Tenaris reported stronger-than-expected first-quarter results, but its warning about lower Middle East shipments and higher logistics costs sent the stock down more than 6%.
Tenaris shares fell more than 6% after the steel pipe maker warned that Middle East shipping disruption will weigh on second-quarter sales and margins, overshadowing a first-quarter earnings beat.
The company reported first-quarter 2026 net sales of $3.10 billion, up from $2.922 billion a year earlier. EBITDA came in at $735 million and net income at $564 million.
But management said second-quarter sales will be hit by lower shipments in the Middle East, while margins will feel the impact of higher logistics costs. Tenaris said the Middle East conflict and the outlook for the Strait of Hormuz have changed the operating backdrop for the energy industry.
Reuters-syndicated coverage said investors focused on the warning, not the quarter’s results.
The stock move underscores how quickly regional shipping and logistics issues can affect industrial companies with exposure to global energy markets, even when earnings come in ahead of estimates.
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