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,…
Earnings analysis · 10-Q
TDW earnings analysis
Filed August 3, 2026 · Our reading of the company's report
The latest report
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…
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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.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Operating margin
- 18.27%
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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%.
Management's outlook
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.
Earlier filings 1
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