Tidewater (TDW) Q4 2024 earnings summary

Executive summary

• Revenue grew 33% year-over-year to $1.35 billion in 2024, driven by higher day rates, vessel scarcity, and the Solstad acquisition.

• Net income nearly doubled to $180.7 million, and adjusted EBITDA rose by nearly 45% to $559.6 million.

• Free cash flow tripled to $331 million, with $149 million net debt reduction and $119 million used for share repurchases.

• The company executed a disciplined capital allocation strategy, balancing M&A, share buybacks, and debt reduction.

• Largest global OSV operator with 211 owned vessels, a blue-chip customer base, and a strong international presence.

Financial highlights

• 2024 revenue reached $1.35 billion, up from $1.01 billion in 2023; adjusted EBITDA was $560 million (41% margin).

• Gross margin increased to 48.2% from 44.9% in 2023, with a full-year gross margin of $649.2 million.

• Average day rate for 2024 was $21,273, up 26.6% from 2023; Q4 day rate was $22,236.

• Net debt/EBITDA improved to 0.6x by end of 2024, reflecting strong deleveraging.

• Free cash flow conversion remained strong, supporting ongoing share repurchases.

Outlook and guidance

• 2025 revenue guidance is $1.32–$1.38 billion, with gross margin expected between 48% and 50%.

• Management expects 2025 revenue, gross margin, and free cash flow to be similar to or slightly better than 2024.

• Utilization and margins are expected to improve in the second half of 2025 as dry dock days decrease and subsea activity rises.

• 81% of 2025 revenue is supported by backlog and options, with 68% of available days contracted.

• Offshore market fundamentals remain robust, with global offshore capex expected to rise in 2026 and 2027.