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Tidewater
(NYSE:TDW)
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Rating:69Neutral
Price Target:
$90.00
▼(-2.51% Downside)
Action:Downgraded
Date:10/05/26
TDW scores highest on financial performance and earnings momentum—strong multi-year profitability/FCF recovery, strong balance sheet positioning, and constructive FY2026 guidance with solid backlog coverage. The overall score is held back by weak near-term technicals (below key moving averages with negative MACD) and added Brazil financing/covenant complexity from recent corporate events, while valuation looks reasonable but lacks dividend support.
Positive Factors
Strong Profitability and Cash Generation
Tidewater has progressed from earlier losses to strong profitability and positive cash generation. Robust EBITDA and free cash flow provide funding for fleet investment, debt obligations, and acquisitions while reducing reliance on external capital through the cycle.
Negative Factors
Recent Margin and Cash-Flow Compression
The recent decline in margins and free cash flow shows that improved historical performance is not translating fully into current-period expansion. Persistent compression could limit reinvestment capacity and reduce the earnings benefit from stronger rates or utilization.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Profitability and Cash Generation
Tidewater has progressed from earlier losses to strong profitability and positive cash generation. Robust EBITDA and free cash flow provide funding for fleet investment, debt obligations, and acquisitions while reducing reliance on external capital through the cycle.
Read all positive factors
Tidewater (TDW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.01B
Dividend Yield0.11%
Average Volume (3M)554.99K
Price to Earnings (P/E)16.3
Beta (1Y)0.96
Revenue Growth-1.02%
EPS Growth28.16%
CountryUS
Employees7,300
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)4.98
Shares Outstanding49,756,230
10 Day Avg. Volume543,233
30 Day Avg. Volume554,994
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)1.85
Price to Sales (P/S)1.87
P/FCF Ratio7.15
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue2.51
Enterprise Value/Gross Profit8.76
Enterprise Value/Ebitda7.75
Forecast
1Y Price Target
$101.67Price Target Upside10.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)2.8
Revenue Forecast (FY)$1.44B
Tidewater Business Overview & Revenue Model
Company Description
Tidewater Inc., along with its subsidiaries, provides essential marine support and transportation services globally for the offshore energy industry, leveraging its diverse fleet of specialized vessels. Its core activities include facilitating off...
How the Company Makes Money
Tidewater primarily makes money by chartering its offshore support vessels to customers engaged in offshore energy activities. Revenue is generated mainly through time-based vessel charters (hire/day-rate arrangements) and related marine services,...
Tidewater Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive operational and financial momentum — revenue and cash flow beat expectations, day rates showed notable sequential acceleration (+7.5% weighted average leading edge), utilization improved, and backlog coverage is strong (~91% of midpoint guidance). The company also highlighted a strong balance sheet and near-term incremental free cash flow from the Wilsons acquisition. Key risks and short-term headwinds include Operation Epic Fury-related costs (~$6.8M in Q2, ~$4M expected in Q3), a >50% sequential increase in fuel expense, slow collection on reimbursable war costs, regional margin softness (notably Africa and APAC), and temporary guidance reduction tied to a later acquisition close and deferred dry docks. On balance, the positives around revenue growth, day‑rate momentum, cash generation, balance sheet strength, and pipeline/backlog outweigh the transitory cost and timing headwinds.Positive Updates
Revenue Beat and Sequential Growth
Q2 revenue of $342.3M, up from $326.2M in Q1 (sequential increase). Management reported Q2 revenue and gross margin exceeded expectations.
Negative Updates
Operation Epic Fury Costs and Ongoing Conflict Impact
Direct conflict-related costs of ~$6.8M incurred in Q2 ( ~$9.2M YTD). Management expects approximately $4M of conflict-related costs in Q3 and indicated these elevated costs could continue for an uncertain duration.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Beat and Sequential Growth
Q2 revenue of $342.3M, up from $326.2M in Q1 (sequential increase). Management reported Q2 revenue and gross margin exceeded expectations.
