Tenaris S.A. (TS): Business Model Canvas [Dec-2025 Updated]

You're looking for the real engine behind Tenaris S.A.'s performance, and honestly, mapping out a global manufacturer like this requires precision. Forget the press releases; we're breaking down their nine-block Business Model Canvas based on late 2025 realities, showing exactly how they generated $\mathbf{\$11.831 \text{ billion}}$ in net sales and maintain a $\mathbf{\$3.5 \text{ billion}}$ net cash cushion. See how their integrated Rig Direct® service and focus on low-carbon tubulars define their strategy-read on for the definitive, analyst-grade breakdown you need to understand their next move.

Tenaris S.A. (TS) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Tenaris S.A. has locked in to secure its supply chain, drive industrial innovation, and enter future energy markets. These aren't just vendor agreements; they are strategic equity stakes and deep operational collaborations.

The partnerships around green energy are focused on de-risking new technologies. The collaboration with IGI Poseidon, a joint venture between Greece's DEPA International Projects and Italy's Edison S.p.A., is specifically targeting the material science for hydrogen transport. This involves jointly conducting qualification testing for offshore high-pressure pipelines, with preliminary results on fracture toughness testing up to 330 bar expected in 2025.

Simultaneously, Tenaris is working with Tenova and Snam to decarbonize its own operations. This alliance launched a six-month trial in early July 2024 at the Dalmine plant in Bergamo, Italy, to test green hydrogen in a reheating furnace. Snam provides an alkaline electrolysis system for on-site hydrogen production, and Tenova supplied a burner designed to be 100% H2 ready. This internal trial directly supports Tenaris's stated global target to reduce its carbon footprint by 30% by 2030.

Here is a summary of the key technology-focused alliances:

In the critical Chinese market, Tenaris has a long-term structural partnership for premium threading services.

• Tenaris holds a 60% equity stake in the joint venture with Inner Mongolia Baotou Steel Union Co., Ltd.
• The partner holds the remaining 40%.
• The facility, which started operations in the first quarter of 2022, was planned for a total annual production capacity of 70,000 tons.
• The total estimated investment for the project was $32.6 million.
• As of June 30, 2025, the partner company's stock price was reported at $0.25.

The relationships with Middle East National Oil Companies (NOCs) are foundational to Tenaris's global revenue stability, especially in the upstream sector. Tenaris has maintained a relationship with the Abu Dhabi National Oil Company (ADNOC) for over 25 years.

The scale of these long-term commitments is significant, as evidenced by a specific award:

In 2019, ADNOC awarded Tenaris a contract for tubulars and Rig Direct® services over five years, valued at 1.9 billion USD, with an option for a two-year extension. This aligns with the regional trend where NOCs, like ADNOC, are driving localization initiatives, with peer companies like Saudi Aramco targeting 70% local procurement through programs like IKTVA.

Tenaris's physical footprint supporting these alliances in the UAE includes:

• Operating in the UAE for more than a decade as of 2025.
• Etihad Tubulars: A 200,000-square-meter complex in Abu Dhabi Industrial City (ICAD III) housing an OCTG threading facility and service yard.
• A pipe coating facility in Ras Al Khaimah, expanded after the 2023 acquisition of the Shawcor pipe coating business.

Finance: draft 13-week cash view by Friday.

Tenaris S.A. (TS) - Canvas Business Model: Key Activities

You're looking at the core engine of Tenaris S.A., the things they absolutely must do well to make this business model work. It's all about high-quality steel pipe production, smart logistics, and future-proofing their technology.

Manufacturing seamless and welded steel pipes globally

Tenaris S.A. operates as a major global manufacturer, focusing on both seamless and welded steel pipes, primarily for the energy industry. The scale of this activity is evident in their recent sales figures. For the third quarter of 2025, Net sales reached $2,978 million. This manufacturing output supports their global presence, though regional performance shifts. For instance, in Q2 2025, the volume of tubes sold was 982,000 metric tons, with welded tube sales specifically falling 21% year-on-year. Still, the company highlighted strong domestic production and expansion efforts in North America and Canada during the Q3 2025 results.

