concluding some pipelines in Argentina in Q1 and Q2, then we will have Sakarya in Q3 and Q4. We have, I would say, a relatively stable plan of pipelines in Saudi Arabia as well, and then the deepwater pipelines that we have in different parts of the world.

Speaker #5: This is the visibility that we have today, and pretty much in line in volumes with what we had in 2025, where we had important projects like Sacagaya.

Speaker #5: I mean, like Raya in 2025 in Brazil. This year, we are concluding some pipelines in Argentina in the first quarter and second quarter. Then we will have Sacagaya in the third and fourth quarter.

Speaker #5: We have, I would say, a relatively stable plan of pipelines in Saudi Arabia as well, and then the deepwater pipelines that we have in different parts of the world.

Speaker #5: So I would say there is not a significant imbalance in our shipments of line pipes throughout the year.

Gabriel Podskubka: So I would say there is not a significant imbalance in our shipments of line pipes at all.

Speaker #4: Thank you, Gabriel. On the last point on the tender in Argentina, well, this was a tender for a large large project for producing LNG in Argentina.

Paolo Rocca: Thank you, Gabriel. On the last point, on the tender in Argentina. Well, this was a tender for a large project for producing LNG in Argentina. The project is carried on by a private company that is, let's say, including different shareholders, but it's a private company. They made a tender, very open tender to everybody, and basically, we lose the tender because we were higher than the lowest bidder. The bidder, as you were saying, was an Indian company. Things like this happens, obviously. Now, what we are doing, we are analyzing the offer to see if this is an offer that is following the trade practice or is exposed to potentially an anti-dumping case raised by us.

Speaker #4: The project is carried on by a private company. There is, let's say, include different shareholders, but it's a private company. They made a tender very open tender to everybody.

Speaker #4: And basically, we lose the tender because we were higher than the lowest bidder. The bidder, as you were saying, was an Indian company. Things like this happens.

Speaker #4: Obviously, now what we are doing, we are analyzing the offer to see if this is an offer that is following the trade practice or is exposed to potentially an anti-dumping case raised by us for the time being.

Paolo Rocca: For the time being, we didn't take the decision here. We are just studying the condition, the condition of the local market for the Indian company, the condition of the pricing of this, because we think this is important. We also remember that, you know, Argentina had signed an agreement with the United States, in which both parties are committing themselves to address the unfair trade practices in both countries. It is logical for the US to advance or introduce clause of this in the relation with different region or different area. This is part of the agreement, the reciprocal trade and investment agreement between Argentina. So we think there should be a good environment to analyze the specific situation of this offer and this tender.

Speaker #4: We didn't take the decision here. We are just studying the condition. The condition of the local market for the Indian company. The condition of the pricing of this.

Speaker #4: Because we think this is important. We also remember that Argentina had signed an agreement with the United States in which both parties are committing themselves to address the unfair trade practices in both countries.

Speaker #4: It is logical for the US to advance or introduce closure of this in relation with different regions, different areas. And this is part of the agreement, the reciprocal trade and investment agreement between Argentina and so on.

Speaker #4: So we think there should be a good environment to analyze the specific situation of this offer and this tender.

Speaker #5: All right. Thank you. I don't know if I can squeeze in that last one on Venezuela, on your opening remarks. You mentioned that Chevron is ramping up drilling activities.

Operator: All right. Thank you. I don't know if I can squeeze in a last one on Venezuela. In your opening remarks, you mentioned that Chevron is ramping up drilling activities. Could you quantify the Venezuela opportunities short-term, longer term for Tenaris?

Alessandro Pozzi: All right. Thank you. I don't know if I can squeeze in a last one on Venezuela. In your opening remarks, you mentioned that Chevron is ramping up drilling activities. Could you quantify the Venezuela opportunities short-term, longer term for Tenaris?

Speaker #5: Could you quantify the Venezuela opportunities short term, longer term for TENARIS?

Speaker #4: Yes. On this, Gabriel, you follow closely this.

Paolo Rocca: Yes. On this, Gabriel, you follow closely this.

