Is Tenaris S.A. (TS) Stock a Good Investment in 2025? Key Insights for Investors

Tenaris S.A. (NYSE: TS) is a leading global manufacturer of steel pipes, catering to oil & gas, industrial, and infrastructure sectors. As the world undergoes rapid energy transitions, and with increased drilling activity and rising oil prices, Tenaris is positioned to capitalize on higher demand for premium steel pipes.

Key factors driving investor interest in TS stock:

• Surging oil prices increasing demand for seamless steel pipes in drilling operations.
• Major infrastructure investments supporting long-term steel demand growth.
• Expansion into renewable energy markets, including hydrogen pipelines and carbon capture.
• Improving financial performance, with strong revenue growth and increasing margins.

Is TS stock a good investment in 2025? This article dives deep into Tenaris stock analysis, evaluating its financials, industry trends, risks, and expert analyst ratings to determine whether it’s a buy, hold, or sell in 2025.

Company Overview & Business Model

Tenaris S.A. (NYSE: TS) is a global leader in steel pipe manufacturing, specializing in seamless and welded steel pipes used in oil & gas exploration, industrial applications, and infrastructure projects. The company operates in over 30 countries, with a robust supply chain network and state-of-the-art manufacturing facilities spread across North America, South America, Europe, and the Middle East.

Revenue Streams Driving Growth

Oil & Gas Sector
Tenaris is a key supplier of premium seamless pipes to top energy giants like ExxonMobil, Chevron, and Shell. With rising oil demand and offshore drilling expansion, Tenaris benefits from a steady pipeline of contracts supporting global energy production.

Infrastructure & Industrial Applications
Beyond energy, Tenaris provides high-quality steel pipes for the construction, transportation, and heavy machinery sectors. As global infrastructure spending rises, the company stands to gain from increasing demand for steel-based solutions.

Energy Transition & Renewable Investments
Tenaris is actively investing in low-carbon technologies, including hydrogen transportation pipelines and carbon capture solutions. The company’s expansion into renewable energy aligns with global sustainability goals, positioning it as a key player in the energy transition era.

With global energy demand rising, increased offshore drilling activity, and a resilient steel supply chain, TS stock is well-positioned for long-term growth.

TS Stock Performance: Recent Trends & Price Movements

Stock Snapshot: Latest Performance Overview

Tenaris S.A. (NYSE: TS) has shown strong market performance over the past year, driven by rising energy demand and robust industrial sector growth. Below are the key metrics reflecting the stock’s recent price movements and valuation:

Current Market Data:

• Current Price: $38.04
• 52-Week High: $40.73 (Down 5.51% from peak)
• 52-Week Low: $27.24 (Up 41.26% from lows)
• S&P 500 52-Week Change: 9.48% (Comparative benchmark growth)
• Average True Range (ATR): 0.99 (Indicating moderate price volatility)
• Market Cap: $21.2 billion (Reflecting company size and valuation)
• Price-to-Earnings (P/E) Ratio: 10.63 (Suggesting relative affordability compared to sector peers)

The stock’s impressive 41% rebound from its 52-week low signals strong investor confidence in Tenaris’ future growth, especially as the company benefits from a positive outlook in the energy and infrastructure sectors.

Financial Performance & Valuation

Tenaris (TS) Q4 2024 Earnings Report: Key Highlights

Tenaris S.A. (NYSE: TS) posted its Q4 2024 financial results, showing a mixed performance compared to the previous quarter. While net income declined slightly, the company demonstrated operational efficiency and revenue growth.

• Net Income: Reported at $268 million, reflecting a slight decline from $291 million in Q3 2024.
• Earnings Per Share (EPS): Increased to $0.47, up from $0.40 in the previous quarter, indicating stronger profitability.
• Operating Income: The company reported $558 million in Q4, up from $537 million in Q3, showcasing improved operational efficiency.
• Gross Profit Margin: Maintained at 5.46%, underscoring steady profitability despite market fluctuations.

However, the EPS figure fell short of analysts’ expectations, missing the estimated $0.71 by -33.75%. On the other hand, revenue beat expectations, reaching $2.85 billion, surpassing the forecasted $2.71 billion by 5.18%.

Despite the earnings miss, Tenaris continues to see strong revenue growth, driven by increased demand for its steel pipe solutions. The results reflect profitability challenges but also reinforce the company’s resilience in a volatile industry environment. Investors may find TS stock an interesting prospect, given its revenue strength and operational improvements.

Key Valuation Metrics (vs. Competitors):

  Tenaris stock appears undervalued, with a lower P/E ratio than its competitors, suggesting a strong potential for future growth.

  TS offers an attractive dividend yield of 3.45%, significantly higher than STLD (1.47%) and MT (1.56%), making it an appealing income-generating investment.

  The company’s debt-to-equity ratio of 0.04 is notably lower than its industry peers, reflecting a solid balance sheet and financial stability.

Industry & Market Outlook: What’s Driving TS Stock in 2025?

