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LUXEMBOURG – Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN), a global supplier of steel tubes and related services with a market capitalization of $18.57 billion, has commenced the first tranche of its share buyback program, with plans to repurchase up to USD 600 million worth of shares. According to InvestingPro analysis, the company appears undervalued at current levels and maintains a strong financial health score of "GREAT." The program, part of a larger USD 1.2 billion buyback plan announced on May 27, 2025, will begin on June 9, 2025, and is set to conclude by December 8, 2025.
The buyback agreement, made with a leading financial institution, allows the bank to independently decide the timing of the share purchases without influence from Tenaris. The transactions will comply with the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052, ensuring that purchases can continue even during Tenaris’s closed periods. The company’s strong financial position is evident in its impressive current ratio of 4.08 and minimal debt-to-equity ratio of 0.03.
The authority for the share buyback comes from the general meeting of shareholders held on May 6, 2025. Shares acquired through the program are expected to be cancelled subsequently.
This strategic move follows a series of forward-looking statements from the company, which acknowledge the uncertainties in future oil and gas prices and their potential effect on investment decisions within the industry. Tenaris provides essential products and services to the energy sector, and fluctuations in this market can significantly impact their business. Despite market uncertainties, the company maintains a healthy 4.79% dividend yield and trades at a P/E ratio of 10.65. InvestingPro subscribers have access to 8 additional key insights about Tenaris’s financial health and growth prospects.
The execution of this share buyback program reflects Tenaris’s commitment to shareholder value and is based on a press release statement from the company.
In other recent news, Tenaris S.A. has announced a significant share buyback program valued at up to $1.2 billion. The Board of Directors has authorized the repurchase of approximately 74 million shares, which accounts for 6.9% of the company’s outstanding shares. This program is set to commence in June 2025 and will be executed over the course of the following year. The buyback plan is designed to be flexible, allowing for pauses and resumptions in response to market conditions. The initiative reflects Tenaris’s strong cash flow and solid balance sheet. Shareholders approved this plan on May 6, 2025, and it will be conducted through a primary financial institution. Tenaris has committed to keeping investors updated on the buyback’s progress through press releases and updates on its corporate website. The execution of this program is contingent on compliance with legal and regulatory requirements, including the Market Abuse Regulation and other relevant laws.
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