The operational performance in the Tubes segment is a key driver of profitability. In Q3 2025, the Operating results from tubular products and services amounted to a gain of $592 million, and the segment's EBITDA margin was 25.3%. This shows that even with sequential sales declines, the core manufacturing activity remains highly profitable.

Here's a snapshot of recent operational and investment activity:

Integrated supply chain management via the Rig Direct® service model

The Rig Direct® service model is a critical activity, marking 10 years since its launch as of mid-2025. This model focuses on supply chain integration, aiming to minimize waste and keep Tenaris S.A. close to customer operations by aligning pipe manufacturing with drilling schedules. The model includes services like RunReady™, which delivers pipes ready to run, eliminating steps like protector removal and drift testing at the rig site.

This activity directly impacts sales performance. For example, Tenaris S.A. noted a resilient level of sales to its Rig Direct® customers in the U.S. and Canada in Q3 2025, which partially offset declines elsewhere. Furthermore, the model's debut in the Brazilian onshore market in late 2024 demonstrated its value, resulting in substantial time savings and cost reductions for operators through fully digitalized tally creation via PipeTracer® technology.

The digital backbone of this activity is the Rig Direct® Portal, a single platform for managing orders, tracking shipments, and handling documentation.

R&D on premium connections and low-carbon energy materials

Research and Development is focused on maintaining product superiority and adapting to the energy transition. Tenaris S.A. develops products for low-carbon applications, including geothermal wells, waste-to-energy plants, and systems for hydrogen and carbon capture and storage. A concrete example of this commitment is Tenaris S.A.'s participation in and chairmanship of DNV's H2Pipe Joint Industry Project (JIP), which develops guidelines for hydrogen transportation pipelines.

The company directs capital toward these environmental goals. Around 30% of its capital expenditure in 2023 was allocated to projects supporting its decarbonization target. Back in 2022, the investment in projects to reduce carbon intensity was $110 million. This R&D effort supports their premium connections, which are trusted for challenging environments like horizontal shale wells.

Strategic capital investments, like the Koppel facility modernization

Strategic capital investments are essential for maintaining efficiency and meeting environmental standards. The recent modernization at the Koppel steel mill in Pennsylvania involved an $85 million upgrade to the fume exhaust system, which included installing a state-of-the-art baghouse with a single stack. This specific upgrade is part of a broader $140 million investment program at the Koppel facility since Tenaris S.A. integrated it in 2020.

The company's overall capital deployment reflects this focus. Full-year 2024 capital expenditures totaled $694 million. For the first nine months of 2025, CapEx reached $494 million (Q1 $237 million + Q2 $135 million + Q3 $185 million is not right, I'll use the available H1 and Q3 data). The first half of 2025 CapEx was $309 million, followed by $185 million in Q3 2025. The company maintained a strong net cash position of $3.5 billion at the end of Q3 2025.

Tenaris S.A. is definitely making concrete investments to secure its industrial base. Finance: draft 13-week cash view by Friday.

Tenaris S.A. (TS) - Canvas Business Model: Key Resources

When you look at the foundation of Tenaris S.A.'s business, you see massive scale and deep integration. This isn't just a company that sells pipes; it's one that controls the process from the steelmaking right through to the final connection technology. That integrated global industrial system spans 16 countries where Tenaris performs steelmaking, pipe rolling and forming, heat treatment, threading, and finishing.

The sheer output capability is a major resource. Tenaris S.A. has a manufacturing capacity for seamless and welded steel pipe totaling 8.7 million tons. This capacity underpins their ability to serve global energy and industrial needs. To give you a sense of the scale of their operations, here is a breakdown of some key operational and financial metrics from recent periods:

The financial health supporting these operations is significant. As of September 30, 2025, Tenaris S.A. maintained a strong net cash position of $3.5 billion. This liquidity helps them weather market volatility, like the working capital increase of $312 million seen in the third quarter of 2025, which impacted free cash flow for that quarter.

