Thank you, Gigi, and welcome to Tenaris 2025 fourth quarter and annual results conference call. Before we start, I would like to remind you that we will be discussing forward-looking information during the call, and that actual results may vary from those expressed or implied during the call.

With me on the call today are Paolo Rocca, our Chairman and CEO, Carlos Gomez Alzaga, our Chief Financial Officer, Gabriel Podskubka, our Chief Operating Officer, and Guillermo Moreno, President of our U.S. operations.

Before passing over the call to Paolo for his opening remarks, I would like to briefly comment our quarterly results. During the fourth quarter of 2025, sales reached 3 billion, up 5% compared with those of the corresponding quarter of the previous year, and 1% sequentially, as our sales to rig direct customers in the United States and Canada continued to show resilience, and in Argentina we resumed our fracking and coil tubing services.

Our EBITDA for the quarter was down 5% sequentially to 717 million, or 24% of sales. These results include the full impact of the 50% Section 232 tariffs in the U.S.

Average selling prices in our tube operating segment decreased by 1% compared to the corresponding quarter of last year and were flat sequentially. During the quarter, cash flow from operations was 787 million.

Our net cash position at the end of the quarter decreased to 3.3 billion following the payment of an interim dividend of 300 million in November last year, 537 million spent on share buybacks, and capital expenditure of 123 million during the quarter. The Board of Directors has decided to propose for the approval of the annual general shareholders meeting to be held at the beginning of May the payment of an annual dividend of 89 cents per share, or 178 cents per ADR, which includes the interim dividend of 29 cents per share, or 58 cents per ADR, that we paid at the end of November of last year.

If approved, a dividend of 60 cents per share or 120 cents per ADR will be paid on May 20, up 7% compared to the dividend per share of the corresponding period of the previous year, thanks to the benefit of our buyback program. Now I will ask Paolo to say a few words before we open the call to questions.

Thank you, Giovanni, and good morning to all of you. 2025 was a year in which Tenaris demonstrated the resilience of its operation in the face of a disruptive geopolitical environment and lower activity in key markets.

Thanks to our extensive geographical presence, the depth of the service we offer to our customer, and the commitment of our employees, we were able to respond rapidly to the various situations we faced. Our results remained remarkably stable through the year, which we completed with an EBITDA of 2.9 billion and a net income of 2 billion on net sales of 12 billion.

Free cash flow amounted to 2 billion, all of which were distributed to shareholders through dividend and share buybacks. We are proposing a further increase of the annual dividend per share of 7% over that for the previous year.

At the same time, we maintained a net cash position of 3.3 billion. In the U.S.

and Canada, the year was marked by further oil and gas industry consolidation and productivity improvement. A lower rig count and the extension of Section 232 tariff to the import of all steel products, including the steel bars we require for our seamless pipe operations in Bay City, and then subsequent increase to 50%.

In this environment, Tenaris raised the performance of its U.S. production and supply chain system, which couples the shop main pipe production plants at Bay City, at Hickman, and Enbridge, and various pipe processing facilities acting in concert to achieve a record level of production and supply, 90% of our U.S.

sales. In both the U.S.

and Canada, we strengthened our market position and extended the differentiation we offer under our rig direct service model. As customers are targeted operational efficiency, we continue to develop and roll out our run-ready and well integrity services that support them by increasing safety and reliability at the well site.

Major oil and gas companies are seeking new production reserves to meet a more resilient long-term demand outlook, and are looking beyond the shales, with their faster decline curves, to deepwater development and exploration in frontier regions. Tenaris, with its capacity to develop product for complex operations and to support fast-track development with service and the supply of advanced coated line pipe solutions at scale, is working with most of these companies as they develop such projects.