1. Rising Oil & Gas Demand

• Global oil demand projected to grow by 3% in 2025.
• Increased offshore drilling driving demand for Tenaris’ premium steel pipes

2. Infrastructure & Industrial Growth

• Massive global infrastructure projects supporting steel demand
• Government incentives for construction projects fueling TS stock price

3. Renewable Energy & Hydrogen Pipeline Expansion

• TS investing in hydrogen-ready pipelines to support the global energy transition
• Potential new revenue streams from clean energy initiatives

Recent Analyst Ratings for Tenaris (TS) Stock in 2025

Wall Street analysts maintain a bullish outlook on Tenaris (NYSE: TS), with multiple firms raising their price targets in recent updates.

• Average Analyst Price Target: $50, suggesting a potential upside of 15-20% from current levels.
• Analysts remain optimistic about Tenaris, citing strong revenue growth, industry demand, and financial stability as key factors driving their positive ratings.
• The consensus reinforces TS stock’s potential as a strong investment in 2025.

With rising price targets and continued analyst confidence, TS stock remains a promising pick for long-term investors looking to capitalize on energy sector expansion and global infrastructure development.

Risks & Challenges Facing TS Stock

While Tenaris (NYSE: TS) presents strong growth potential, investors should be aware of several key risks that could impact its performance in 2025 and beyond.

1. Oil Price Volatility

Since Tenaris relies heavily on the oil & gas sector, any fluctuations in crude oil prices can significantly impact demand for its drilling pipes and related products.

• A decline in oil prices could lead to reduced exploration and drilling activities, directly affecting Tenaris’ revenue and profitability.
• Geopolitical factors, OPEC production cuts, and global economic slowdowns can all contribute to oil price uncertainty.
• If major energy companies cut capital expenditures, Tenaris may see lower sales volume for its seamless steel pipes.

2. Supply Chain Disruptions

Global supply chain constraints continue to pose challenges for companies relying on steel and raw materials.

• Geopolitical tensions (such as trade conflicts between the U.S. and China) or sanctions on key steel-producing nations could increase raw material costs, squeezing margins.
• Disruptions in logistics and freight transportation could delay product deliveries, impacting Tenaris’ ability to fulfill contracts.
• A shortage of skilled labor or manufacturing slowdowns could affect production efficiency and operating costs.
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3. Environmental Regulations & ESG Pressures

As the world moves toward clean energy and carbon neutrality, traditional oil & gas-related businesses face increasing environmental, social, and governance (ESG) scrutiny.

• Governments worldwide are implementing stricter emissions regulations, which could limit future fossil fuel investments, reducing demand for Tenaris’ products.
• Investors shifting toward ESG-friendly assets could lead to lower institutional interest in TS stock.
• Tenaris has invested in energy transition solutions (such as hydrogen pipelines), but the company remains heavily exposed to fossil fuels, creating long-term sustainability concerns.

Institutional Ownership of TS Stock

Institutional investors hold approximately 9.75% of Tenaris S.A. (NYSE: TS) shares, indicating a moderate level of interest from large financial institutions.

• ORBIS ALLAN GRAY LTD is the largest institutional investor, owning 7.53 million shares valued at $295.77 million, representing a 1.3% stake in the company.
  
  
• CAMPBELL & CO INVESTMENT ADVISER LLC holds 71,010 shares, valued at $2.79 million, translating to a 0.01% stake in Tenaris.

While institutional ownership remains below major industry benchmarks, the presence of long-term investment firms suggests confidence in Tenaris’ growth trajectory and market position. However, higher institutional involvement could further stabilize TS stock and attract additional investor interest in the future.

The Verdict: Should You Buy, Hold, or Sell TS Stock in 2025?

Bullish Case: Why TS Stock Could Surge

• Robust Financial Performance: Tenaris has demonstrated consistent revenue growth, with Q4 2024 earnings showing increased operating income and EPS.
  
  
• Expanding Oil & Gas Demand: The rising need for energy infrastructure, coupled with global drilling activity, supports higher demand for Tenaris’ pipeline solutions.
  
  
• Diversification into Clean Energy & Infrastructure: TS is expanding into renewable energy pipelines, hydrogen solutions, and industrial applications, securing long-term revenue streams beyond fossil fuels.

Bearish Case: Potential Challenges for TS Stock

• Oil Price Volatility: A decline in crude oil prices could slow drilling activity and reduce demand for steel pipes.
  
  
• Supply Chain Disruptions: Geopolitical uncertainties and rising raw material costs pose risks to profitability and production efficiency.
  
  
• Environmental & Regulatory Pressures: ESG initiatives and carbon reduction policies may challenge TS’s ability to expand in traditional fossil fuel markets.

Final Recommendation:

• Buy if you’re a long-term investor looking for exposure to a market-leading steel infrastructure company with strong fundamentals.
  
  
• Hold if you’re waiting for a lower entry point, as short-term oil price fluctuations could create buying opportunities.
  
  
• Avoid if you prioritize high-dividend yields, as TS is more of a growth-oriented stock than an income-generating asset.