Tidewater (TDW) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 results with year-over-year revenue growth, gross margin expansion, and higher average day rates, supported by a high-specification fleet and strong international presence across all major offshore regions.

• Generated nearly $600 million in EBITDA and $430 million in free cash flow, with net income exceeding $333 million, and maintained a robust balance sheet with nearly $580 million in cash at year-end.

• Completed strategic internal restructuring, consolidated vessel ownership under a single U.S. entity, and announced the $500 million acquisition of Wilson Sons UltraTug Offshore, expanding presence in Brazil.

• Largest global OSV operator with 208 owned vessels, a blue-chip customer base, and a focus on safety and sustainability, targeting a 50-60% CO2e intensity reduction by 2030.

• Share count reduced by 2.5 million in 2025 through $98.2 million in repurchases; $500 million repurchase authorization remains.

Financial highlights

• Full year 2025 revenue was $1.3528 billion, up $7 million year-over-year, with gross margin at $665.8 million (49.2%).

• Adjusted EBITDA reached $598.1 million, up from $559.6 million in 2024; free cash flow for 2025 was $426 million.

• Net income reached $334.7 million, including a $201.5 million non-cash tax benefit from vessel realignment.

• Q4 2025 revenue was $336.8 million, gross margin nearly 49%, and free cash flow $151.2 million.

• Average day rate for 2025 was $22,573, up 6.1% year-over-year; active utilization at 78.7%.

Outlook and guidance

• 2026 revenue guidance raised to $1.43–$1.48 billion, with gross margin expected at 49–51%, reflecting the Wilson acquisition.

• Offshore activity and investment expected to accelerate in the second half of 2026 and through 2028, especially in deepwater.

• 80% of 2026 legacy revenue covered by backlog and options; 65% of available days under contract.

• Free cash flow for 2026 expected to remain strong, averaging around $300 million.

• Management anticipates continued tight vessel supply and potential for day rate increases as offshore drilling activity recovers.