As new offshore projects are sanctioned around the world, we see many opportunities to renew our order backlog, while we execute on existing commitments. Currently, we are delivering casing for Shell's Sparta 20K project in the U.S.

deep water, extending our services for ExxonMobil's operation in Guyana, and preparing a service base for TotalEnergies' GranMorgu development in Suriname, while planning the production of seamless and welded line pipe and coating for the third phase of TPAO's Sakarya gas development in the Black Sea. In Latin America, the Mexican government is taking steps to address the financial difficulties of Pemex, which took a toll on oil and gas drilling activity in the country last year.

While in Argentina, domestic companies have been able to raise more than 4 billion in financing to develop infrastructure and expand production operations in the Vaca Muerta shale. We supplied the Vaca Muerta Sur pipeline and are currently supplying the Duplicar Norte pipeline.

We are also investing to expand our new fracking and coil tubing service business and expect to put a third set of equipment to work before the end of the year. In Venezuela, following the intervention of the U.S.

government, we are resuming our service to Chevron operations and building up our service capability in the country to support an increase in drilling activity. In the Middle East, we continue to consolidate our presence with the award of a long-term agreement for the supply of OCTG to the North West field development in Qatar, while in the Emirates we enhance our rig-direct service to ADNOC, delivering a record amount of OCTG.

In Saudi Arabia, also conventional drilling activity was reduced during the year. We completed an expansion at our local large diameter facility from which we are supplying line pipe for the development of gas infrastructure.

In addition to the OCTG, we supply for Aramco drilling operations. Our global integrated industrial and supply chain operation have been key to our ability to respond effectively to the different events we faced during the year.

We continue to invest in enhancing efficiency and digital integration of these operations, as well as reducing their environmental impact. We made further progress toward our mid-term target of reducing the carbon emission intensity of our operations, as we brought our second wind farm in Argentina into operation.

The two wind farms now supply essentially all of the energy requirement for our electric steel shop and operation in Canada. As an industrial company, our commitment to the safety of our employees and to the environment sustainability in our communities is absolute.

Also, our indicators have improved this year. We continue to reinforce our preventive action and monitor our performance in this aspect.

Tenaris, with its presence across the world, competitive differentiation in product and service, the quality and compliance of its operations, and financial strength to support its strategy remains well-placed to confront an unpredictable and volatile future. I would like to thank all our employees and the communities which sustain our operation for their constant commitment and engagement that have made possible our results and achievements this year.

I would also like to thank our customers and our supplier for their ongoing trust and support. Thank you very much, and we are open to any question you may have.

I wanted to start by asking about the outlook here in first quarter, and maybe you could talk about, to the extent you're comfortable, how things progress beyond first quarter. When you talked about being close to current levels in fourth quarter, is that— should we interpret that as meaning flat?

Are there any nuances with volume and price that we should be thinking about as we build that out? Then any comments sort of beyond first quarter would be great.

Thank you, Marc. Within our visibility today, and considering many parts moving in the energy market and also in the general geopolitical environment, I think it's not easy to have a medium-term forecast now.

What we see is relative stability of our performance and our position in the market during the first quarter, and it's not so easy. We do not see today points that should disrupt our operation even in the second quarter.

For the time being, as we say, we feel comfortable in forecasting first quarter in which the level of margin and, in general, the results we can get are more or less in line with the forecast. It's difficult to have a more long-term forecast considering the volatility of the environment in which we are moving.

Yep. Makes sense.

Thank you for that. Then the other one, maybe somewhat related, the margin resilience in the fourth quarter was quite good, and I'm curious how much of that benefited from some of the actions that you're taking.

I think you mentioned Koppel in the press release to try to offset some of the tariff headwind that you've experienced. I think previously we talked about that being something like $140 million a quarter of tariff costs that you're having to deal with.

I'm curious how much progress did you make on that in 4Q, and what is the opportunity going forward?

We are, let's say, continuously operating in the efficiency of our operation, including our capacity to produce more steel in the U.S. We expect for the first quarter of next year that a lower level of tariff will get into our IFRS, because in the end we are operating on this even in the past few months, and we think that what is getting into our results in the first quarter will be relatively slightly lower of what we have in the fourth quarter.