Intellectual property and innovation capabilities are critical differentiators for Tenaris S.A. Their proprietary premium connection technology is a key asset, with examples like the TenarisHydril Wedge 361™ connection being highlighted recently. This technology focus is supported by a dedicated structure:

• 4 R&D centers focused on developing new products.
• Research areas include advanced metallurgy and fracture mechanics.
• Innovation also targets industrial processes using Data Science and AI.
• The company is looking into technologies for low-carbon energy, like hydrogen and CCUS.

Honestly, having that in-house tech capability means you aren't just relying on off-the-shelf components; you're setting the standard. The R&D network is focused on material science and process innovation to enhance their product portfolio. For you, this means the resource isn't just the physical plant, but the knowledge base driving future product performance and efficiency. Finance: draft 13-week cash view by Friday.

Tenaris S.A. (TS) - Canvas Business Model: Value Propositions

You're looking at the core things Tenaris S.A. promises to deliver to its customers, grounded in their actual operational and financial scale as of mid-2025. The company's net sales for the second quarter of 2025 hit $3,086 million, showing where these value propositions translate into revenue.

Integrated supply chain and inventory management (Rig Direct®)

The Rig Direct® model is all about making the supply chain seamless, from the mill right to the rig floor. This service model is digitally integrated, using tools like the Rig Direct® Portal and PipeTracer® identification technology for end-to-end traceability of every pipe. The core promise here is material efficiency: customers pay only for the pipes and accessories they actually use. Any surplus materials get transferred to the next well, which definitely helps minimize on-site inventory and logistics headaches.

• Pipe production and accessory management are scheduled around customer drilling needs.
• Digital systems integrate with customers to streamline dispatching and invoicing.
• Field service specialists provide on-site support for best practices.
• The service model expands to include well integrity solutions like WISer™.

High-performance OCTG for complex deepwater and shale drilling

Tenaris S.A. delivers specialized steel grades and premium connections for the toughest drilling environments. They are establishing a leading position for 20K projects in the US deepwater sector, which requires materials that can handle extreme pressures. This is backed by their global industrial system and R&D facilities.

The company's EBITDA margin for the second quarter of 2025 stood at 23.7% of net sales, reflecting the value captured from these specialized products and services.

Specialized tubulars for low-carbon energy (CCS, hydrogen, geothermal)

Tenaris S.A. is actively positioning itself as a key supplier for the energy transition. They are developing and supplying products for applications like carbon capture and storage (CCS) and hydrogen infrastructure. For instance, they secured a significant order for CCS work.

• Received a $250 million order for Longitudinal Submerged Arc Welded (LSAW) pipes for Saudi Aramco's CCS project, with deliveries slated for Q3 2025.
• Partnered with Snam and RINA to qualify tubulars and connections for Underground Gas Storage (UGS) wells managing gas blends up to 100% hydrogen content.
• Qualified tubulars and connections are part of the THera® portfolio, tailored for hydrogen applications.

Comprehensive pipeline solutions including coating services (TenarisShawcor)

The value proposition extends to comprehensive pipeline solutions, where products can be paired with coating services. This is evident in their work in major developments and maintaining long-term relationships with key energy players.

Tenaris S.A. extended its long-term agreement with ADNOC in Abu Dhabi, which includes services like premium threading, where their facility was certified as an Industry 4.0 digital leader. At the end of the first half of 2025, the company maintained a strong net cash position of $3.7 billion, showing financial strength to support these long-term, complex projects.

Finance: review the Q3 2025 capital expenditure plan against the 1H 2025 free cash flow of $538 million (2Q 2025 figure) by next Tuesday.

