Tidewater reported results for the six months ended June 30, 2025.
Second Quarter 2025 Highlights
- Revenue of $341.4 million, a 0.6% improvement compared to the second quarter of 2024
- Average day rate of $23,166 per day, an improvement of $2,036 per day, or 9.6%, compared to the second quarter of 2024
- Net income of $72.9 million and Adjusted EBITDA of $163.0 million
- Net Income and Adjusted EBITDA were favorably impacted by the $11.7 million foreign exchange gain due to the weakening of the U.S. dollar
- Net cash provided by operating activities of $85.4 million and free cash flow of $97.5 million
Share Repurchase Program and 2025 Guidance
- Share count was reduced by 1.4 million shares during the second quarter through repurchases of $50.8 million at an average price of $36.80 per share
- Board of Directors authorizes new share repurchase program of $500 million
- Reiterating 2025 revenue guidance of $1.32 to $1.38 billion and 2025 gross margin guidance of 48% to 50%
Tidewater announced revenue for the three and six months ended June 30, 2025 of $341.4 million and $674.9 million, respectively, compared with $339.2 million and $660.4 million, respectively, for the three and six months ended June 30, 2024. Tidewater’s net income for the three and six months ended June 30, 2025, was $72.9 million ($1.46 per common share) and $115.6 million ($2.27 per common share), respectively, compared with net income of was $50.4 million ($0.94 per common share) and $97.4 million ($1.83 per common share), respectively, for the three and six months ended June 30, 2024.
Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “The second quarter of 2025 exceeded our expectations as vessel up-time continued to drive revenue and margin performance, delivering revenue of $341.4 million and the third consecutive quarter with a gross margin above 50.0%, coming in at 50.1%. The average day rate for the quarter marked another record at $23,166, up over $860 per day sequentially, with particular strength in our largest classes of AHTS and PSVs, as we continued to benefit from the fleet rolling on to higher day rate contracts and continued strength in leading edge rates. Free cash flow of $97.5 million also continued to demonstrate the free cash flow generation capability of our fleet.
“As the business continues to demonstrate its profitability around the world, and as we have become comfortable that such profitability is sustainable, we have reversed the valuation allowance we had previously put on the U.S. net operating losses we generated during earlier periods. This resulted in a one-time, non-cash increase in net income of $27.0 million.
“Subsequent to the end of the second quarter, we executed a refinancing transaction that achieved our target of establishing a long term, unsecured debt capital structure along with a sizable revolving credit facility. The proceeds of the $650.0 million senior unsecured notes offering completed in July substantially went to the redemption of our previously outstanding Nordic bonds and term loan facility. The new notes have a five-year maturity with no required amortization. Further, in connection with the refinancing transaction, we entered into a $250.0 million revolving credit facility, which as of today is undrawn, which will allow us to comfortably reduce our level of cash on hand.
“In addition to the balance sheet strength and financial flexibility the new financing package provides, the opportunity for shareholder returns has been substantially increased, allowing for a larger allocation of free cash flow for shareholder returns. Consequently, we are pleased to announce that our Board of Directors has authorized a new share repurchase program of $500 million.
“The commodity price volatility and macroeconomic uncertainty we expected to subside has continued to persist. We remain confident in maintaining our full year guidance for 2025, but this uncertainty has brought down our expectations for the second half of the year. We are comfortable reiterating our 2025 guidance of $1.32 billion to $1.38 billion of revenue and gross margin guidance of 48% to 50% due to the strong first half of the year and that, as of today, 93% of our revenue guidance is covered by completed and contracted future revenue for the full year. We remain unaware of any project cancellations and remain optimistic about the intermediate to long-term prospects for offshore vessel activity.
“Our performance this year would not be possible without the dedication of our employees to operational excellence. A large part of our better than anticipated performance for the quarter was due to increased vessel uptime and lower operational costs, which is the direct result of the focus and diligence of our more than 7,700 offshore and onshore staff. To our employees, thank you for your attention to the details and operational standards that continue to make Tidewater’s operations safe and reliable for your fellow employees and our customers.”