On the other side, the indicator of prices in North America, in spite of the impact on the hot rolled coils and other products of the steel industry, are moving relatively slow in the pipe business, and especially in welded pipe. Considering the impact of slightly lower tariff and where we are in terms of pipe Logix and so on, I think, and all what is moving around in the world, I think this is the component that justifies our vision of a relatively stable top line and margin data for the first quarter.

Great. Thank you very much.

I'll turn it back. Thank you.

One moment for our next question.

My first question was around the international business and on pricing, just whether you have seen any signs at all of pricing pressure, given how some of the international benchmarks have traded down, I guess since summer 2025. Any color you could give on different regions could be useful.

Thank you. Thank you, Matt.

I would say that, as our business globally is composed of many different niches: high-demanding products, different regions, different levels of service. I would say to some extent that the price impact is more easy to understand and project in North America than internationally.

By the way, I will ask Gabriel to give you a vision of what we see in front of us on the ground.

Thank you, Paolo. Good morning, Matt.

On the pricing on the international markets, we see in general some stability, a balanced demand and supply, especially on the premium products where we are mainly focused. Premium sour service, high technical qualified pipelines, this demand is quite strong, driven by offshore, by Middle East, in gas and sour service developments.

We see the demand on these segments quite stable. We have in many cases long-term agreements that have some formulas related to raw materials.

I would say that the majority of our backlog and our business in the international market are driven by stability in the pricing. It is true that there are some spot tendering where we're seeing a slight deterioration in the environment, especially when we are talking about lower-end applications.

This is not the most important part of our business, and this is something that we monitor. I would say, given all the moving pieces and the increasing component of our offshore within 2026 in our international mix, I would say that pricing in the international market are quite stable for 2026.

Thank you, Gabriel. Let me just add one point on which maybe there is the European.

In Europe, maybe it's early to perceive the impact, but the CBAM and the safeguard that is supposed to raise the tariff to 50% and reduce the quota by almost 50% may have a favorable impact on a relatively important segment of our international business that is also supported by the industrial power gen activity into Europe. To some extent, I think, in the view of the overall future of our operation, maybe not immediately, but we should be able to maybe improve our situation in pricing in Europe, and also this reflects with the present exchange rate getting into our top line relatively well.

Perfect. Thank you for all that color.

I wanted to ask a second question around the buyback if I could. I appreciate the current tranche of 600 million is still ongoing, and we'll have to sort of wait the next announcement later in the year.

I just wanted to ask, check whether your philosophy around the buyback has changed at all since last year, or should we very much expect this to continue to be a material component of shareholder returns in the near future? Thank you.

Yes, thank you. As you are saying, the General Assembly and the Board decided for a program of share buyback of 1.2 billion from May 2025 until May in 2026, divided in two tranches.

The second tranche has been approved again in October. Now, the decision obviously is to the Assembly and the Board for the decision on this ground, but the, let's say, the factors that were relevant for the decision on the shareholder didn't change so much.

We will see if, in the Assembly in May and the Board after this should decide on this, when the second tranche of 600 will be closed, they will consider the different factors: the level of cash availability in the company, the perspective of this, and on this basis they will consider the possibility to continue the program of share buyback. Perfect.

Thank you very much for all that color. Happy to pass it on.

Thank you. One moment for our next question.

I was wondering if we could talk about your expectations around potentially getting to an inflection point in the pipe Logix pricing indices, just given your thoughts on import trends and when and where do you expect us to see that pricing inflection point? Because it continues to trend down, call it in low percentage points at this point, looking at the most recent pricing data.

Yes. Thank you, Arun.

The factors that are, let's say, having an impact on the pipe Logix are different, but you should also consider that there is a pipe Logix for seamless and a pipe Logix for welded. What we see is that, to some extent, the pipe Logix for welded is having a drag down on the overall impact, something that maybe we were not fully estimating before.

