TDW

Interested in Tidewater Renewables Ltd.? Here are five stocks we like better. Record Q2 performance: Tidewater Renewables reported record adjusted EBITDA of C$56 million, driven by 111% HDRD utilization, stronger renewable diesel pricing and C$0.16 per litre in Biofuel Production Incentive support. Raised guidance and lower leverage: The company increased 2026 consolidated adjusted EBITDA guidance to C$230 million–C$250 million and reduced renewables debt by C$13.5 million, bringing its debt-to-adjusted-EBITDA ratio to 1.47 times. SAF project advances: Tidewater is targeting a fourth-quarter final investment decision for its approximately C$1.2 billion sustainable aviation fuel project, which could begin operations in 2030, subject to regulatory support and financing arrangements. Tidewater Renewables (TSE:LCFS) reported record second-quarter adjusted EBITDA of C$56 million, supported by above-nameplate renewable diesel production, stronger pricing and contributions from Canada’s Biofuel Production Incentive program. Chief Executive Officer Jeremy Baines said the company’s HDRD complex achieved record average daily throughput of 3,315 barrels per day in the quarter, representing 111% utilization. Low-cost debottlenecking projects and facility reliability allowed the complex to operate consistently above nameplate capacity, he said. → Lumentum Just Delivered the AI Growth Investors Wanted The performance came as the company sold renewable diesel at record margins under offtake contracts indexed to U.S. import-parity pricing. Tidewater also captured an additional C$0.16 per litre of margin through the Biofuel Production Incentive, according to Baines. Tidewater Renewables received conditional approval from Natural Resources Canada for the Biofuel Production Incentive during the first quarter. The company executed its contribution agreement on July 7, securing funding aligned with the HDRD complex’s full annual production capacity. → Ryman Checks Into a $1.38B Hospitality Upgrade Baines said Tidewater expects to receive C$13.8 million in cash contributions covering the first and second quarters during the third quarter of 2026. Contributions are then expected quarterly in arrears. CFO Ian Quartly said second-quarter adjusted EBITDA included C$7.7 million of expected Biofuel Production Incentive proceeds recognized during the period. The result also included C$7.7 million of adjusted EBITDA from Tidewater’s equity investment in a cattle company, primarily reflecting higher cattle prices. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal The company continues to advance its sustainable aviation fuel project toward a final investment decision in the fourth quarter. On June 19, Tidewater executed a new initiative agreement with the Government of British Columbia that is intended to provide additional BC-LCFS credits for critical pre-final-investment-decision work. The work includes engineering, regulatory advancement, preservation of vendor and fabrication capacity, and maintaining the project schedule, Baines said. Tidewater expects to receive the BC-LCFS credits in the third and fourth quarters as milestones are achieved. In response to an analyst question, Baines said a final investment decision depends on a supportive regulatory environment, including targeted amendments under the Clean Fuel Regulations and other potential programs supporting Canada’s sustainable aviation fuel sector. He put the project’s estimated capital cost at about C$1.2 billion and said the company has completed a class 3 front-end engineering design study. Baines said the project would have a three-year construction period and could enter service in 2030. Tidewater expects it could contribute funds from operating cash flow during construction and is also evaluating potential investment from a First Nations partner and other interested parties. Tidewater increased its 2026 adjusted EBITDA guidance for the renewables business to C$130 million to C$140 million. The company raised consolidated adjusted EBITDA guidance to C$230 million to C$250 million, up 20% at the midpoint from its prior outlook. Quartly attributed the higher guidance to increased facility utilization, sustained strength in forward crack spreads, and improved renewable diesel and emissions-credit pricing. Forecast 2026 capital expenditures for Tidewater Renewables remain unchanged at C$2 million to C$3 million. The company reduced Tidewater Renewables’ debt by C$13.5 million during the second quarter. Its debt-to-adjusted-EBITDA ratio was 1.47 times as of June 30, while the consolidated company’s ratio was 1.7 times, within its target range of 1.2 times to 2.5 times. Quartly said the company intends to direct free cash flow primarily toward debt reduction while maintaining its disciplined capital program. Tidewater Midstream generated deconsolidated adjusted EBITDA of C$32.9 million in the second quarter, up C$7.3 million from the first quarter. The improvement was driven mainly by higher crack spreads at the Prince George Refinery, partly offset by realized losses on crack-spread hedges. Prince George Refinery throughput averaged 10,032 barrels per day because of a planned 17-day partial outage in April. Excluding that outage, throughput averaged 12,060 barrels per day, or 101% of design capacity. The Prince George crack spread averaged C$118 per barrel, 16% higher than in the first quarter. Tidewater has hedged about half of its crack-spread exposure from April through December 2026. It also added hedges during the second half of July covering approximately 40% of its 2027 crack-spread exposure at fixed prices that Baines said were significantly above mid-cycle pricing and 2026 realized hedge pricing. Baines said Tidewater will continue pursuing non-core asset sales, prioritizing assets that do not fit its strategy or generate appropriate returns, while focusing on refinery and HDRD utilization, midstream volumes, commercial offtakes and the advancement of the sustainable aviation fuel project. Tidewater Renewables is a multi-faceted, energy transition company. The Corporation is focused on the production of low carbon fuels, including renewable diesel and sustainable aviation fuel. The Corporation was created in response to the growing demand for renewable fuels in North America and to capitalize on its potential to efficiently turn a wide variety of renewable feedstocks (such as canola oil, soybean oil, used cooking oil, distillers corn oil, tallow, and other biomasses) into low carbon fuels. