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- **Revenue Beat**: Q3 2025 revenue $341.1 million (+15% YoY), driven by higher day rates and utilization.
- **Margin Strength**: Gross margin 48%, up 200bps vs. guidance, with 2026 margin 48%-50%.
- **Cash Generation**: $275 million YTD free cash flow, 2026 cash position ~$800 million.
- **M&A Flexibility**: $500 million share buyback auth; leverage strategy for deals (1.25x net debt/EBITDA).
- **Market Recovery**: 2026 drilling activity expected to strengthen, supported by EPCI backlog and FPSO growth.
- **Fleet Focus**: Large PSVs and medium/large anchor handlers preferred; subsea market requires scale.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue of $341.1 million, up 15% YoY, driven by higher day rates and utilization. Full year 2025 guidance narrowed to $1.33B-$1.35B.
- **Gross Margin**: Q3 gross margin 48%, exceeding expectations due to cost control and higher utilization. 2026 gross margin guidance 48%-50%.
- **Free Cash Flow**: Generated $83 million in Q3, bringing YTD total to $275 million. Projected 2026 cash position of ~$800 million.
- **Capital Allocation**: $500 million share repurchase authorization (18% of shares). Flexible leverage strategy for M&A, targeting 1.25x net debt/EBITDA.

**【CFO Financial Commentary】**
- **Financial Results**: Q3 net loss $0.8 million (due to $27.1 million debt extinguishment charge). Adjusted EBITDA $137.9 million. Free cash flow $82.7 million.
- **Debt Refinancing**: New $250 million revolving credit facility. No debt repayments until 2030. 2025 drydock costs $105 million, 2026 guidance $124 million.
- **2026 Outlook**: Revenue $1.32B-$1.37B, flat quarterly cadence. 69% of 2026 revenue in firm backlog/options. 57% of available days covered.

**【COO Market Overview】**
- **Regional Performance**: 
  - **Europe**: Pressure on day rates, but utilization improved. UK energy policy uncertainty.
  - **Africa**: FPSO demand offset drilling slowdown. 2026 vessel movements expected.
  - **Middle East**: Day rates rising due to EPCI projects. Saudi Aramco reactivating rigs.
  - **Americas**: Brazil Petrobras projects delayed, but Caribbean/Brazil activity strong.
  - **Asia-Pacific**: Australia demand resilient. 2026 drilling projects expected.
- **Vessel Supply**: 134 OSV orders (3% of fleet). Attrition and limited newbuilds constrain supply.

**【Q&A Highlights】**
- **M&A Activity**: Constrained by non-public info, but $800 million 2026 cash position supports deals.
- **Market Recovery**: 2026 drilling activity expected to pick up, driven by EPCI backlog and FPSO growth.
- **Fleet Strategy**: Preference for large PSVs and medium/large anchor handlers. Subsea market requires scale.
- **Venezuela Case**: Potential $80 million recovery, timing uncertain but positive cash flow impact.

Tidewater Inc. (TDW) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TDW

TDW fundamentals

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