Tidewater surges 10.5% as Q1 earnings beat expectations

Published 05/05/2025, 22:40
Tidewater surges 10.5% as Q1 earnings beat expectations

Investing.com -- Tidewater Inc. (NYSE:TDW) saw its stock soar 10.5% after the offshore energy services provider reported first-quarter earnings that exceeded analyst estimates, driven by higher day rates and improved utilization across its fleet.

For Q1 2025, Tidewater posted revenue of $333.4 million, up 3.8% YoY and surpassing the consensus estimate of $324.21 million. Adjusted earnings per share came in at $0.83, beating analyst expectations of $0.66 by $0.17.

The company’s average day rate increased to $22,303, a 14% improvement from the same period last year. This boost in rates, coupled with better-than-anticipated utilization, contributed to the strong quarterly performance.

Tidewater’s President and CEO, Quintin Kneen, commented on the results: "The first quarter of 2025 came in nicely ahead of expectations, as utilization and day rate both performed better than anticipated across many of our operating regions."

Despite macroeconomic uncertainties, Tidewater reiterated its full-year 2025 guidance, projecting revenue between $1.32 billion and $1.38 billion, in line with the analyst consensus of $1.351 billion. The company also maintained its gross margin guidance of 48% to 50% for the year.

Tidewater reported robust free cash flow of $94.7 million for the quarter, highlighting the company’s strong cash generation capacity even during its heaviest quarterly drydock spending period.

The offshore services provider has been actively managing its share count, repurchasing 2.3 million shares for $90 million at an average price of $39.31 per share through April 14, 2025. This move, along with additional share reductions related to employee equity compensation, has decreased the outstanding share count by nearly 2.5 million year-to-date.

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