Tidewater Reports Results for the Nine Months Ended September 30, 2026
TIDEWATER INC (TDW) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Tidewater Inc. 842 West Sam Houston Parkway North, Suite 400 Houston, TX 77024, USA +1.713.470.5300 Tidewater Reports Results for the Nine Months Ended September 30, 2026 Third Quarter 2026 Highlights ● Revenue of $360.4 million, a 5.3% increase compared to the secon
How this was made
The 30-second read
Why it matters
The updated revenue and margin guidance, along with a positive net income swing, provide fresh data for valuation models.
Market read
Earnings beat and revised guidance could drive short‑term price appreciation, while integration risks temper longer‑term outlook.
What to watch
Integration costs of the WSUT acquisition may weigh on near‑term cash flow.
Tidewater Q3 2026 revenue of $360.4 million rose 5.3% sequentially on higher day rates; 2026 guidance updated and 2027 guidance initiated
Revenue, day rates, utilization and free cash flow improved sequentially and the company reported net income attributable to Tidewater of $17,514 thousand against a prior-year loss. Operating income ($50,333 thousand vs $62,651 thousand), nine-month diluted EPS ($0.91 vs $2.27) and cash balance ($390,844 thousand vs $428,225 thousand a year earlier) were lower than the prior-year period, and acquisition-related and conflict-related costs weighed on margins.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, Q3 2026GAAP | $360.4M | +5.3% | – |
| Vessel revenues, Q3 2026GAAP | $357.5M | – | – |
| Other operating revenues, Q3 2026GAAP | $2.87M | – | – |
| Vessel operating costs, Q3 2026GAAP | $190.2M | – | – |
| Vessel operating margin ($), Q3 2026other | $167.3M | – | – |
| Gross margin (vessel operating margin %), Q3 2026other | 46.8% | – | – |
| General and administrative, Q3 2026GAAP | $43.78M | – | – |
| Depreciation and amortization, Q3 2026GAAP | $74.71M | – | – |
| Gain (loss) on asset dispositions, net, Q3 2026GAAP | −$8K | – | – |
| Total costs and expenses, Q3 2026GAAP | $310.1M | – | – |
| Operating income, Q3 2026GAAP | $50.33M | – | – |
| Operating income as % of total revenues, Q3 2026other | 14% | – | – |
| Foreign exchange gain (loss), Q3 2026GAAP | −$3.67M | – | – |
| Interest income and other, net, Q3 2026GAAP | $4.84M | – | – |
| Interest and other debt costs, net, Q3 2026GAAP | −$16.07M | – | – |
| Loss on early extinguishment of debt, Q3 2026GAAP | none printed (—) | – | – |
| Total other expense, Q3 2026GAAP | −$14.91M | – | – |
| Income before income taxes, Q3 2026GAAP | $35.43M | – | – |
| Income tax expense, Q3 2026GAAP | $18.20M | – | – |
| Net income (loss) including noncontrolling interests, Q3 2026GAAP | $17.23M | – | – |
| Net income (loss) attributable to Tidewater Inc., Q3 2026GAAP | $17.51M | – | – |
| Diluted income (loss) per common share, Q3 2026GAAP | $0.35 | – | – |
| Basic income (loss) per common share, Q3 2026GAAP | $0.35 | – | – |
| EBITDA, Q3 2026non-GAAP | $126.2M | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $140.1M | – | – |
| Net cash provided by operating activities, Q3 2026GAAP | $75.22M | – | – |
| Free cash flow, Q3 2026non-GAAP | $90.90M | – | – |
| Additions to properties and equipment, Q3 2026GAAP | −$9.38M | – | – |
| Average day rate (worldwide), Q3 2026other | $23,775 per day | +$837 per day, or 3.7% | – |
| Weighted average leading edge day rate, Q3 2026other | $27,373 per day | +$3,033 per day, or 12.5% | – |
| Utilization, total fleet, Q3 2026other | 77.4% | – | – |
| Utilization, active fleet, Q3 2026other | 79.2% | – | – |
| Average vessels, total fleet, Q3 2026other | 212 | – | – |
| Stacked vessels, Q3 2026other | 5 | – | – |
| Total revenues, nine months 2026GAAP | $1.03B | – | – |
| Vessel revenues, nine months 2026GAAP | $1.02B | – | – |
| Vessel operating costs, nine months 2026GAAP | $537.2M | – | – |
| Gross margin (vessel operating margin %), nine months 2026other | 47% | – | – |
| General and administrative, nine months 2026GAAP | $112.2M | – | – |
| Depreciation and amortization, nine months 2026GAAP | $207.7M | – | – |
| Operating income, nine months 2026GAAP | $171.8M | – | – |
| Income before income taxes, nine months 2026GAAP | $122.4M | – | – |
| Income tax expense, nine months 2026GAAP | $78.16M | – | – |
| Net income (loss) attributable to Tidewater Inc., nine months 2026GAAP | $45.32M | – | – |
