Tenaris tumbles as Q2 warning flags Middle East shipment hit and margin pressure
TS•Tenaris shares are sliding after the company warned second-quarter 2026 sales will fall due to lower Middle East shipments tied to the ongoing conflict and prolonged Strait of Hormuz disruption. Management also said Q2 margins will be pressured by higher logistics costs and weaker fixed-cost absorption even as Q1 sales rose to $3.1 billion and EPS was $1.07 per ADS.
1. What’s moving the stock
Tenaris (TS) is down sharply as investors react to the company’s latest quarterly update and, more importantly, its near-term outlook. While Tenaris reported solid first-quarter 2026 results (net sales of $3.1 billion and earnings of $1.07 per ADS), the company cautioned that second-quarter sales will be affected by lower shipments in the Middle East and that margins will be squeezed by higher logistics costs and lower absorption of fixed costs—an outlook that is weighing on the shares today. (ir.tenaris.com)
