Tidewater Q2 net income drops on higher costs; updates revenue, margin guidance

Tidewater

03/08/2026 21:34

Overview
Offshore support vessel operator's Q2 revenue rose 4.9% sequentially, nearly flat yr/yr
Q2 net income and EPS fell sharply from prior year on higher operating costs
Company updated 2026 revenue and margin guidance, maintains $500 mln share repurchase program

Outlook
Tidewater now sees 2026 revenue between $1.42 bln and $1.47 bln
Company expects 2026 gross margin of 49% to 50%
Tidewater anticipates about $13.1 mln in 2026 conflict-related costs, with $7.6 mln billable to customers

Result Drivers
DAY RATE IMPROVEMENT - Co said realized and contract day rates rose sequentially, driven mainly by its largest class of PSVs and across multiple regions
HIGHER UTILIZATION - Utilization exceeded expectations, largely due to timing of vessel drydocks moving later in the yr
CONFLICT-RELATED COSTS - Operating costs remained elevated due to Middle East conflict, though co incurred less than anticipated and received some reimbursements

Company press release: ID:nBw4TBwSpa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Vessel Revenues
 
$339.73 mln
 
Q2 Net Income
 
$21.08 mln
 
Q2 Basic EPS
 
$0.44
 
Q2 Operating Income
 
$62.53 mln
 
Q2 Pretax Profit
 
$46.14 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the oil related services and equipment peer group is "buy."
Wall Street's median 12-month price target for Tidewater Inc is $88.00, about 17.2% above its July 31 closing price of $75.06
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 20 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)