Tenaris S.A. (TS) - Canvas Business Model: Customer Relationships

Dedicated account management and technical support for Rig Direct® is a core tenet, evolving from its launch a decade ago. Tenaris S.A. now provides 24/7 customer assistance and well integrity services, which are reinforced by the Remote Monitoring Center located in Houston, Texas. This service model integrates digital tools, including the Rig Direct® Portal and the PipeTracer® identification technology, ensuring full traceability from mill to well. For instance, since 2024, ExxonMobil has been served across all their US shale operations and offshore operations in Guyana under long-term agreements.

Collaborative development for complex, high-pressure projects sees Tenaris S.A. working closely with clients on specialized needs. Shell recently awarded Tenaris S.A. the casing supply for the first wells in its Sparta project, a result of many months spent on product testing and the development of 3D mapping technology.

Long-term supply agreements with major global energy producers secure significant revenue streams and deep integration. At the end of 2024, Abu Dhabi National Oil Company (ADNOC) confirmed an extension to a long-term agreement, originally valued at $1.9 billion, to cover the full seven years of supply for approximately half of their OCTG requirements. Furthermore, Tenaris S.A. has a 2022 long-term agreement with Saudi Aramco for seamless OCTG products, alongside a similar long-term agreement for LSAW OCTG products established in 2023.

Digital self-service and support via the new Client Hub is a recent enhancement to streamline the customer experience. This new digital platform is integrated within the Rig Direct® framework. The company's Selling, general and administrative expenses (SG&A) for the first half of 2025 amounted to $941 million.

Here are some key figures illustrating the scale of these customer-facing operations and the associated financial context:

You should review the integration cost of the new Client Hub against the Q1 2025 sales decline of 16% year-on-year to assess near-term ROI on digital relationship investments.

Finance: draft 13-week cash view by Friday.

Tenaris S.A. (TS) - Canvas Business Model: Channels

You're looking at how Tenaris S.A. gets its products and services to the energy industry, which is a mix of direct selling, a massive physical footprint, and digital integration. Honestly, for a global manufacturer, the channel strategy is about being everywhere the customer drills.

Direct sales force and technical specialists globally are the core human interface. Tenaris S.A. has a team of 26,000 employees working across its global operations as of late 2025. These teams include commercial and technical sales representatives who showcase the portfolio, especially integrated solutions like One Line®, which bundles manufacturing, coating, and delivery for complex line pipe projects. The company's Q1 2025 results noted higher sales to US Rig Direct® customers, showing the direct channel's importance in that region.

The physical reach is substantial, covering the global service and distribution network in 19 countries where the network is present. This is complemented by service and distribution centers in over 35 countries overall. This local presence helps develop strong ties with major energy companies, allowing Tenaris S.A. to offer local technical and pipe management services.

Here's a quick look at the scale of their physical presence supporting these channels:

The integration of Shawcor's pipe coating business in December 2023 significantly enhanced the coating channel capabilities. This brought nine additional coating facilities into the Tenaris S.A. footprint, located in Canada, Mexico, Norway, Indonesia, the UAE, and the United States. These new facilities, combined with existing Tenaris S.A. coating operations in Argentina, Brazil, Italy, Nigeria, and the United States, create a stronger end-to-end offering for concrete weight, anti-corrosion, and flow assurance solutions.

The Direct-to-rig delivery model (Rig Direct®) is a key channel differentiator, especially in the U.S. market, celebrating ten years of operation by mid-2025. This model focuses on supply chain integration, minimizing waste, and staying close to drilling operations by aligning manufacturing with schedules. The service is now comprehensively digitally integrated, which is crucial for modern operations. Key components used in this channel include:

• Rig Direct® Portal: A single digital platform for order management and shipment tracking.
• RunReady™: Materials delivered ready for running, cutting down on on-site handling.
• PipeTracer®: Ensures pipe-by-pipe traceability from the mill to the well.
• WISer™: Technical and digital solutions supporting well integrity.

