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Tidewater Inc. reported one of its strongest financial performances in recent years despite what management described as a softer offshore market in 2025, while moving to deepen its footprint in Brazil through a 22 vessel acquisition that could reshape its exposure to the world’s largest offshore support market.
The offshore vessel owner said adjusted EBITDA rose about 7 percent year on year to just under $600 million in 2025, as revenue reached $1.35 billion and free cash flow surged to nearly $430 million. Net income for the full year climbed to $334.7 million from $180.7 million in 2024.
President and CEO Quintin Kneen said the results demonstrated the resilience of the business, citing higher average day rates, expanded gross margins and improved vessel utilization across the fleet.
Fourth quarter revenue totaled $336.8 million, with a gross margin of 48.7 percent. Adjusted EBITDA for the quarter was $143.1 million and free cash flow reached $151.2 million, supported by fewer drydock days and lower repair downtime than anticipated.
Balance Sheet Reset and Fleet Realignment
During the year, Tidewater Inc. refinanced the majority of its debt, issuing $650 million of 9.125 percent senior unsecured notes due 2030 and establishing a $250 million revolving credit facility that remains undrawn TDW-IR-Deck-Q4-2025-_vFFFF. The company said the move positions it with one of the strongest balance sheets in the offshore vessel sector.
Net income in the fourth quarter reached $219.9 million, compared with $36.9 million a year earlier, aided by a $201.5 million non cash deferred tax benefit linked to an internal restructuring of vessel ownership. The so called Vessel Realignment consolidated a large portion of the fleet into a single wholly owned U.S. entity.
The company operates 191 offshore support vessels globally as of December 31, 2025, excluding 17 other vessels such as crew boats and tugs TDW-IR-Deck-Q4-2025-_vFFFF. Its fleet spans platform supply vessels and anchor handling tug supply vessels across the Middle East, West Africa, the Americas, Europe and Asia Pacific.
Brazil Entry Through Wilson Sons Ultratug
After year end, Tidewater Inc. announced the acquisition of Wilson Sons Ultratug, a 22 vessel fleet of platform supply vessels focused exclusively on Brazil.
Kneen said the deal gives Tidewater critical mass in the Brazilian offshore vessel market, which he described as the largest globally. The acquisition aligns with structural demand trends in Brazil, where local content requirements and Brazilian built tonnage can influence vessel competitiveness and charter awards.
For charterers and offshore contractors, the move signals greater consolidation in a market already characterized by tight supply. Company presentations show high utilization across key vessel classes globally, particularly in higher specification segments TDW-IR-Deck-Q4-2025-_vFFFF.
2026 Outlook Hinges on Drilling Recovery
Looking ahead, management said questions remain over the pace of drilling activity in early 2026. However, commentary from offshore drillers and recent tendering activity suggest a pickup later in the year, potentially extending into 2027.
Tidewater updated its 2026 guidance to reflect a mid year close of the Brazil acquisition, forecasting full year revenue of $1.43 billion to $1.48 billion and gross margins between 49 percent and 51 percent.
The company said vessel supply remains sufficiently tight to support current day rates and potentially allow further increases as drilling demand strengthens. With low projected leverage following the Wilson transaction, management indicated it expects to retain flexibility for additional capital allocation, including fleet investments or further acquisitions.
For offshore operators, oil majors and subsea contractors, Tidewater’s results underscore a market that, while uneven, continues to generate strong cash flow for owners with modern fleets and global reach.