Why? When we saw the hot rolled coil index going up as it is going up today, we were considering that this should have driven an increase in the welded pipe, but the import of welded pipe coming in based on the Chinese or Southeast Asia or other sources, flat product, is, let's say, containing movement in the pipe Logix for welded.

This is, to some extent, having also an impact on the pipe Logix for seamless product. Now, the hot rolled coil went up so much, there is clearing the way for some import in the welded product, and putting under stress the producer of welded product based on hot rolled coils coming from the U.S.

In my view this is kind of temporary, because anti-dumping action against importation or import of welded will contribute to gradual alignment of the pipe Logix to the higher level of the hot rolled. This is not something that we can anticipate immediately for first quarter, but over time should be acting, should be a factor.

Great. My follow-up, Paolo, I was wondering if you could just provide us your thoughts on how Argentina could play out in 2026 versus 2025.

I know that you're adding a third frac fleet in Argentina, but give us a sense of how you see things progressing in the ground, because we have seen some IOCs adding rigs in that market.

Let me tell you that, as I was saying in the previous conference call, after the election in Argentina in November, the confidence on the investment community is increasing in Argentina, and even the oil and gas companies have been able to finance more than 4 billion, collect financing from different tools that will be used to, let's say, promote and carry on investment plan during 2026. This process has been relatively gradual, but I think that over the second part of 26, and also following the biggest investment in the infrastructure, we will see this collection of financial capability will transform into a higher level of drilling in the country.

This has been slower than probably we were expecting one year ago, because opportunities are there, but also the level of country risk stayed a little higher after the election than we maybe were estimating, and this is maybe slowing down, or at least is making more gradual the pick-up in increase. Also, some of these resources have been used for consolidation in the industry, especially by local players, and after this consolidation investment will go in operation, in the development.

First, some of the acquisition has been completed, and gradually in this field drilling will increase. I would expect in the second half of 2026 we will see something moving in this sense.

I remember part of the drilling containment has been coming by the reduction of operation in the south part of the country. This is obvious.

There has been a closure of operation in the south. The key and the core of everything will be Bakken.

Thanks, Paolo. Thank you.

One moment for our next question.

I'd like to just start on the margin trajectory for Tenaris in 2026. I think, Paolo, you mentioned earlier about the impact of hot rolled coil on ERW margins.

Looking at that, I think in the U.S. those have compressed about $350 a ton since August, I guess that would equate to something like a $35-40 million quarterly cost headwind.

That will take a while to show up. When does that flow through into COGS, or is this something we shouldn't really be thinking about as a meaningful impact?

Any color there would be helpful. Then I guess on top of that, and more positively, when we look into the second half of the year, you've obviously got a lot of offshore work to materialize.

You mentioned Sakarya, Suriname, and presumably obviously that's high margin. Could we expect you to operate at the top end of your 20-25% EBITDA margin going—is that realistic going forward through the rest of the year and second half weighting?

Maybe Gabriel, you can give an overview of part of the question, then eventually we will ask Guillermo the other part.

Sure. Good morning, Sebastian.

Going to the part of your question related to offshore and how it will play out during 2026, I would say that the market in offshore is quite operating at high levels. We have a strong backlog that we need to execute.

As Paolo commented in the opening remarks, we are getting ready to deliver this impeccable execution. These are complex projects that require local deployments.

You mentioned the Suriname project. We are building the new service base in Suriname.

The first shipments will arrive in June, we are ready to deploy the OCGG and the rig direct services there into the second half of the year. We are also, for example, producing today thermal insulation coating in Nigeria to support the Shell Bonga North deepwater development.

An important part of our focus and attention is on delivering this high backlog of orders, and we expect revenues in the offshore in the first half of 2026 to be higher than the second half of 2025. We will talk about the second half.

It's true we have an important backlog of Sakarya and other projects. Some of these awards, additional awards, require FIDs.

We see some of the FIDs being announced towards the end of this year, or even in 2027. This will depend.