| Diluted income (loss) per common share, nine months 2026GAAP | $0.91 | – | – |
| Net cash provided by operating activities, nine months 2026GAAP | $161.4M | – | – |
| Additions to properties and equipment, nine months 2026GAAP | −$39.19M | – | – |
| Cash and cash equivalents, at September 30, 2026GAAP | $390.8M | – | – |
| Long-term debt, at September 30, 2026GAAP | $803.6M | – | – |
| Current portion of long-term debt, at September 30, 2026GAAP | $58.69M | – | – |
| Total assets, at September 30, 2026GAAP | $2.67B | – | – |
| Total equity, at September 30, 2026GAAP | $1.40B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AmericasPrior-year Q3 vessel revenue was $76,913 thousand and Q2 2026 was $53,969 thousand. Vessel operating margin was 42.1% (53.7% in Q3 2025; 39.5% in Q2 2026). Total fleet utilization was 72.1% (79.4% in Q3 2025; 68.0% in Q2 2026). The filing does not state a cause for the segment change. | $72.00M | – | – |
| Asia PacificPrior-year Q3 vessel revenue was $53,786 thousand and Q2 2026 was $47,948 thousand. Vessel operating margin was 41.3% (43.7% in Q3 2025; 45.4% in Q2 2026). Total fleet utilization was 69.9% (74.5% in Q3 2025; 74.9% in Q2 2026). The filing does not state a cause for the segment change. | $44.54M | – | – |
| Middle EastPrior-year Q3 vessel revenue was $42,035 thousand and Q2 2026 was $48,483 thousand. Vessel operating margin was 34.7% (38.8% in Q3 2025; 37.6% in Q2 2026). Total fleet utilization was 76.0% (80.3% in Q3 2025; 81.3% in Q2 2026). The release separately cites conflict-related costs in the Middle East but does not attribute this segment's revenue change to them. | $46.42M | – | – |
| Europe/MediterraneanPrior-year Q3 vessel revenue was $83,740 thousand and Q2 2026 was $112,076 thousand. Vessel operating margin was 53.8% (44.3% in Q3 2025; 50.3% in Q2 2026). Total fleet utilization was 90.4% (87.5% in Q3 2025; 88.5% in Q2 2026). Average day rate was $25,748 per day (Q3 2025: $20,752; Q2 2026: $24,341). The filing does not state a cause for the segment change. | $121.5M | – | – |
| West AfricaPrior-year Q3 vessel revenue was $82,017 thousand and Q2 2026 was $77,255 thousand. Vessel operating margin was 50.8% (53.9% in Q3 2025; 53.5% in Q2 2026). Total fleet utilization was 71.1% (62.3% in Q3 2025; 75.3% in Q2 2026). The filing does not state a cause for the segment change. | $73.05M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
FY2026 (updated) and FY2027 (initiated) outlook
- RevenueFY2026: $1.43 to $1.44 billion; FY2027: $1.70 to $1.75 billion
- Gross marginFY2026: 47.5% to 48.5%; FY2027: 51% to 53%
- NoteFY2026 gross margin guidance is inclusive of approximately 140 basis points of cost burden related to Operation Epic Fury, as stated in the release.
- NoteCompany expects approximately $19.8 million of conflict-related costs in 2026, of which approximately $8.7 million is contractually permitted to be billed back to customers.
- NoteCompany expects elevated operating costs associated with the Middle East conflict to affect the fourth quarter of 2026.
- NoteThe release does not print the prior 2026 revenue or gross margin ranges, so this filing does not state whether the 2026 guidance was raised, lowered, held or narrowed.
Capital returns
- Purchase of common stock: $(7,945) thousand in Q3 2026 and $(7,945) thousand in nine months 2026, against $(90,089) thousand in nine months 2025.
- Company states it repurchased approximately $25 million of shares since the last earnings release.
- Outstanding share repurchase authorization is $475 million as of the release date.
- Common shares outstanding were 49,664,360 at September 30, 2026. Including New Creditor Warrants (21,400) and GulfMark Creditor Warrants (48,865), the release totals 49,734,625.
What drove it
- Company states that revenue and gross margin were driven by continued strength in day rates and utilization (CEO).
- Company states that the sequential day rate increase was broad-based, with improvement across nearly all vessel classes.
- Company states that gross margin exceeded its expectations by a full percentage point due to the increase in revenue.
- Company states that the WSUT acquisition closed in Q3 2026 and materially expands its presence in Brazil. It anticipates substantially integrating WSUT by the start of 2027.
