Tidewater Inc.

Tidewater reported Q2 2026 revenue of $342.3 million, up from $326.2 million in Q1, and net income of $21.7 million, or $0.43 per share. Gross margin was $160.5 million, with gross margin at 46.9% versus 48.8% in Q1; management said gross margin was nearly 3 percentage points above prior expectations and would have been about 49% excluding $6.8 million of Operation Epic Fury-related expenses. Adjusted EBITDA was $133.8 million, and free cash flow was $64.4 million versus $34.4 million in Q1. For Q3, management expects revenue up about 3% including one month of Wilsons, gross margin around 46%, and roughly $4 million of conflict-related costs. Full-year 2026 guidance was modestly revised to revenue of $1.42 billion to $1.47 billion and gross margin of 49% to 50%; the revision reflects the Wilsons closing about two months later than previously expected, partly offset by stronger year-to-date Legacy Tidewater revenue.

Quintin Kneen said he is “probably more bullish now than I’ve been in the last 6 to 9 months,” pointing to strong tendering and pre-tendering activity and better visibility across regions. He emphasized that the company sees the next leg of the cycle building, supported by offshore supply constraints, energy security considerations, and a lack of meaningful newbuild activity. His tone was confident but disciplined: Tidewater wants value-accretive M&A, not growth for scale’s sake, and will also use buybacks opportunistically when M&A is not available.

Sam Rubio focused on the quarter’s beat versus expectations and the financial impacts of Operation Epic Fury, including about $6.8 million of added costs in Q2 and roughly $9.2 million year-to-date through June 30. He said Q3 should include another $4 million of war-related costs, plus similar direct crew/insurance costs and elevated fuel and travel expense, while noted invoiced reimbursements of about $5 million through Q2 with less than $100,000 collected so far. He also highlighted balance-sheet strength, including liquidity of more than $850 million, net debt essentially at 0 at quarter end, expected pro forma net leverage of about 0.8x after Wilsons, and a $500 million share repurchase authorization still in place.

Analysts focused on three main issues: whether Tidewater’s bullish view on offshore day rates is improving, how management plans to offset Middle East conflict-related costs, and whether M&A opportunities are broadening. Management said activity is stronger than at the start of the year, with more optimism in Asia Pacific, West Africa, and Brazil, while acknowledging some projects may slip to the right. On costs, they said they are reducing war-pay premiums, working on insurance, and eventually rebilling direct costs to customers, though the process can be slow. On M&A, Tidewater said it is still looking for larger, strategic, value-accretive deals and is less interested in small one-off vessel purchases.