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Tidewater Renewables Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Interested in Tidewater Midstream and Infrastructure Ltd.? Here are five stocks we like better. Record results lifted guidance: Second-quarter consolidated adjusted EBITDA reached C$88.9 million, prompting Tidewater to raise its 2026 outlook to C$230 million–C$250 million, a 20% midpoint increase from its previous forecast. Refining and renewable diesel drove performance: The HDRD complex operated at 111% of nameplate capacity, while stronger crack spreads supported the Prince George Refinery. Favorable pricing, higher utilization and expected Biofuel Production Incentive payments boosted the outlook. Debt fell as strategic projects advanced: Consolidated net debt declined by C$44.4 million in the quarter, while Tidewater continued preparations for a potential fourth-quarter final investment decision on its approximately C$1.2 billion sustainable aviation fuel project. Tidewater Midstream and Infrastructure (TSE:TWM) raised its 2026 adjusted EBITDA outlook after reporting record second-quarter consolidated adjusted EBITDA, supported by strong refining and renewable diesel market conditions, higher facility utilization and debt reduction. During a joint second-quarter call with Tidewater Renewables, CEO Jeremy Baines said the company’s Prince George Refinery and HDRD renewable diesel complex benefited from favorable fuel markets, while management continued to advance a sustainable aviation fuel project toward a potential final investment decision in the fourth quarter. → Lumentum Just Delivered the AI Growth Investors Wanted CFO Ian Quartly said Tidewater’s consolidated adjusted EBITDA reached a quarterly record of C$88.9 million in the second quarter, up C$39.2 million from the first quarter of 2026. Tidewater Renewables generated record adjusted EBITDA of C$56 million. Quartly said the result reflected above-nameplate operation at the HDRD complex, improving market pricing and offtake contracts indexed to U.S. import-pricing benchmarks. The result included C$7.7 million of expected Biofuel Production Incentive proceeds recognized in the quarter and C$7.7 million of adjusted EBITDA from the company’s equity investment in a cattle company, primarily reflecting higher cattle prices. → Ryman Checks Into a $1.38B Hospitality Upgrade Tidewater Midstream generated deconsolidated adjusted EBITDA of C$32.9 million, an increase of C$7.3 million from the first quarter. Quartly attributed the improvement primarily to stronger crack spreads at the Prince George Refinery, partly offset by realized losses on crack-spread hedges. The company increased its 2026 consolidated adjusted EBITDA guidance to between C$230 million and C$250 million, representing a 20% increase at the midpoint from its prior outlook. Tidewater Renewables increased its guidance to C$130 million to C$140 million, while Tidewater Midstream raised its deconsolidated adjusted EBITDA guidance to C$100 million to C$110 million. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal Management cited higher facility utilization, sustained strength in forward crack spreads, and improved renewable diesel and emissions-credit pricing as the main drivers of the higher outlook. Forecast capital expenditures remained unchanged at C$2 million to C$3 million for Tidewater Renewables and C$20 million to C$25 million for Tidewater Midstream on a consolidated basis. The HDRD complex processed a record average of 3,315 barrels per day during the second quarter, or 111% utilization, Baines said. Low-cost debottlenecking work and facility reliability enabled the complex to operate above nameplate capacity. The company also realized record margins on renewable diesel sold at U.S. import-parity pricing and captured an additional C$0.16 per liter from the Biofuel Production Incentive. Natural Resources Canada conditionally approved Tidewater Renewables for the Biofuel Production Incentive program during the first quarter. The contribution agreement was executed July 7, securing funding aligned with the HDRD complex’s full annual production capacity. Baines said the company expects to receive C$13.8 million in first- and second-quarter cash contributions during the third quarter, followed by quarterly payments in arrears. At the Prince George Refinery, average throughput was 10,032 barrels per day because of a planned 17-day partial outage in April for equipment cleaning and maintenance. Excluding the outage, throughput averaged 12,060 barrels per day, or 101% of design capacity. The Prince George crack spread averaged C$118 per barrel in the second quarter, up 16% from the first quarter. Baines said global supply disruptions, reduced refining capacity in the Middle East and Russia, and low refined-product inventories supported market conditions. The company had hedged about 50% of crack-spread exposure between April and December 2026. In the second half of July, it added hedges covering roughly 40% of 2027 crack-spread exposure at fixed prices that Baines said were significantly above mid-cycle pricing and 2026 realized hedge pricing. He said the company views about 50% as an appropriate general hedging level, while retaining flexibility to go above that level opportunistically. Consolidated net debt declined C$44.4 million during the quarter, including a C$30.9 million reduction at Tidewater Midstream and a C$13.5 million reduction at Tidewater Renewables. Tidewater Renewables reported debt to adjusted EBITDA of 1.47 times at June 30, while Tidewater Midstream reported 2.3 times. Consolidated leverage was 1.7 times, within the company’s 1.2-times to 2.5-times target range. At the Brazeau River Complex, gas processing throughput averaged 105 million cubic feet per day, down 8% from the prior quarter due primarily to NGTL curtailments. Fractionation utilization fell to 76% from 90% in the first quarter. Baines said the company remains in discussions with prospective and existing customers to increase utilization. The Ram River Gas Plant remained temporarily curtailed, though sulfur-handling operations continued. Baines said current sulfur prices are highly economic for sour-gas producers and that Tidewater intends to restart the plant when area production resumes. Tidewater Renewables continued to target a fourth-quarter final investment decision for its sustainable aviation fuel project. The company executed a new initiative agreement with British Columbia on June 19 that is expected to provide additional BC LCFS credits for critical pre-FID work. The company expects to receive credits in the third and fourth quarters as milestones are achieved. Baines said a final investment decision depends on regulatory support, including anticipated amendments related to sustainable aviation fuel under the Clean Fuel Regulations and other Canadian support programs. He put the project’s capital cost at about C$1.2 billion and said it has a Class 3 front-end engineering and design package. If sanctioned, the project would have a three-year construction period and be online in 2030, according to Baines. He said Tidewater believes it could fund the project through Part Three agreements and operating cash flow, while also considering a potential First Nations equity partner and other partnership alternatives. Management said it will continue to pursue non-core asset sales, focusing on assets that do not fit its strategy or do not generate appropriate returns. The company said free cash flow from its disciplined capital program will primarily be directed toward debt reduction. Tidewater Midstream and Infrastructure Ltd is a Canadian company that is engaged in providing midstream infrastructure and a natural gas storage