Tidewater Initiates 2027 Revenue Guidance of $1.70 Billion to $1.75 Billion

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue was $360.4 million, up 5.3% from the second quarter, as the average day rate reached $23,775.

Tidewater Inc. (TDW), the operator of the largest fleet of offshore support vessels, reported third-quarter 2026 revenue of $360.4 million, a 5.3% increase from the second quarter, and net income attributable to the company of $17.5 million, or $0.35 a share.

The sequential revenue gain followed a 4.9% rise in the prior quarter. Average day rates rose $837 a day, or 3.7%, to $23,775. Weighted average leading-edge day rates rose $3,033 a day, or 12.5%, to $27,373. President and Chief Executive Officer Quintin Kneen said third-quarter revenue and gross margin exceeded the company’s expectations, with gross margin of 46.8% above management’s expectations by a full percentage point. He said the sequential day-rate increase was broad-based across nearly all vessel classes and that new term-contract day-rate acceleration continued.

Adjusted EBITDA was $140.1 million. Operating income fell to $50.3 million, or 14% of revenues, from $62.5 million, or 18%, in the second quarter. Acquisition, restructuring and integration related costs were $10.2 million in the quarter. Vessel operating margin was $167.3 million, or 47% of vessel revenues.

Europe/Mediterranean vessel revenues were $121.5 million, or 34% of vessel revenues. West Africa vessel revenues were $73.0 million, or 20%. Americas vessel revenues were $72.0 million, or 20%. Asia Pacific vessel revenues were $44.5 million, or 13%. Middle East vessel revenues were $46.4 million, or 13%.

The company closed the $500 million all-cash acquisition of Wilson Sons Ultratug Offshore, assuming $214.9 million of debt and spending $273.0 million on acquisitions net of cash acquired. Year-to-date WSUT acquisition-related expenses were about $14.4 million. Kneen said the deal materially expanded Tidewater’s presence in Brazil and that the company anticipates substantially integrating the WSUT business by the start of 2027.

Net cash provided by operating activities was $75.2 million and free cash flow was $90.9 million. Cash and cash equivalents were $390.8 million at September 30, 2026. The company repurchased about $25 million of shares since the last earnings release, leaving a $475 million outstanding authorization.

Tidewater updated 2026 revenue guidance to $1.43 billion to $1.44 billion and 2026 gross margin guidance to 47.5% to 48.5%, inclusive of approximately 140 basis points of cost burden related to Operation Epic Fury, from a prior 2026 revenue range of $1.42 billion to $1.47 billion and gross margin range of 49% to 50% pro forma for WSUT. The company said it expects continued elevated operating costs associated with the conflict in the Middle East to impact the fourth quarter, and that it expects to incur approximately $19.8 million in conflict-related costs in 2026, of which approximately $8.7 million is contractually permitted to be billed back to customers.

The company initiated 2027 revenue guidance of $1.70 billion to $1.75 billion and 2027 gross margin guidance of 51% to 53%. Kneen said the company remains encouraged by progress it observes for continued strength as it progresses through next year, citing opportunities in drilling support, subsea and EPCI support, and production support, and an early benefit of a strengthening market against a tight offshore vessel supply backdrop in recent leading-edge day rates.