We don't have fully confirmed the backlog of the second half of 2026, but we are confident that it will be at least as positive as the first half of 2026. Overall, I would say the offshore contribution will be important for Tenaris, and if you look at the industry projections, the level of FIDs of deepwater that we are seeing for 2027 are pretty strong, higher than the average of 25 and 26.

We are engaging with our customers early on in those projects, much earlier than the FID. We believe that we are in an offshore cycle that is going to be sustained for a number of years.

Yes, this is very important. When we look at the estimate of the investment in deep offshore for 27 and 28, the number, apparently estimations are showing a level of investment in the range of 120 billion in 28.

That are almost three times some of the low-end years in the past two, three years. Long term looks promising for this.

Now, Guillermo, you can add on the U.S. operation, the vision.

Thank you, Paolo, and good morning, Sebastian. Regarding your question about the trajectory of margins in the U.S.

and particularly for our ERW pipes, clearly the recent increase of prices of the hot rolled coil and still the reduction of prices for the same products is putting a lot of pressure on our margins, and that is going to be reflected mainly in the second quarter. For the following quarters, with all the volatility that we are seeing, it's more difficult to forecast, as Paolo explained before, and will depend mainly on the ability of the pipe Logix to recover.

That we think that eventually will, based on the push of the cost, hot rolled coil and scrap, and also because of the expectation that the import will continue to go down in the future. Thank you very much.

I really appreciate the color. I'll hand that back now.

Thank you. One moment for our next question.

Thank you. Thanks for taking the question.

Good morning, everybody. Two things for me really.

One is can you talk a little bit about your expectations in 2026 for any material changes in working capital as we try to think about free cash flow generation? Then maybe aligned with that, what level of cash do you feel like you need on the balance sheet to run the business?

What level's excess versus what's normal necessary operational cash?

Thank you, Stephen. In general, remember it's not only a question of the capital we need to run the business, but we also need to have always in mind the capital we need to have available for any expansion or opportunity that may come in front of us.

This is an important consideration for the board, for everybody when we consider financial strategy and the flows to the shareholder. As far as the working capital is concerned, I would ask Carlos an overall view because there are some areas, like receivable from some of the key clients, that is improving.

You can give us a view of how you see this.

Sure. Thanks, Paolo.

Okay. For 2026, we expect to be quite neutral in working capital, but we will have some swings over the year, especially in first quarter.

We're expecting an increase in working capital, mainly driven by accounts receivable. As you saw during the fourth quarter, we have a big reduction in receivables, mainly driven by collections and some big collections from Pemex.

I think with Pemex, we have arrived to a level that from now on we'll maintain or increase a little bit. We won't be seeing a working capital reduction coming from there.

Then we are seeing also some terms. We are negotiating sometimes with customers in the U.S.

that might impact a little bit our working capital needs. Also we are seeing some slight increase in sales for the first quarter that will also imply an increase in accounts receivable.

Okay.

In terms of inventory, maybe for managing our, in our balance sheet, the service component of the company is very visible. We have the fixed capital that is slightly higher than our working capital because in the end we have a lot of inventory to support our service strategy and our rig direct strategy.

You think, Gabriel, we can imagine some reduction of this streamlining inventory, or we will basically imagine a stable situation here?

In general, Paolo, we are always looking for opportunities to improve. This is the case in all our rig direct programs.

We are managing and balancing the ability to supply and have the right stock at the right moment and have efficient working capital. This is a constant work.

We have done an improvement during the year that we will continue this year on the working process material. This is something related to our industrial efficiency where we have been improving and we have more room to improve.

Then there is a part of steel, as we have these important LSAW pipelines that we need to buy the steel in anticipation. Typically there is a longer lead time on these large pipelines that are also reflected throughout the year.

This is an area of attention, and we always think there is room for improvement.

This is important for projects like Sakarya.

For example,

long term, long period of time.

Yeah.

Also our operation may demand working capital for serving ad hoc. With a long operation and stock demands.

We are serving every month 550 rigs worldwide. This requires to have the right material close to these rigs.