facility. It mainly focuses on the purchase, sale, and transportation of Natural Gas Liquids (NGLs) such as propane and natural gasoline throughout North America and export to premium markets. The business activities of the company include gathering, processing, and transportation relates to raw gas gathering systems, processing plants and pipelines, NGL marketing and Extraction, refined products, and other activities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Tidewater Midstream and Infrastructure Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Tidewater’s second quarter delivered flat year-on-year sales, yet exceeded Wall Street’s revenue and non-GAAP profit expectations, prompting a significant positive market reaction. Management attributed the outperformance to robust day rate increases, especially in the European and Mediterranean regions, and higher vessel utilization driven by deferred dry docks and operational uptime. CEO Quintin Kneen highlighted that “weighted average leading edge day rate increased approximately 7.5% sequentially, a clear indication of the relatively tight supply and demand balance in the market today.” Is now the time to buy TDW? Find out in our full research report (it’s free). Revenue: $342.3 million vs analyst estimates of $326.7 million (flat year on year, 4.8% beat) Adjusted EPS: $0.44 vs analyst estimates of $0.43 (3.3% beat) Adjusted EBITDA: $129 million vs analyst estimates of $121.2 million (37.7% margin, 6.4% beat) Operating Margin: 18.3%, down from 23.7% in the same quarter last year Market Capitalization: $4.12 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. James Rollyson (Raymond James) pressed CEO Quintin Kneen on whether recent market momentum had shifted expectations for day rate growth; Kneen responded he is “probably more bullish now” due to increased tendering activity, especially in Asia. Fredrik Stene (Clarksons Securities) questioned the M&A pipeline post-Wilsons; Kneen confirmed attractive opportunities remain, stressing that acquisitions must have clear strategic rationale and price discipline. Joshua Jayne (Daniel Energy Partners) asked about the approach to fleet contract duration; COO Piers Middleton explained the strategy is to keep larger vessels on shorter contracts to capitalize on anticipated future rate increases. Keith Beckmann (Pickering Energy Partners) inquired about the longevity of the fleet and triggers for new vessel investment; Kneen noted vessels can operate into their late 20s to 30 years, with new builds only justified at higher day rates. Gregory Lewis (BTIG) sought detail on contracted capacity for the remainder of 2026; SVP West Gotcher stated that about 69% of available days are covered by backlog and options, with 80% utilization assumed in guidance. In upcoming quarters, the StockStory team will track (1) the pace and success of integrating the Wilsons’ acquisition and its impact on free cash flow, (2) continued day rate and utilization improvements across key regions like Europe, West Africa, and Asia Pacific, and (3) the evolution of conflict-related costs and recovery efforts in the Middle East. Progress on these milestones will be crucial for Tidewater’s ability to sustain margin expansion and strategic growth. Tidewater currently trades at $82.84, up from $71.48 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Monday, Aug. 3, 2026 at 11:00 a.m. ET Senior Vice President of Strategy, Corporate Development and Investor Relations - West Gotcher President and Chief Executive Officer - Quintin Kneen Chief Financial Officer - Samuel Rubio Chief Operating Officer - Piers Middleton Operator: Good morning, and welcome, everyone, to the Tidewater Second Quarter 2026 Conference Call. My name is Dara, and I will be your conference moderator for today. [Operator Instructions] I will now hand the conference over to West Gotcher, Senior Vice President of Strategy, Corporate Development and Investor Relations. Please go ahead. West Gotcher: Thank you, Dara. Good morning, everyone, and welcome to Tidewater's Second Quarter 2026 Earnings Conference Call. I'm joined on the call this morning by our President and CEO, Quintin Kneen; our Chief Financial Officer, Sam Rubio; and our Chief Operating Officer, Piers Middleton. During today's call, we'll make certain statements that are forward-looking and referring to our plans and expectations. There are risks, uncertainties and other factors that may cause the company's actual performance to be materially different from that stated or implied by any comments that we're making during today's conference call. Please refer to our most recent Form 10-K and Form 10-Q for additional details on these factors. These documents are available on our website at tdw.com or through the SEC at sec.gov. Information presented on this call speaks only as of today, August 4, 2026. Therefore, you're advised that any time-sensitive information may no longer be accurate at the time of any replay. Also during the call, we'll present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures can be found in our earnings release located on our website at tdw.com. And now with that, I'll turn the call over to Quintin. Quintin Kneen: Thank you, West. Good morning, everyone, and welcome to Tidewater's Second Quarter 2026 Earnings Conference Call. I'll begin today with the quarter's highlights, provide an update on the Wilsons' transaction, discuss our current views on capital allocation and share our outlook for the business. West will then walk through our financial outlook and current guidance considerations. Piers will cover the global market and operations, and Sam will review the consolidated financial results. Collectively, we will also update you on the impacts of Operation Epic Fury. We are pleased to report that second quarter revenue and gross margin exceeded our expectations. Revenue was $342.3 million, supported by both higher day rates and stronger utilization. Gross margin was just under 47%, nearly 3 percentage points above our prior expectations. Excluding $6.8 million of expenses related to Operation Epic Fury, gross margin would have been approximately 49%. Day rate momentum was particularly strong in the European and Mediterranean segment. Utilization benefited primarily from the timing of dry docks on seven vessels shifting from the second quarter to later in the year. Operational uptime was also better than expected, which further supported utilization. But most noteworthy, our weighted average leading edge day rate increased approximately 7.5% sequentially, a clear indication of the relatively tight supply and demand balance in the market today. Turning to Operation Epic Fury. While the intensity of the conflict eased during the quarter, we continued to incur costs above pre-conflict levels, totaling approximately $6.8 million in the second quarter. We did not experience any vessel off-hire associated with the conflict. In fact, our utilization and day rates in the Middle East were the strongest they have been in quite some time. In our guidance, we continue to include only costs for the current quarter, and we are assuming