Tidewater (TDW) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $341.4 million, up slightly year-over-year, with net income of $72.9 million and adjusted EBITDA of $163 million, supported by higher day rates and strong operational performance.

• Gross margin exceeded 50% for the third consecutive quarter, driven by cost control and operational efficiency.

• Free cash flow for Q2 was $97.5 million, with H1 2025 total over $192 million, and cash and equivalents at quarter-end of $369.4 million.

• Announced a $500 million share repurchase program, with 1.4 million shares repurchased in Q2 for $50.8 million.

• Largest global OSV operator with 211 owned vessels, expanded by acquiring 37 Solstad Offshore vessels, and a blue-chip customer base across all major offshore regions.

Financial highlights

• Q2 2025 net income was $72.9 million ($1.46/share), up from $50.4 million ($0.94/share) in Q2 2024.

• Adjusted EBITDA for Q2 2025 was $163 million, up from $154.2 million in Q1, with a margin of approximately 47.8%.

• Average day rate for Q2 2025 was $23,166, up 9.6% year-over-year; vessel utilization was 74.1%, down from 80.5% in Q2 2024.

• Free cash flow for Q2 2025 was $97.5 million, up from $87.6 million in Q2 2024.

• Pro forma for July 2025 refinancing, $650 million of 9.125% senior unsecured notes due 2030 issued, repaying prior debt and enhancing liquidity.

Outlook and guidance

• Full-year 2025 revenue guidance reiterated at $1.32–$1.38 billion, with gross margin guidance of 48–50%.

• 93% of 2025 revenue guidance is already covered by completed and contracted revenue.

• Q3 revenue expected to decline 4% sequentially, with gross margin at 45%; utilization projected to improve in Q4 as dry dock days decrease.

• Long-term outlook for international and offshore markets remains strong, with global offshore capital commitments expected to rebound in 2026.

• Management remains optimistic about offshore vessel activity despite commodity price and macroeconomic uncertainty.