Tidewater 2025 Q3 Earnings Earnings Miss Amid Revenue Beat

Tidewater (TDW) reported Q3 2025 earnings that missed expectations on a net loss of $0.02 per share, a 102.3% decline from the prior year, despite a 0.2% year-over-year revenue increase to $341.1 million. The company updated 2025 revenue guidance to $1.33–$1.35 billion and initiated 2026 guidance at $1.32–$1.37 billion, reflecting cautious optimism in offshore demand and operational efficiency.

Revenue

Tidewater’s total revenue rose slightly to $341.1 million in Q3 2025, with vessel operations accounting for $338.49 million and other operating revenues contributing $2.62 million. The performance was driven by higher day rates and improved fleet utilization following years of maintenance investments.

Earnings/Net Income

The company swung to a net loss of $1.02 million, or $0.02 per share, compared to a $45.99 million profit a year earlier. The decline stemmed from a $27.1 million debt extinguishment charge and softness in key markets, underscoring the negative 102.2% year-over-year change in net income.

Post-Earnings Price Action Review

Shares of Tidewater surged 11.57% during the latest trading day, reflecting positive investor sentiment despite the earnings miss. The stock added 15.87% in the most recent full week and 22.80% month-to-date, indicating strong market confidence in the company’s long-term strategy and cash flow resilience.

CEO Commentary

CEO Quintin Kneen highlighted Q3’s $341.1 million revenue and 48% gross margin, driven by higher day rates and utilization. He emphasized $83 million in free cash flow and a $500 million share repurchase program, while expressing confidence in vessel supply constraints and offshore drilling demand growth.

Guidance

Tidewater revised 2025 revenue guidance to $1.33–$1.35 billion with a 49%–50% gross margin target. For 2026, it projects $1.32–$1.37 billion in revenue and a 48%–50% gross margin, aligning with expectations of sustained EPCI demand and vessel scarcity.

Additional News

Tidewater’s $500 million share repurchase authorization and $83 million Q3 free cash flow underscore its capital deployment flexibility. The company also outlined strategic positioning for 2026–2027 offshore drilling upturns, supported by EPCI demand and vessel supply constraints. Recent M&A activity and fleet modernization efforts further bolster its competitive edge.