HOUSTON, March 4, 2026, 08:38 CST
- Tidewater now sees 2026 revenue coming in between $1.43 billion and $1.48 billion.
- Company still has $500 million left on its share repurchase authorization
- Net income surged in the fourth quarter, boosted by a sizable non-cash tax benefit.
Tidewater Inc bumped up its 2026 revenue outlook on Monday and left its $500 million buyback program untouched, following a steep rise in quarterly profit. Management pointed to a constrained offshore vessel market and anticipated growth in drilling demand. CEO Quintin Kneen noted “vessel supply remains sufficiently tight,” adding the company is set up to “push day rates” as activity picks up. 1
Tidewater’s day rates and utilization are tightly linked to offshore work schedules. The company runs offshore support vessels—workboats that haul people, gear, supplies to rigs and production platforms. Once budgets get cut, customers don’t hesitate to scale back.
Tidewater’s updated outlook now reflects a pending fleet acquisition on a pro forma basis—essentially treating the deal as closed. This gives a clearer sense of projected earnings, assuming those additional vessels join the lineup as planned.
The stock jumped roughly 10%, hitting $87.67 shortly after the open on Wednesday.
Tidewater posted $1.35 billion in revenue and $426.0 million in free cash flow for 2025, with the average day rate up 6.1% to $22,573. In the fourth quarter, revenue edged down 2.4% to $336.8 million. Net income, though, jumped to $219.9 million—the result of a $201.5 million non-cash deferred tax benefit, according to the company. 2
Tidewater CFO Samuel Rubio, on Tuesday’s earnings call, attributed the tax benefit to a vessel ownership restructuring and said, “we expect to incur approximately $51,000,000 in capital expenditures” for 2026. Management highlighted strong cash generation, noting year-end cash came in “nearly $580 million.” Spending is on the upswing, with outlays eyed for upgrades, drydock jobs and exercising leased-vessel buyout options. 3
Tidewater’s new 2026 outlook factors in a mid-year closing for its Wilson Sons Ultratug acquisition, the company said. That deal would bring in a 22-ship fleet of platform supply vessels—PSVs, which ferry cargo to offshore rigs—centered on Brazil.
Kneen flagged lingering “open questions” about how quickly drilling will ramp up this year, despite tendering and contract awards hinting at a rebound that could stretch into 2027.
James Rollyson at Raymond James bumped his price target up to $117 from $75 and stuck with his “Outperform” call, saying, “Free cash flow stole the show.” Collections from Mexico’s Pemex and the upcoming Wilson deal factored heavily into his outlook. 4
Tidewater ranks among the biggest owners of offshore support vessels worldwide, going up against names like Hornbeck Offshore Services and SEACOR Marine across multiple basins. Vessel rates and utilization often swing widely from one region to another, shaped by the vessel class and whatever local supply looks like.
Still, if offshore drilling picks up more slowly, or if customer payments fall short, or the Wilson deal takes longer to wrap up, the boost to day rates that’s baked into the latest guidance could end up looking optimistic. Plus, a hefty chunk of next year’s profit came thanks to a non-cash tax benefit; with that set to disappear, investors are left to see if cash flow can keep up the pace.
