Strong cash conversion is evidenced by an OCF/NI ratio of 1.14 in 2026Q1, supporting a capital allocation strategy that included $536.9 million in share repurchases during 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 |
|---|
| Cash from Operations | 2.45B | 2.6B | 2.87B | 4.4B | 1.17B | 119.08M | 1.52B | 1.53B | 610.8M | -22.02M | 863.57M | 2.22B | 2.04B | 2.36B | 1.86B | 1.28B | 870.82M | 3.06B | 1.47B | 2.02B | 1.81B | 1.3B | 98.29M | 275.64M | 461.44M |
| Operating CF Margin % | - | 21.7% | 22.89% | 29.56% | 9.92% | 1.83% | 29.54% | 20.95% | 7.98% | -0.42% | 20.11% | 31.19% | 19.77% | 22.22% | 17.17% | 12.87% | 11.29% | 37.6% | 12.08% | 20.12% | 23.43% | 19.23% | 2.38% | 8.67% | 14.33% |
| Operating CF Growth % | -30.03% | -9.3% | -34.79% | 276.54% | 880.24% | -92.17% | -0.49% | 150.15% | 2873.22% | -102.55% | -61.01% | 8.36% | -13.21% | 26.59% | 44.97% | 47.37% | -71.58% | 109.14% | -27.5% | 11.58% | 39.8% | 1217.89% | -64.34% | -40.27% | - |
| Net Income | 1.97B | 1.93B | 2.04B | 3.92B | 2.55B | 1.1B | 109.51M | 731.26M | 873.9M | 536.39M | 58.74M | -74.42M | 1.37B | 1.57B | 1.7B | 1.42B | 1.14B | 1.21B | 2.28B | 2.08B | 2.06B | 1.39B | 784.7M | 210.31M | 94.3M |
| Depreciation & Amortization | 622.95M | 616.17M | 632.85M | 548.51M | 607.72M | 594.72M | 678.81M | 539.52M | 664.36M | 608.64M | 662.41M | 658.78M | 615.63M | 610.05M | 567.65M | 554.35M | 506.9M | 504.86M | 532.93M | 514.82M | 255M | 214.23M | 208.12M | 199.8M | 176.31M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | -413K | 0 | 0 | 0 | 0 | 0 | 0 | 17.38M | 19.84M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | -143.39M | 257.65M | -25.98M | -117.21M | -193.42M | 58.49M | -193.99M | -128.08M | -91.08M | 79.06M | 125.42M | -160.95M | 117.63M | -57.98M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 199.39M | 8.21M | -90M | -110.54M | -115.61M | -503.95M | -209.44M | -72.53M | 6.15M | 11.55M | -40.4M | -1.98M | -37.19M | -29.72M | -25.3M | 41M | -80.72M | -385.86M | -291.92M | -459.83M | -34.03M | 127.7M | -273.35M | -27.32M | 382.48M |
| Working Capital Changes | -348.16M | 42.39M | 286.92M | 182.43M | -2.13B | -1.05B | 1.06B | 523.11M | -737.95M | -855.28M | 348.2M | 1.37B | -72.07M | 188.78M | -303.01M | -646.37M | -644.05M | 1.74B | -1.05B | -110.42M | -469.52M | -433.94M | -621.19M | -107.16M | -191.66M |
| Change in Receivables | 200.47M | 0 | 489.88M | 217.92M | -1.36B | -334.78M | 409.16M | 428.33M | -517.58M | -259.38M | 146.82M | 828.26M | 20.89M | 129.94M | -166.99M | -456.87M | -111.34M | 792.35M | -374.46M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -247.32M | 0 | 185M | 186.9M | -1.33B | -1.06B | 828.8M | 311.46M | -176.44M | -804.41M | 244.72M | 936.4M | -72.88M | 287.87M | -174.67M | -335.34M | -773.33M | 1.41B | -492.55M | -252.81M | -455.57M | -101.14M | -411.05M | -151.77M | 46.07M |
| Change in Payables | 0 | 0 | -216.72M | -149.02M | 353.89M | 383.42M | -184.44M | -180.86M | -57.07M | 193.91M | 59.94M | -327.96M | -3.75M | -62.47M | -19.72M | 66.38M | 261.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | 185.56M | -192.6M | -1.4B | -2.69B | -163.56M | 267.9M | -2.09B | -40.39M | 399.11M | 349.12M | -98.35M | -1.77B | -1.79B | -1.29B | -1.48B | -604.8M | -920.84M | -1.04B | 722.41M | -2.29B | -2.82B | -292.79M | -199.9M | -252.25M | -180.61M |
| Capital Expenditures | -573.3M | -617.18M | -693.96M | -619.45M | -18.9M | -244.59M | -194.35M | -348.08M | -343.46M | -552.79M | -763.26M | -1.12B | -1.14B | -720.31M | -781.72M | -862.66M | -847.32M | -460.93M | -443.24M | -447.92M | -441.47M | -284.47M | -183.31M | -162.62M | -124.61M |
