Tidewater Inc. reported first‑quarter 2026 results with revenue of $326.2 million, down 2.2% from $333.4 million a year earlier, and net income of $6.1 million, a sharp decline from $42.7 million in Q1 2025. Earnings per share fell to $0.12 from $0.83, and operating margin contracted to 18.5% from 22.8%.
Revenue beat consensus estimates of roughly $323 million, driven by a 1.5% increase in core offshore service revenue and a 3% rise in day‑rate earnings, offsetting a modest decline in utilization in West Africa. The mix shift toward higher‑margin platform supply vessels helped lift gross margin to 48.8%.
The EPS miss was largely a result of a $12 million tax charge and higher operating costs in the Middle East, where insurance and crew expenses rose sharply amid Operation Epic Fury. The combination of elevated costs and a one‑time tax expense compressed operating income to $6.1 million, an 86% drop from the prior year.
Management reiterated its full‑year 2026 revenue guidance of $1.43 billion to $1.48 billion and a gross‑margin target of 49% to 51%, assuming the Wilson Sons Ultratug acquisition closes by the end of Q2 2026. The company also maintained its operating‑margin outlook, signaling confidence in its cost‑control program.
Investors reacted negatively to the earnings miss, with the market focusing on the sharp EPS shortfall and the impact of higher Middle‑East costs. Despite the revenue beat and guidance, the EPS miss weighed on sentiment.
CEO Quintin Kneen said, “The first quarter of 2026 exceeded our expectations across all key financial and operational measures, with revenue, gross margin, day rate and utilisation all outperforming.” He added, “Revenue for the quarter came in at US$326.2 million and we generated a gross margin of 48.8 per cent, a slight improvement over the fourth quarter of 2025.”
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