Gabriel Podskubka: Yes, Alessandro, Venezuela, clearly the situation is evolving. It's a dynamic environment, but clearly there are signs that things are gonna move positively with the hydrocarbons law and the recent de facto licenses. I think there are clear signs that some resumption of activity will occur. Today, Tenaris is in a unique position. We are fully serving Chevron, the only major that is operating in Venezuela. They have an acc- a plan to accelerate rigs and demand for tubulars, and we are ramping up for that. This is today something limited, but we expect to expand into 2026. So we are also following the licenses of the other majors that might be coming back to Venezuela soon.

Speaker #5: Yes. Alessandro, Venezuela—clearly, the situation is evolving. It's a dynamic environment. But clearly, there are signs that things are going to move positively. With the hydrocarbons law and the recent FAC licenses, I think they're clear signs that some presumption of activity will occur.

Speaker #5: Today, TENARIS is a unique position. We are fully serving the Chevron, the only major that is operating in Venezuela. They have a plan to accelerate REEX and demand for tubulars.

Speaker #5: And we are ramping up for that. This is today something limited, but we expect to expand into 2026. So we are also following the licenses of the other majors that might be coming back to Venezuela soon.

Gabriel Podskubka: So this is, I would say, still in the $50 million for 2026, but with a clear perspective of higher potential into 2027, and when maybe more clear plans about the other majors are materialized. But overall, a big upside potential in the midterm, depending on how things evolve.

Speaker #5: So this is, I would say, still in the $50 million for 2026, but with a clear perspective of a higher potential into 2027. And when maybe more clear plans about the other majors are materialized.

Speaker #5: But overall, a big upside potential in the midterm depending on how things evolve. Yeah. Okay. So you can say.

Operator: Okay. So you say-

Alessandro Pozzi: Okay. So you say-

Paolo Rocca: Remember, the Chevron will not be all alone. There will be other company moving, and I think our position in Venezuela is unique. Remember, we in Venezuela, we're operating the only seamless pipe plant until the plant was expropriated in 2008, by the government, by Chávez. And at that time, where the company serving the oil industry in Venezuela, so we also have human resources or people that are familiar with the operation in Venezuela, the service, the complexity of this, the product demand and so. Even if a lot of time passed, but we still, I think, we have a very competitive and differentiated position.

Speaker #4: Remember, Chevron will not be alone. There will be other companies moving. I think our position in Venezuela is unique. Remember, we in Venezuela, we're operating the only seamless pipe plant until the plant was expropriated in 2008 by the government, by Chávez.

Speaker #4: And at that time, the company serving the oil industry in Venezuela. So we also have human resources or people. There are familiar with the operation in Venezuela, the service, the complexity of this, the product demand, and so.

Speaker #4: Even if a lot of time passed, but we still, I think, we have a very competitive and differentiated position.

Speaker #5: All right. Thank you. Sorry, did you say $15 million EBITDA, one five?

Operator: All right. Thank you. Sorry, did you say $15 million EBITDA, one, five?

Alessandro Pozzi: All right. Thank you. Sorry, did you say $15 million EBITDA, one, five?

Speaker #4: $50 million of revenue, 5.0.

Gabriel Podskubka: $50 million of revenue, 50.

Operator: Revenue. All right. Yeah. Thank you very much.

Alessandro Pozzi: Revenue. All right. Yeah. Thank you very much.

Speaker #5: Revenue. All right. Yeah. Thank you very much.

Speaker #4: You're welcome.

Gabriel Podskubka: Welcome.

Speaker #6: Thank you. One moment for our next question. Our next question comes from the line of Luigi de Bellis from Equita SIM.

Giovanni Sardagna: Thank you. One moment for our next question. Our next question comes from the line of Luigi De Bellis from Equita SIM.

Luigi De Bellis: Hi, good morning. Thank you for taking my question. Just one for me. On the Middle East and Mexico, could you share your view on the evolution for the coming quarter for both Middle East and Mexico? Thank you.

Luigi de Bellis: Hi, good morning. Thank you for taking my question. Just one for me. On the Middle East and Mexico, could you share your view on the evolution for the coming quarter for both Middle East and Mexico? Thank you.

