Revenue reached $562.8B in 2026Q2 before slowing to $527.4B in 2026Q3, and operating margin contracted from 54.8% in 2024Q4 to 39.5% in 2026Q3 even as gross margin held near 50%, suggesting negative operating leverage.
Transportadora de Gas del Sur S.A. (TGS) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 2.14T | 1.99T | 1.21T | 967.5B | 1.08T | 526.69B | 163.31B | 99.37B |
| Revenue Growth % | 43.06% | 64.75% | 24.71% | -10.34% | 104.87% | 222.51% | 64.34% | - |
| Cost of Goods Sold | 1T | 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 | 1.14T | 1.06T | 631.37B | 347.43B | 427.73B | 237.57B | 82.26B | 49.28B |
| Gross Margin % | 53.12% | 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 | 206.82B | 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 | 221.84B | 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 | -2.52M | -2.98B | 20.23B | 45.79B | 34.29B | 16.71B | 17.25B | 526.93M |
| Operating Income | 930.71B | 860.99B | 560.3B | 253.56B | 355.67B | 206.75B | 60.69B | 40.6B |
| Operating Margin % | 43.46% | 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 | 1.19T | 1.06T | 689.97B | 385.58B | 488.4B | 265.05B | 78.8B | 48.2B |
| EBITDA Margin % | 55.68% | 53.47% | 57.18% | 39.85% | 45.26% | 50.32% | 48.25% | 48.5% |
| EBITDA Growth % | 36.93% | 54.06% | 78.94% | -21.05% | 84.27% | 236.33% | 63.51% | - |
| D&A (Non-Cash Add-back) | 261.7B | 201.96B | 129.67B | 132.03B | 132.73B | 58.3B | 18.12B | 7.59B |
| EBIT | 1.01T | 853.63B | 637.81B | 148.63B | 380.96B | 231.33B | 32.49B | 38.82B |
| Net Interest Income | -101.81B | -65.18B | -32.47B | -953.8M | -33.66B | -22.3B | -40.11M | -360.62M |
| Interest Income | 45.76B | 38.1B | 23.24B | 52.68B | 12.44B | 4.81B | 7.73M | 14.91M |
| Interest Expense | 147.57B | 103.29B | 55.71B | 53.63B | 46.1B | 27.1B | 47.85M | 375.53M |
| Other Income/Expense | -45.55B | -110.65B | 21.8B | -158.56B | -20.82B | -2.52B | -38.08B | -6.02B |
| Pretax Income | 885.16B | 750.34B | 582.1B | 95B | 334.85B | 204.23B | 22.61B | 34.58B |
| Pretax Margin % | 41.33% | 37.75% | 48.24% | 9.82% | 31.03% | 38.78% | 13.85% | 34.8% |
| Income Tax | 326.47B | 260.02B | 211.94B | 43.79B | 115.7B | 77.26B | 12.95B | 8.27B |
| Effective Tax Rate % | 36.88% | 34.65% | 36.41% | 46.09% | 34.55% | 37.83% | 57.27% | 23.91% |
| Net Income | 558.69B | 490.32B | 370.16B | 51.21B | 219.16B | 126.97B | 9.66B | 26.31B |
| Net Margin % | 26.09% | 24.67% | 30.68% | 5.29% | 20.31% | 24.11% | 5.92% | 26.48% |
| Net Income Growth % | 37.16% | 32.46% | 622.8% | -76.63% | 72.61% | 1214.07% | -63.28% | - |
| Net Income (Continuing) | 558.69B | 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 | 2.86M | 2.83M | 1.78M | 2M | 342K | 98K | 47K | 38K |
| EPS (Diluted) | 3710.92 | 3250.25 | 2458.70 | 156.20 | 214.65 | 139.05 | 21.55 | 82.50 |
| EPS Growth % | 35.61% | 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 | - | 0.04% | - | - | - | - | 0% | 76.23% |
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.
Key Metrics
Top Statement Risk
Argentine tariff and FX policy exposure
Revenue Growth Rebounds Then Normalizes
According to reported quarterly figures, TGS revenue grew 64.1% year over year in 2026Q2 to $562.8B, but growth slowed to 21.0% in the latest quarter, suggesting the tariff-driven rebound may be fading as the base effect normalizes.
The sequence of quarterly growth rates, ranging from negative in 2025Q2 to above 60% in 2026Q2, reflects the interaction of tariff normalization with inflation restatement under IAS 29, which can inflate nominal comparisons. The deceleration to 21.0% in 2026Q3 suggests that the unusually strong recovery is maturing rather than accelerating. Investors should monitor whether volume growth in the Vaca Muerta-linked midstream business can sustain top-line expansion once regulated tariff adjustments stop contributing.
Operating Margin Compresses From Peak
As reported in the income statement, TGS operating margin fell from 54.8% in 2024Q4 to 39.5% in 2026Q3, while gross margin held near 50%, indicating that below-gross-profit costs are absorbing a growing share of revenue.
The gap between gross margin, which has stayed in a 50% to 58% band, and operating margin, which has declined more sharply, points to rising SG&A and operating costs relative to revenue. This pattern is consistent with cost inflation outpacing tariff adjustments in the regulated transportation segment. The 2026Q1 peak of 51.5% operating margin appears to be the exception rather than the trend, and sustainability of current margins depends on continued policy consistency.
Operating Income Lags Gross Profit Growth
Based on TGS reported figures, gross profit in 2026Q3 was $264.3B against $282.0B in 2026Q1, yet operating income fell from $249.3B to $208.2B, indicating negative operating leverage in the most recent quarters.
Operating income has declined faster than gross profit over the last two quarters, which suggests overhead and operating expenses are scaling upward against a flat or falling gross base. SG&A rose from $41.8B in 2026Q1 to $61.4B in 2026Q3, a 47% increase that outpaced the roughly 6% decline in gross profit. This divergence warrants investigation into whether the cost increases are structural or timing-related.
Net Income Volatility Outpaces Operations
According to reported figures, TGS net income swung from $40.3B in 2025Q2 to $160.0B in 2026Q1, a range far wider than the operating income movement, which may point to non-operating or inflation-accounting effects.
The large divergence between operating and net income in several quarters, such as 2025Q2 where net margin fell to 11.7% against a 35.7% operating margin, suggests material non-operating items or financial result effects. Given IAS 29 restatements and ARS-denominated monetary positions, reported net income may carry substantial noise. Analysts should rely on USD-adjusted earnings before drawing conclusions about underlying profitability.
Margin Durability Faces Policy Risk
Based on reported quarterly data, TGS 43.3% operating margin relies on tariff normalization that the disclosed figures cannot confirm will persist, and management provided no formal guidance in the latest report.
The bear case centers on the possibility that the 2024 to 2026 margin expansion reflects a temporary catch-up in tariffs rather than durable pricing power, and that renewed political pressure over energy costs could reverse it. The absence of guidance limits visibility into whether the 21.0% growth deceleration signals a turning point. Investors should monitor the next reporting cycle for evidence that operating margins can stabilize above 40% without further tariff adjustments.