Tidewater (TDW) Investor presentation summary

Company overview and fleet

• Operates the largest offshore support vessel (OSV) fleet globally, with a strong presence in all major offshore regions and a diverse vessel mix supporting E&P, subsea, construction, and wind activities.

• Recent acquisition of Wilson Sons Ultratug Offshore (WSUT) enhances scale, especially in Brazil, and further solidifies market leadership.

• Fleet includes 206 owned vessels (excluding WSUT), with 70 high-specification OSVs and 18 hybrid vessels; average fleet age is 13.4 years.

• Blue-chip customer base includes major energy companies across Americas, Europe, Middle East, West Africa, and Asia Pacific.

• Focus on high-quality, large vessels through M&A, resulting in the largest and most relevant fleet in the market.

Market overview and industry trends

• Offshore activity remained resilient in 2025, with global offshore investment projected to accelerate through 2027-2028, driven by deepwater projects.

• OSV utilization rates have improved, with high active utilization for both AHTS and PSV segments.

• Day rates for OSVs have significantly improved, supporting higher margins compared to historical peaks.

• Newbuild economics require high day rates (~$44k/day) to justify investment, with limited shipyard capacity and reduced debt availability constraining new supply.

• Global OSV fleet is expected to contract by nearly half over the next decade as vessels age beyond 25 years, supporting a tightening supply-demand balance.

Financial performance and outlook

• Revenue grew from $407M in 2021 to a projected $1.45B in 2026, with adjusted EBITDA margin rising from 10% to 44% over the same period.

• Net debt/EBITDA ratio improved to 0.2x by Q1 2026, reflecting strong deleveraging and liquidity of over $805M.

• Significant cash generation is expected via day rate normalization, with unlevered vessel-level cash flow returns projected to reach up to 15% of fleet replacement value at higher day rates.

• Recent refinancing included issuing $650M of 9.125% senior unsecured notes due 2030 and establishing a $250M undrawn revolving credit facility.

• Drydock spend is managed in line with vessel age and build distribution, with average annual spend of ~$104M projected through 2026.