- Company states that the weighted average term contract day rate rose $3,033 per day to $27,373, a 12.5% sequential increase.
Concerns
- Operating income was $50,333 thousand in Q3 2026 against $62,651 thousand in Q3 2025. Nine-month operating income was $171,845 thousand against $218,620 thousand.
- General and administrative expense was $43,777 thousand in Q3 2026 against $35,256 thousand a year earlier. The release notes $10.2 million of acquisition, restructuring and integration costs in Q3 2026 within vessel operating and G&A costs.
- Nine-month diluted EPS was $0.91 against $2.27 in the prior-year period. Nine-month income tax expense was $78,160 thousand against $53,404 thousand, on income before taxes of $122,449 thousand against $167,408 thousand.
- Company expects elevated conflict-related operating costs in Q4 2026 and approximately $19.8 million of conflict-related costs for 2026, of which approximately $8.7 million is billable to customers.
- Long-term debt was $803,566 thousand at September 30, 2026, against $649,802 thousand a year earlier, and cash was $390,844 thousand against $428,225 thousand.
- Americas vessel operating margin fell to 42.1% from 53.7% a year earlier, and Americas revenue was $71,997 thousand against $76,913 thousand.
What to watch
- Q4 2026 operating costs linked to the Middle East conflict, and the portion billable to customers.
- Achievement of the FY2026 revenue range of $1.43 to $1.44 billion and gross margin range of 47.5% to 48.5%.
- Progress of the WSUT integration toward the start of 2027 and the acquisition-related costs (approximately $14.4 million year to date per the CEO).
- Leading edge and term contract day rate trends, against the FY2027 revenue range of $1.70 to $1.75 billion and gross margin range of 51% to 53%.
- Recovery of Americas vessel operating margin and utilization, which were 42.1% and 72.1% in Q3 2026.
- Cash balance and debt levels following the $272,975 thousand cash acquisition and the increase in long-term debt.
Balance sheet and cash flow
- Cash and cash equivalents were $390,844 thousand at September 30, 2026, against $613,544 thousand at June 30, 2026 and $428,225 thousand at September 30, 2025.
- Cash, cash equivalents and restricted cash at end of period was $394,954 thousand at September 30, 2026.
- Acquisitions, net of cash acquired, were $(272,975) thousand in Q3 2026. The release describes the all-cash acquisition of Wilson Sons Ultratug Offshore (WSUT) for $500 million.
- Noncash assumption of debt on the Wilson acquisition was $214,853 thousand in nine months 2026.
- Current portion of long-term debt was $58,694 thousand and long-term debt was $803,566 thousand at September 30, 2026. The release does not print a total debt figure.
- Cash paid for deferred drydocking and survey costs was $28,176 thousand in Q3 2026 (Q3 2025: $17,645 thousand) and $87,898 thousand in nine months 2026 (nine months 2025: $84,722 thousand).
- Net cash used in investing activities was $(282,355) thousand in Q3 2026 and $(297,307) thousand in nine months 2026.
- Free cash flow of $90,896 thousand in Q3 2026 is a non-GAAP measure. The release does not print a nine-month free cash flow figure.
- Cash paid for interest, net of amounts capitalized, was $62,908 thousand in nine months 2026 (nine months 2025: $47,234 thousand).
Analysis
Tidewater reported total revenues of $360,416 thousand for Q3 2026, against $341,113 thousand in Q3 2025, and the release prints a 5.3% sequential increase over Q2 2026 ($342,287 thousand). Vessel revenues were $357,547 thousand. The average day rate was $23,775 per day, up $837 per day (3.7%) from Q2 2026 and from $22,798 per day in Q3 2025. Total fleet utilization was 77.4%, against 75.8% a year earlier and 79.2% in Q2 2026. The weighted average leading edge day rate was $27,373 per day, up $3,033 per day (12.5%) from Q2 2026. The release does not print a prior-year leading edge figure, so the year-on-year change cannot be stated.
Margins were mixed against the prior year. Vessel operating margin was $167,306 thousand, or 46.8%, against $162,361 thousand and 48.0% in Q3 2025, and flat sequentially at 46.8%. General and administrative expense rose to $43,777 thousand from $35,256 thousand, and the release notes $10.2 million of acquisition, restructuring and integration costs in Q3 2026 within vessel operating and G&A costs. Operating income was $50,333 thousand (14% of revenue) against $62,651 thousand (18%) a year earlier. Net income attributable to Tidewater Inc. was $17,514 thousand, or $0.35 per diluted share, against a loss of $(806) thousand in Q3 2025. Q3 2025 also included a loss on early extinguishment of debt of $(27,101) thousand, which does not recur in Q3 2026. For nine months, operating income was $171,845 thousand against $218,620 thousand, and diluted EPS was $0.91 against $2.27.