Speaker #7: Hi. Good morning. Thank you for taking my question. Just one for me on the Middle East and Mexico. Could you share your view on the evolution for the coming quarter for both Middle East and Mexico?

Speaker #7: Thank you.

Speaker #4: Thank you, Luigi. Well, starting, let's say, from Mexico. In Mexico, there have been a number of positive advances in supporting Pemex. The government capitalized Pemex with a program of $20 billion—that is important.

Paolo Rocca: Thank you, Luigi. Well, starting, let's say, from Mexico. Mexico, there has been a number of positive advances in supporting Pemex, the government capitalizing Pemex with a program of $20 billion. That is important. And now, Pemex is also issuing bonds and getting access to the market for important sums, like $1.7 billion. I mean, relevant access with a government guarantee. Now, what we do not see yet is the organization, the definition of the plans that Pemex will execute during 2026. We do not have clear indication of this, and the private companies are moving slowly, and some of the group is moving.

Speaker #4: Now Pemex is also issuing bonds and getting access into the market for important sum, like $1 billion, 0.7. I mean, relevant access with government guarantee.

Speaker #4: Now, what we do not see yet is the definition of the plans that the Pemex will execute during 2026. We do not have clear indication of this.

Speaker #4: And the private company are moving slowly. In some of the group is moving. Obviously, Woodside in the trial is moving on. But some of, let's say, the contract that may have enabled private company to come and develop the resources in my view, this is moving relatively slowly today.

Paolo Rocca: Obviously, Woodside in the Trion is moving on, but some of, let's say, the contract that may have enabled private company to come and develop the resources, in my view, this is moving relatively slowly today. Maybe by the end, the middle of 2026, we will have a better understanding of how they will organize, let's say, the development of the clearly huge resources that Mexico has. Now, the question on Middle East, medium-term vision, I think, Gabriel, you also may comment on this.

Speaker #4: Maybe by the end, the middle of 2026, we will have a better understanding of how they will organize, let's say, the development of the clearly huge resources that Mexico has.

Speaker #4: Now, the question on Middle East, medium-term vision, I think, Gabriel, you also may comment on this.

Gabriel Podskubka: Yeah, sure. Luigi, for the question on Middle East, I would say that there's not much change on what we have been reporting the last couple of quarters. Activity remains high. All the main key countries are investing. We have a strong position there with our long-term agreements in Saudi, UAE, Qatar, and part of the market in Iraq as well. So I would expect our revenues and shipment in the next quarters, Q1 and Q2 of 2026, to be pretty much in line with the last two quarters of 2025. The only noticeable news is a probable uptick of drilling activity in Saudi.This is still to be confirmed, but probably in Q2 2026, or maybe later in the year, we will see a comeback of rigs in Saudi, which reduce rigs during 2025. So we'll monitor that, and that could be a potential upside, but for the second half of this year on the GDP side.

Speaker #5: Yeah, sure. Luigi, for the question on Middle East, I would say the there is not much change on what we have been reporting the last couple of quarters.

Speaker #5: Activity remains high. All the main key countries are investing. We have a strong position there with our long-term agreements in Saudi, UAE, Qatar, and part of the market in Iraq as well.

Speaker #5: So I would expect our revenues and shipment in the next two quarters, first and second quarter of '26, to be pretty much in line with the last two quarters of 2025.

Speaker #5: The only noticeable news is a probable uptick of drilling activity in Saudi. This is still to be confirmed. But probably during the second quarter of '26, maybe later in the year, we will see a comeback of REEX in Saudi, which reduce REEX during 2025.

Gabriel Podskubka: This is still to be confirmed, but probably in Q2 2026, or maybe later in the year, we will see a comeback of rigs in Saudi, which reduce rigs during 2025. So we'll monitor that, and that could be a potential upside, but for the second half of this year on the GDP side.

Speaker #5: So we'll monitor that. And that could be a potential upside. But for the second half of this year on 2025.

Speaker #4: Thank you.

