Shares fell 6.2% as investors reacted negatively to cautious commentary on the ongoing Middle East conflict and potential margin pressure from increased costs, notably hazard pay for crews, despite solid revenue and margin performance.

• Revenue reached $326.2 million, driven by higher vessel utilization and stronger day rates.
• Gross margin improved slightly to just under 49%, about 3 percentage points above internal plans.
• Increased operating costs were noted, particularly incremental hazard pay for crews, with insurance and fuel costs also rising.
• Free cash flow totaled $34 million but declined sequentially due to working capital effects and higher drydock spending.
• The company remains on track to close its $500 million acquisition of Wilson & Sons UltraTug Offshore by end of Q2, retaining a strong balance sheet and below 1x net leverage.