approximately $4 million of costs in the third quarter. We are actively working these costs down as we identify alternative ways to manage through the conflict. We remain encouraged that our activity in the region has been largely unaffected and that the outlook for the region remains robust, particularly once the conflict is resolved. Free cash flow improved meaningfully in the second quarter, nearly doubling from the first quarter to $64 million. That improvement was driven by stronger operational performance and the movement of dry docks on seven vessels to later in the year. Even taking those deferred dry docks into account, we expect free cash flow for the Legacy Tidewater business to continue to accelerate in the back half of the year. We also expect to generate incremental free cash flow from the Wilsons' vessels once the acquisition closes. On that note, we now expect to close the Wilsons' acquisition around September 1st. As discussed in our recent disclosures, we have completed all necessary regulatory steps and obtained the change of control waivers related to assume the Wilsons' debt. We are now working with the banks to finalize documentation for the debt transfer. In parallel, we have continued to deploy Tidewater personnel to work alongside the Wilsons' team on pre-closing integration planning, which should allow us to move quickly once the acquisition closes. We believe the ability to effect a smooth and swift integration is a core competency of our organization, and we see every reason to expect the Wilsons' integration to be as successful as the integrations we have completed in the past. Our balance sheet remains very strong with net debt essentially at 0 at the end of the second quarter. We expect net leverage to increase to approximately 0.8x by the end of the third quarter as a result of the Wilsons' acquisition. Liquidity was also strong at more than $850 million at quarter end. We intend to fund the equity portion of the acquisition price with cash after assuming the Wilsons' debt, and we remain very comfortable with both the strength of our balance sheet and our liquidity profile. Our $500 million share repurchase authorization remains outstanding. To date, we have held off on repurchases while we complete the Wilsons' debt transfer. Although we will deploy a substantial amount of cash to fund the Wilsons' acquisition, we still expect to be in a strong cash position after closing and we'll evaluate the most accretive use of the remaining excess cash for shareholders. Our philosophy on the buyback program has not changed. We remain opportunistic and we'll consider repurchasing shares when M&A opportunities are not immediately actionable. We do not view carrying excess cash on the balance sheet as an optimal long-term capital allocation strategy, particularly given the liquidity position we have with the revolving credit facility added last summer. We expect free cash flow from the business to continue to grow through the remainder of this year and into 2027. The M&A landscape remains active. A healthy operating environment and an improving outlook are important factors in establishing a productive dialogue with potential targets. We remain interested in acquiring the right vessels at the prices that create immediate value for our shareholders. At the same time, we are not interested in acquiring vessels at a premium to our view of their current value simply for the sake of adding scale. We are in the advantageous position of being the largest global OSV provider, and we continue to believe that in the absence of value-accretive acquisitions, the best way to increase shareholder value is to run the business efficiently, maximize free cash flow and repurchase shares when appropriate. With the balance sheet, liquidity and expected cash flows all in a healthy position, we will continue to apply the same capital allocation framework we have followed, weighing the relative merits of a given M&A opportunity against the return opportunity from repurchasing our own shares. Looking ahead, the near-term outcome of the conflict in the Middle East remains uncertain. Market volatility can be challenging to navigate, but we believe there are important underlying reasons to remain optimistic about the offshore activity outlook. For some of our customers, broader strategic considerations, such as proximity to hydrocarbon resources and the ability to provide strategic reserves that can help mitigate future supply disruptions, are more frequently mentioned in planning discussions. These factors are more difficult to quantify, but they can also be more durable because they are driven less by near-term economics and more by long-term energy security considerations. This backdrop points to a more robust view of the long-term offshore activity environment than we had last year, and we see that momentum continuing to build. Tendering and pre-tendering activity have increased significantly in recent months. Importantly, this increase in activity is evident across all of our vessel support services. Industry commentary around a strong rig tendering cycle supports this level of activity, and we are seeing similar momentum across all of our subsea support and production support offerings. Our conviction in the next leg up of the cycle is growing, particularly given the strategic resource and energy security elements in the outlook. Most of the activity uplift we have seen to date reflects projects and opportunities that were already taking shape before the conflict in the Middle East began. Discussions regarding future projects in response to the conflict have begun and remain in early stages, but the tone is urgent and serious. Offshore projects are inherently long lead time investments and the desire to accelerate these projects is what gives us increased confidence in the duration of the current cycle. Turning briefly to vessel supply. There has been little movement over the past quarter and frankly, very little over the past 2 years. To our knowledge, there have been no meaningful newbuild order activity in recent months. A handful of newbuild vessels are expected to deliver towards the end of the year with a few more in early 2027. The laid-up fleet remains essentially unchanged, and we do not anticipate meaningful reactivation given the laid-up fleet's age profile and specification mix. We believe much of the laid-up fleet is effectively scrapped in place as evidenced by the limited number of reactivations we saw from that fleet in 2023 and 2024. We continue to believe the state of vessel supply will support increasing day rates as demand again begins to approach parity with available tonnage, and we expect day rates to accelerate further from what we saw in the second quarter. We continue to see a realistic path to a year-over-year increase in average day rates of $3,000 to $4,000 per day in both 2027 and 2028. In summary, we are pleased with our second quarter performance. While we will continue to navigate near-term volatility related to the conflict in the Middle East, we are increasingly encouraged by the activity we see ahead. We look