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Investing.com -- Tidewater Inc. (NYSE:TDW) shares surged 4.3% after the offshore vessel operator reported second quarter earnings that significantly exceeded analyst expectations, driven by higher day rates and improved vessel utilization.
The company reported second quarter earnings of $1.46 per share, substantially beating the analyst estimate of $0.52. Revenue came in at $341.4 million, surpassing the consensus estimate of $321.02 million and representing a modest 0.6% increase YoY. The company’s performance was bolstered by average day rates of $23,166, a 9.6% improvement compared to the same period last year.
"The second quarter of 2025 exceeded our expectations as vessel up-time continued to drive revenue and margin performance," said Quintin Kneen, Tidewater’s President and Chief Executive Officer. "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."
Tidewater generated strong free cash flow of $97.5 million during the quarter and reported a gross margin above 50% for the third consecutive quarter. The company’s net income was favorably impacted by an $11.7 million foreign exchange gain due to the weakening U.S. dollar and a one-time, non-cash increase of $27 million from reversing a valuation allowance on previous U.S. net operating losses.
The company reaffirmed its full-year 2025 guidance, projecting revenue between $1.32 billion and $1.38 billion, in line with the analyst consensus of $1.344 billion. Tidewater also maintained its gross margin guidance of 48% to 50%.
In a show of confidence, Tidewater’s Board of Directors authorized a new $500 million share repurchase program. During the second quarter, the company had already reduced its share count by 1.4 million shares through repurchases totaling $50.8 million at an average price of $36.80 per share.
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