Second Quarter 2026
Filed Aug 3, 2026Tidewater reported second-quarter revenue of $342.3 million, net income of $21.7 million, Adjusted EBITDA of $133.8 million and free cash flow of $64.4 million, while updating 2026 revenue guidance to $1.42 to $1.47 billion and gross margin guidance to 49% to 50% pro forma for the WSUT acquisition.
Revenue, day rates, utilization, Adjusted EBITDA and free cash flow improved sequentially, but net income, operating income, vessel operating margin and cash flow were below the prior-year quarter, while 2026 guidance was revised to reflect a delayed WSUT closing and elevated Middle East conflict-related costs.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $342.3 million | 4.9% | – |
| Vessel revenuesGAAP | $339,731 (In Thousands) | – | – |
| Other operating revenuesGAAP | $2,556 (In Thousands) | – | – |
| Vessel operating costsGAAP | $180,746 (In Thousands) | – | – |
| General and administrative expensesGAAP | $34,845 (In Thousands) | – | – |
| Depreciation and amortizationGAAP | $66,412 (In Thousands) | – | – |
| Operating incomeGAAP | $62,528 (In Thousands) | – | – |
| Operating income marginGAAP | 18 % | – | – |
| Income tax expenseGAAP | $25,062 (In Thousands) | – | – |
| Net incomeGAAP | $21.7 million | – | – |
| Net income attributable to Tidewater Inc.GAAP | $21,662 (In Thousands) | – | – |
| Diluted income per common shareGAAP | $0.43 per common share | – | – |
| Gross marginother | 46.9% | – | – |
| Vessel operating marginGAAP | $158,985 (In Thousands) | – | – |
| Vessel operating marginGAAP | 46.8 % | – | – |
| Average day rateother | $22,938 per day | 2.9% | – |
| Weighted average leading edge day rateother | $24,341 | 7.5% | – |
| Utilization - Total fleetother | 79.2 % | – | – |
| Utilization - Active fleetother | 81.4 % | – | – |
| EBITDAnon-GAAP | $128,982 (In Thousands) | – | – |
| Adjusted EBITDAnon-GAAP | $133.8 million | – | – |
| Net cash provided by operating activitiesGAAP | $67.0 million | – | – |
| Free cash flownon-GAAP | $64.4 million | – | – |
| Six-month total revenuesGAAP | $668.5 million | – | – |
| Six-month net income attributable to Tidewater Inc.GAAP | $27.8 million | – | – |
| Six-month diluted income per common shareGAAP | $0.56 per common share | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AmericasRevenue was affected by three vessels commencing drydocks during the quarter. | $53,969 (In Thousands) | – | – |
| Asia PacificAverage fleet utilization was 74.9 % and average day rates were $37,013. | $47,948 (In Thousands) | – | – |
| Middle EastManagement said it realized its highest utilization and day rate in recent memory during the second quarter, despite elevated conflict-related costs. | $48,483 (In Thousands) | – | – |
| Europe/MediterraneanThe region recorded average day rates of $24,341 and total-fleet utilization of 88.5 %. | $112,076 (In Thousands) | – | – |
| West AfricaTotal-fleet utilization was 75.3 % and average day rates were $20,751. | $77,255 (In Thousands) | – | – |
2026 outlook
- Revenue$1.42 to $1.47 billion
- Gross margin49% to 50%
- NoteGuidance is pro forma for the previously announced WSUT acquisition.
- NoteExpected WSUT acquisition closing around September 1, 2026.
- NoteApproximately $13.1 million of conflict-related costs expected in 2026.
- NoteApproximately $7.6 million of conflict-related costs are contractually permitted to bill back to customers.
Capital returns
- Outstanding share repurchase program authorization of $500 million.
- Purchase of common stock was $— for the three months ended June 30, 2026.
- Share based awards reacquired to pay taxes were $347 (In Thousands) for the three months ended June 30, 2026.
What drove it
- Second-quarter revenue rose 4.9% compared to the first quarter of 2026.
- Average day rate increased by $655 per day, or 2.9%, compared to the first quarter of 2026.
- Weighted average leading edge day rate increased approximately $1,690 per day to $24,341.
- Management attributed day-rate improvement primarily to its largest class of PSVs and momentum across multiple regional reporting segments.
- Worldwide total-fleet utilization was 79.2 %, compared with 77.7 % in the first quarter of 2026.
- Management said utilization benefited largely from the timing of drydocks of certain vessels moving to later in the year.
- Management expects a broad pick-up in offshore activity through 2026 and into 2027, with tendering for new contracts and opportunities picking up materially.
Concerns
- Gross margin of 46.9% was down modestly from the first quarter due to costs associated with the conflict in the Middle East.
- The company expects to continue to incur conflict-related costs in the Middle East, though it expects those costs to decline.
- The company expects approximately $13.1 million of conflict-related costs in 2026.
- The WSUT acquisition closing is expected around September 1, 2026, approximately two months later than previously anticipated.
- Net income attributable to Tidewater Inc. was $21,662 (In Thousands), compared with $72,930 (In Thousands) in the prior-year quarter.
- Vessel operating margin was 46.8 %, compared with 50.3 % in the prior-year quarter.
- West Africa vessel revenue was $77,255 (In Thousands), compared with $82,909 (In Thousands) in the prior-year quarter.