| CapEx % of Revenue | 4.72% | 5.15% | 5.54% | 4.17% | 0.16% | 3.75% | 3.78% | 4.77% | 4.48% | 10.45% | 17.78% | 15.79% | 11.04% | 6.8% | 7.22% | 8.65% | 10.99% | 5.66% | 3.65% | 4.46% | 5.71% | 4.22% | 4.43% | 5.11% | 3.87% |
| Acquisitions | 20.99M | -17.67M | 0 | -289.44M | -4.08M | 23.64M | -1.03B | -155.39M | 0 | 313.53M | -17.11M | -4.4M | -29.44M | 0 | -507.69M | -11.25M | 14.03M | -62.16M | 1.1B | -2B | -2.33B | -48.29M | -97.59M | -65.28M | -320K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 281.57M | 442.25M | -703.2M | -1.78B | -263.83M | -140.85M | -178.65M | 76.2M | 742.57M | 588.38M | 682.02M | -647.75M | -614.76M | -566.59M | -194.93M | 269.11M | -838.33M | -444.62M | 70.43M | 39.51M | 2.03M | 149.89M | 81.01M | -24.34M | -55.68M |
| Cash from Financing | -2.23B | -2.48B | -2.4B | -1.13B | -178.34M | -647.96M | -375.32M | -353.76M | -900.44M | -401.42M | -652.62M | -535.03M | -423.61M | -1.22B | -425.54M | -667.91M | -651.6M | -2.02B | -1.57B | -196.68M | 1.7B | -604.13M | 165.01M | -83.18M | -184.38M |
| Debt Issued (Net) | -44.08M | -184.03M | -197.34M | -259.56M | 364.74M | -325.86M | -287.38M | 132.13M | -412.9M | 106.65M | -114.83M | 226K | 156.12M | -682.83M | 782.55M | -227.22M | -215.31M | -1.47B | -1.03B | 371.21M | 1.93B | -240.37M | 300.09M | 45.88M | -103.6M |
| Equity Issued (Net) | -1.22B | -1.36B | -1.44B | -213.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -902.83M | -900.36M | -757.79M | -636.51M | -531.24M | -318.74M | -82.64M | -484.02M | -484.02M | -484.02M | -507.63M | -531.24M | -531.24M | -507.63M | -448.6M | -401.38M | -401.38M | -553.72M | -535.8M | -567.89M | -204.23M | -363.76M | -135.08M | -129.07M | -80.77M |
| Share Repurchases | -1.22B | -1.36B | -1.44B | -213.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -64.42M | -31.12M | -4.72M | -15.2M | -11.84M | -3.35M | -5.3M | -1.87M | -3.52M | -24.05M | -30.16M | -4.02M | -48.48M | -26.41M | -759.49M | -39.3M | -34.9M | -55.64M | -105.78M | 0 | -23.19M | 0 | 0 | 0 | 0 |
| Net Change in Cash | 381.94M | -88.35M | -955.8M | 525.16M | 773.37M | -266.52M | -969.69M | 1.13B | 96.63M | -68.49M | 112.38M | -130.25M | -181.7M | -174.51M | -42.38M | -5.13M | -708.54M | 3.69M | 570.72M | -410.7M | 684.42M | 386.77M | 63.74M | -56.7M | 90.72M |
| Free Cash Flow | 1.87B | 1.98B | 2.16B | 3.78B | 769.87M | -125.52M | 1.33B | 1.18B | 267.34M | -574.82M | 100.3M | 1.09B | 902.46M | 1.63B | 1.08B | 420.65M | 23.5M | 2.6B | 1.02B | 1.57B | 1.37B | 1.01B | -85.02M | 113.01M | 336.83M |
| FCF Margin % | 15.42% | 16.55% | 17.26% | 25.39% | 6.55% | -1.92% | 25.76% | 16.18% | 3.49% | -10.87% | 2.34% | 15.4% | 8.73% | 15.43% | 9.96% | 4.22% | 0.3% | 31.94% | 8.42% | 15.66% | 17.72% | 15.01% | -2.06% | 3.55% | 10.46% |
| FCF Growth % | -10.16% | -8.3% | -42.74% | 390.42% | 713.35% | -109.47% | 12.39% | 341.33% | 146.51% | -673.09% | -90.83% | 21.18% | -44.8% | 51.55% | 156.44% | 1689.68% | -99.1% | 154.76% | -35.03% | 14.85% | 35.47% | 1288.9% | -175.23% | -66.45% | - |
| FCF per Share | 7.49 | 3.81 | 3.84 | 6.41 | 1.30 | -0.21 | 2.25 | 2.00 | 0.45 | -0.97 | 0.17 | 1.85 | 1.53 | 2.77 | 1.83 | 0.71 | 0.04 | 4.41 | 1.73 | 2.66 | 2.32 | 1.71 | -0.14 | 0.19 | 0.92 |
| FCF Conversion (FCF/Net Income) | 0.95x | 1.34x | 1.41x | 1.12x | 0.46x | 0.11x | -2.40x | 2.06x | 0.70x | -0.04x | 15.62x | -27.63x | 1.52x | 1.52x | 1.09x | 0.96x | 0.77x | 2.64x | 0.64x | 1.05x | 0.93x | 1.01x | 0.13x | 1.31x | 4.89x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 28.78M | 30.66M | 31.55M | 17.92M | 18.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 140.36M | 395.87M | 170.71M | 176.85M | 169.52M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical demand and pricing
