Company Performance - Tidewater reported quarterly earnings of $1.23 per share, significantly exceeding the Zacks Consensus Estimate of $0.28 per share, representing an earnings surprise of +339.29% [1] - The company posted revenues of $341.43 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 7.50% and showing a slight increase from $339.23 million in the same quarter last year [2] - Over the last four quarters, Tidewater has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Future Outlook - The sustainability of Tidewater's stock price movement will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.20 on revenues of $350.07 million, and for the current fiscal year, it is $3.14 on revenues of $1.34 billion [7] - The estimate revisions trend for Tidewater was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Oil and Gas - Integrated - United States industry, to which Tidewater belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Tidewater's stock performance [5]

Company Overview - As of June 30, 2025, the company owned 211 vessels with an average age of 12.8 years[97]. - The company has a broad geographic operating footprint, allowing it to respond quickly to changing local market conditions[96]. Financial Performance - Total revenue for the three months ended June 30, 2025, was $341,431,000, representing a 2% increase from $333,444,000 in the previous quarter[116]. - Net income attributable to Tidewater Inc. increased by 71% to $72,930,000 compared to $42,653,000 in the prior quarter[116]. - Operating income rose by 8% to $80,922,000 from $75,047,000 in the previous quarter[116]. - Consolidated total revenue for the six months ended June 30, 2025, was $674,875,000, a 2% increase from $660,394,000 in the same period last year[144]. - Net income attributable to Tidewater Inc. increased to $115,583,000, a 19% rise from $97,380,000 in the prior year[144]. Revenue by Segment - The Americas segment saw a 25% increase in total revenue to $68,758,000 from $54,852,000[125]. - The Asia Pacific segment reported a 5% decrease in total revenue to $45,696,000 from $48,228,000[130]. - Total revenue for the Europe/Mediterranean segment increased to $99,280,000, a 27% increase from $78,205,000 in the previous quarter[137]. - Total revenue for the West Africa segment decreased to $82,909,000, a 22% decline from $106,112,000 in the previous quarter[142]. - Total revenue for the Asia Pacific segment decreased by 9% to $93.9 million for the six months ended June 30, 2025, compared to $103.0 million in the same period of 2024[160]. - Total revenue for the Middle East segment increased by 12% to $83.5 million, up from $74.5 million in the prior year[162]. - Total revenue for the Europe/Mediterranean segment rose by 8% to $177.5 million, compared to $163.6 million in the previous year[165]. - Total revenue for the West Africa segment grew by 6% to $189.0 million, compared to $177.5 million in the same period of 2024[169]. Vessel Operations - Vessel utilization is primarily determined by market conditions and is affected by drydock and repair days, with average day rates calculated based on revenue earned during the reporting period[113]. - Average vessel day rates increased by 3.9% to $23,166 compared to $22,303 in the previous quarter[116]. - Average vessel day rates rose to $23,275, an increase of 14.1% from $20,405 in the previous quarter[137]. - Average vessel day rates in the West Africa segment increased by 22.4% to $23,699, up from $19,366 year-over-year[169]. - Utilization decreased to 74.1% from 76.0% in the previous quarter[116]. - Utilization in the West Africa segment dropped to 57.6%, down 11.2% from 68.8% in the previous quarter[142]. Costs and Expenses - The company’s operating costs include crew costs, repair and maintenance costs, and fuel costs, which can fluctuate based on various factors[102]. - General and administrative expenses increased primarily due to higher professional fees and personnel costs[127]. Cash Flow and Liquidity - The company’s liquidity is supported by cash on hand, internally generated funds, and long-term debt financing, with market conditions impacting its ability to raise capital[106]. - As of June 30, 2025, the company had $372.3 million in cash and cash equivalents, which includes amounts held by foreign subsidiaries[174]. - The company generated $115.0 million in net income and $171.4 million in cash flow from operating activities for the six months ended June 30, 2025[184]. - Working capital, including cash on hand, was $381.4 million at June 30, 2025[177]. Financing Activities - The company issued $650.0 million in 9.125% bonds maturing in July 2030 and executed a new $250.0 million revolving credit facility, replacing a previous $25.0 million facility[176]. - The company signed agreements for the construction of ten new vessels, financed with approximately EUR24.9 million ($26.7 million) at fixed interest rates ranging from 2.7% to 6.3%[180]. - During the six months ended June 30, 2025, the company repurchased 2,290,204 shares for approximately $90.0 million[182]. - Net cash used in financing activities for the six months ended June 30, 2025, was $124.4 million, including $90.1 million for share repurchases[190]. Foreign Exchange and Other Gains - Foreign exchange gains increased significantly to $19,272,000 compared to a loss of $6,461,000 in the previous year[144]. Risks and Uncertainties - The company's future performance is subject to risks and uncertainties, including fluctuations in energy demand and potential cybersecurity breaches[100]. - Recent geopolitical events, including OPEC+ production increases and U.S. tariffs, have introduced uncertainty, causing oil prices to fluctuate between the low $60s and $80 per barrel[110]. - The company’s business is exposed to macro factors such as worldwide demand for hydrocarbons and the stability of oil prices maintained by OPEC+[108].