What to watch
- Closing of the WSUT acquisition around September 1, 2026 and the pace of integration onto Tidewater's platform.
- The extent of conflict-related costs in the Middle East and reimbursements for direct conflict-related cost increases.
- Realized day-rate momentum, particularly for PSVs, and the weighted average leading edge day rate.
- Utilization as drydocks that moved later in the year are completed.
- Tendering activity, new term contract fixtures and demand across production support, subsea and EPCI support, and drilling support.
- Execution against 2026 revenue guidance of $1.42 to $1.47 billion and gross margin guidance of 49% to 50%.
Balance sheet and cash flow
- Cash and cash equivalents were $613,544 (In Thousands) at June 30, 2026, compared with $578,761 (In Thousands) at December 31, 2025.
- Long-term debt was $647,523 (In Thousands) and current portion of long-term debt was $5,680 (In Thousands) at June 30, 2026.
- Total assets were $2,366,260 (In Thousands) and total equity was $1,388,286 (In Thousands) at June 30, 2026.
- Net cash provided by operating activities was $86,222 (In Thousands) for the six months ended June 30, 2026, compared with $154,069 (In Thousands) for the six months ended June 30, 2025.
- Additions to properties and equipment were $29,808 (In Thousands) for the six months ended June 30, 2026, compared with $15,492 (In Thousands) for the six months ended June 30, 2025.
- Principal payments on long-term debt were $2,904 (In Thousands) for the six months ended June 30, 2026, compared with $26,541 (In Thousands) for the six months ended June 30, 2025.
Analysis
Tidewater delivered a sequentially stronger second quarter, with revenue of $342.3 million rising 4.9% from the first quarter of 2026. The operational improvement was led by a $655 per day sequential increase in average day rate to $22,938 per day, while weighted average leading edge day rate increased approximately 7.5% sequentially to $24,341. Worldwide total-fleet utilization reached 79.2 %, up from 77.7 % in the first quarter, although management said the result was largely supported by drydocks moving later in the year.
Regional mix was led by Europe/Mediterranean, where vessel revenue was $112,076 (In Thousands), total-fleet utilization was 88.5 %, and average day rates were $24,341. The Middle East generated $48,483 (In Thousands) of vessel revenue, with utilization of 81.3 % and average day rates of $14,555. Management reported no material activity disruptions in that region, but noted that its costs remain elevated relative to the pre-conflict cost structure. West Africa remained a drag on the year-over-year comparison, with vessel revenue of $77,255 (In Thousands) versus $82,909 (In Thousands) in the prior-year quarter.
Profitability improved from the first quarter but remained below the prior-year period. Operating income was $62,528 (In Thousands), compared with $58,984 (In Thousands) in the first quarter and $80,922 (In Thousands) a year earlier. Vessel operating margin was 46.8 %, compared with 48.6 % in the first quarter and 50.3 % in the prior-year quarter. Net income attributable to Tidewater Inc. was $21,662 (In Thousands), compared with $6,140 (In Thousands) sequentially and $72,930 (In Thousands) in the prior-year quarter. Adjusted EBITDA was $133.8 million, up from $129.3 million sequentially but below $163.0 million a year earlier.
Cash generation was stronger sequentially. Net cash provided by operating activities was $67.0 million and free cash flow was $64.4 million, compared with $19.2 million and $34.4 million, respectively, in the first quarter. Cash and cash equivalents were $613,544 (In Thousands) at June 30, 2026, while long-term debt was $647,523 (In Thousands). The company retained an outstanding share repurchase authorization of $500 million, but reported no common-stock purchases in the second quarter.
The company updated 2026 guidance to $1.42 to $1.47 billion of revenue and 49% to 50% gross margin, pro forma for the WSUT acquisition. The update reflects an expected closing around September 1, 2026 and continuing, though declining, Middle East conflict-related costs. Tidewater expects approximately $13.1 million of conflict-related costs in 2026 and says approximately $7.6 million is contractually permitted to be billed back to customers. The principal operating indicators to monitor are whether leading-edge pricing converts into realized rates, the timing effect from deferred drydocks, Middle East cost reimbursement, and WSUT closing and integration execution.
Management, verbatim
The second quarter of 2026 came in nicely above our expectations, driven by both revenue outperformance and lower-than-expected operating expenses.
Quintin Kneen, President and Chief Executive Officer
Realized day rates improved materially during the quarter, up $655 per day, representing the largest absolute sequential day rate improvement since the third quarter of 2024.
Quintin Kneen, President and Chief Executive Officer
We are modestly revising our 2026 revenue guidance range of $1.42 billion to $1.47 billion and our 2026 gross margin guidance range of 49% to 50% to account for the approximately two-month delay in the closing of the WSUT transaction and continued elevated, but declining, operating costs associated with the conflict in the Middle East.
Quintin Kneen, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous outlook was not provided, so no comparison of actual results with prior guidance is available.
- Non-GAAP earnings per share was not reported.
- Dividend declaration or payment information was not reported.
- Forward operating-expense guidance was not reported.
- Forward tax-rate guidance was not reported.
- A reported percentage change for each regional segment's revenue was not provided.
- A reported year-over-year percentage change for total revenue, operating income, net income, EBITDA, Adjusted EBITDA, operating cash flow and free cash flow was not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.