forward to completing the Wilsons' acquisition and to bringing the Wilsons' organization and fleet onto the Tidewater platform. As always, we will remain disciplined in allocating capital to the opportunities that we believe can create the greatest value for our shareholders. And with that, let me turn the call back over to West. West Gotcher: Thank you, Quint. As Quint mentioned, we did not repurchase any shares during the second quarter ahead of the Wilsons' acquisition closing and funding. We anticipate to fund approximately $270 million of cash consideration for the equity component of the Wilsons' acquisition, assuming a closing date of around September 1, 2026. We plan to use cash on hand and do not anticipate utilizing our revolving credit facility to fund the cash consideration portion of the purchase price. At the end of the second quarter, we retained our $500 million share repurchase authorization. Our philosophy guiding capital allocation remained consistent such that we will approach share repurchases on an opportunistic rather than a programmatic basis, weighing the market value of our shares with our internal view of the intrinsic value of the business. We will contrast this against the relative return profile and other qualitative considerations that an M&A target may present. We retain the option of evaluating M&A and share repurchases concurrently. Given that the offshore vessel market has stabilized at a healthy level, along with the constructive outlook for offshore activity broadly, the M&A landscape remains favorable. However, we will remain disciplined on pursuing M&A opportunities that we view as value accretive and consistent with our view of intrinsic value. As a reminder, under the bonds, we are limited in our ability to return capital to shareholders, provided our net debt-to-EBITDA is less than 1.25x pro forma for any share repurchase. Under our revolving credit facility, we are also limited in our ability to repurchase shares provided that net debt-to-EBITDA does not exceed 1x. However, to the extent that we exceed 1x net leverage, we still retain the flexibility to continue returns to shareholders, provided the free cash flow generation is in excess of cumulative returns to shareholders. We expect to be at 0.8x net leverage pro forma for the Wilsons' acquisition and expect that our cash flow generation should continue to improve throughout the back half of 2026, reducing our net leverage level. Turning to our leading edge day rates, I will reference the data that was posted in our investor materials yesterday. Across the fleet, our weighted average leading edge day rate accelerated from the inflection we observed in the first quarter, up 7.5% sequentially. During the quarter, we entered into 25 term contracts with an average duration of approximately 12 months. Turning to our financial outlook. We are modestly revising our full year 2026 revenue guidance to $1.42 billion to $1.47 billion and a full year gross margin range of 49% to 50%. The reduction in our revenue guidance is attributable to the expected closing of the Wilsons'transaction approximately 2 months later than previously anticipated, offset in part by higher-than-anticipated year-to-date Legacy Tidewater revenue. Our guidance now assumes that we close the Wilsons' acquisition around September 1, 2026. The updated gross margin guidance similarly assumes the loss of 2 months of high-margin revenue from Wilsons' due to the timing of the closing of the acquisition. Additionally, we expect to incur more conflict-related costs in the third quarter than was contemplated in last quarter's guidance, which assumed the conflict concluded by the end of the second quarter. We now expect third quarter revenue to be up about 3%, inclusive of 1 month of revenue from Wilsons'. We expect Legacy Tidewater revenue to decline about 2% due to dry docks moving from the second quarter into the third quarter, consuming about 1 percentage point of utilization, along with higher-than-anticipated down for repair time that will consume another 1 percentage point of utilization. We expect the third quarter gross margin of about 46% as we now anticipate conflict-related costs of approximately $4 million, along with higher fuel expense due to the dry docks that moved in the third quarter and higher R&M expense than previously anticipated. Our expected conflict-related costs in the third quarter are nearly half of those incurred in the second quarter. We remain in a position to rebill any direct conflict-related costs incurred to date or in the future. In summary, we are pleased to be able to reiterate a strong full year financial outlook given the continued volatility in the market. Our expectation remains that there is potential for uplift to our full year guidance depending on the strength of the offshore activity picking up towards the end of the year. Looking to the remainder of 2026, first half 2026 revenue plus firm backlog and options for the Legacy Tidewater fleet, along with the Wilsons' backlog for the September through December 2026 period, represents $1.3 billion of revenue for the full year, representing approximately 91% of the midpoint of our updated 2026 revenue guidance. Approximately 69% of remaining available days for 2026 are captured in firm backlog and options, inclusive of the Wilsons' fleet. Our full year revenue guidance assumes utilization of approximately 80%, inclusive of the Wilsons' fleet, leaving us with approximately 11% of capacity to be chartered if the market tightens quicker than we are anticipating. Our small and midsized anchor handlers and medium classes of PSVs retain the most opportunity for incremental work, followed by our smaller and largest class of PSVs. Contract cover is higher in the third quarter with more opportunity available in the last quarter of the year. The bigger risk to our backlog revenue is unanticipated downtime due to unplanned maintenance and incremental time spent on dry docks. With that, I'll turn the call over to Piers for an overview of the commercial landscape. Piers Middleton: Thank you, West, and good morning, everyone. First off, our overall long-term outlook for the offshore space remains positive and the continued optimism in the long-term strength of the market has helped our teams be successful at either maintaining or pushing both utilization and day rates in most of the basins and vessel classes in which Tidewater is active in what has been a challenging first half of the year for some of our regions due to Operation Epic Fury. And as Quintin mentioned earlier, we now feel very well placed going into the second half of the year and into 2027 to be able to push rates and utilization significantly higher as we build momentum in the upcoming quarters and years ahead. The fundamentals for the OSV market remain strong. The sector remains supply side constrained with little prospect of capacity expansion from the stacked fleet or from the negligible order book. And from a demand perspective, we are starting to see a decent uptick in requirements in all the sectors in which we support our customers as well as in the majority