Tidewater (TDW) AI Stock Analysis

• Market Cap: $3.96B
• Dividend Yield: N/A
• Average Volume (3M): 742.53K
• Price to Earnings (P/E): 26.9
• Beta (1Y): 1.28
• Revenue Growth: 4.42%
• EPS Growth: -13.55%
• Country: US
• Employees: 7,700
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 4.41
• Shares Outstanding: 49,563,156
• 10 Day Avg. Volume: 807,425
• 30 Day Avg. Volume: 742,535
• PEG Ratio: 0.08
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 1.87
• P/FCF Ratio: 7.15
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 3.26
• Enterprise Value/Gross Profit: 14.42
• Enterprise Value/Ebitda: 9.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.7
• Revenue Forecast (FY): $1.36B

• Rating: 73 Outperform
• Price Target: $89.00 ▲(11.43% Upside)
• Action: Reiterated Date: 03/03/26
• Date: Action: Reiterated 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

Cash generation

Consistent and materially improved free cash flow provides durable internal funding for maintenance, debt paydown, buybacks or opportunistic investments. Strong FCF reduces financing risk in this cyclical industry and underpins ability to endure multi-quarter demand softness without immediate capital raises.

Improved leverage and liquidity

Lower leverage and a strengthened equity base increase financial flexibility to pursue M&A, withstand offshore demand cycles, and manage working capital swings. A stronger balance sheet reduces refinancing risk and supports management's target of sub-1x net debt/EBITDA after planned deals.

Strategic Brazil acquisition expands market position

The WSUT deal materially deepens Tidewater's presence in Brazil, securing REB tonnage rights and a large backlog under long-duration contracts. This scale advantage in a structurally attractive market improves pricing leverage and long-term growth optionality versus peers with smaller local footprints.

Negative Factors

Revenue volatility and cyclicality

Large swings in reported revenue highlight sensitivity to utilization and day rates across regions. Such cyclicality reduces revenue predictability, complicates fleet planning and capital allocation, and can compress margins in downturns despite periodic margin outperformance.

One-time accounting benefit inflates net income

A substantial non-recurring tax benefit materially lifts reported net income, obscuring underlying operating profitability. Relying on such items can mislead assessments of sustainable earnings power and cash conversion, so investors must focus on adjusted metrics and recurring cash flows.

Near-term dry-dock, CapEx and G&A pressure

Elevated planned dry-dock and maintenance capex materially reduce available vessel days and raise recurring cash needs. Combined with higher G&A for integration and transaction costs, this will pressure free cash flow and utilization metrics in the next 2-4 quarters, limiting margin expansion.

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 offshore oil and natural gas exploration, field development, and production, as well as windfarm development and maintenance, including towing of and anchor handling for mobile offshore drilling units; transporting supplies and personnel necessary to sustain drilling, workover, and production activities; offshore construction, and seismic and subsea support; geotechnical survey support for windfarm construction; and various specialized services, such as pipe and cable laying. The company operates and charters deepwater vessels, including platform supply and horsepower anchor handling tug supply vessels for use in transporting supplies and equipment from shore bases to deepwater and intermediate water depth offshore drilling rigs and production platforms; towing-supply vessels for use in intermediate and shallow waters; and crew boats, utility vessels, and offshore tugs to transport personnel and supplies from shore bases to offshore drilling rigs, platforms, and other installations. It also operates offshore tugs for use in tow floating drilling rigs and barges; and assisting in the docking of tankers, as well as in pipe and cable laying, and construction barges. The company serves oil and natural gas exploration, field development, and production companies; mid-sized and smaller independent exploration and production companies; foreign government-owned or government-controlled organizations, and other related companies; drilling contractors; and other companies, such as offshore construction, windfarm development, diving, and well stimulation companies. As of December 31, 2021, it owned 135 vessels. Tidewater Inc. was incorporated in 1956 and is headquartered in Houston, Texas.

How the Company Makes Money

Tidewater generates revenue through several key streams, primarily from the chartering of its fleet to oil and gas companies for offshore support operations. This includes day rates charged for vessel usage, which can vary based on the type of vessel, the duration of the contract, and market demand. Additional revenue is derived from specialized services such as crew management, maintenance, and logistical support, which are often bundled with vessel charters. Tidewater also engages in long-term contracts with major energy companies, providing a stable income stream. Strategic partnerships with industry players enhance its market presence and may lead to additional revenue opportunities through collaborative projects. The company's earnings can also be influenced by the overall health of the oil and gas industry, global oil prices, and technological advancements that improve operational efficiency.

