Tidewater (TDW) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $342.3 million, up 4.9% sequentially, with net income of $21.7 million and Adjusted EBITDA of $133.8 million; gross margin was 46.9%, above expectations but down from Q1 due to Middle East conflict costs.

• Free cash flow for Q2 was $64.4 million, nearly doubling sequentially, and net cash from operating activities was $67.0 million.

• The Wilson Sons/WSUT acquisition, adding 22 vessels in Brazil for $500 million, is expected to close around September 1, 2026, with integration planning underway.

• Net debt was essentially zero at quarter-end, with liquidity over $850 million.

• Largest global OSV operator with a diversified, high-specification fleet and strong international presence.

Financial highlights

• Q2 2026 net income was $21.7 million ($0.43/share), with revenue up from $326.2 million in Q1 and nearly flat year-over-year.

• Adjusted EBITDA for Q2 2026 was $133.8 million, up from $129.3 million in Q1 but down from $158.7 million in Q2 2025.

• Gross margin for Q2 was $160.5 million (46.9%), above expectations but below Q1 and Q2 2025 due to higher operating costs.

• Operating costs rose to $181.8 million, impacted by higher R&M, crew wages, and conflict-related expenses.

• Cash and cash equivalents at June 30, 2026 were $613.5 million.

Outlook and guidance

• Full-year 2026 revenue guidance revised to $1.42–$1.47 billion, with gross margin expected at 49–50%.

• Q3 revenue expected to rise 3% sequentially, with gross margin at 46% due to conflict and higher expenses.

• Offshore activity and contract tendering expected to increase through 2026 and into 2027, with utilization guidance for 2026 at approximately 80%.

• Free cash flow is expected to accelerate in the second half of 2026 and into 2027.

• Sufficient liquidity to fund obligations and the Wilson Companies acquisition; no significant liquidity issues expected from geopolitical events.