Serving 550 rigs every day implies to keep all the inventory even in remote regions, or at least the life in the Gulf. Still, we're working every day to understand how we can optimize this.

By the way. Okay.

Thank you. Thank you.

No, that's very helpful. Thank you.

Thanks to all the color. Thank you.

One moment for our next question.

The first one is really going back to the Q2 guidance. You mentioned a bit of an impact from higher raw material cost.

I was wondering if you could perhaps quantify, give a sense of what that could be in Q2. Also as we look throughout the year, I was wondering if there is any quarter where we could see an impact from mix, for example, more line pipe versus seamless, and having an idea of the cadence of line pipe volumes I think could be quite interesting.

Also on maintenance, whether you have any big maintenance quarters. Second question on Argentina, can you comment on the level of competition that you've seen there?

We've seen an Indian company getting a contract for a pipeline, and I was wondering your thoughts about the competition there as volumes, as you pointed out, are going up possibly from second half.

Thank you. Thank you, Alessandro.

On the first point, there is, say, the impact of the raw. When we look at the medium term in terms of this, we always keep follow basically four points: the pipe Logix for seamless, the pipe Logix for welded, the cost of hot rolled coil, and the cost of scrap.

On these four variables that are moving, are acting on our, let's say, the indicator in the formula of our contract many times, and also the cost that are underlying. Up to now, what we see is an increase in the hot rolled coils that is not followed by the pipe Logix in welded because there is import from companies that could stay below the line of price, even paying 50%.

This is hitting now, to some extent, our margin, but we think that this will be a reaction by the pipe Logix, some anti-dumping action to contain import. I would ask Guillermo if you see this happening in the medium term, when we can recover the increased cost of the hot rolled coils in our top line.

I think that, following what I said before, remember there is always a lag between the pipe Logix and how they reflect in our prices. Normally we have one quarter delay, and while the impact of the hot rolled coils comes sooner than that.

Our expectation would be that we should start to see some reaction in Q3, but particularly in Q4. Yep.

Thank you, Guillermo. Now, on the line pipe seamless, after the acquisition of Shawcor, the line pipe for us is very relevant, and we are, I think, very competitive.

Maybe, Gabriel, you see some changes in the balance between two?

Paolo, Alessandro, regarding your question about the cadence of the pipeline projects, I would say that it's quite stable during the four quarters of this year. This is the visibility that we have today, and pretty much in line in volumes with what we had in 2025, where we had important projects like Sakarya, like Raya in 2025 in Brazil.

This year we are concluding some pipelines in Argentina in the first quarter and second quarter. Then we will have Sakarya in the third and fourth quarter.

We have, I would say, a relatively stable plan of pipelines in Saudi Arabia as well, and then the deep water pipelines that we have in different parts of the world. I would say there is not a significant imbalance in our shipments of line pipes.

Thank you, Gabriel. On the last point on the tender in Argentina, well, this was a tender for a large project for producing LNG in Argentina.

The project is carried on by a private company that includes different shareholders, but is a private company. They made a tender, a very open tender to everybody, and basically we lose the tender because we were higher than the lowest bidder.

The bidder, as you were saying, was an Indian company. Things like this happen, obviously.

Now what we are doing, we are analyzing the offer to see if this is an offer that is following the trade practice, or is exposed to potentially an anti-dumping case raised by us. For the time being, we didn't take the decision here.

We are just studying the condition, the condition of the local market for the Indian company, the condition of the pricing of this, because we think this is important. We also remember that, Argentina had signed an agreement with the United States in which both parties are committing themselves to address the unfair trade practices in both countries.

It is logical for the U.S. to advance or introduce clause of this in the relation with different regions, different areas, and this is part of the agreement, the Reciprocal Trade and Investment Agreement between Argentina and the U.S.

We think there should be a good environment to analyze the specific situation of this offer and this tender.

Thank you. I don't know if I can squeeze in a last one on Venezuela.

