TGS demonstrated robust pricing power and operational efficiency in 2026Q1, achieving a 58.2% gross margin despite the complex macroeconomic environment in Argentina.
| Sales/Revenue | 1.82T | 1.99T | 1.21T | 967.5B | 1.08T | 526.69B | 163.31B | 99.37B |
| Revenue Growth % | 27.16% | 64.75% | 24.71% | -10.34% | 104.87% | 222.51% | 64.34% | - |
| Cost of Goods Sold | 830.35B | 923.01B | 575.24B | 620.07B | 651.29B | 289.12B | 81.05B | 50.09B |
| COGS % of Revenue | - | 46.43% | 47.67% | 64.09% | 60.36% | 54.89% | 49.63% | 50.41% |
| Gross Profit | 985.4B | 1.06T | 631.37B | 347.43B | 427.73B | 237.57B | 82.26B | 49.28B |
| Gross Margin % | 54.27% | 53.57% | 52.33% | 35.91% | 39.64% | 45.11% | 50.37% | 49.59% |
| Gross Profit Growth % | - | 68.67% | 81.73% | -18.77% | 80.04% | 188.8% | 66.91% | - |
| Operating Expenses | 194.62B | 203.92B | 71.07B | 93.87B | 72.06B | 30.82B | 21.57B | 8.68B |
| OpEx % of Revenue | - | 10.26% | 5.89% | 9.7% | 6.68% | 5.85% | 13.21% | 8.74% |
| Selling, General & Admin | 186.64B | 206.9B | 50.85B | 48.07B | 37.77B | 14.11B | 4.33B | 8.16B |
| SG&A % of Revenue | - | 10.41% | 4.21% | 4.97% | 3.5% | 2.68% | 2.65% | 8.21% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1.48M | -2.98B | 20.23B | 45.79B | 34.29B | 16.71B | 17.25B | 526.93M |
| Operating Income | 790.78B | 860.99B | 560.3B | 253.56B | 355.67B | 206.75B | 60.69B | 40.6B |
| Operating Margin % | 43.55% | 43.31% | 46.44% | 26.21% | 32.96% | 39.25% | 37.16% | 40.86% |
| Operating Income Growth % | - | 53.67% | 120.98% | -28.71% | 72.03% | 240.67% | 49.47% | - |
| EBITDA | 1.01T | 1.1T | 689.97B | 385.58B | 488.4B | 265.05B | 78.8B | 48.2B |
| EBITDA Margin % | 55.64% | 55.15% | 57.18% | 39.85% | 45.26% | 50.32% | 48.25% | 48.5% |
| EBITDA Growth % | 19.62% | 58.89% | 78.94% | -21.05% | 84.27% | 236.33% | 63.51% | - |
| D&A (Non-Cash Add-back) | 219.47B | 235.3B | 129.67B | 132.03B | 132.73B | 58.3B | 18.12B | 7.59B |
| EBIT | 811.67B | 860.99B | 637.81B | 148.63B | 380.96B | 231.33B | 32.49B | 38.82B |
| Net Interest Income | -70.22B | -65.18B | -32.47B | -953.8M | -33.66B | -22.3B | -40.11M | -360.62M |
| Interest Income | 35.53B | 38.1B | 23.24B | 52.68B | 12.44B | 4.81B | 7.73M | 14.91M |
| Interest Expense | 105.74B | 103.29B | 55.71B | 53.63B | 46.1B | 27.1B | 47.85M | 375.53M |
| Other Income/Expense | -63.42B | -110.65B | 21.8B | -158.56B | -20.82B | -2.52B | -38.08B | -6.02B |
| Pretax Income | 727.37B | 750.34B | 582.1B | 95B | 334.85B | 204.23B | 22.61B | 34.58B |
| Pretax Margin % | 40.06% | 37.75% | 48.24% | 9.82% | 31.03% | 38.78% | 13.85% | 34.8% |
| Income Tax | 268B | 260.02B | 211.94B | 43.79B | 115.7B | 77.26B | 12.95B | 8.27B |
| Effective Tax Rate % | 36.85% | 34.65% | 36.41% | 46.09% | 34.55% | 37.83% | 57.27% | 23.91% |
| Net Income | 459.36B | 490.32B | 370.16B | 51.21B | 219.16B | 126.97B | 9.66B | 26.31B |
| Net Margin % | 25.3% | 24.67% | 30.68% | 5.29% | 20.31% | 24.11% | 5.92% | 26.48% |
| Net Income Growth % | 3.57% | 32.46% | 622.8% | -76.63% | 72.61% | 1214.07% | -63.28% | - |
| Net Income (Continuing) | 459.36B | 490.32B | 370.16B | 51.21B | 219.16B | 126.97B | 9.66B | 26.31B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 3M | 2.83M | 1.78M | 2M | 342K | 98K | 47K | 38K |
| EPS (Diluted) | 3051.24 | 3250.25 | 2458.70 | 156.20 | 214.65 | 139.05 | 21.55 | 82.50 |
| EPS Growth % | 6.31% | 32.19% | 1474.07% | -27.23% | 54.37% | 545.24% | -73.88% | - |
| EPS (Basic) | - | 3250.25 | 2458.70 | 156.20 | 214.65 | 139.05 | 21.55 | 82.50 |
| Diluted Shares Outstanding | 150.55M | 150.55M | 150.55M | 150.55M | 150.55M | 150.55M | 152.47M | 155.22M |
