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1. Company Snapshot

1.a. Company Description

Tidewater Inc., together with its subsidiaries, provides offshore marine support and transportation services to the offshore energy industry through the operation of a fleet of marine service vessels worldwide.It provides services in support of offshore oil and natural gas exploration, field development, and production, as well as windfarm development and maintenance, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, and production activities; offshore construction, and seismic and subsea support; geotechnical survey support for windfarm construction; and various specialized services, such as pipe and cable laying.The company operates and charters deepwater vessels, including platform supply and horsepower anchor handling tug supply vessels for use in transporting supplies and equipment from shore bases to deepwater and intermediate water depth offshore drilling rigs and production platforms; towing-supply vessels for use in intermediate and shallow waters; and crew boats, utility vessels, and offshore tugs to transport personnel and supplies from shore bases to offshore drilling rigs, platforms, and other installations.


It also operates offshore tugs for use in tow floating drilling rigs and barges; and assisting in the docking of tankers, as well as in pipe and cable laying, and construction barges.The company serves oil and natural gas exploration, field development, and production companies; mid-sized and smaller independent exploration and production companies; foreign government-owned or government-controlled organizations, and other related companies; drilling contractors; and other companies, such as offshore construction, windfarm development, diving, and well stimulation companies.As of December 31, 2021, it owned 135 vessels.


Tidewater Inc.was incorporated in 1956 and is headquartered in Houston, Texas.

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1.b. Last Insights on TDW

Breaking News: Tidewater Inc reported Q3 earnings of $0.53 per share beating estimates of $0.46 per share. This is a decrease from earnings of $0.87 per share in the same quarter last year. The company's earnings call featured executives including the President, CEO, and CFO. Analysts from firms such as Raymond James and BTIG participated in the call. The company recently reported better than expected earnings and revenue. Analysts James Rollyson and Gregory Lewis from Raymond James and BTIG respectively, have recently given a buy recommendation.

1.c. Company Highlights

2. Tidewater's Strong Q2 Performance Driven by Higher Day Rates and Strengthened FX

Tidewater's second quarter 2025 earnings report highlights the company's strong financial performance, with revenue exceeding expectations at $341.4 million and gross margin reaching 50.1%. The average day rate set a new quarterly record at $23,166, driven by higher leading-edge day rate contracts and strengthened foreign exchange rates. The company generated $98 million of free cash flow, bringing the first half of 2025 total free cash flow to over $192 million. As stated by Samuel R. Rubio, "We reported net income of $72.9 million for the quarter, with revenue up 2% to $341.4 million. Gross margin percentage remained steady at 50.1%."

Publication Date: Aug -09

📋 Highlights
  • Revenue & Margin Growth: Q2 revenue hit $341.4M, surpassing expectations, with gross margin at 50.1%.
  • Free Cash Flow Surge: Generated $98M in Q2, totaling $192M for H1 2025.
  • Debt Refinancing & Flexibility: Closed $650M bond and $250M credit facility, enabling $500M share repurchase (20% of market cap).
  • M&A Prioritization: Acquisitions remain key capital allocation focus over buybacks, with $51M spent on repurchases in Q2.
  • Market Outlook: Predicts drilling recovery in 2026-2027, with Q3 revenue down 4% due to near-term drilling market softness.

Capital Allocation and M&A

Tidewater recently closed a $650 million unsecured bond issuance, refinancing its previous debt and establishing a long-term unsecured debt capital structure. The company also put in place a $250 million revolving credit facility, providing significant financial flexibility. This new capital structure allows for increased capacity for shareholder returns, and the Board of Directors has approved a $500 million share repurchase program, equivalent to over 20% of the company's closing market capitalization. The company remains committed to pursuing M&A opportunities, prioritizing acquisitions over share repurchases when they add more value to shareholders.

Offshore Vessel Market Outlook

Tidewater expects near-term softness in the offshore vessel market, particularly in the drilling market, but remains confident in the fundamentals across its service lines. The company believes that subsea and production-related activity will continue to grow, eventually leading to increased drilling activity and higher day rates. The vessel supply outlook remains unchanged, with limited new build activity expected and vessel supply limitations seen as a tailwind over the coming years.

Guidance and Valuation

The company reiterated its full-year 2025 revenue guidance of $1.32 billion to $1.38 billion and gross margin range of 48% to 50%. With a P/E Ratio of 14.34 and a Free Cash Flow Yield of 10.07%, the company's strong financial performance and capital allocation strategy seem to be priced in to some extent. However, with analysts estimating next year's revenue growth at 3.8%, there may still be upside potential for the stock.