of basins in which we currently operate. Working through our various regions and starting with Europe, the North Sea AHTS spot market continued to strengthen through the quarter with large AHTS spot rates averaging over GBP 160,000 per day, the average levels on -- the highest average levels on record, with some fixtures concluded well above GBP 200,000 per day during the quarter. The PSV market was slightly more subdued during the quarter. However, day rates continue to remain above 2025 levels after the strong start in Q1 with both PSV spot and term activity holding steady throughout the second quarter. In the Med, we saw strong utilization and day rates in the quarter with the Med region really helping to drive overall revenue and margin for the Europe region as a whole. We do expect a small lull in activity in the Med region at the beginning of Q3 as we wait on a number of drilling and EPCI programs to kick off in September. But once these all begin, we expect Q4 and into 2027 to be very strong for the region. In Africa, even with the expected drop in utilization in the quarter, the team was still able to maintain healthy day rates across the region and expectation of the pickup in demand that we see coming in the second half of Q3 and into Q4. Increased demand will primarily come from drilling campaigns restarting at the end of Q3 in Namibia as well as a number of production renewal contracts in Angola that are expected to commence in Q4. In addition, there are still several OSV tenders out in Nigeria from all of the IOCs operating in country that we expect will create incremental global demand for the larger PSV classes as well as the medium-sized AHTS classes, with all the tenders expected to commence by end 2026. Looking further out, strong upstream driving forces appear set to continue to support OSV demand in West Africa. For instance, Azule Energy's $5.1 billion Greater PAJ Project of Angola reached FID in late June and its 95,000 barrel per day FPSO is scheduled to be delivered and installed late 2028. And in Nigeria, Renaissance Africa Energy has recently announced a major offshore oil discovery in OML 74. All in all, we feel very positive for the long-term health of the region. In the Middle East, even with a very challenging backdrop of Operation Epic Fury affecting the quarter, the team still managed to improve both utilization and day rate across the fleet. And although increased operating costs brought down margins, we have not yet seen any slowdown in demand in the countries in which we operate. We, in fact, saw a little uplift in short-term requirements as our customers have struggled to find OSV supply to fill gaps in their projects. However, we have seen a pause on some of the longer term tenders that we were expecting awards on in the Q -- quarter, but still expect these longer term charters to still be awarded. However, the NOCs are waiting for a little more clarity before committing on some of those longer term awards. Overall, sentiment is still positive in the region, but we are obviously watching closely what may or may not happen in relation to the Iran conflict in the coming months. In the Americas, as mentioned on our last call, we remain excited with the long-term outlook in Brazil, although the market is facing some short-term headwinds related to Petrobras OSV long-term tendering activity as Brazil is in an election year, and this is slowing down some decision-making. However, the expectation from the market is that once the elections are finished in Q4, we will start to see a pickup in tenders again at the end of the year. Day rates remain healthy in the country and for our medium-sized class PSVs are still in excess of $42,000 per day levels, supported by increased activity from the IOCs and EPCI contractors operating in the country. Demand in the Gulf of America has been flat most of the year, and we expect that flatness to continue into 2027, but this has been offset by the increase in demand in the Caribbean. And as such, we'll be moving some of our Jones Act vessels to support customers in Suriname and Guyana at the end of the year. We will still maintain a presence in the Gulf. But until we see a significant pickup in demand again, we will use our global operating platform to look for margin-enhancing work elsewhere in the world. Lastly, in Asia Pacific, day rates and utilization were modestly down compared to Q1. However, we continue to see an upturn in pre-tendering and tendering activity, driven in part by long-term energy security concerns in Asia Pacific, with particular focus coming from Malaysia, Indonesia and Australia, which all bodes well for the longer term health of the region going beyond 2027. In the short term, we have several of our larger PSVs commencing work in Q3, early Q4 in the region, which should mean a solid upturn in utilization towards the end of the year and an improvement in day rates as we move into 2027. Overall, we are very pleased with how the market continues to move in the right direction and fully expect that positive momentum to continue into next year and beyond. And with that, I'll hand over to Sam. Thank you. Samuel Rubio: Thank you, Piers, and good morning, everyone. I would now like to take you through our Q2 financial results. My discussion will focus on the sequential quarterly comparisons between the second quarter and the first quarter of 2026, including key operational factors that affected our second quarter performance. Q2 results exceeded our expectation, driven by higher day rates, higher utilization due to stronger demand and timing of dry docks, partially offset by temporary conflict-related operating costs. As noted in our press release filed yesterday, we reported net income of $21.7 million or $0.43 per share. Revenue was $342.3 million compared to $326.2 million in the first quarter. The increase was driven by 1 additional day in the quarter, average day rates that were approximately 3% higher than the first quarter and active utilization improving to 81.4% compared to 80.6%. Gross margin was $160.5 million in the second quarter compared to $159.3 million in the first quarter. Gross margin percentage was 46.9%, nicely above our Q2 expectation and as expected, below our Q1 margin of 48.8%. The percentage decline was primarily due to the higher vessel operating costs. Operating costs for the second quarter were $181.8 million compared to $166.9 million in Q1. An increase was expected due to higher R&M work that was pushed from Q1 and higher crew wages and supplies and consumables impacted by the Iran conflict. In Q2, we incurred approximately $6.8 million of additional costs due to the continuing impact of Operation Epic Fury. And year-to-date through June 30th, we have incurred approximately $9.2 million. Costs directly impacted were insurance costs and higher crew wages, primarily war bonus pay. Indirectly, we continued to see elevated fuel and travel cost increases due to increased commodity prices. We will work to minimize these costs. However, we do expect to incur additional costs as the long-term conflict continues. Fuel expense has been heavily