Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on TDW

Tidewater Inc.'s recent performance has been positively driven by several factors. The company reported Q3 earnings of $0.53 per share, beating estimates, and revenue of $341.1 million. Boston Partners increased its stake in Tidewater by 1,118.5%, owning 283,676 shares. Analysts have a consensus "Hold" rating, with two assigning a buy rating. The company's solid quarterly results and increased institutional investment have contributed to its positive momentum, with a sell rating from one analyst and six hold ratings.

1.c. Company Highlights

2. Tidewater's Q3 2025 Earnings: A Strong Performance Amidst a Challenging Market

Tidewater reported a revenue of $341.1 million for the third quarter of 2025, with a gross margin of 48%, exceeding expectations due to higher day rates and better utilization. The company's net loss was $806,000, or $0.02 per share, compared to analyst estimates of $0.46 per share. The average day rate was $22,798, 2% lower than the second quarter, while utilization increased to 78.5%. The company generated $82.7 million in free cash flow, bringing the nine-month total to nearly $275 million.

Publication Date: Nov -16

📋 Highlights
  • Strong Free Cash Flow Generation:: Tidewater generated $83 million in Q3 2025 free cash flow, with nine-month total free cash flow reaching nearly $275 million.
  • 2026 Revenue and Margin Guidance:: The company forecasts 2026 revenue of $1.32–$1.37 billion and gross margin of 48–50%, supported by 80% utilization expectations.
  • Share Repurchase Program:: A $500 million buyback authorization covers ~18% of outstanding shares, enhancing shareholder value amid a net debt-to-EBITDA ratio of 0.4x.
  • Market Demand Outlook:: Offshore drilling activity is expected to rise by late 2026–2027, driven by constrained vessel supply and increased hydrocarbon demand.
  • Regional Diversification and Utilization:: Americas and Asia Pacific saw improved day rates/utilization, while Middle East demand strengthens, offsetting pressures in Europe and Africa.

Regional Performance and Outlook

The offshore vessel market is expected to see an uptick in drilling demand towards the end of 2026 and into 2027, driven by increasing hydrocarbon demand and a constrained vessel supply. Regionally, the company saw continued pressure on day rates in Europe, mainly in the U.K., but a positive outlook for Norway and the Med. In Africa, day rates are under pressure due to a slowdown in drilling in Namibia, but the region's long-term outlook remains bullish. The Middle East is seeing strengthening vessel demand and day rates, driven by EPCI contractors and incremental demand in Qatar and Abu Dhabi.

Guidance and Future Prospects

For 2026, Tidewater guides for revenue of $1.32 billion to $1.37 billion and a gross margin of 48% to 50%, with utilization expected to be around 80%. The company expects its nondrilling demand to help retain utilization and day rates in 2026. The company is optimistic about long-term fundamentals, with increasing activity in FPSOs, EPCI, and Subsea, and expects pricing leverage to return as drilling activity picks up. Analysts estimate next year's revenue growth at 0.9%.

Valuation and Financial Health

Tidewater's current valuation metrics indicate a relatively stable financial position, with a P/E Ratio of 19.21, P/B Ratio of 2.55, and EV/EBITDA of 6.37. The company's net debt-to-EBITDA ratio was 0.4x at the end of the third quarter, and its free cash flow yield is 10.63%. The company's ROIC is 11.03%, and ROE is 13.43%, indicating a decent return on investment.

Strategic Initiatives and Risks

The company is pursuing M&A opportunities and has material non-public information related to this. Additionally, the company has a case against Venezuela, potentially owed around $80 million, with a possible verdict by year-end. The company's operations in Brazil may face short-term headwinds in 2026 due to Petrobras' rethinking of offshore logistics and financial strategy.

3. NewsRoom

Card image cap

Boston Partners Boosts Stock Position in Tidewater Inc. $TDW

Nov -29

Source: defenseworld.net

Card image cap

Axiom Oil and Gas Inc. Maintains $110 Million Lawsuit Against Tidewater Midstream and Infrastructure Ltd. Related to Brazeau Property for Sale

Nov -26

Source: newsfilecorp.com

Card image cap

Axiom Oil and Gas Inc. Announces Property Sales, Files $110 Million Lawsuit Against Tidewater Midstream and Infrastructure Ltd.