3. NewsRoom

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Tidewater Inc. (TDW) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

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Tidewater (TDW) Beats Q3 Earnings and Revenue Estimates

Nov -11

Source: zacks.com

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Tidewater Reports Results for the Nine Months Ended September 30, 2025

Nov -10

Source: businesswire.com

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Tidewater Announces Earnings Release and Conference Call

Nov -04

Source: businesswire.com

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Tidewater (TDW) Projected to Post Earnings on Thursday

Oct -30

Source: defenseworld.net

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Tidewater Inc. $TDW Shares Sold by Yousif Capital Management LLC

Oct -23

Source: defenseworld.net

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Tidewater Inc. (NYSE:TDW) Given Consensus Recommendation of “Hold” by Analysts

Oct -22

Source: defenseworld.net

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Time to Buy These Top Oil & Energy Stocks: CRC, NCSM, TDW

Sep -25

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.60%)

6. Segments

Vessel - West Africa

Expected Growth: 5.0%

The growth is slightly lower than the global average due to the mature nature of the oil industry in West Africa. However, the demand for support vessels is expected to remain steady, driven by ongoing exploration and production activities.

Vessel - Europe/Mediterranean

Expected Growth: 6.0%

The growth is higher than the global average due to the region's complex regulatory environment and the need for specialized vessels. The established oil and gas infrastructure also supports demand for support vessels.

Vessel - Americas

Expected Growth: 5.5%

The growth is in line with the global average, driven by the ongoing demand for support vessels in deepwater operations. However, fluctuations in US shale production and offshore exploration may impact the segment's growth.

Vessel - Asia Pacific

Expected Growth: 6.5%

The growth is higher than the global average due to the region's growing energy demand and increasing offshore exploration and production activities. The demand for support vessels is expected to remain strong, driven by the need for infrastructure development.

Vessel - Middle East

Expected Growth: 5.2%

The growth is slightly lower than the global average due to the region's geopolitical tensions. However, the demand for support vessels is expected to remain steady, driven by ongoing exploration and production activities.

Unallocated Other Operating Profit

Expected Growth: 5.6%

The growth is in line with the global average, assuming that the unallocated operating profit will grow at a similar rate to the overall business.

7. Detailed Products

Offshore Support Vessels

Tidewater Inc. provides a fleet of offshore support vessels that offer a range of services including transportation of cargo, equipment, and personnel to offshore oil and gas platforms.

Towing and Anchor Handling

Tidewater's towing and anchor handling services provide assistance to offshore drilling and production units, including towing of rigs and anchor handling for semi-submersibles and drillships.

Crew Transportation

Tidewater offers crew transportation services, providing safe and efficient transportation of personnel to and from offshore oil and gas platforms.

Cargo Transport

Tidewater's cargo transport services provide transportation of equipment, supplies, and materials to offshore oil and gas platforms.

Platform Supply

Tidewater's platform supply services provide delivery of fuel, water, and other essential supplies to offshore oil and gas platforms.

Emergency Response

Tidewater offers emergency response services, providing rapid response to offshore emergencies, including search and rescue operations.

8. Tidewater Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Tidewater Inc. is medium due to the availability of alternative transportation services.

Bargaining Power Of Customers

The bargaining power of customers for Tidewater Inc. is low due to the lack of concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Tidewater Inc. is high due to the high concentration of suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Tidewater Inc. is medium due to the moderate barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry for Tidewater Inc. is high due to the high level of competition in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.47%
Debt Cost 9.50%
Equity Weight 58.53%
Equity Cost 9.99%
WACC 9.78%
Leverage 70.84%

11. Quality Control: Tidewater Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Archrock

A-Score: 5.9/10

Value: 4.2

Growth: 4.6

Quality: 5.2

Yield: 8.0

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
NOV

A-Score: 5.0/10

Value: 7.6

Growth: 5.6

Quality: 5.1

Yield: 4.0

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Oceaneering

A-Score: 4.4/10

Value: 6.0

Growth: 4.6

Quality: 6.0

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Weatherford

A-Score: 4.4/10

Value: 6.1

Growth: 7.4

Quality: 5.9

Yield: 1.0

Momentum: 2.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Cactus

A-Score: 4.4/10

Value: 5.4

Growth: 4.4

Quality: 8.1

Yield: 2.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Tidewater

A-Score: 4.3/10

Value: 6.4

Growth: 7.2

Quality: 7.2

Yield: 0.0

Momentum: 2.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

58.92$

Current Price

58.92$

Potential

-0.00%

Expected Cash-Flows