This model contributed to expanded deliveries in the US, as noted in the Q1 2025 results. If onboarding takes 14+ days, churn risk rises, so the readiness provided by RunReady™ is a defintely strong channel advantage.

Tenaris S.A. (TS) - Canvas Business Model: Customer Segments

You're looking at the core of Tenaris S.A.'s business, which is fundamentally tied to global energy investment cycles and industrial demand. Their customer base is segmented by geography and application, but the oil and gas sector remains the dominant driver for their tubular products and services.

Major International Oil Companies (IOCs) and National Oil Companies (NOCs).

This group represents the traditional backbone of Tenaris S.A.'s demand, though activity levels fluctuate based on commodity prices and capital expenditure plans. Sales to this segment are often project-based and geographically diverse. For instance, in the third quarter of 2025, Tenaris S.A. noted lower sales sequentially to the North Sea and lower shipments for offshore line pipe projects in the Middle East. However, in South America, deliveries for the Vaca Muerta Sur pipeline in Argentina provided support to regional sales in that same quarter. Historically, NOCs like Saudi Aramco drove record sales in the Middle East in 2024 by replenishing OCTG stocks, but this specific driver was not as pronounced in the latest reporting period. A key risk noted was anticipated payment delays from customers, specifically mentioning PEMEX, which could affect liquidity.

North American shale and unconventional resource operators.

The North American market, particularly the United States and Canada, shows resilience through service differentiation. Tenaris S.A. maintained a resilient level of sales to their rig direct customers in the U.S. and Canada during the third quarter of 2025, even with overall slowed rig activity. This is supported by their Rig Direct® service, which emphasizes operational efficiency and reliability. By the end of Q3 2025, around 90% of their U.S. sales of OCTG (Oil Country Tubular Goods) were produced in the United States, with the remaining 10% being specialized imports. Consolidation among major shale operators continued through 2024, influencing the structure of this customer segment.

Offshore deepwater and complex project developers.

Offshore development remains a critical, though sometimes lumpy, source of demand for specialized, high-specification products like line pipe. The third quarter of 2025 saw lower shipments for offshore line pipe projects in the Middle East. Conversely, development in areas like Suriname and the Black Sea is contributing to building a strong offshore order backlog for Tenaris S.A. In the first quarter of 2025, South America sales declined partly due to lower shipments for the Raia offshore project.

Industrial customers (e.g., power generation, automotive, mechanical).

While the energy industry is primary, Tenaris S.A. also supplies pipes and tubular components for non-energy applications. This segment showed notable growth in certain areas as of late 2025. Specifically, Automotive revenues increased 29% sequentially in the third quarter of 2025. Furthermore, the company has a growing presence in the energy storage sector, which delivered record deployments, gross profit, and margins in Q3 2025, driven by demand for Megapack and Powerwall products. This diversification helps balance the volatility inherent in the oil and gas sector.

Here's a quick look at the recent financial performance tied to these segments, based on the nine-month period ending September 30, 2025, where net sales were $8,986,024,000, down from $9,678,708,000 in the prior year.

The overall financial health supporting these customer relationships is reflected in the balance sheet; the net cash position stood at $3.5 billion as of September 30, 2025. Also, the interim dividend approved in November 2025 was $0.29 per share, a 7% increase over the prior year's dividend.

You can see the geographical sales dynamics influencing the top line:

• North America deliveries were up 28% sequentially in Q3 2025.
• Greater China and APAC deliveries were up 33% and 29% sequentially, respectively, in Q3 2025.
• EMEA deliveries were up 25% sequentially in Q3 2025.
• Mexico sales increased in Q3 2025, supported by the Trion deepwater project financing.

If onboarding takes 14+ days, churn risk rises, which is why Tenaris S.A. focuses on services like Rig Direct® to lock in the North American shale customer base.

Finance: draft 13-week cash view by Friday.

Tenaris S.A. (TS) - Canvas Business Model: Cost Structure

You're looking at the core expenses Tenaris S.A. faces to keep its global operations running and its premium product line competitive. The cost structure is heavily weighted toward materials and significant, ongoing capital investment.

