Tidewater Inc. (TDW)
NYSE:TDW
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Tidewater
(NYSE:TDW)
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Rating:73Outperform
Price Target:
$86.00
▲(6.44% Upside)
Action:ReiteratedDate:03/03/26
The score is driven primarily by improving financial performance (strong profitability and cash flow with better leverage metrics) and supportive technical momentum. These positives are partially offset by a relatively high P/E valuation and operational volatility/cyclical risks highlighted by uneven growth and higher expected 2026 cost headwinds.
Positive Factors
Strong free cash flow generation
Tidewater converted materially more of its earnings into cash from 2023–2025, with FCF rising to $353M in 2025 and FCF roughly 93% of reported net income. Durable cash generation supports debt reduction, buybacks, and M&A capacity, enhancing financial flexibility across cycles.
Negative Factors
Revenue volatility / cyclicality
Revenue patterns show meaningful volatility: a steep 2025 growth drop highlights exposure to offshore activity cycles and spot market swings. This structural cyclicality can translate to rapid utilization and revenue declines in weaker periods, pressuring margins and returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Tidewater converted materially more of its earnings into cash from 2023–2025, with FCF rising to $353M in 2025 and FCF roughly 93% of reported net income. Durable cash generation supports debt reduction, buybacks, and M&A capacity, enhancing financial flexibility across cycles.
Read all positive factors
Tidewater (TDW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.01B
Dividend YieldN/A
Average Volume (3M)890.21K
Price to Earnings (P/E)7.6
Beta (1Y)1.27
Revenue Growth4.42%
EPS Growth-13.55%
CountryUS
Employees7,700
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)4.41
Shares Outstanding49,573,520
10 Day Avg. Volume788,128
30 Day Avg. Volume890,210
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 Cap1.02
Enterprise Value/Revenue3.02
Enterprise Value/Gross Profit9.80
Enterprise Value/Ebitda8.08
Forecast
1Y Price Target
$94.00Price Target Upside16.34% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.74
Revenue Forecast (FY)$1.44B
Tidewater Business Overview & Revenue Model
Company Description
Tidewater Inc., together with its subsidiaries, provides offshore marine support and transportation services to the offshore energy industry through the operation of a fleet of marine service vessels worldwide. It provides services in support of o...
How the Company Makes Money
Tidewater makes money by chartering its offshore support vessels to customers involved in offshore energy operations and earning vessel-based service revenue. The core revenue stream is time-based chartering (customers pay an agreed day rate for u...
Tidewater Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call conveys a generally positive operating and financial performance in 2025 (strong adjusted EBITDA, meaningful free cash flow, margin expansion, strong Q4 utilization and cash collections). Management is deploying capital into an accretive $500M acquisition while keeping leverage targets conservative and raising 2026 guidance inclusive of the deal. Offsets include essentially flat revenue YoY, reliance on a one-time tax benefit for a large portion of reported net income growth, regional softness (notably Americas and parts of APAC), and expected higher dry-dock and CapEx in 2026. Geopolitical risk in the Middle East is being monitored but was not an immediate drag at the time of the call. Overall, the positive operational execution, balance sheet flexibility, and strategic M&A/guide lift outweigh the headwinds mentioned.Positive Updates
Strong Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA of $598.1M in 2025, up from $559.6M in 2024 (+$38.5M, +6.9%). Free cash flow of $426.0M in 2025, an increase of $95.0M versus 2024 (management emphasized robust cash generation and Q4 working capital collections).
Negative Updates
Revenue Essentially Flat Year-over-Year
Full-year revenue increased by only ~$7M to $1.35B (effectively flat versus 2024), indicating limited top-line growth despite margin and cash flow improvements.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Adjusted EBITDA and Free Cash Flow
Adjusted EBITDA of $598.1M in 2025, up from $559.6M in 2024 (+$38.5M, +6.9%). Free cash flow of $426.0M in 2025, an increase of $95.0M versus 2024 (management emphasized robust cash generation and Q4 working capital collections).
