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Tidewater Inc (TDW)
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Tidewater (TDW) AI Stock Analysis

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TDW

Tidewater

(NYSE:TDW)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
$55.00
▲(15.11% Upside)
Tidewater's overall stock score reflects strong financial performance and positive earnings call highlights, tempered by mixed technical indicators and near-term market challenges. The company's strategic initiatives and financial resilience position it well for long-term growth, despite short-term uncertainties.

Tidewater (TDW) vs. SPDR S&P 500 ETF (SPY)

Tidewater Business Overview & Revenue Model

Company DescriptionTidewater Inc. (TDW) is a leading provider of marine support services to the global energy industry, specializing in offshore vessel services. The company operates in the offshore energy sector, providing a diverse fleet of vessels that support exploration, production, and decommissioning activities for oil and gas operators. Tidewater's core services include vessel chartering, logistics support, and marine operations, primarily in regions such as the Gulf of Mexico, the North Sea, and offshore markets worldwide.
How the Company Makes MoneyTidewater generates revenue primarily through the chartering of its fleet of vessels to energy companies engaged in offshore oil and gas exploration and production. The company has a diverse range of vessels, including supply boats, crew boats, and anchor handling tug supply (AHTS) vessels, which are leased on a contract basis. Key revenue streams include day rates for vessel charters, which can vary based on market demand, vessel type, and contract duration. Additionally, Tidewater benefits from long-term contracts with major clients in the energy sector, which provide stable revenue streams. The company may also engage in ancillary services related to logistics and marine support, further enhancing its revenue potential. Strategic partnerships with oil and gas operators and engagement in international markets are significant factors contributing to Tidewater's earnings.

Tidewater Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance, including record day rates, robust gross margins, and significant free cash flow. The company successfully refinanced its debt, improving its financial structure, and announced a substantial share repurchase program. However, the call also noted near-term market softness, particularly in the North Sea and West Africa, utilization challenges, and delayed payments from a major customer in Mexico. The company remains optimistic about the long-term outlook but faces short-term challenges.
Q2-2025 Updates
Positive Updates
Record Day Rates
Day rates outperformed expectations by over $1,300 per day, setting a new quarterly day rate record at $23,166.
Gross Margin Performance
Gross margin exceeded expectations, coming in at 50.1% compared to the expected 44%, marking the third consecutive quarter over 50%.
Strong Free Cash Flow
Generated $98 million of free cash flow in Q2, the second highest since offshore recovery began, totaling over $192 million for the first half of 2025.
Debt Refinancing Achievement
Closed on a $650 million U.S. unsecured bond, achieving long-term debt capital structure goals, alongside a $250 million revolving credit facility for enhanced financial flexibility.
Share Repurchase Program
Board approved a $500 million share repurchase program, signaling confidence in long-term cash flow generation and shareholder returns.
Negative Updates
Near-term Market Softness
Q3 revenue expected to decline by about 4% sequentially due to softer near-term market conditions in the North Sea and West Africa.
Utilization Challenges
Utilization decreased from 78.4% in Q1 to 76.4% in Q2, primarily due to increased idle and dry dock days.
Delayed Payments in Mexico
No payment received for several quarters from the primary customer in Mexico, totaling approximately 14% of total trade accounts receivable.
Market Uncertainty in Africa
Weaker Q2 in Africa due to winding down of drilling campaigns, with expectations of continued softness into the near future.
Company Guidance
During the Tidewater Second Quarter 2025 Earnings Call, the company provided several key metrics, showcasing a strong performance. Revenue for the quarter reached $341.4 million, driven by a new quarterly day rate record of $23,166, surpassing expectations by over $1,300 per day. The gross margin exceeded forecasts, coming in at 50.1%, significantly higher than the anticipated 44%. The company generated $98 million in free cash flow, bringing the first half of 2025 total to over $192 million. Tidewater also announced the successful refinancing of their debt with a $650 million unsecured bond and a $250 million revolving credit facility. This new debt structure supports a $500 million share repurchase program, equating to over 20% of the company's market capitalization, while maintaining a net debt-to-EBITDA ratio well below 1x. Additionally, the company reiterated its full-year 2025 revenue guidance of $1.32 billion to $1.38 billion, with a gross margin range of 48% to 50%.