The High cost of goods sold (COGS) is a defining feature, driven by volatile commodity markets for its primary inputs. For the first nine months of 2025 (9M 2025), the Cost of sales totaled $5,880,619 thousand, reflecting the underlying expense of raw materials and energy.

The composition of these material costs is critical for seamless steel pipe production, which relies on the electric arc furnace route. In 2024, the key inputs were:

• Steel scrap, pig iron, HBI, and DRI represented approximately 22% of steel pipe products' costs.
• The operations also consume significant electric energy purchased from local markets or generated via renewable sources.

Tenaris S.A. maintains a high-cost base due to necessary, large-scale reinvestment. The company reported Significant capital expenditures totaling $495 million in 9M 2025. This level of CapEx is essential for maintaining industrial efficiency and upgrading facilities globally.

Labor and logistics are also major components of the operating expense base. The company employs over 26,000 people globally. The Selling, general and administrative expenses (SG&A) for 9M 2025 were $1,376 million, a sequential decrease from $1,459 million in 9M 2024. This reduction in SG&A was partially attributed to lower labor costs and lower logistic costs.

To sustain its market position, Tenaris S.A. invests in innovation, which shows up in its cost structure. For the year 2024, Research and development expenditures included in Cost of sales totaled $74.2 million.

Here is a breakdown of key cost-related and investment figures for the nine-month period ended September 30, 2025:

The pressure on margins is evident when comparing the 9M 2025 Cost of Sales of $5,880,619 thousand against the 9M 2025 Net Sales of $8,986,024 thousand.

Finance: draft 13-week cash view by Friday.

Tenaris S.A. (TS) - Canvas Business Model: Revenue Streams

You're looking at the core ways Tenaris S.A. brings in cash, which is heavily tied to the global energy sector's spending habits. Honestly, it's all about the steel tubes they make for drilling and moving oil and gas.

Sales of tubular products and services (OCTG, line pipe) - the core. This is where the bulk of the money comes from. For the twelve months ending September 30, 2025, Tenaris S.A. reported net sales of $11.831 billion. To give you a recent snapshot, for the first nine months of 2025 (January through September), the revenue specifically from pipe sales totaled $8.56 billion. This nine-month figure represented a 7% decrease year-on-year, largely because average selling prices dropped by 4%, driven by lower product prices in the Americas.

Here's a quick look at some of those top-line revenue numbers:

The company's Q3 2025 net sales came in at $2,978 million, which was up 2% year-on-year, even though volumes shipped were down slightly.

Sales of premium connections and integrated Rig Direct® services. These specialized products and services represent a key value-add component. In the first quarter of 2025, Tenaris S.A. saw sales increase in North America partly due to higher shipments to its US Rig Direct® customers. The resilience in Q3 2025 sales levels in the U.S. and Canada was also attributed to strong performance with Rig Direct customers. These connections are critical for high-performance drilling environments.

Sales of other products (sucker rods, coiled tubing) and oilfield services. This category provides diversification away from just large-diameter pipe. In Q3 2025, net sales for these other products and services saw a significant drop, decreasing 38% sequentially and 17% year-on-year. However, looking back at Q1 2025, sales in this segment had increased sequentially, mainly driven by higher sales of sucker rods and oil services in Argentina. Similarly, in the fourth quarter of 2024, sales were boosted by higher sales of oil services in Argentina and coiled tubing.

Income from portfolio investments, contributing $47 million in Q3 2025. Beyond the core manufacturing and services, Tenaris S.A. generates income from its financial holdings. For the third quarter of 2025, the financial result was largely due to a $47 million net finance income derived from the net return on its portfolio investments. This income stream helps buffer the operational results. You should keep an eye on this, as it can fluctuate quarter-to-quarter.

Finance: draft the Q4 2025 revenue forecast model by next Tuesday.