In your opening remarks you mentioned that Chevron is ramping up drilling activities. Could you quantify the Venezuela opportunities, short term, longer term for Tenaris?

Yes. On this, Gabriel, you follow closely this.

Yes, Alessandro, in Venezuela, clearly the situation is evolving. It is a dynamic environment, but clearly there are signs that things are going to move positively with the hydrocarbons law and the recent offshore licenses.

I think there are clear signs that some resumption of activity will occur. Today Tenaris is in a unique position.

We are fully serving the Chevron, the only major that is operating in Venezuela. They have a plan to accelerate rigs and demand for tubulars, and we are ramping up for that.

This is today something limited, but we expect to expand into 2026. We are also following the licenses of the other majors that might be coming back to Venezuela soon.

This is, I would say, still in the 50 million dollars for 2026, but with a clear perspective of a higher potential into 2027 and when maybe more clear plans about the other majors are materialized. Overall, a big upside potential in the midterm, depending on how things evolve.

Remember, Chevron will not be only alone. There will be other companies moving.

I think our position in Venezuela is unique. Remember, we in Venezuela were operating the only seamless pipe plant until the plant was expropriated in 2008 by the government, by Chavez.

At that time we were the company serving the oil industry in Venezuela. We also have human resources, or people that are familiar with the operation in Venezuela, the service, the complexity of this, the product demand, and so on.

Even if a lot of time passed, but we still, I think, we have a very competitive and differentiated position.

Sorry, did you say

50 million EBITDA, one five? 50 million dollars of revenue, five zero.

Revenue. Yeah.

Thank you very much. Welcome.

Thank you. One moment for our next question.

Just one for me on the Middle East and Mexico, could you share your view on the evolution for the coming quarter for both Middle East and Mexico?

Thank you. Thank you, Luigi.

Starting, let's say, from Mexico. In Mexico there has been a number of positive advances in supporting Pemex.

The government capitalized Pemex with a program of 20 billion that is important, and now Pemex is also issuing bonds and getting access to the market for important sums, like 1.7 billion. Relevant access with government guarantee.

Now, what we do not see yet is the definition of the plans that Pemex will execute during 2026. We do not have clear indication of this.

The private companies are moving slowly. Some of the group is moving.

Obviously Woodside in the Trion is moving on, but some of, let's say, the contracts that may have enabled private companies to come and develop the resources, in my view this is moving relatively slowly today. Maybe by the middle of 2026 we will have a better understanding of how they will organize, let's say, the development of the clearly huge resources that Mexico has.

Now, the question on Middle East, medium-term vision, I think Gabriel also made a comment on this.

Yes, sure, Luigi. For the question on Middle East, I would say there is not much change on what we have been reporting in the last couple of quarters.

Activity remains high. All the main key countries are investing.

We have a strong position there with our long-term agreements in Saudi, UAE, Qatar and part of the market in Iraq as well. I would expect our revenues and shipments in the next two quarters, first and second quarter of 2026, to be pretty much in line with the last two quarters of 2025.

The only noticeable news is a probable uptick of drilling activity in Saudi. This is still to be confirmed, but probably in the second quarter of 2026, and maybe later in the year we will see a comeback of rigs in Saudi, which reduced rigs during 2025.

We'll monitor that, and that could be a potential upside, but for the second half of this year on the CTG side. Thank you.

Thank you. Thank you.

One moment for our next question.

my question, which relate on shale oil, shale industry in the U.S. Let's say that since the end of 2023, we have seen declining rig counts, but a growing crude output.

Also break-evens are going strongly down according to Oil Measure. Do you think that this trend could allow a further increase of your volumes in the U.S.?

Secondly, there are several insights that the shale in the U.S. could reach a plateau in the second half of 2027.

How do you see the evolution of the shale industry in the U.S.?

Thank you. Thank you, Marco.

I would ask to Guillermo to give his view on the evolution of this. In the question of plateau, frankly, I don't think we are able to predict the plateau.

