Tidewater Inc

Tidewater Inc. (NYSE: TDW) is an owner and operator of offshore support vessels providing offshore energy exploration, production and offshore wind activities worldwide. The Company’s segments include Americas, Asia Pacific, Middle East, Europe/Mediterranean and West Africa. Its vessels and associated services support all phases of offshore crude oil and natural gas (also referred to as oil and gas) exploration activities, field development, production and maintenance, as well as windfarm development and maintenance.

Recent Business and Financial Updates

• Market Performance: Tidewater Inc. (NYSE:TDW) disclosed its financial outcomes for the quarter concluding on March 31, 2025, demonstrating a strong performance. The company recorded revenues of USD 333.4 million, marking a 3.8% increase from the USD 321.2 million reported in the first quarter of 2024. The average daily rate rose significantly to USD 22,303, reflecting a 14.0% improvement or an additional USD 2,740 per day compared to the prior year. Net income reached USD 42.7 million, while Adjusted EBITDA amounted to USD 154.2 million, enhanced by a USD 7.6 million foreign exchange gain attributed to the weakening U.S. dollar. Furthermore, net cash flow from operating activities totaled USD 86.0 million, contributing to a free cash flow of USD 94.7 million.
• Corporate Strategy and Financial Guidance: The company’s strategic initiatives included a notable reduction in share count, with 2.3 million shares repurchased for USD 90.0 million at an average price of USD 39.31 through April 14, 2025, alongside an additional 179,645 shares acquired for USD 7.5 million to address employee tax obligations. Tidewater reaffirmed its 2025 revenue projections between USD 1.32 and USD 1.38 billion, accompanied by a gross margin forecast of 48% to 50%. This guidance persists despite heightened macroeconomic uncertainty, underpinned by a robust 50.1% gross margin in the first quarter, marking the second consecutive quarter exceeding 50.0%.
• Leadership Perspective: Quintin Kneen, President and Chief Executive Officer of Tidewater, highlighted the exceptional results for the first quarter of 2025, which surpassed expectations with revenues of USD 333.4 million, a record average daily rate of USD 22,303, and a 50.1% gross margin. He emphasized the company’s strong cash generation, evidenced by a free cash flow of USD 94.7 million despite elevated drydock expenditures. The repurchase of nearly USD 100 million in shares, reducing outstanding shares by 2.5 million, reflects confidence in the company’s financial stability. Kneen also noted that 88% of the 2025 revenue midpoint is contracted, reinforcing the reliability of the year’s outlook.
• Financial Summary: Tidewater’s financial statements for the period ending March 31, 2025, revealed total revenues of USD 333,444,000 against total costs and expenses of USD 258,397,000, yielding an operating income of USD 75,047,000. Income before income taxes was reported at USD 68,429,000, with net income attributable to Tidewater Inc. reaching USD 42,653,000. This translated to a basic and diluted income per common share of USD 0.83. The balance sheet showcased cash and cash equivalents of USD 341,799,000, total assets of USD 2,066,166,000, and total equity of USD 1,110,365,000, with long-term debt standing at USD 555,994,000.
• Company Overview and Upcoming Events: With a 65-year legacy, Tidewater Inc., headquartered in Houston, operates the industry’s largest fleet of offshore support vessels, serving global energy exploration, production, and offshore wind sectors. The company is well-prepared to meet escalating demand for offshore energy, supported by a favorable vessel supply outlook and minimal newbuild activity. A conference call to discuss these results is scheduled for May 6, 2025, at 8:00 a.m. Central Time, with dial-in details available via the Investor Relations section of www.tdw.com, where further information about the company can also be accessed.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 54.36, correcting from overbought zone, with expectations of a consolidation or a downward momentum if the important support of USD 44.00-USD 46.00 is broken on the downside. Additionally, the stock's current positioning is between both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term support and resistance levels respectively.

Tidewater Inc. (NYSE: TDW), a leading operator of offshore support vessels, reported robust Q1 2025 financial results, with revenues of USD333.4 million, a 3.8% increase from USD321.2 million in Q1 2024, driven by a 14.0% rise in average daily rates to USD22,303. The company achieved a net income of USD42.7 million, Adjusted EBITDA of USD154.2 million, and free cash flow of USD94.7 million, bolstered by a USD7.6 million foreign exchange gain, though it faced elevated drydock costs. Tidewater repurchased 2.3 million shares for USD90.0 million and an additional 179,645 shares for USD7.5 million to cover employee tax obligations, reducing its share count and signaling financial confidence. The company reaffirmed its 2025 revenue guidance of USD1.32–USD1.38 billion with a 48%–50% gross margin, supported by a 50.1% Q1 gross margin and an 88% contracted revenue midpoint, despite macroeconomic uncertainties. 

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given to Tidewater Inc. (NYSE: TDW) at the closing market price of USD 48.66, as of July 15, 2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is July 15, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.