Luxembourg-based steel producer Tenaris S.A. has reported second-quarter 2026 sales and net income figures that decreased compared with the prior year.
The Tenaris net sales figure declined by 4 percent both year on year and quarter on quarter, with the company characterizing those numbers as “reflecting, to a large extent, 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.”
The company’s net income attributable to shareholders of $477 million in this year’s second quarter represented a 10 percent decline from one year earlier and a 12 percent drop compared with the prior quarter.
Tenaris specializes in the production of oil country tubular goods (OTCG) for the energy sector and operates recycled-content electric arc furnace (EAF) mills to help produce its pipe products.
“In the Middle East, the conflict continues to cause disruption to shipping through the Strait of Hormuz, [and] drilling activity in Iraq, Kuwait and Qatar has been severely affected, while in Saudi Arabia and the United Arab Emirates it has been largely maintained,” the company writes of its market in that region.
“In the United States, OCTG prices have been increasing in response to higher demand and to offset higher raw material and logistic costs,” according to the firm.
Recently, Tenaris has been investing in its steelmaking and metal recycling capacity in Pennsylvania. This June, Italy-based mill equipment maker Tenova S.p.A. announced it had been selected to provide engineering, equipment supply and commissioning services for an electric arc furnace (EAF) revamp at the Tenaris mill in Koppel, Pennsylvania.
Late last year, Tenaris announced it had acquired an auto shredding and metals recycling facility in Beaver Falls, Pennsylvania, from SA Recycling that is near its Koppel mill.
Regarding the financial quarter and half-year now underway, Tenaris says it expects its sales and earnings “to remain in line with the first half, despite sales continuing to be affected by lower shipments to the Middle East and higher raw material costs.”