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Jun 30, 2024
Tidewater Q2 2025 Earnings Report
Reported revenue and net income increase compared to the same period last year, driven by strength in global day rates.
Key Takeaways
Tidewater Inc. reported a strong second quarter with revenue of $339.2 million, up from $215.0 million in the same quarter last year. Net income also increased significantly to $50.4 million ($0.94 per common share), compared to $22.6 million ($0.43 per common share) in the second quarter of 2023. The company's performance was driven by continued strength in global day rates and active share repurchases.
Second quarter revenue exceeded expectations due to continued strength in global day rates.
Consolidated global average day rate expanded materially, increasing nearly $1,600 per day sequentially.
Gross margin reached 47.7%, the highest in fifteen years.
Generated $87.6 million of free cash flow and increased share repurchase authorization by $13.9 million.
Tidewater
Tidewater
Tidewater Revenue by Segment
Tidewater Revenue by Geographic Location
Revenue by Segment
Vessel Revenues Revenue
CapyFin.comOther Operating Revenues Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comMiddle East Revenue
CapyFin.comEurope/Mediterranean Revenue
CapyFin.comWest Africa Revenue
CapyFin.com Forward Guidance
The company anticipates strength in demand for its vessels to continue throughout the year, though some drilling campaigns are expected to begin later than initially anticipated. Full-year revenue guidance is updated to $1.39 to $1.41 billion with a gross margin guidance of 51%. The outlook for 2025 remains optimistic due to constructive supply and demand factors.
Positive Outlook
- Strength in demand for vessels expected to continue throughout the year.
- Observable supply and demand factors driving the offshore vessel industry remain highly constructive.
- Pace of day rate increases expected to be maintained.
- Substantial increase in available vessel days anticipated as the drydock schedule lightens in 2025.
- Board authorized an additional $13.9 million of share repurchase capacity.
Challenges Ahead
- Several drilling campaigns expected to begin later in Q3 and early Q4 than originally anticipated.
- Increase in drydock days expected for the third quarter.
- Updated full-year revenue guidance to $1.39 to $1.41 billion.
- Updated gross margin guidance of 51%.
- Composite leading edge term contract average day rate this quarter declined approximately 6% sequentially.
Revenue & Expenses
Visualization of income flow from segment revenue to net income