Paolo Rocca: Thank you, Luigi.

Speaker #7: Thank you.

Luigi De Bellis: Thank you.

Luigi de Bellis: Thank you.

Speaker #6: Thank you. One moment for our next question. Our next question comes from the line of Marco Cristofori from Intensa.

Giovanni Sardagna: Thank you. One moment for our next question. Our next question comes from the line of Marco Cristofori from Intesa.

Speaker #8: Good morning, everyone. Thank you for taking my question. Which relate on shale oil, shale industry in the US. Let's say that since the end of 2023, we've seen declining recounts.

Marco Cristofori: Good morning, everyone. Thank you for taking my question, which relate on shale oil, shale industry in the US. Let's say that since the end of 2023, we've have seen declining rig counts, but a growing crude output. So, and also breakeven are going strongly, strongly down, according to oil measure. So do you think that this trend could allow a further increase of your volumes in the US? And secondly, there are several insights that the shale in the US could reach a plateau in the second half of 2027. How do you see the evolution of the shale industry in the US? Thank you.

Speaker #8: But a growing crude output. So and also Berequiven are going strongly down according to oil measure. So do you think that this trend could allow a further increase of your volumes in the US?

Speaker #8: And secondly, there are several insights that the shale in the US could reach a plateau in the second half of 2027. So how do you see the evolution of the shale industry in the US?

Speaker #8: Thank you.

Speaker #4: Yeah. Thank you, Marco. I would ask to Guillermo to give his view on the evolution of this. In the question of plateau, frankly, I wouldn't I don't think we are able to predict the plateau.

Paolo Rocca: Yeah. Thank you, Marco. I would ask to Guillermo to give his view on the evolution of this. In the question of plateau, frankly, I wouldn't... I don't think we are able to predict the plateau. It will depend on the overall price of oil around and the... There are many issues that are unpredictable concerning the major production region, region, and so on and so forth. So US, the plateau was, has been forecasted in the past at a lower level, and it's continuously surprising us with higher. And so I wouldn't bet on where this number would be in 2027. Guillermo, on the question of the productivity.

Speaker #4: It will depend on the overall price of oil around. And the there are many issues that are unpredictable here, concerning the major production region and so on and so forth.

Speaker #4: So, in the US, the plateau has been forecasted in the past at a lower level. It is continuously surprising us with higher numbers. And so, I wouldn't bet on where this number will be in '27.

Speaker #4: Guillermo, on the question of the productivities.

Speaker #5: Yes. I mean, as you said, I mean, the operators in the US have been increasing their efficiency and productivity big time in the last two years.

Guillermo Moreno: Yes. I mean, as you said, I mean, the operators in the US have been increasing their efficiency and productivity big time in the last two years. So with a much less number of rigs, they are not only producing more, but they are drilling almost the same amount of wells, and they are even going longer. So we are seeing much less risks, but more production and slight reduction in the consumption of OCTG compared to what we used... I mean, so there is no such correlation that we used to have with the rig count. Now, looking forward, we still see kind of a stable market for 2026 compared to 2025. We may see some reduction of activity, slight reduction in oil, offset by an increase of activity in gas.

Speaker #5: So, with a much lower number of REEX, they are not only producing more, but they are drilling almost the same number of wells, and they are even going longer.

Speaker #5: So we are seeing much less REEX, but more production, and slightly reduction in the consumption of OCDG compared to what we used I mean, so there is no such correlation that we used to have with the REEX counts.

Speaker #5: Now, looking forward, we still see kind of a stable market for 2026 compared to 2025. We may see some reduction of activities, slight reduction in oil.

Speaker #5: Offset by an increase of activity in gas. And as Paolo said, it's difficult to predict about production. Everybody's talking about plateauing, but at the same time, we see them becoming more creative and producing more oil from each well with the new technologies, in terms of fracking but also in terms of the level of chemicals they use.