Tidewater Financial Statement Overview

Summary

Strong turnaround with sharply higher profitability and cash generation (2025 EBITDA margin ~35.8% and free cash flow $353M). Balance sheet leverage metrics improved (debt-to-equity down to 0.48), but absolute debt remains meaningful and results show volatility risk (notably the steep 2025 revenue growth decline).

Income Statement

Profitability has improved sharply over time, moving from sizable losses in 2020–2022 to solid profits in 2023–2025, with net margin rising from 9.6% (2023) to 13.4% (2024) and 24.7% (2025). Earnings power also looks strong with a 35.8% EBITDA margin in 2025. The key offset is growth: revenue surged in 2022–2024, but 2025 shows a steep decline in revenue growth (-60.9%), indicating meaningful volatility and potential cyclicality in demand.

Balance Sheet

Leverage appears manageable with debt-to-equity improving to 0.48 in 2025 (down from 0.71 in 2023), while equity has grown materially versus earlier years. Returns on equity strengthened alongside the earnings recovery, reaching 24.5% in 2025. The main risk is that debt remains sizable in absolute terms (~$655M in 2025) and leverage rose notably from 2022 to 2023 before improving, suggesting the capital structure can still swing with industry conditions.

Cash Flow

Cash generation is strong and improving: operating cash flow rose from $105M (2023) to $274M (2024) and $379M (2025), while free cash flow climbed to $353M in 2025. Free cash flow closely tracks earnings (about 93% of net income in 2025), supporting earnings quality. A watch item is that cash flow coverage of net income was below 1.0 in 2024 (~0.83) before improving above 1.0 in 2025 (~1.20), highlighting some year-to-year variability.

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	0.00	406.40M	268.80M	129.09M	-7.56M
EBITDA	483.79M	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

• Technical Analysis Sentiment: Positive
• Last Price: 79.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 79.87 is above the 20-day moving average (MA) of 71.72, above the 50-day MA of 62.06, and above the 200-day MA of 54.41, indicating a bullish trend. The MACD of 4.98 indicates Negative momentum. The RSI at 73.23 is Negative, neither overbought nor oversold. The STOCH value of 78.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TDW.

Tidewater Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OII	77 Outperform	$3.57B	10.25	39.64%	―	8.71%	72.09%
VAL	75 Outperform	$6.41B	6.62	36.35%	―	6.81%	-61.94%
TDW	73 Outperform	$3.96B	26.93	13.43%	―	4.42%	-13.55%
XPRO	73 Outperform	$1.99B	39.11	4.60%	―	-1.24%	337.41%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NOV	62 Neutral	$7.22B	52.39	2.29%	3.24%	-1.43%	-63.13%

Tidewater Corporate Events

Tidewater Expands Brazilian Offshore Fleet with WSUT Acquisition

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 million of existing debt, in a deal unanimously approved by its board and expected to close in late second quarter 2026 subject to Brazilian antitrust and other customary approvals. The transaction adds 22 platform supply vessels to Tidewater’s fleet, boosts its Brazilian presence from six to 28 vessels, establishes it as a leading provider of Brazilian-built PSVs with valuable REB tonnage rights, brings $441 million of backlog and low-cost long-duration financing, and is projected to be immediately accretive to 2026–2027 earnings and free cash flow while keeping pro forma net leverage below 1.0x.

Tidewater’s acquisition of WSUT significantly scales its offshore support vessel footprint to 213 OSVs and 231 total vessels, deepening its exposure to what management calls one of the world’s most attractive offshore markets in Brazil. With 21 of WSUT’s 22 vessels already working in Brazil, a high proportion of Brazilian-built ships that receive commercial priority, and contracts currently priced below prevailing day rates, the deal positions Tidewater to capture future pricing upside, strengthen its balance sheet-driven competitive standing, and enhance long-term growth prospects in the Brazilian offshore energy sector.

The most recent analyst rating on (TDW) stock is a Buy with a $61.00 price target. To see the full list of analyst forecasts on Tidewater stock, see the TDW Stock Forecast page.