Tidewater Q1 net income drops, reiterates FY revenue outlook

Overview

• U.S. offshore vessel operator's Q1 revenue fell 2.2% yr/yr, net income declined sharply

• Net income and EBITDA impacted by $3.4 mln foreign exchange loss

• Company reiterated 2026 revenue and margin guidance, expects Wilson Sons Ultratug deal to close Q2

Outlook

• Tidewater reiterates 2026 revenue guidance of $1.43 bln to $1.48 bln

• Company maintains 2026 gross margin guidance of 49% to 51%

• Company expects elevated Middle East operating expenses to persist due to ongoing conflict

Result Drivers

• HIGHER VESSEL UP-TIME - Co said improved vessel up-time, attributed to operational focus and fleet investments, supported results

• DAY RATE IMPROVEMENT - Co said weighted average day rate increased, driven by a tight AHTS market in the North Sea

• HIGHER MIDDLE EAST COSTS - Co experienced higher than anticipated operating costs in the Middle East due to conflict-related insurance and crew expenses

Company press release: ID:nBw3dCDv5a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy."

• Wall Street's median 12-month price target for Tidewater Inc is $83.00, about 5.5% below its May 1 closing price of $87.85

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 17 three months ago

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