Tenaris' quarterly profit slips as Middle East conflict disrupts shipping (updated)

Tenaris SA

05/08/2026 23:18

Adds details, background throughout
Aug 5 (Reuters) - Italian steel pipe maker Tenaris TENR.MI reported lower second-quarter earnings on Wednesday, citing higher costs and delayed shipments to customers in the Middle East due to disruptions in the Strait of Hormuz.
U.S.-listed shares of the company TS.N fell more than 5% in after-hours trading following the results.
Shipping traffic through the Strait of Hormuz remains largely unchanged as uncertainty persists over talks between the United States and Iran.
Tenaris said on Wednesday that net income for the quarter ended June 30 fell 9% year-on-year to $492 million, while net sales declined 4% to $2.97 billion. Its core profit fell 11% to $649 million.
For the second half of 2026, Tenaris expects sales and core profit to remain broadly in line with first-half levels despite lower shipments to the Middle East and higher raw material costs. It said results could improve if shipping disruptions in the Strait of Hormuz ease before year-end.
Tenaris, which makes pipes for the energy industry, had warned in May the conflict would hurt its second-quarter sales.
The Luxembourg-based company said quarterly sales decreased due to "the postponement of shipments to customers in the Middle East due to the effective closure of the strait of Hormuz for most of the period."
"Our EBITDA margin also decreased with higher unitary logistic costs, lower absorption of fixed costs and rising raw material costs," Tenaris said.

 (Reporting by Enrico Sciacovelli and Natalia Bueno Rebolledo and Mrinmay Dey in Mexico City; Editing by Diti Pujara)
 ((natalia.bueno@thomsonreuters.com))