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Investing.com -- Tidewater Inc. (NYSE:TDW) shares tumbled 5% in after-hours trading Monday after the offshore energy vessel operator reported a surprise third-quarter loss and issued 2026 revenue guidance below analyst expectations, despite beating revenue estimates for the current quarter.
The company reported a net loss of $0.02 per share for the third quarter, significantly missing the analyst consensus estimate of $0.62 per share. Revenue came in at $341.1 million, slightly above analyst expectations of $332.57 million and representing a modest 0.2% increase YoY. The quarter’s results were negatively impacted by a $27.1 million loss on early extinguishment of debt associated with the company’s July 2025 refinancing.
Tidewater narrowed its full-year 2025 revenue guidance to $1.33-1.35 billion, in line with the consensus estimate of $1.341 billion. However, its initial 2026 revenue guidance of $1.32-1.37 billion fell short of analyst expectations of $1.401 billion, contributing to the negative market reaction.
"The third quarter of 2025 came in above our expectations as vessel up-time across the fleet exceeded our initial estimates," said Quintin Kneen, Tidewater’s President and CEO. "We are pleased with yet another quarter of robust earnings and cash flow generation, with Adjusted EBITDA of $137.9 million and free cash flow of $82.7 million."
The company reported an average day rate of $22,798 per day during the quarter, an improvement of $523 per day or 2.3% compared to the third quarter of 2024. Gross margin for the quarter was 48.0%, and the company updated its 2025 gross margin guidance to 49-50%.
Kneen acknowledged ongoing market uncertainties affecting the offshore drilling sector, noting that "the factors that influenced the market in 2025 continue and provide a challenging backdrop to accurately anticipate the pace and order of magnitude of offshore drilling activity." Despite these challenges, the company highlighted its diversified revenue streams across production support, offshore construction, subsea activities, and drilling support.
For 2026, Tidewater projected gross margins of 48-50%, suggesting potential pressure on profitability compared to current levels.
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