Financial Performance - Revenue for Q2 2025 was $341.4 million, a 0.6% increase compared to Q2 2024's $339.2 million[3]. - Net income for Q2 2025 was $72.9 million ($1.46 per share), up from $50.4 million ($0.94 per share) in Q2 2024, representing a 44.5% increase[3][8]. - Operating income for Q2 2025 was $80.9 million, compared to $78.1 million in Q2 2024[21]. - Net income for the three months ended June 30, 2025, was $72,702,000, an increase of 45.7% compared to $49,917,000 for the same period in 2024[23]. - Total comprehensive income for the six months ended June 30, 2025, was $116,235,000, up from $96,458,000 in the prior year, reflecting a growth of 20.5%[23]. - Net income for the quarter ended June 30, 2025, was $72,702,000, an increase from $42,320,000 in the previous quarter[30]. - Adjusted EBITDA for the quarter was $162,980,000, compared to $154,179,000 in the previous quarter, indicating a 6% increase[45]. Cash Flow and Liquidity - Free cash flow for Q2 2025 was $97.5 million, demonstrating strong cash generation capabilities[4][8]. - Cash flows from operating activities for the six months ended June 30, 2025, amounted to $171,406,000, compared to $133,410,000 for the same period in 2024, representing a 28.5% increase[24]. - Cash, cash equivalents, and restricted cash at the end of the period were $372,307,000, an increase from $321,501,000 at the end of June 30, 2024[24]. - Net cash provided by operating activities for Q2 2025 was $85,433,000, a decrease from $91,303,000 in Q4 2024[51]. - Free cash flow for Q2 2025 was $97,541,000, compared to $107,025,000 in Q4 2024, indicating a decline[51]. Shareholder Returns - The company has authorized a new share repurchase program of $500 million to enhance shareholder returns[7][8]. - The company repurchased and retired common stock worth $90,089,000 during the six months ended June 30, 2025[24]. Revenue Guidance - 2025 revenue guidance is reiterated at $1.32 billion to $1.38 billion, with 93% of this guidance covered by contracted future revenue[9]. Asset and Liability Management - Total current assets increased to $724,507,000 as of June 30, 2025, from $698,662,000 at December 31, 2024, marking a growth of 3.7%[22]. - Total liabilities decreased to $938,145,000 as of June 30, 2025, down from $962,719,000 at December 31, 2024, indicating a reduction of 2.5%[22]. - The accumulated deficit improved to $(524,235,000) as of June 30, 2025, from $(548,831,000) at December 31, 2024, reflecting a reduction of 4.5%[25]. - Long-term debt stood at $531,874,000 as of June 30, 2025, down from $555,994,000 in the previous quarter[29]. Vessel Performance - Average day rate for vessels reached a record $23,166, an increase of $2,036 per day, or 9.6%, compared to Q2 2024[4][8]. - Total vessel revenues for Q2 2025 were $336,858,000, a slight decrease from $337,003,000 in Q2 2024[26]. - Vessel operating costs for Q2 2025 were $167,354,000, representing 50% of total vessel revenues, compared to 52% in Q2 2024[26]. - The vessel operating margin for Q2 2025 was $169,504,000, which is 50% of total vessel revenues, compared to 48% in Q2 2024[28]. - Crew costs accounted for 30% of total vessel operating costs in Q2 2025, down from 31% in Q2 2024[26]. Regional Performance - The Americas region contributed $68,758,000 in vessel revenues for Q2 2025, representing 20% of total vessel revenues[26]. - Europe/Mediterranean region saw vessel revenues of $99,280,000 in Q2 2025, an increase from $83,266,000 in Q2 2024[26]. - West Africa's vessel revenues were $82,909,000 in Q2 2025, slightly down from $88,838,000 in Q2 2024[26]. - The Asia Pacific fleet's revenue decreased to $45.696 million from $48.228 million, a decline of 3.5%[31]. - In the Middle East, vessel revenues were $40,215,000 in Q2 2025, a decrease from $43,302,000 in Q1 2025, representing a decline of 4.9%[41]. Fleet Utilization - Total fleet utilization for the Americas increased to 75.8% in June 2025 from 64.4% in March 2025[36]. - Worldwide fleet utilization stood at 76.4% in June 2025, compared to 78.4% in March 2025[37]. - The utilization rate for PSV vessels greater than 900 in the Americas improved to 87.0% in June 2025, compared to 78.3% in March 2025[37]. - The Asia Pacific fleet's total utilization decreased to 67.9% in June 2025 from 73.1% in March 2025[37]. - The West Africa fleet's total utilization was 61.6% in June 2025, a decrease from 75.0% in March 2025[37].

