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Tidewater
(NYSE:TDW)
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Rating:72Outperform
Price Target:
$79.00
▲(0.59% Upside)
Action:Upgraded
Date:08/04/26
The score is driven primarily by improved underlying financial performance (sustained profitability and solid free cash flow, despite some recent margin and cash-flow cooling) and a positive earnings-call outlook supported by strong backlog coverage, improving utilization, and accelerating day rates. Valuation appears moderate at a ~12.5 P/E, while technicals are weaker near-term with the stock below key short- and intermediate-term moving averages.
Positive Factors
Cash generation & profitability
Tidewater's multi-year recovery produced durable cash generation and healthy margins (TTM OCF ~$294M, FCF ~$254M, TTM net margin ~18%, EBITDA ~33%). Consistent FCF and improved profitability underpin reinvestment, debt service and M&A flexibility across business cycles.
Negative Factors
Margin compression and cooling FCF growth
Despite multi-year improvement, recent step-down in margins versus FY2025 and a ~10% decline in TTM free cash flow signal weakening operational leverage. Persistent margin pressure or slower cash conversion would constrain reinvestment, reduce downside buffers, and limit capital returns over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation & profitability
Tidewater's multi-year recovery produced durable cash generation and healthy margins (TTM OCF ~$294M, FCF ~$254M, TTM net margin ~18%, EBITDA ~33%). Consistent FCF and improved profitability underpin reinvestment, debt service and M&A flexibility across business cycles.
Read all positive factors
Tidewater (TDW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.73B
Dividend YieldN/A
Average Volume (3M)767.65K
Price to Earnings (P/E)12.5
Beta (1Y)0.99
Revenue Growth-0.92%
EPS Growth78.25%
CountryUS
Employees7,300
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)4.98
Shares Outstanding49,730,650
10 Day Avg. Volume531,775
30 Day Avg. Volume767,654
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$90.00Price Target Upside14.59% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)3.09
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 makes money by contracting its offshore support vessels and related marine services to customers (typically offshore oil and gas operators and their contractors) and earning revenue primarily from vessel chartering and marine service fee...
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 | 464.45M | 548.67M | 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
Positive
78.54
Price Trends
72.98
Positive
77.92
Positive
69.08
Positive
Market Momentum
1.57
Negative
58.60
Neutral
70.09
Neutral
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 78.54 is above the 20-day moving average (MA) of 76.15, above the 50-day MA of 72.98, and above the 200-day MA of 69.08, indicating a bullish trend. The MACD of 1.57 indicates Negative momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 70.09 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $4.86B | 14.02 | 32.92% | ― | 3.84% | 75.32% | |
72 Outperform | $3.73B | 12.48 | 18.74% | ― | -0.92% | 78.25% | |
69 Neutral | $1.79B | 88.81 | 1.37% | ― | -7.11% | -70.32% | |
67 Neutral | $5.48B | 5.51 | 31.33% | ― | -9.95% | 233.69% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
52 Neutral | $6.93B | 74.73 | 1.53% | 2.02% | -1.63% | -78.44% |
* Energy Sector Average
TDW
Tidewater
81.57
24.16
42.08%
NOV
NOV
19.90
8.28
71.27%
OII
Oceaneering International
49.25
27.89
130.57%
XPRO
Expro Group Holdings
16.99
6.71
65.27%
VAL
Valaris
77.21
30.13
64.00%
Tidewater Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Tidewater Shareholders Approve Directors and Expanded Equity Plan
Positive
Jun 18, 2026
On June 16, 2026, Tidewater Inc. held its 2026 annual meeting of stockholders via live audio webcast, with 89.57% of eligible shares represented. Stockholders elected seven directors to one-year terms and approved an advisory vote on executive com...
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.