Guillermo Moreno: As Paolo said, difficult to predict about production. Everybody's talking about plateauing, but at the same time, we see them becoming more creative and producing more oil from each well, with the new technologies in terms of fracking, but also in terms of the level of chemicals they use. So we need to see up to where the innovation of the industry can go. But clearly, if we are not at the peak, we are not far from it, with this level of activity and rig count. The other variable that we need to take into account is that during the last two years, there has been a reduction of drilled but uncompleted wells. So some of the increase of the activity was also coming from wells that were previously drilled, but not completed.

Speaker #5: So we need to see up to where the innovation of the industry can go. But clearly, if we are not at the peak, we are not far from it.

Speaker #5: With this level of activity and REEX counts. The other variable that we need to take into account is that during the last two years, there has been a reduction of drill by uncomplete wells.

Speaker #5: So some of the increase of the activity was also coming from wells that were previously drilled, but not completed. The level of inventories of those wells has gone has come to a kind of a bottom.

Guillermo Moreno: The level of inventories of those wells has come to kind of a bottom, so we don't expect much more of this in the coming quarters.

Speaker #5: So we don't expect much more of this in the coming quarters.

Speaker #7: Okay. Thank you.

Paolo Rocca: Okay. Thank you.

Marco Cristofori: Okay. Thank you.

Guillermo Moreno: Thanks.

Speaker #6: Thank you. One moment for our next question. Our next question comes from the line of Kevin Roger from Kepler Shoevra.

Giovanni Sardagna: Thank you. One moment for our next question. Our next question comes from the line of Kevin Roger from Kepler Cheuvreux.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Kevin Roger from Kepler Cheuvreux.

Speaker #7: Yes. Good evening. Thanks for taking the time. I just have one question to follow on the US and all those stories on the tariff implemented by the Trump administration.

Kévin Roger: Yes, good evening. Thanks for taking the time. I just have one question to follow on the US and all those stories on the tariff implemented by the Trump administration, and notably on the recent news flow that the Trump administration could reduce the tariff on steel and aluminum. I was wondering if you comment a bit more on what should be the implication on your side from a potential reduction on the tariff, if, for example, we come back to a 50% steel tariff to a 25 or something like that, just to understand the potential impact on the US OCTG market, if we move in that direction, please.

Speaker #7: And notably on the recent news flow that the Trump administration could reduce the tariff on steel and aluminum. I was wondering if you comment a bit more on what should be the implication on your side from a potential reduction on the tariff if, for example, we come back to a 50% steel tariff to a 25% or something like that, just to understand the potential impact on the US OCDG market if we move in that direction, please.

Speaker #7: Thank you, Kevin. Well, we don't know which is the I mean, we only have article on the newspaper. We do not have a written definition.

Paolo Rocca: Thank you, Kevin. Well, we don't know about which is, I mean, we only have article on the newspaper. We do not have a written definition. If I should say, the issue may come from the impact of the US economy, of the extension of the 232 to the derivative of steel. There are many product derivative of steel, which means that they contain steel. There are basically affect price level in the States, but are not having a beneficial impact of industry in the States that is not producing this. Now, this universe of derivative increase so much that I think the comment of Trump may be just indicating a willingness to reshape the, what is considered derivative and what is not.

Speaker #7: If I should say, the issue may come from the impact of the US economy of the extension of the 232 to the derivative of steel.

Speaker #7: There are many products—derivatives of steel—which means that they contain steel. They are basically affecting price levels in the States, but are not having a beneficial impact on the industry in the States.

Speaker #7: That is not producing this. Now, this universe of derivatives has increased so much that I think the comment from Trump may be just indicating a willingness to reshape what is considered a derivative and what is not.

Speaker #7: Remember, there have been stages of expansion of the definition of derivative. One, two, and before going to the third, he is considering what it would be—let's say, not creating undue distress in the pricing system or so.

Paolo Rocca: Remember, there has been stages of expansion of the definition of derivative 1, 2, and before going to the third, he is considering what it would be, let's say, not creating undue distress in the pricing system. So, this is what I understood. He will reconsider the derivative more than reconsidering the level of 52 for 25, because this is a key component of the 232. I don't see this to change.

Speaker #7: This is what I understood. He will reconsider the derivative more than reconsidering the level of 50% to 25% because this is a key component of the 232.