Company Overview - Tidewater Inc. is a small-cap company with a market capitalization of $2.2 billion, showing improving market fundamentals and an attractive valuation that may not fully reflect its potential earnings in the coming years [1]. Investment Opportunity - The company is considered to have greater opportunities for mis-pricing and finding asymmetric investment opportunities, particularly in the context of smaller, under-covered companies where the downside risk is limited [1].

Group 1 - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, with a focus on banks, telecommunications, logistics, and hotels [1] - The popularity of insurance companies in the Philippines has influenced investment strategies, leading to diversification beyond traditional savings in banks and properties [1] - The investment approach has evolved from focusing solely on blue-chip companies to a more diversified portfolio across various industries and market capitalizations [1] Group 2 - The entry into the US market occurred in 2020, following a period of learning and analysis through platforms like Seeking Alpha [1] - The investor has holdings in US banks, hotels, shipping, and logistics companies, indicating a strategic approach to portfolio diversification [1] - The comparative analysis between the US and Philippine markets has been a key aspect of the investment strategy, enhancing market awareness and decision-making [1]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in navigating significant market events such as the dotcom bubble, the aftermath of the World Trade Center attacks, and the subprime crisis [2] - The individual has a background in auditing with PricewaterhouseCoopers before transitioning to day trading [2]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $333.4 million, a decrease of approximately 3% from $345.1 million in Q4 2024 [33] - Gross margin was 50.1%, slightly down from 50.4% in Q4 2024, marking two consecutive quarters above 50% [34] - Free cash flow generated was about $94.7 million, down from $107 million in Q4 2024 [40] - Net income for the quarter was $42.7 million, or $0.83 per share [33] Business Line Data and Key Metrics Changes - Average day rates increased to $22,303, up from the previous quarter [34] - Active utilization improved from 77.7% in Q4 2024 to 78.4% in Q1 2025 [34] - Day rates in the Americas improved by 8% and in the Middle East by almost 5% [38] Market Data and Key Metrics Changes - The Brazilian OSV market has strengthened significantly, while the U.K. North Sea and Mexico markets face demand-side challenges [24][26] - The Middle East, Africa, and Southeast Asia have seen steady improvements in demand [24] - The overall OSV market remains above historical averages despite economic uncertainties [25] Company Strategy and Development Direction - The company views share repurchase programs as a mechanism to return capital to shareholders and take advantage of market inefficiencies [9] - M&A remains a cornerstone of growth strategy, with a focus on unlevered returns and near-term free cash flow generation [10] - The company is optimistic about the long-term fundamentals of the offshore industry despite current economic uncertainties [45] Management's Comments on Operating Environment and Future Outlook - Management noted that the uncertainty regarding global growth is high, but they are familiar with navigating such situations [12] - The outlook for 2025 aligns with prior expectations, with signs of strength in intermediate to long-term plans for customers [14] - Management remains cautious but optimistic about the potential for increased offshore activity in 2026 and beyond [14] Other Important Information - The company has no immediate need to refinance existing debt due to low leverage and no near-term maturities [19] - The company is actively monitoring the debt capital markets for potential refinancing opportunities [19] - The company expects to incur approximately $113 million in drydock costs for the year [41] Q&A Session Summary Question: What is the outlook for offshore activity in 2026 and 2027? - Management indicated that conversations with customers remain positive, with no changes to plans observed [51][53] Question: How does the company expect to benefit from assets moving out of the North Sea? - Management expects to benefit from tightening supply in the North Sea due to vessels moving to Brazil [57] Question: What is the guidance for Q2 revenue and margins? - Guidance for Q2 indicates a revenue decline of about 5% sequentially with gross margins expected at 44% [90] Question: How does the company decide whether to stack a vessel? - The decision involves various factors including rate thresholds, visibility metrics, and region-specific considerations [87] Question: What is the timeline