As reported in financial statements, Tenaris consistently demonstrates strong cash conversion, with the OCF/NI ratio reaching 1.14 in 2026Q1, indicating that the company's reported net income is well-supported by actual cash generation despite the inherent volatility of its global manufacturing and logistics-heavy business model.
The ability to consistently convert net income into operating cash flow suggests that the company's accrual-based accounting is not masking underlying operational weakness. Investors should monitor periods where this ratio dips below parity, as it may indicate temporary inventory build-ups or delays in the 'Rig Direct' collection cycle.
Based on Tenaris's reported figures, free cash flow margins have remained volatile but generally positive, peaking at 22.9% in 2024Q2, which highlights the company's capacity to generate significant discretionary cash even when facing the cyclical headwinds typical of the oil and gas equipment sector.
The fluctuation in FCF margins appears tied to the timing of large-scale project deliveries and capital expenditure cycles. This trajectory suggests that while the business is inherently cyclical, the underlying cash generation remains robust enough to support consistent shareholder returns and strategic investments.
According to recent SEC filings, Tenaris maintains a disciplined approach to capital expenditure, with CapEx/Revenue ratios generally hovering between 3.7% and 6.4%, reflecting a strategic balance between necessary maintenance of its global mill footprint and targeted investments in high-margin premium connection capacity.
The relatively low capital intensity suggests that the company is not overly burdened by the need for constant, massive reinvestment to maintain its competitive moat. This capital efficiency allows for greater flexibility in allocating cash toward dividends and share repurchases during periods of high capacity utilization.
As indicated by quarterly data, working capital changes have been a significant source of cash flow volatility, with a notable $314.7 million outflow in 2025Q3, suggesting that the 'Rig Direct' model requires substantial inventory management that can periodically strain short-term liquidity during demand shifts.
The sensitivity of cash flow to working capital movements implies that the company's liquidity is tightly coupled with its inventory turnover rates at the wellhead. Analysts should interpret these swings as a structural feature of the business model rather than a sign of operational inefficiency.
Based on reported financial data, Tenaris utilizes its robust cash flow to aggressively fund share repurchases, such as the $536.9 million deployed in 2025Q4, while maintaining a fortress balance sheet that prioritizes liquidity over excessive leverage, even during periods of significant industry-wide capital expenditure.
The company's preference for returning cash to shareholders via buybacks and dividends, rather than debt-funded expansion, suggests a management team focused on long-term value preservation. This approach appears to provide a critical buffer against the inherent volatility of the global energy market.
Quick answers to the most common questions about buying TS stock.
Tenaris S.A. (TS) generated $2.60B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Tenaris S.A. (TS) generated $1.98B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Tenaris S.A. (TS) spent $617.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Tenaris S.A. (TS) returned $900.4M to shareholders via cash dividends and spent $1.36B on share repurchases. This shows the company's commitment to returning capital to its equity investors.