Luigi De Bellis

Luigi De Bellis asked for Tenaris's view on the evolution of its business in the Middle East and Mexico for the coming quarters.

Answer

Paolo Rocca, Chairman and CEO, noted positive developments for Pemex in Mexico (government capitalization, bond issuance) but lacked clear plans for 2026, with private company activity moving slowly. Gabriel Podskubka, COO, stated that Middle East activity remains high, with Tenaris maintaining a strong position through long-term agreements. He expects revenues and shipments in Q1 and Q2 2026 to be in line with H2 2025, with a probable uptick in Saudi drilling activity in Q2 2026 or later.

Luigi De Bellis requested Tenaris's outlook on the evolution of the Middle East and Mexico markets for the coming quarters.

Answer

Paolo Rocca, Chairman and CEO, discussed Mexico, highlighting positive government support for Pemex through capitalization and bond issuance, but noted a slow definition of Pemex's 2026 plans and slow movement from private companies. Gabriel Podskubka, COO, stated that the Middle East activity remains high with stable revenues expected in Q1 and Q2 2026, consistent with late 2025, and a probable uptick in Saudi drilling activity in Q2 2026 or later in the year, which could provide potential upside.

Luigi De Bellis asked for details on the size and timing of expected cost reductions, the outlook for working capital in H2, and the expected exit rate for Q4 sales and profitability, including any visibility into 2025.

Answer

Chairman & CEO Paolo Rocca detailed a cost-saving plan aiming for ~$200 million annually, materializing by June 2025. He expects working capital to remain a positive contributor to cash flow. For 2025, management indicated a positive medium-term outlook for international and offshore markets but noted that near-term visibility is limited by U.S. elections and project timing in Latin America.