Tidewater (TDW) investor relations material

Executive summary

• Q1 2026 revenue was $326.2 million, with gross margin just under 49%, exceeding expectations due to higher utilization and day rates, despite a sequential revenue decline.

• Net income for Q1 was $6.1 million ($0.12 per share), significantly lower than prior quarters, impacted by higher costs and geopolitical headwinds.

• Integration of the Wilson Sons Ultratug Offshore acquisition (22 vessels in Brazil for $500 million) is progressing, with closing expected by end of Q2 2026.

• Largest global OSV operator with a diversified, high-spec fleet and blue-chip customer base, maintaining a focus on safety, sustainability, and operational excellence.

• No share repurchases in Q1 as cash is reserved for the Wilson acquisition; $500 million remains authorized for buybacks.

Financial highlights

• Q1 2026 revenue was $326.2 million, down from $336.8 million in Q4 2025, with gross margin at 48.8% and adjusted EBITDA at $129.3 million.

• Net income was $6.1 million, down from $42.7 million year-over-year.

• Free cash flow for Q1 was $34.4 million, with net cash from operating activities at $19.2 million.

• Cash and cash equivalents at quarter-end were $552.3 million, with working capital of $629.7 million.

• Debt to EBITDA ratio remains below 3:1, with long-term debt at $648.6 million.

Outlook and guidance

• Full-year 2026 revenue guidance maintained at $1.43–$1.48 billion, with gross margin expected at 49–51%, assuming Wilson Sons acquisition closes by Q2 2026.

• Offshore vessel market expected to tighten further in 2026, with increased activity anticipated in the second half of the year.

• Q2 revenue expected to be flat sequentially, but gross margin to decline by about 5 percentage points due to Operation Epic Fury costs.

• 84% of legacy 2026 revenue guidance is already covered by Q1 revenue plus backlog and options.

• No significant liquidity issues anticipated from geopolitical events; sufficient cash and credit capacity to fund obligations and acquisitions.