for tenders? - The timeline for tenders varies by customer, with some taking three to six months to finalize [93]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $333.4 million, a decrease of approximately 3% from $345.1 million in Q4 2024 [32] - Net income for the quarter was $42.7 million, or $0.83 per share [32] - Average day rates increased to $22,303, slightly higher than the previous quarter [33] - Active utilization improved from 77.7% in Q4 2024 to 78.4% in Q1 2025 [33] - Gross margin was 50.1%, compared to 50.4% in Q4 2024, marking two consecutive quarters above 50% [33] Business Line Data and Key Metrics Changes - Day rates in the Americas improved by 8% and in the Middle East by almost 5% [37] - The Europe and Mediterranean region saw a decrease of about 4% in day rates due to seasonality [37] - Gross margin increased in the APAC and Middle East regions, while it decreased in Africa and Europe [37] Market Data and Key Metrics Changes - The Brazilian OSV market has strengthened significantly, while the U.K. North Sea and Mexico markets face demand-side challenges [23][25] - The Middle East and Africa markets showed steady improvements, with strong Q1 performance in Africa [27][28] - The overall OSV market remains above historical averages, although diverging trends are noted across regions [23] Company Strategy and Development Direction - The company views share repurchase programs as a mechanism to return capital to shareholders and take advantage of market inefficiencies [8][10] - M&A remains a cornerstone of growth strategy, with a focus on unlevered returns and near-term free cash flow generation [10] - The company is optimistic about the long-term fundamentals of the offshore market despite current macroeconomic uncertainties [45] Management's Comments on Operating Environment and Future Outlook - Management noted that the uncertainty regarding global growth is high, but they are familiar with navigating such situations [12] - There have been no canceled or delayed projects, indicating continued customer conviction [13] - The company expects 2025 to align with prior expectations, with opportunities in subsea construction and production-related activities [14] Other Important Information - The company generated approximately $95 million in free cash flow, the second highest since the offshore recovery began [8] - The company incurred $43.3 million in deferred drydock costs, significantly higher than the previous quarter [41] - The company has not observed any supplier price increases related to tariffs but is monitoring the situation closely [43] Q&A Session Summary Question: Outlook for offshore drilling contractors and subsea contractors - Management indicated that there have been no changes in customer outlook and expectations remain positive for 2026 and 2027 [50][54] Question: Participation in asset movement from North Sea to Brazil - Management expects to benefit from the movement of vessels to Brazil, which will tighten supply in the North Sea [58] Question: Forward margin guidance for Q2 - Management confirmed that Q2 revenue is expected to decline by about 5% sequentially, with margins at 44% [91] Question: Decision-making framework for stacking vessels - The decision to stack vessels is based on rate thresholds, visibility metrics, and region-specific factors [88] Question: Timeline for tenders - Tender timelines vary by customer, with some taking up to a year from issuance to execution [96]

Tidewater (TDW) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of 69.39%. A quarter ago, it was expected that this offshore energy services provider would post earnings of $0.70 per share when it actually produced earnings of $0.70, delivering no surprise. Over the last four quarters, ...

Company Overview - Tidewater operates the largest OSV fleet in the world with 214 owned vessels[10] - The company has a significant number of hybrid vessels, totaling 18, which is the largest hybrid fleet in the world[10] - Tidewater estimates its 2025 EBITDA to be approximately $558 million[10] - The company's fleet includes 190 OSVs, with a significant presence in Europe (50 OSVs), Africa (49 OSVs), and the Middle East (41 OSVs)[14, 19] Market Overview - Global offshore capex is expected to rebound meaningfully in 2026 and remain elevated in 2027[52] - Newbuild economics require a through-cycle average day rate of approximately $44k/day to achieve "NPV Zero" based on a 20-year useful life for European-built PSVs greater than 900m2[65] - Global shipyard capacity has decreased by approximately 50%[69] Financials - Tidewater projects its 2025 revenue to be $1346 million[82] - The company's adjusted EBITDA for 2025 is projected to be $558 million, representing a 41% margin[82, 86] - Tidewater's net debt to 2025E EBITDA ratio is 05x[10]