Tidewater reported higher third-quarter revenue and earnings, with stronger vessel day rates and utilization, and raised its full-year 2026 revenue outlook. The offshore vessel operator also began providing 2027 guidance, reported the completion of its $500 million cash acquisition of Wilson Sons Ultratug Offshore, and said it had continued buying back shares.
The quarter showed year-over-year revenue growth, while net income for the first nine months was substantially below the year-earlier period. Tidewater’s new 2027 outlook points to higher revenue and margins than its current-year guidance.
Key details
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Third-quarter revenue was $360.4 million, up 5.3% from the second quarter and 5.7% from the year-earlier quarter. Revenue for the first nine months was $1.03 billion, compared with $1.02 billion a year earlier.
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Net income was $17.5 million, or 35 cents per share, for the quarter, compared with a loss of $800,000, or 2 cents per share, a year earlier. For the first nine months, net income was $45.3 million, or 91 cents per share, down from $114.8 million, or $2.27 per share.
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Adjusted EBITDA was $140.1 million. Net cash from operating activities was $75.2 million, and free cash flow was $90.9 million.
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Vessel pricing improved. The average day rate rose by $837, or 3.7%, from the second quarter to $23,775 per day. Tidewater’s weighted average day rate on leading-edge term contracts increased by $3,033, or 12.5%, to $27,373 per day. The company said day-rate gains were broad-based across nearly all vessel classes.
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Gross margin was 46.8%, one percentage point above management’s expectations, which the chief executive attributed to higher revenue.
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The 2026 outlook was raised. Tidewater now expects revenue of $1.43 billion to $1.44 billion and gross margin of 47.5% to 48.5%. The margin outlook includes an estimated 140 basis points of cost burden related to Operation Epic Fury.
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Tidewater introduced 2027 guidance of $1.70 billion to $1.75 billion in revenue and a 51% to 53% gross margin. The release labels that margin range as 2026, even though it is presented alongside the 2027 revenue outlook and differs from the separate 2026 margin guidance.
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The $500 million all-cash acquisition of Wilson Sons Ultratug Offshore closed during the quarter. Tidewater said the deal materially expands its presence in Brazil and that integration work is progressing.
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Share repurchases continued. Tidewater bought back about $25 million of shares since its prior earnings release and had $475 million remaining under its share-repurchase authorization.