Read all positive updates
Company Guidance
Tidewater updated full‑year 2026 guidance to $1.42–$1.47 billion of revenue and 49%–50% gross margin, assuming a ~Sept. 1 close of the Wilsons acquisition and ~80% full‑year utilization (inclusive of Wilsons) with ~11% of capacity uncontracted; H1 revenue plus firm backlog/options and Wilsons’ Sep–Dec backlog represent ~$1.3 billion (~91% of the midpoint) and ~69% of remaining available days are in firm backlog/options. They expect Q3 revenue up ~3% (including one month of Wilsons), Legacy Tidewater revenue down ~2% (dry docks shifting ~1 ppt and extra down‑for‑repair time ~1 ppt), Q3 gross margin ~46% and Q3 conflict‑related costs of ≈$4M (Q2 conflict costs were ≈$6.8M; $9.2M YTD). Financial positioning: net debt ~0 at Q2, liquidity >$850M, plan to fund ≈$270M cash for Wilsons (no RCF use), net leverage ~0.8x pro forma, $500M repurchase authorization retained but paused; Q2 free cash flow was $64.4M (Q1 $34.4M) with FCF expected to accelerate in H2 and into 2027. Other metrics highlighted: weighted average leading‑edge day rate +7.5% sequentially, average day rates ~3% higher vs Q1, active utilization 81.4% (80.6% Q1), 25 term contracts signed (avg ~12 months), full‑year dry‑dock cost guide ≈$122M (Q2: 750 days/$23.3M; Q1: 949 days/$36.4M), FY CapEx ≈$52M (incl. $15M Norwegian upgrade and ~$4M incremental Wilsons CapEx), and FY G&A ex‑M&A ≈$126M (≈$14M noncash stock comp); management noted a realistic path to $3k–$4k/day y/y average day‑rate gains in 2027 and 2028 and upside to guidance if offshore activity strengthens.Tidewater Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.35B | 1.35B | 1.35B | 1.01B | 647.68M | 371.03M |
| Gross Profit | 385.21M | 416.35M | 406.40M | 268.80M | 129.09M | -7.56M |
| EBITDA | 435.38M | 437.43M | 458.62M | 316.18M | 98.40M | -34.98M |
| Net Income | 246.88M | 334.66M | 180.66M | 97.19M | -21.75M | -128.97M |
Balance Sheet | ||||||
| Total Assets | 2.37B | 2.39B | 2.07B | 2.06B | 1.30B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 613.54M | 578.76M | 324.92M | 274.44M | 164.19M | 149.04M |
| Total Debt | 653.20M | 679.26M | 637.10M | 734.44M | 169.04M | 167.88M |
| Total Liabilities | 977.97M | 1.03B | 963.72M | 1.03B | 431.67M | 394.01M |
| Stockholders Equity | 1.39B | 1.37B | 1.11B | 1.04B | 865.97M | 701.30M |
Cash Flow | ||||||
| Free Cash Flow | 258.04M | 353.35M | 246.27M | 73.12M | 23.59M | 6.05M |
| Operating Cash Flow | 313.00M | 379.11M | 273.85M | 104.70M | 40.23M | 15.01M |
| Investing Cash Flow | -30.24M | -7.48M | -188.00K | -610.27M | -23.81M | 25.06M |
| Financing Cash Flow | -78.22M | -135.96M | -222.59M | 615.56M | -2.72M | -41.01M |
Tidewater Technical Analysis
Negative
92.32
Price Trends
88.18
Negative
81.15
Negative
78.55
Positive
Market Momentum
-1.79
Positive
39.34
Neutral
25.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDW, the sentiment is Negative. The current price of 92.32 is above the 20-day moving average (MA) of 82.58, above the 50-day MA of 88.18, and above the 200-day MA of 78.55, indicating a neutral trend. The MACD of -1.79 indicates Positive momentum. The RSI at 39.34 is Neutral, neither overbought nor oversold. The STOCH value of 25.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TDW.
Tidewater Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $27.45B | 23.89 | 35.29% | 0.29% | 8.77% | 35.66% | |
74 Outperform | $4.39B | 15.92 | 28.99% | 2.69% | 3.84% | 75.32% | |
69 Neutral | $4.01B | 16.32 | 18.74% | 0.11% | -1.02% | 28.16% | |
68 Neutral | $1.15B | 10.77 | 9.82% | 0.97% | 8.19% | -13.77% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | $1.84B | 92.29 | 1.37% | 4.67% | -7.11% | -70.32% | |
62 Neutral | $1.48B | -2.11 | -8.68% | ― | 1.97% | -51.44% |
* Energy Sector Average
TDW
Tidewater
79.61
28.19
54.82%
FTI
TechnipFMC
66.82
26.03
63.83%
HOS
Hornbeck Offshore Services
6.57
-0.38
-5.47%
OII
Oceaneering International
36.62
12.82
53.87%
XPRO
Expro Group Holdings
15.66
2.13
15.74%
VTOL
Bristow Group
38.03
-3.09
-7.51%
Tidewater Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Tidewater Assumes Brazilian Loan Guarantees and Obligations
Negative
Oct 5, 2026
On October 1, 2026, Tidewater amended its BNDES Construction Loans to terminate legacy parent company guarantees by former owners Wilson Sons and Remolcadores and to substitute Tidewater as the new guarantor, following its August 31, 2026 acquisit...
Business Operations and StrategyPrivate Placements and Financing
Tidewater Guarantees Brazilian Construction Loans with BNDES
Positive
Sep 25, 2026
On September 21, 2026, Tidewater Inc. entered into a Guarantee Agreement with Banco Nacional de Desenvolvimento Econômico e Social to back the full and timely repayment of BNDES Construction Loans originally issued between 2007 and 2012 to it...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Tidewater Completes Ultratug Acquisition, Expands Brazilian Operations
Positive
Aug 31, 2026
On August 31, 2026, Tidewater completed its acquisition of Wilson Sons Ultratug Participações S.A. and affiliate Atlantic Offshore Services S.A. in a $500 million transaction, paying about $283.1 million in cash and assuming roughly $229...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.