It depends on the overall price of oil around, and there are many issues that are unpredictable concerning the major production region, and so on and so forth. U.S., the plateau has been forecasted in the past at a lower level, and is continuously surprising us with higher.

I wouldn't bet on where this number would be in 2027. Guillermo, on the question of the productivity.

Yes. As you said, the operators in the U.S.

have been increasing their efficiency and productivity big time in the last two years. With a much less number of rigs, they are not only producing more, but they are drilling almost the same amount of wells, and they are even going longer.

We are seeing much less rigs, but more production, and slightly reduction in the consumption of OCTG compared to what we used. There is no such correlation that we used to have with the rig count.

Now, looking forward, we still see kind of a stable market for 2026 compared to 2025. We may see some reduction of activity, slight reduction in oil, offset by an increase of activity in gas.

As Paolo said, difficult to predict about production. Everybody's talking about plateauing, but at the same time we see them becoming more creative and producing more oil from each well with the new technologies in terms of fracking, but also in terms of the level of chemicals they use.

We need to see up to where the innovation of the industry can go, but clearly if we are not at the peak, we are not far from it with this level of activity and rig count. The other variable that we need to take into account is that even in the last two years there has been a reduction of drilled but uncompleted wells.

Some of the increase of the activity was also coming from wells that were previously drilled but not completed. The level of inventories of those wells has come to a kind of a bottom, we don't expect much more of this in the coming quarters.

Okay. Thank you.

Thank you. One moment for our next question.

I just have one question to follow on the U.S. and all those stories on the tariff implemented by the Trump administration, and notably on the recent news flow that the Trump administration could reduce the tariff on steel and aluminium.

I was wondering if you comment a bit more on what should be the implication on your side from a potential reduction on the tariff if, for example, we come back to a 50% steel tariff to 25% or something like that, just to understand the potential impact on the U.S. OCTG market if we move in that direction, please.

Thank you, Kelly. We don't know.

We only have articles on the newspaper. We do not have a written definition.

If I should say, the issue may come from the impact of the U.S. economy of the extension of the 232 to the derivative of steel.

There are many products derivative of steel, which means that they contain steel. They are basically affect the price level in the States but are not having a beneficial impact on industry in the States that is not producing this.

Now, this universe of derivative increases so much that I think the comment of Trump maybe are just indicating a willingness to reshape what is considered derivative and what is not. Remember, there has been stages of expansion of the definition of derivative, one, two, and before going to the third, he is considering what would be, let's say, not creating undue distress in the pricing system.

This is what I understood. He will reconsider the derivative more than reconsidering the level of 52 to 25, because this is a key component of the 232.

I don't see this to change. Perfect.

Understood. Thanks.

Thank you. One moment for our next question.

Hi there, and thank you for taking my questions. Firstly, and apologies if I missed the answer to this one, but I just wanted to focus on your other business segments.

Obviously a big revenue and margin recovery in 1Q, driven by your fracking and coil tubing services in Argentina. Can you just talk about how you expect that to trend through 2026 and whether we can expect a similar contribution in the first and second quarter and beyond that?

Then the second question, just if you could give us an update on your capex expectations for 2026 and kind of an outline of where you expect to be spending.

Thank you. Thank you, Jamie.

On the oil and gas, as I was saying, during the second part of 2026, we are considering that the activity of oil and gas fracking should go up. The drilling activity will also pick up later on.

There will be more need to frack. We are just bringing in one additional set of fracking because we are anticipating some increase by the end of the year, and this should drive to some increase on our activity in the second half of 2026.

This is basically the position of this. The other point, capex.

Capex will be more or less in line with what we have been spending in 2025. Looking at the forecast, we see even something lower, but I imagine that during the year new needs may come out.

Usually there is something that is coming out from specific intervention. There will be something lower when we look at this from a planning point of view today.

Maybe in the end we will be close to the level of today. Very clear.

Thank you.

Thank you, Gigi, and thank you all for joining us today. Bye.