TDW earnings analysis
What we found in TDW's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Tidewater delivered a sequential Q2 recovery, with revenue increasing 4.9% to $342.287 million and operating income increasing 6.0% to $62.528 million, led by Europe/Mediterranean. However, first-half revenue declined 1% year over year and net income attributable to Tidewater fell 76% to $27.802 million amid higher repairs, fuel, Middle East conflict costs, foreign-exchange losses, and a tougher tax comparison. Liquidity of $616.1 million in cash plus a $250.0 million undrawn revolver supports the planned $500.0 million Wilson Companies acquisition, but execution and geopolitical risks remain material.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Sequential revenue and operating-income rebound
- Q2 revenue rose $16.065 million sequentially to $342.287 million (+4.9%), driven by higher utilization of 79.2% versus 77.7% and average day rates of $22,938 versus $22,283. Operating income increased $3.544 million to $62.528 million, producing an 18.27% operating margin versus 18.08% in Q1.
- Europe/Mediterranean drove the quarter
- Europe/Mediterranean was the principal Q2 growth contributor: revenue increased $25.131 million to $112.076 million, while vessel operating profit rose $18.804 million to $26.849 million. Utilization improved 8.5 points to 88.5% and day rates rose 10.9% to $24,341.
- Sequential earnings recovery
- Net income attributable to Tidewater increased to $21.662 million in Q2 from $6.140 million in Q1. The quarter included a $3.316 million net gain on asset dispositions from $11.5 million of proceeds from sales of two vessels and other assets.
- Liquidity supports acquisition funding
- Liquidity was substantial at June 30, with $616.1 million of cash and cash equivalents, $250.0 million of undrawn revolver capacity, and $697.3 million of working capital. The company reported $650.0 million of 9.125% senior notes maturing in July 2030.
- Operating cash flow remained positive
- First-half operating cash flow was $86.2 million, funding $29.8 million of property-and-equipment additions; this implies $56.4 million of cash flow after those additions. Capitalized vessel upgrades were $26.8 million of the $29.8 million total additions.
- Brazil fleet acquisition nearing close
- The proposed Wilson Companies acquisition has received local regulatory approvals and credit-facility change-of-control waivers. The transaction covers 22 Brazilian platform supply vessels for a $500.0 million cash purchase price, subject to adjustments including assumed debt of about $231.0 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Iran conflict raises costs and demand uncertainty
- The Iran conflict has created Middle East demand softness and incremental costs since March 2026 of approximately $4.2 million in crew wages/travel, $0.8 million in insurance, and $1.0 million in fuel. Management anticipates similar future cost increases if the conflict continues.
- West Africa utilization and profit weakened
- West Africa revenue fell $8.559 million, or 10%, sequentially to $77.255 million as utilization declined 6.2 points to 75.3% amid higher idle days. Vessel operating profit dropped $12.618 million, or 34%, to $24.612 million.
- Year-to-date profitability remains sharply lower
- Despite Q2 improvement, first-half revenue declined $6.366 million to $668.509 million year over year, while operating income fell $34.457 million, or 22%, to $121.512 million. Net income attributable to Tidewater declined $87.781 million, or 76%, to $27.802 million.
- Acquisition closing and integration exposure
- The pending Wilson transaction requires a $500.0 million cash purchase price, subject to adjustments, and includes approximately $231.0 million of assumed debt as of June 30, 2026. Closing is expected around September 1, 2026 but remains subject to completion of documentation and credit-facility amendments.
- Cash conversion declined year over year
- First-half operating cash flow decreased $67.9 million to $86.2 million from $154.1 million a year earlier. Operating working-capital changes used $41.5 million and deferred drydock/survey payments consumed $59.7 million.
- Cost inflation pressures margins
- Operating costs rose faster than revenue in the first half: vessel operating costs increased $14.600 million, or 4%, while revenue fell 1% to $668.509 million. Fuel, lube and supplies increased $8.015 million, or 27%, and repair and maintenance increased $7.866 million, or 17%.
What they reported.
What the company itself reported, taken out of the document.
- Operating margin
- 18.27%
- Segment
- Americas revenue: $53.969 million (-$4.557 million, -8% QoQ)
- Segment
- Asia Pacific revenue: $47.948 million (+$1.384 million QoQ)
- Segment
- Middle East revenue: $48.483 million (+$2.914 million QoQ)
- Segment
- Europe/Mediterranean revenue: $112.076 million (+$25.131 million QoQ)
- Segment
- West Africa revenue: $77.255 million (-$8.559 million, -10% QoQ)
What they said about what is next.
No quantitative earnings or revenue guidance was provided in the 10-Q. Management retained a positive view of a sustained offshore-energy upcycle but cited near-term Middle East uncertainty; it expects the Wilson Companies acquisition to close around September 1, 2026.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 4, 2026
- Tidewater Inc. reported a decrease in total revenue to $326.2 million for Q1 2026, down 3% from $336.8 million in the prior quarter and contrasted with a significant net income drop, from $219.4 million to $6.0 million,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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