| Basic Shares Outstanding | 150.55M | 150.55M | 150.55M | 150.55M | 150.55M | 150.55M | 152.47M | 155.22M |
| Dividend Payout Ratio | - | 54.92% | - | - | - | - | 0% | 76.23% |
Regulatory and Inflationary Volatility
As reported in recent financial statements, TGS achieved a 50.8% year-over-year revenue increase in 2026Q1, though investors should note that these figures are heavily influenced by IAS 29 hyperinflationary accounting adjustments, which may obscure the underlying organic volume growth trends within the Vaca Muerta midstream segment.
The revenue trajectory appears volatile, reflecting the interplay between regulated tariff adjustments and the transactional nature of NGL exports. While the top-line expansion is significant, the lack of consistent sequential growth suggests that TGS remains highly sensitive to the timing of regulatory tariff resets and the broader Argentine macroeconomic environment.
Based on reported figures, the company maintained a robust gross margin of 58.2% in 2026Q1, demonstrating significant pricing power and operational efficiency that appears to exceed the performance of global midstream peers like Kinder Morgan or Energy Transfer, despite the challenging local inflationary pressures in Argentina.
The ability to sustain gross margins above 50% suggests that TGS successfully leverages its natural monopoly status to pass through costs. However, the fluctuation in quarterly margins indicates that the company remains vulnerable to cost spikes in labor and maintenance that are not immediately offset by tariff adjustments.
According to income statement data, TGS demonstrated strong operating leverage in 2026Q1 with an operating margin of 51.5%, as the company effectively managed its SG&A expenses to ensure that a substantial portion of gross profit flowed directly to the operating income line during the period.
The company's ability to scale operating income faster than revenue during peak periods suggests a lean cost structure, though this efficiency is contingent on maintaining stable administrative overhead. Investors should monitor whether SG&A costs remain disciplined as the company continues to invest in the Tratayén plant expansion.
While TGS exhibits strong profitability, short-term observers may focus on the 2025Q2 net margin contraction to 11.7%, which highlights the inherent risk that government-imposed tariff freezes could rapidly erode earnings quality and decouple the company's financial performance from its operational utility as a critical energy provider.
The primary concern remains the potential for political intervention in tariff structures, which could force a compression of margins regardless of operational efficiency. Furthermore, the reliance on USD-denominated debt in a volatile currency environment warrants caution, as any widening of the FX gap may disproportionately impact net income.
Quick answers to the most common questions about buying TGS stock.
For fiscal year 2025, Transportadora de Gas del Sur S.A. (TGS) reported total revenue of $1.99T. This represents a 1900.4% increase compared to $99.37B in 2019.
Transportadora de Gas del Sur S.A. (TGS) is profitable, generating $490.32B in net income for the fiscal year ending 2025 with a net profit margin of 24.7%.
Transportadora de Gas del Sur S.A. (TGS) reported an operating income of $860.99B, resulting in an operating profit margin of 43.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Transportadora de Gas del Sur S.A. (TGS) generated $1.06T in gross profit for the year, representing a gross profit margin of 53.6%. This demonstrates the company's core pricing power and production efficiency.