impacted since the beginning of the conflict. In Q2, we saw a sequential increase in fuel expense of over 50%. Importantly, we took steps to contractually limit the amount of war-related pay owed to our mariners working in conflict-affected areas. This effort led to lower-than-expected crew costs beginning in the second half of Q2 and for the remainder of the year. In total, we are forecasting another $4 million of war-related costs in Q3. We estimate a similar amount of direct costs related to crew wages and insurance costs. In addition, we expect similar increased fuel and travel expenses due to higher global commodity prices. These fuel and travel estimates are based on our forecasted activity and current commodity prices. Elevated costs related to the conflict will likely continue in the near term, though it is uncertain how long this disruption may last. We are contractually permitted to invoice customers for reimbursement of direct conflict-related cost, which includes war insurance and war-related crew wages, which totaled approximately $5 million through Q2. Currently, we have invoiced close to $1 million and have collected less than $100,000. We have not included any assumed reimbursements in our guidance. However, we will continue submitting invoices for reimbursement for all contractually allowed amounts. Adjusted EBITDA for Q2 was $133.8 million compared to $129.3 million in the first quarter. Total G&A cost was $34.8 million in the second quarter, which includes $2.7 million of transaction costs related to the Wilsons' acquisition. G&A costs in Q1 was $33.6 million, which included $2 million of transaction costs. Including -- excluding the transaction costs, G&A increased by about $500,000 due primarily to higher personnel costs. For 2026, excluding M&A transaction costs, we expect Tidewater full year G&A costs to be about $126 million, which includes approximately $14 million of noncash stock compensation. In addition, we expect to incur approximately $7 million in additional G&A costs in the second half of 2026 related to the Wilsons' acquisition. In the second quarter, we incurred 750 dry dock days and $23.3 million in drydock costs compared to 949 dry dock days and $36.4 million in costs in Q1. Dry dock days in Q2 impacted utilization by about 4 percentage points compared to 5 percentage points in Q1. Our full year 2026 dry dock cost expectation remains at approximately $122 million. Typically, the bulk of our dry dock costs occur in the first half of the year. However, the timing of some projects in 2026 has shifted to the right, resulting in higher cost and days in the second half of the year. Additionally, we expect to incur approximately $7 million of additional dry dock costs in the second half of the year related to the Wilsons' acquisition. In Q2, we incurred $14.9 million of capital expenditures, mainly vessel modifications and upgrades. For the full year 2026, we expect to incur approximately $52 million in capital expenditures. This amount includes a planned $15 million major upgrade to one of our Norwegian vessels. We also expect to incur about $4 million in additional CapEx spend in the second half of the year related to Wilsons' acquisition. We generated $64.4 million of free cash flow in Q2 compared to $34.4 million in Q1. The sequential increase was mainly attributable to lower dry dock spend, higher proceeds from the sale of two vessels and lower cash consumed by working capital. As a reminder, the following debt refinancing we completed a year ago, we only have small principal payments each quarter, about $6 million per year that are related to the financing of constructed smaller crew transport vessels. We have no principal payments due until 2030 on our new unsecured notes. Following the anticipated closing of the Wilsons' acquisition, our debt maturity and repayment profile would change to accommodate the newly assumed Wilsons' debt. We conduct our business through five operating segments. Please refer to the press release and the 10-Q for details of our segment results. In Q2, we saw a decrease in consolidated gross margin of close to 2 percentage points compared with Q1. Regionally, gross margin increased by 8 percentage points in Europe and Mediterranean, offset by 3 percentage point declines in the Middle East and Americas, 4 percentage points in APAC and about 9 percentage points in Africa. While margins were down compared to Q2 -- compared to Q1, they exceeded our expectations, particularly in the Middle East despite challenging circumstances related to the conflict. The gross margin increase in our Europe and Mediterranean region was primarily due to an 8 percentage point improvement in utilization, driven by fewer idle days and dry dock days. The improvement in utilization, together with an 11% increase in day rates, delivered strong results in Q2. Total operating expenses increased 11%, largely due to the addition of two vessels to the region. Gross margin decreased about 3 percentage points in the Middle East region, while day rates and utilization both improved. Those gains were more than offset by higher costs related to the Iran conflict. Our forecast contemplates war-related costs to continue into Q3. The decrease in the Americas gross margin was primarily due to a decrease in revenue resulting from a 2% decline in day rates and having fewer vessels in the region, revenue fell about 8% and total operating costs declined about 4%. Gross margin in the APAC region was 4 percentage points lower than Q1. Day rates declined modestly by about 1% and utilization was down about 3 percentage points. However, revenue was up 3% due to more vessels operating in the regions compared to Q1. Operating costs rose 12% versus previous quarter, primarily due to the increase in vessels and the mix of vessels operating in Australia. Gross margin in our Africa segment decreased by about 9 percentage points due primarily to a $9 million revenue decline caused mainly by an 8 percentage point decrease in active utilization, while day rates remained flat. Utilization was affected by higher idle days. In addition, operating costs increased due to higher R&M costs and higher fuel costs due to the higher idle days. With respect to the Wilsons' acquisition, we now expect the transaction to close around September 1, 2026. We are confident in our ability to integrate Wilsons' in a smooth and efficient manner, consistent with previous acquisitions. We remain strong believers in the importance of the Brazilian market and are excited about the opportunities there. From a capital allocation perspective, our priorities remain: maintaining balance sheet strength; investing in the fleet; completing and integrating the Wilsons' acquisition; and evaluating opportunities to return capital to shareholders or pursue additional strategic growth. While we have not repurchased shares this year, our $500 million share repurchase authorization remains available. We will continue to evaluate all avenues for capital deployment and execute on the opportunities we believe provide the greatest long-term value for our shareholders. In summary, we outperformed