Tidewater Financial Statement Overview

Summary
Tidewater demonstrates strong financial performance with significant revenue growth, solid profitability, and efficient cash flow management. The company's stable balance sheet and effective leverage management enhance its financial resilience, positioning it well for continued success despite industry risks.
Income Statement
85
Very Positive
Tidewater's income statement shows strong performance with a significant revenue growth rate of 16.2% TTM, reflecting robust demand in the oil and gas services sector. The company maintains healthy margins, with a gross profit margin of 30.6% and a net profit margin of 14.6%, indicating efficient cost management and profitability. EBIT and EBITDA margins are also solid at 23.9% and 35.3%, respectively, showcasing operational efficiency. Overall, the income statement reflects a positive growth trajectory and strong profitability.
Balance Sheet
78
Positive
The balance sheet of Tidewater indicates a stable financial position with a manageable debt-to-equity ratio of 0.55, suggesting moderate leverage. The return on equity stands at 17.7%, reflecting effective use of equity to generate profits. The equity ratio is healthy, indicating a strong equity base relative to total assets. While the company has improved its financial stability over the years, maintaining this trajectory will be crucial to mitigate any potential risks associated with industry volatility.
Cash Flow
82
Very Positive
Tidewater's cash flow statement reveals a robust free cash flow growth rate of 2.86% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.91, and the free cash flow to net income ratio is 0.92, both suggesting efficient conversion of income into cash. The company's ability to generate and manage cash effectively supports its operational and strategic initiatives, contributing to overall financial health.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.36B1.35B1.01B647.68M371.03M397.04M
Gross Profit416.02M406.40M268.80M129.09M-7.56M8.14M
EBITDA479.63M458.62M316.18M98.40M-34.98M-100.47M
Net Income198.86M180.66M97.19M-21.75M-128.97M-196.24M
Balance Sheet
Total Assets2.07B2.07B2.06B1.30B1.10B1.25B
Cash, Cash Equivalents and Short-Term Investments369.43M324.92M274.44M164.19M149.04M149.93M
Total Debt625.24M637.10M734.44M169.04M167.88M192.73M
Total Liabilities938.14M963.72M1.03B431.67M394.01M427.90M
Stockholders Equity1.14B1.11B1.04B865.97M701.30M822.12M
Cash Flow
Free Cash Flow286.11M246.27M73.12M23.59M6.05M-10.91M
Operating Cash Flow311.85M273.85M104.70M40.23M15.01M3.99M
Investing Cash Flow-2.12M-188.00K-610.27M-23.81M25.06M23.40M
Financing Cash Flow-258.92M-222.59M615.56M-2.72M-41.01M-99.77M

Tidewater Technical Analysis

Technical Analysis Sentiment
Positive
Last Price47.78
Price Trends
50DMA
55.31
Negative
100DMA
52.40
Negative
200DMA
48.48
Positive
Market Momentum
MACD
-1.90
Positive
RSI
48.44
Neutral
STOCH
44.20
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 47.78 is below the 20-day moving average (MA) of 51.34, below the 50-day MA of 55.31, and below the 200-day MA of 48.48, indicating a neutral trend. The MACD of -1.90 indicates Positive momentum. The RSI at 48.44 is Neutral, neither overbought nor oversold. The STOCH value of 44.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TDW.

Tidewater Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$1.56B23.194.60%-1.24%337.41%
76
Outperform
$4.01B14.7612.23%18.78%-72.57%
74
Outperform
$2.48B10.4128.92%8.71%72.09%
73
Outperform
$2.38B13.3417.91%7.76%26.49%
70
Outperform
$4.94B11.577.31%3.68%-1.21%-54.44%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
54
Neutral
$1.19B5.66%-9.81%-124.43%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TDW
Tidewater
49.31
-11.71
-19.19%
MRC
MRC Global
14.47
2.06
16.60%
NOV
NOV
13.84
-1.28
-8.47%
OII
Oceaneering International
23.59
-1.84
-7.24%
XPRO
Expro Group Holdings
13.71
0.34
2.54%
VAL
Valaris
56.68
5.80
11.40%

Tidewater Corporate Events

Tidewater Inc. Reports Strong Q2 Earnings Amid Challenges
Aug 7, 2025

In the recent earnings call, Tidewater Inc. reported a strong financial performance for the second quarter, marked by record revenue and gross margins. The company successfully executed a refinancing strategy and announced a significant share repurchase program. Despite these positive developments, the call also highlighted some challenges, including a softening market outlook in certain regions and issues with customer payments. Overall, the sentiment was positive but cautious, with optimism tempered by near-term uncertainties.

Tidewater Inc.’s Financial Stability at Risk: How Debt Covenants Threaten Liquidity and Growth
Aug 6, 2025

Tidewater Inc. faces significant operational and financial risks due to restrictive covenants in its debt agreements, which limit its ability to incur additional debt, create liens, and engage in mergers or asset sales. These covenants, along with mandatory prepayment clauses tied to financial ratios, could constrain the company’s liquidity and flexibility, impacting its ability to seize corporate opportunities. Non-compliance with these covenants could lead to defaults, allowing lenders to accelerate debt maturity and foreclose on collateral, potentially jeopardizing Tidewater’s financial stability. The restrictions also hinder the company’s ability to secure further financing, posing a material threat to its business operations and financial health.

Tidewater Inc. Reports Strong Q2 2025 Earnings
Aug 6, 2025

Tidewater Inc. is a leading provider of offshore support vessels, primarily serving the energy exploration and production industry worldwide. The company operates the largest fleet in the sector, with over 65 years of experience.

Stock BuybackFinancial Disclosures
Tidewater Announces $500 Million Share Buyback Program
Positive
Aug 4, 2025

On August 4, 2025, Tidewater Inc. announced a new $500 million share repurchase program, highlighting its strong financial performance in the first half of the year. The company reported a revenue increase to $341.4 million for the second quarter of 2025, a net income of $72.9 million, and a notable improvement in average day rates. Tidewater also completed a refinancing transaction, enhancing its financial flexibility and enabling greater shareholder returns. Despite ongoing commodity price volatility and macroeconomic uncertainty, Tidewater reiterated its 2025 revenue and gross margin guidance, supported by a strong first half and contracted future revenues.

The most recent analyst rating on (TDW) stock is a Buy with a $138.00 price target. To see the full list of analyst forecasts on Tidewater stock, see the TDW Stock Forecast page.

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.Date of analysis: Oct 25, 2025