Tidewater Inc. Q3 2026 Earnings Recap

Tidewater’s shares rose 4.1% after earnings, as investors responded to a third consecutive quarter of higher leading-edge day rates and revenue above expectations. Management also forecast revenue, gross-margin, and cash-flow growth into 2027 as the fleet rolls onto higher-rate contracts.

Key Takeaways

• Leading-edge day rates rose more than 12% sequentially to just over $27,000 per day; year to date, they were up about $4,900 per day.
• Revenue was $360.4 million, including one month of Wilson Sons, and was ahead of expectations. Gross margin was just under 47%, nearly one point above prior guidance, and approximately 48% excluding Epic Fury-related costs.
• Free cash flow increased more than 40% to $91 million, mainly on better collections and lower capital expenditure. Management expects it to improve again in the fourth quarter.
• Wilson Sons closed on September 1; management expects integration onto Tidewater’s platform by early 2027. The combined company ended the quarter with net leverage below 0.9x and approximately $650 million of liquidity.
• Tidewater repurchased $25 million of shares after the acquisition closed, leaving about $475 million under its $500 million authorization. Conflict-related costs are expected to ease to about $5 million in the fourth quarter, from $5.6 million in the third.