Key Stats for Tidewater Stock
- Price change for Tidewater stock: 18%
- $TDW Stock Price as of Aug. 4: $84
- 52-Week High: $93
- $TDW Stock Price Target: $87
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What Happened?
Tidewater (TDW) stock’s profit took a big hit this quarter even though revenue barely moved. Net income fell 70% to $21.7 million, and earnings per share dropped to $0.44 from $1.46 a year ago, though it remains almost at par with the consensus estimate. The story here is rising costs eating into an otherwise decent quarter.
On the positive side, day rates kept climbing. The average day rate rose $655, or 2.9%, to $22,938 per day, the largest sequential increase since Q3 of 2024.
New contract rates rose even more, up about 7.5% to $24,341 per day. Utilization also came in better than expected, partly because some vessel maintenance got pushed to later in the year.
So why did profit fall so much if pricing was improving?
Costs rose faster than revenue. Vessel operating costs jumped 8% to $180.7 million, and general and administrative expenses increased too.
On top of that, foreign exchange swung from an $11.7 million gain a year ago to a $0.7 million loss this quarter, and income taxes jumped to $25.1 million from $5.6 million.
Together, these items dragged net margin down to about 6.3% from 21.4% a year earlier.
A big piece of the cost pressure came from the Middle East conflict, known internally as Operation Epic Fury. The company expects about $13.1 million in conflict-related costs for 2026, with roughly $7.6 million billable back to customers.
Despite the conflict, Tidewater said it saw no major disruption to its vessels in the region and actually posted some of its strongest utilization and day rates there in years.
Looking ahead, Tidewater trimmed its full-year revenue guidance to a range of $1.42 billion to $1.47 billion, mainly because its acquisition of Wilsons is now expected to close around September 1, about two months later than originally planned. Full-year gross margin guidance is now 49% to 50%.
The balance sheet remains solid. Cash grew to $613.5 million from $578.8 million at the end of 2025, and the company still has $500 million left on its share buyback authorization, though it hasn’t repurchased any shares so far this year while it works through the acquisition financing.
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What the Market Is Telling Us About Tidewater Stock
The sharp profit decline shows that stronger pricing alone isn’t enough when operating costs and one-time items move against a company at the same time.
Still, the underlying demand picture for Tidewater stock looks healthy. Management pointed to increasing customer tendering activity and said they expect vessel supply to stay tight, supporting further day rate growth into 2027 and 2028.
Investors watching Tidewater stock will likely want to see whether the company can convert these improving day rates into cleaner profit growth once conflict-related costs fade, and the Wilson Sons acquisition closes.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
