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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 Q4 earnings of $0.33 per share missing estimates of $0.65 per share. This is a decrease from $0.7 per share a year ago. However another source indicate that Tidewater had a strong quarter with high fleet utilization and record cash generation. The company recently announced a $500 million acquisition that will expand its presence in Brazil and be immediately accretive to cash flow and earnings per share. Based on this information, one analyst recommends a buy.

1.c. Company Highlights

2. Tidewater's Q4 and Full Year 2025 Earnings: A Strong Performance

Tidewater Inc. delivered a robust financial performance in Q4 and full year 2025, with revenue of $336.8 million in the fourth quarter and $1,350,000,000 for the full year, accompanied by a gross margin of nearly 49% and $665,800,000, respectively. The company's earnings per share (EPS) came out at $4.44, significantly beating estimates of $0.768. The strong performance was driven by higher average day rates and utilization, resulting in adjusted EBITDA of $598,100,000 and free cash flow of $426,000,000 for the full year.

Publication Date: Mar -04

📋 Highlights
  • 2025 Financial Strength:: Generated $600M EBITDA and $430M free cash flow, with gross margin expanding to 49% in Q4 driven by higher day rates and utilization.
  • Strategic Acquisition:: Acquired Wilson Sons Offshore Ultratug for $500M, funded by $580M cash reserves, with pro forma net debt/EBITDA below 1x post-transaction.
  • 2026 Revenue & Margin Outlook:: Updated guidance to $1.43B–$1.48B revenue and 49–51% gross margin, supported by 80% firm backlog and integration of Wilson’s fleet.
  • Day Rate & Market Trends:: AHTS spot rates peaked at $100K/day, with expected $3K–$4K/day rate increases by 2027–2028 due to tightening supply-demand dynamics.
  • Capital Allocation Discipline:: Retained $500M share repurchase authorization, prioritizing M&A and buybacks while maintaining $300–$311M free cash flow guidance for 2026.

Operational Highlights

The company's operational performance was a key driver of its financial success, with average day rates improving by $1,300 per day to $22,573. Tidewater's largest geographic area of operation in the Middle East, particularly Saudi Arabia, continued to perform well, with business as usual despite Operation Epic Fury adding uncertainty to the region. The company's fleet utilization and day rates are expected to remain strong, driven by increasing demand for vessel usage.

Outlook and Guidance

Tidewater's outlook for 2026 remains optimistic, driven by observable offshore drilling leading indicators such as tenders and contracts, which are materially higher than earlier in 2025. The company is updating its full-year 2026 guidance to $1.43 billion to $1.48 billion in revenue, with a gross margin range of 49% to 51%, reflecting the addition of the Wilson's fleet. Approximately 80% of the midpoint of Tidewater's 2026 revenue guidance is covered by firm backlog and options.

Valuation and Metrics

With a P/E Ratio of 12.98, P/B Ratio of 3.18, and EV/EBITDA of 8.31, Tidewater's valuation metrics indicate a reasonable pricing. The company's ROIC of 13.6% and ROE of 28.11% demonstrate its ability to generate strong returns on capital and equity. Analysts estimate next year's revenue growth at 11.1%, which is expected to drive the company's financial performance further.

Future Prospects

Tidewater is well-positioned to capitalize on the increasing demand for vessel usage, particularly in regions like the Middle East, West Africa, and Brazil. The company's acquisition of Wilson Sons Offshore Ultratug is expected to drive growth in the Brazilian market. With a strong financial position, including $580 million in cash and a healthy balance sheet, Tidewater is poised to continue its growth trajectory and create value for its shareholders.

3. NewsRoom

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Tidewater Stock Has Surged Nearly 70% This Year, but One Fund Sold $5 Million in Shares Before the Rally

Mar -04

Source: fool.com

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Tidewater: Strong Quarter, Accretive Acquisition - Buy

Mar -04

Source: seekingalpha.com

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Tidewater Inc. (TDW) Q4 2025 Earnings Call Transcript

Mar -03

Source: seekingalpha.com

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Tidewater (TDW) Q4 Earnings Miss Estimates

Mar -03

Source: zacks.com

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Tidewater Reports Results for the Three and Twelve Months Ended December 31, 2025

Mar -02

Source: businesswire.com

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Tidewater Utilities Announces Customer Bill Credit Using PFAS Litigation Proceeds

Feb -27

Source: globenewswire.com

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Tidewater Announces Earnings Release and Conference Call

Feb -27

Source: businesswire.com

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Amitell Capital Pte Ltd Sells 18,354 Shares of Tidewater Inc. $TDW

Feb -26

Source: defenseworld.net

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: 5.6/10

Value: 3.9

Growth: 4.9

Quality: 5.9

Yield: 8.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
NOV

A-Score: 5.4/10

Value: 7.7

Growth: 5.4

Quality: 5.0

Yield: 4.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Tidewater

A-Score: 5.2/10

Value: 6.7

Growth: 7.2

Quality: 7.0

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Weatherford

A-Score: 4.7/10

Value: 5.9

Growth: 7.2

Quality: 6.1

Yield: 1.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Cactus

A-Score: 4.4/10

Value: 5.5

Growth: 4.4

Quality: 8.1

Yield: 2.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Oceaneering

A-Score: 4.2/10

Value: 6.3

Growth: 4.6

Quality: 6.2

Yield: 0.0

Momentum: 3.5

Volatility: 4.7

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

83.8$

Current Price

83.8$

Potential

-0.00%

Expected Cash-Flows