Regional figures show a shift in the revenue mix. Europe/Mediterranean vessel revenue rose to $121,546 thousand from $83,740 thousand in Q3 2025, with a vessel operating margin of 53.8% (44.3% a year earlier). Middle East revenue was $46,418 thousand against $42,035 thousand, with a margin of 34.7% (38.8%). Americas fell to $71,997 thousand from $76,913 thousand, with its margin at 42.1% (53.7%). Asia Pacific was $44,538 thousand (prior year $53,786 thousand) and West Africa was $73,048 thousand (prior year $82,017 thousand). The filing does not state the cause of these movements, and the reader should weigh the segment tables directly.
Cash generation and capital allocation: net cash provided by operating activities was $75,221 thousand in Q3 2026 (Q3 2025: $72,079 thousand). Free cash flow, a non-GAAP measure, was $90,896 thousand (Q3 2025: $82,659 thousand). The company paid $272,975 thousand, net of cash acquired, for WSUT and assumed $214,853 thousand of debt in the acquisition. Long-term debt rose to $803,566 thousand from $649,802 thousand a year earlier, and cash fell to $390,844 thousand from $428,225 thousand. Share repurchases were $7,945 thousand in Q3 2026, against $90,089 thousand in the nine months of 2025, and the authorization outstanding is $475 million.
Guidance: the company updated 2026 revenue to $1.43 to $1.44 billion and gross margin to 47.5% to 48.5%, the gross margin range including approximately 140 basis points of cost burden related to Operation Epic Fury. It expects approximately $19.8 million of conflict-related costs in 2026, of which approximately $8.7 million is contractually billable, with the costs affecting Q4. It initiated 2027 guidance of $1.70 to $1.75 billion of revenue and 51% to 53% gross margin. The release does not print the prior 2026 ranges, so this read does not characterize the 2026 update as a raise, cut or hold. Figures to weigh: the nine-month free cash flow and Adjusted EBITDA are not printed, and year-on-year revenue percentages are not printed in the release.
Management, verbatim
Third quarter 2026 revenue and gross margin nicely exceeded our expectations driven by continued strength in day rates and utilization, with revenue for the quarter coming in at $360.4 million.
Quintin Kneen, President and Chief Executive Officer
Just as noteworthy, the pace of new term contract day rate acceleration continued in the third quarter, with our weighted average term contract day rate up by $3,033 per day to $27,373 an increase of 12.5% sequentially.
Quintin Kneen, President and Chief Executive Officer
We expect continued elevated operating costs associated with the conflict in the Middle East that we now anticipate to impact the fourth quarter. We expect to incur approximately $19.8 million in conflict-related costs in 2026, approximately $8.7 million of which we are contractually permitted to bill back to our customers.
Quintin Kneen, President and Chief Executive Officer
Not in the filing
stated, not guessed- No previous outlook was provided, so vs_prior_guidance is empty. The prior 2026 revenue and gross margin ranges are not printed in this filing, so the direction of the update is not stated.
- Year-on-year percentage change in total revenues, vessel revenues and operating income is not printed.
- Prior-year and prior-quarter figures for the weighted average leading edge day rate are not printed.
- Nine-month free cash flow and nine-month Adjusted EBITDA are not printed.
- Prior-quarter operating income as a percentage of revenue is not printed in the quarterly tables.
- Consensus estimates, analyst expectations and share price reaction are not in the documents.
- Segment-level year-on-year and sequential percentage changes are not printed; segment figures are vessel revenues by region.
- Total debt is not printed; only the long-term debt and current portion lines are reported.
- Gross margin as a labeled line is not printed in the financial tables; the release uses the vessel operating margin percentage and calls it gross margin in the CEO commentary.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Tidewater is the largest offshore support vessel operator, reporting Q3 results and revising its 2026 guidance.
Ticker impact
Tidewater Inc. (NYSE:TDW) released its Q3 2026 results, reporting $360.4M revenue and updated 2026 revenue guidance to $1.43‑$1.44B.
likely upside as updated guidance lifts expectations
Guidance was revised upward and net income turned positive, indicating better profitability and cash flow.
Market effects
supports offshore support vessel sector and related energy services providers.
positive for U.S. offshore energy service market.
moderate, reflects broader offshore energy demand trends.
Counterpoint
If higher operating costs from Middle East conflict erode margins, the stock could face pressure.
Key entities
- companyTidewater Inc.
Offshore support vessel operator.
- companyWilson Sons Ultratug Offshore (WSUT)
Acquired business expanding Tidewater's Brazil presence.