Read all positive updates
Company Guidance
Tidewater updated 2026 guidance to reflect the Wilson’s Ultratug acquisition (assumed $500M purchase price with ~$261M of assumed debt at a 3.6% WAC and a target close of 6/30/2026) and now expects full‑year revenue of $1.43–$1.48 billion and gross margin of 49–51%; the legacy Tidewater fleet has ~$1.1 billion of firm backlog/options and January revenue (about 65% of available days captured, representing ~80% of the midpoint of legacy guidance), management is modeling ~80% utilization for 2026 (leaving ~11% spare capacity to charter), expects 2026 dry dock costs of ≈$122M (including ~$46M of engine overhauls) affecting utilization by ~5 percentage points, plans ~ $51M of 2026 CapEx (plus ~$36M optional CapEx, ~$24.4M for two exercised purchase options, and ~$1M of Wilson’s‑related CapEx), and forecasts Tidewater standalone G&A of ~$123M (including ~$15M non‑cash stock comp and ~ $7M incremental H2 Wilson’s costs); pro forma net leverage is expected to be below 1x net debt/EBITDA at close (company target ~1x, with the ability to return to net debt zero in ~six quarters), free cash flow is expected to remain healthy (historical/near‑term range ~$300–$311M annually) and the company retains a $500M share repurchase authorization (≈13% of shares outstanding).Tidewater Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
79
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.35B | 1.35B | 1.01B | 647.68M | 371.03M |
| Gross Profit | 416.35M | 406.40M | 268.80M | 129.09M | -7.56M |
| EBITDA | 552.50M | 458.62M | 316.18M | 98.40M | -34.98M |
| Net Income | 334.66M | 180.66M | 97.19M | -21.75M | -128.97M |
Balance Sheet | |||||
| Total Assets | 2.39B | 2.07B | 2.06B | 1.30B | 1.10B |
| Cash, Cash Equivalents and Short-Term Investments | 578.76M | 324.92M | 274.44M | 164.19M | 149.04M |
| Total Debt | 654.89M | 637.10M | 734.44M | 169.04M | 167.88M |
| Total Liabilities | 1.03B | 963.72M | 1.03B | 431.67M | 394.01M |
| Stockholders Equity | 1.37B | 1.11B | 1.04B | 865.97M | 701.30M |
Cash Flow | |||||
| Free Cash Flow | 353.35M | 246.27M | 73.12M | 23.59M | 6.05M |
| Operating Cash Flow | 379.11M | 273.85M | 104.70M | 40.23M | 15.01M |
| Investing Cash Flow | -7.48M | -188.00K | -610.27M | -23.81M | 25.06M |
| Financing Cash Flow | -135.96M | -222.59M | 615.56M | -2.72M | -41.01M |
Tidewater Technical Analysis
Positive
80.80
Price Trends
71.14
Positive
62.66
Positive
57.68
Positive
Market Momentum
1.40
Positive
60.75
Neutral
82.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TDW, the sentiment is Positive. The current price of 80.8 is above the 20-day moving average (MA) of 77.99, above the 50-day MA of 71.14, and above the 200-day MA of 57.68, indicating a bullish trend. The MACD of 1.40 indicates Positive momentum. The RSI at 60.75 is Neutral, neither overbought nor oversold. The STOCH value of 82.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TDW.
Tidewater Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.63B | 6.88 | 39.31% | ― | 8.71% | 72.09% | |
76 Outperform | $7.06B | 3.62 | 38.72% | ― | 6.81% | -61.94% | |
73 Outperform | $4.01B | 7.55 | 28.11% | ― | 4.42% | -13.55% | |
73 Outperform | $2.03B | 29.70 | 3.41% | ― | -1.24% | 337.41% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
58 Neutral | $7.18B | 40.10 | 2.26% | 3.24% | -1.43% | -63.13% |
* Energy Sector Average
TDW
Tidewater
80.80
36.61
82.85%
NOV
NOV
19.92
5.22
35.47%
OII
Oceaneering International
36.52
14.55
66.23%
XPRO
Expro Group Holdings
17.82
7.28
69.07%
VAL
Valaris
101.94
61.56
152.45%
Tidewater Corporate Events
Executive/Board ChangesShareholder Meetings
Tidewater Director to Depart as Board Size Shrinks
Neutral
Mar 19, 2026
On March 17, 2026, Tidewater Inc. director Darron M. Anderson informed the board that he will not stand for reelection at the company’s 2026 Annual Meeting of Stockholders, while confirming that his decision does not stem from any disagreeme...
Business Operations and StrategyM&A Transactions
Tidewater Expands Brazilian Offshore Fleet with WSUT Acquisition
Positive
Feb 24, 2026
On February 22, 2026, Tidewater agreed to acquire all shares of Wilson Sons Ultratug Participações S.A. and Atlantic Offshore Services S.A. (WSUT) for an enterprise value of about $500 million, including the assumption of roughly $261 mi...
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.