Speaker #7: I don't see this to change. Okay. Perfect. Understood. Thanks.

Kévin Roger: Okay, perfect. Understood. Thanks.

Speaker #6: Thank you. One moment for our next question. Our next question comes from the line of Jamie Franklin from Jefferies.

Giovanni Sardagna: Thank you. One moment for our next question. Our next question comes from the line of Jamie Franklin from Jefferies.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Jamie Franklin from Jefferies.

Jamie Franklin: Hi there, and thank you for taking my questions. So firstly, and apologies if I missed the answer to this one, but I just wanted to focus on your other business segments. Obviously, a big revenue and margin recovery in Q1, driven by your fracking and coil tubing services in Argentina. Can you just talk about how you expect that to trend through 2026, and whether we can expect a similar contribution in the first and second quarter, and beyond that? And then the second question, just if you'd give us an update on your CapEx expectations for 2026 and, and kind of an outline of where you expect to be spending. Thank you.

Speaker #9: Hi there, and thank you for taking my questions. So, firstly—and apologies if I missed the answer to this one—but I just wanted to focus on your other business segment.

Speaker #9: Obviously, a big revenue and margin recovery in Q1 driven by your fracking and coil tubing services in Argentina. Can you just talk about how you expect that to trend through 2026, and whether we can expect a similar contribution in the first and second quarters and beyond that?

Speaker #9: And then the second question, just if you could give us an update on your CapEx expectations for 2026 and kind of an outline of where you expect to be spending?

Speaker #9: Thank you.

Paolo Rocca: ... Thank you, Jamie. On the oil and gas, as I was saying, during the second part of 2026, we are considering that the activity of oil and gas fracking should go up. The drilling activity will also pick up later on. There will be more need to frack. We are just bringing in one additional set of fracking because we are anticipating some increase by the end of the year. And this will should drive to some increase on our activity in the second half of 2026. This is basically the position on this. The other point?

Speaker #7: Thank you, Jamie. On the oil and gases, I was saying during the second part of 2026, we are considering that the activity of oil and gas fracking should go up.

Speaker #7: The drilling activity will also pick up later on. There will be more need to frack. We are just bringing in one additional set of fracking because we are anticipating some increase.

Speaker #7: By the end of the year, and this should drive to some increase on our activity in the second half of '26. This is basically the position on this.

Speaker #7: The other point, a CapEx I mean, CapEx will be more or less in line with what we have been spending in 2025. Looking at the forecast, we see even something lower.

Luigi De Bellis: Capex.

Jamie Franklin: Capex.

Paolo Rocca: CapEx, I mean, CapEx will be more or less in line with the what we have been spending in 2025. Looking at the forecast, we see even something lower, but I imagine that during the year, new need may come out. Usually, there is something that is coming out from specific intervention. So there will be no something lower when we look at this from a planning point of view today, but maybe in the end, we will be close to the level of today.

Speaker #7: But I imagine that during the year, new need may come out. Usually, there is something. There is coming out from specific intervention. So there will be no something lower.

Speaker #7: When we look at this from a planning point of view today, but maybe in the end, we will be close to the level of today.

Speaker #9: Okay. Very clear. Thank you.

Luigi De Bellis: Okay. Very clear. Thank you.

Jamie Franklin: Okay. Very clear. Thank you.

Speaker #6: Thank you. At this time, I'm showing no further questions. I would now like to turn the conference back over to Giovanni Sardagna for closing remarks.

Giovanni Sardagna: Thank you. At this time, I'm showing no further questions. I would now like to turn the conference back over to Giovanni Sardagna for closing remarks.

Operator: Thank you. At this time, I'm showing no further questions. I would now like to turn the conference back over to Giovanni Sardagna for closing remarks.

Paolo Rocca: Well, thank you, Gigi, and thank you all for joining us today. Bye.

Speaker #10: Well, thank you, Gigi, and thank you all for joining us today. Bye.

Giovanni Sardagna: This concludes today's conference call. Thank you for participating. You may now disconnect.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

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