Tidewater Q3 Revenue Rises 5.3% as Offshore Vessel Day Rates Strengthen
November 10, 2026
Tidewater Inc. reported third-quarter 2026 revenue of $360.4 million, up 5.3% sequentially, as improving offshore support vessel (OSV) day rates and utilization supported earnings growth. The company also completed a $500 million acquisition in Brazil and issued an optimistic outlook for 2027, citing strengthening offshore activity and tight vessel supply.
Net income for the quarter ended September 30 reached $17.5 million, compared with a loss of $800,000 in the corresponding 2025 period. Adjusted EBITDA totaled $140.1 million, while operating cash flow reached $75.2 million and free cash flow was $90.9 million.
Average realized vessel day rates increased 3.7% sequentially to $23,775, while weighted average leading-edge term contract rates jumped 12.5% to $27,373, suggesting continued pricing momentum across the global OSV market.
"Third quarter 2026 revenue and gross margin nicely exceeded our expectations driven by continued strength in day rates and utilization," said Quintin Kneen, Tidewater President and CEO.
Gross margin reached 46.8%, exceeding company expectations by approximately one percentage point.
A significant development during the quarter was Tidewater's completion of its $500 million all-cash acquisition of Wilson Sons Ultratug Offshore (WSUT), substantially expanding its presence in Brazil, a key offshore oil and gas market. Tidewater expects to substantially complete integration of the acquired business by early 2027.
For the first nine months of 2026, revenue totaled $1.03 billion, compared with $1.02 billion a year earlier, while net income declined to $45.3 million from $114.8 million.
Despite improving market conditions, Middle East geopolitical tensions continue to pressure operating expenses. Tidewater expects approximately $19.8 million in conflict-related costs during 2026, of which $8.7 million is recoverable from customers.
The company updated its full-year 2026 revenue guidance to $1.43 billion to $1.44 billion, with gross margins between 47.5% and 48.5%.
Looking ahead, Tidewater projects 2027 revenue of $1.70 billion to $1.75 billion and gross margins of 51% to 53%, reflecting expectations for continued demand across offshore drilling, subsea construction, engineering, procurement, construction and installation (EPCI), and production support.
Kneen pointed to improving offshore investment confidence and limited available vessel supply as drivers of future growth.
"Broad-based confidence in the offshore cycle continues to improve," he said.
Tidewater also repurchased approximately $25 million in shares since its previous earnings announcement, leaving $475 million authorized for additional repurchases.