Nov -20

Source:

Card image cap

Tidewater Inc. (NYSE:TDW) Given Consensus Recommendation of “Hold” by Brokerages

Nov -16

Source: defenseworld.net

Card image cap

Third Avenue Management Exits Deutsche Bank AG, Impacting Portfolio by -6.22%

Nov -14

Source: gurufocus.com

Card image cap

Tidewater Inc. (TDW) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

Card image cap

Tidewater (TDW) Beats Q3 Earnings and Revenue Estimates

Nov -11

Source: zacks.com

Card image cap

Tidewater Reports Results for the Nine Months Ended September 30, 2025

Nov -10

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.60%)

6. Segments

Vessel - West Africa

Expected Growth: 5.0%

The growth is slightly lower than the global average due to the mature nature of the oil industry in West Africa. However, the demand for support vessels is expected to remain steady, driven by ongoing exploration and production activities.

Vessel - Europe/Mediterranean

Expected Growth: 6.0%

The growth is higher than the global average due to the region's complex regulatory environment and the need for specialized vessels. The established oil and gas infrastructure also supports demand for support vessels.

Vessel - Americas

Expected Growth: 5.5%

The growth is in line with the global average, driven by the ongoing demand for support vessels in deepwater operations. However, fluctuations in US shale production and offshore exploration may impact the segment's growth.

Vessel - Asia Pacific

Expected Growth: 6.5%

The growth is higher than the global average due to the region's growing energy demand and increasing offshore exploration and production activities. The demand for support vessels is expected to remain strong, driven by the need for infrastructure development.

Vessel - Middle East

Expected Growth: 5.2%

The growth is slightly lower than the global average due to the region's geopolitical tensions. However, the demand for support vessels is expected to remain steady, driven by ongoing exploration and production activities.

Unallocated Other Operating Profit

Expected Growth: 5.6%

The growth is in line with the global average, assuming that the unallocated operating profit will grow at a similar rate to the overall business.

7. Detailed Products

Offshore Support Vessels

Tidewater Inc. provides a fleet of offshore support vessels that offer a range of services including transportation of cargo, equipment, and personnel to offshore oil and gas platforms.

Towing and Anchor Handling

Tidewater's towing and anchor handling services provide assistance to offshore drilling and production units, including towing of rigs and anchor handling for semi-submersibles and drillships.

Crew Transportation

Tidewater offers crew transportation services, providing safe and efficient transportation of personnel to and from offshore oil and gas platforms.

Cargo Transport

Tidewater's cargo transport services provide transportation of equipment, supplies, and materials to offshore oil and gas platforms.

Platform Supply

Tidewater's platform supply services provide delivery of fuel, water, and other essential supplies to offshore oil and gas platforms.

Emergency Response

Tidewater offers emergency response services, providing rapid response to offshore emergencies, including search and rescue operations.

8. Tidewater Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Tidewater Inc. is medium due to the availability of alternative transportation services.

Bargaining Power Of Customers

The bargaining power of customers for Tidewater Inc. is low due to the lack of concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Tidewater Inc. is high due to the high concentration of suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Tidewater Inc. is medium due to the moderate barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry for Tidewater Inc. is high due to the high level of competition in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.47%
Debt Cost 9.50%
Equity Weight 58.53%
Equity Cost 9.99%
WACC 9.78%
Leverage 70.84%

11. Quality Control: Tidewater Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Archrock

A-Score: 5.9/10

Value: 4.2

Growth: 4.6

Quality: 5.2

Yield: 8.0

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
NOV

A-Score: 5.0/10

Value: 7.6

Growth: 5.6

Quality: 5.1

Yield: 4.0

Momentum: 3.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Oceaneering

A-Score: 4.4/10

Value: 6.0

Growth: 4.6

Quality: 6.0

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Weatherford

A-Score: 4.4/10

Value: 6.1

Growth: 7.4

Quality: 5.9

Yield: 1.0

Momentum: 2.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Cactus

A-Score: 4.4/10

Value: 5.4

Growth: 4.4

Quality: 8.1

Yield: 2.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Tidewater

A-Score: 4.3/10

Value: 6.4

Growth: 7.2

Quality: 7.2

Yield: 0.0

Momentum: 2.5

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

58.05$

Current Price

58.05$

Potential

-0.00%

Expected Cash-Flows