expectations despite the headwinds from the conflict in the Middle East. Industry fundamentals remain strong. Our balance sheet is in excellent condition, and we remain optimistic about the opportunities that lie ahead for Tidewater. With that, I'll turn it back over to Quintin. Quintin Kneen: Thank you, Sam. Dara, we'll go ahead and open it up for questions. Operator: [Operator Instructions] Your first question comes from Jim Rollyson with Raymond James. James Rollyson: Glad to see the great results and hear the commentary. Quintin, I guess I'd like to ask you, for the last couple of quarters, you've been pretty bullish. You kind of reiterated the day rate growth potential, I guess, for the next couple of years. And I'm curious, as you sit here today with your recent travels, project tracking conversations and tendering, are you thinking the market is kind of on track with what you thought before? Or do you -- are things getting better? Do you have more visibility? Just kind of understanding the rate of change just like in the last 90 days or so? Quintin Kneen: Jim, yes, I will tell you that I'm probably more bullish now than I've been in the last 6 to 9 months. The amount of tendering activity and pre-tendering activity is quite strong around the world. I was in Asia about 5 weeks ago and the talk in Indonesia and Myanmar and Malaysia. It's all much stronger than I've seen in a while. So I'm getting really confident about this next leg up in the cycle. But let me turn it over to Piers too, because he actually has more contact with the customers than I do. He may have some other color he'd like to add. Piers Middleton: Thanks, Quint. Yes, I think Quintin hit the nail on the head. It -- We're seeing a stronger improvement. It's probably slightly -- we were seeing that at the beginning of the year. So there's been a slight improvement. I think, obviously, Asia Pac as Quintin mentioned is very positive. We're also seeing a little bit more work in the Med and also down in Namibia and Angola and a very strong uptick in Nigeria. I mean, like all things, Jim, as you followed us for a long time, things can sometimes move a little bit to the right. So we might see a few projects moving to the right. But no, I mean, there seems to be, I would say, better than we expected from the beginning of the year, but maybe a couple of projects in places like Nigeria, West Africa, things never start on time. So maybe we see a push to -- a little bit to the right. But no, I think overall, it's very positive. And Brazil, yes, we're expecting Brazil to come back pretty strongly in the beginning of next year once we get through the elections and Petrobras really starts retendering as well probably at the end of this year or beginning of Q1. So overall, we're pretty optimistic. James Rollyson: Appreciate that color from both of you. And for my follow-up, I don't know who best is, but maybe Quintin, just on the cost side of things, with kind of the added cost from the conflict and fuel prices and all that, how do you think that -- like what's the playbook going forward to either recapture that in rates over time? Or -- you mentioned doing some things to try and improve the cost situation in the Middle East. Just kind of what's the playbook on cost as we go through this offsetting day rate growth environment we're talking about? Quintin Kneen: Yes. Well, there's a lot of game-day decisions just because this is all relatively new and everybody is trying to figure out the best way to do it. Piers and the team have been really good at working with the labor force and the mariners in the area. And in the beginning, we were -- there were significant premiums put into place to attract and maintain the personnel. We've been able to modify that a little bit to bring down those levels. Insurance is something that our team here works on with our insurance agents to try to keep that a little bit more manageable than it otherwise could be. It was very -- everyone was very excited at the beginning of the process. So managing the crew is very important. The fuel costs themselves are just going to be a product of the environment. My hope is that all settles down. But for us, we're learning as we go through this conflict. And I think that our suppliers and our employees are as well. So we're finding new ways to bring that down. And then, of course, Sam talked to it a little bit, we're going to begin to bill back to our customers. But Saudi Aramco is a strong customer, an important customer and also a difficult customer. So there's a lot of paperwork involved and it takes a long time to get that rebill in place. But my hope is that we'll see all of that come to fruition as we go through the next several months. Operator: Your next question comes from Fredrik Stene from Clarksons Securities. Fredrik Stene: Congratulations on a strong quarter. I wanted to touch a bit on the M&A side. You have been pretty adamant that from a capital allocation perspective, at least, that's been your preferred path. And the -- I would have to say that your CV of acquisitions is starting to be quite long. Now you're soon closing in on the Wilson acquisition. I know you did comment kind of a bit on this in the prepared remarks, but my questions relate to kind of two things. One, now on that out of the way, do you see more or less opportunities in the M&A space now compared to, for example, 12 months ago? And maybe a bit more specific, do you think it's fair to see you guys doing anything more over the next 1 to 2 years since you require, I guess, a certain size of your targets? But as you said, you're not chasing scale, just to chase scale. Quintin Kneen: Fredrik, thank you. So the M&A landscape is evolving and -- but there continues to be some really attractive opportunities out there. I will say that for us, when we think about M&A, we're looking for some strategic element to it. Brazil got us into that market with Brazilian tonnage, and I'm really excited about that. And the Solstad deal that we did really empowered us from the larger vessel standpoint as well as the hybrid vessel standpoint. And of course, we got back into Asia with the Swire acquisition. So it's getting things at the right price, but there's also got to be a good strategic rationale for it as well. Price is, of course, very important to us. But yes, no, I fully expect to see other opportunities develop. They take time to work out and they take time to close and so forth. But yes, my hope is that we'll be able to continue to demonstrate value-accretive growth through acquisition in the next year or so. But again, the other thing I'll say, Fredrik, is I'm not going to consolidate this entirely by myself. So I do need other people out there doing something, and there hasn't been too much of that. But everything you hear about, we're not going to be able to participate in or do. But we're certainly looking for those things that, again, have a strategic element and a good demonstrated strong history of cash flow generation. Fredrik Stene: Right. And as a follow-up to that. I think you previously -- and this was before Wilson, you mentioned the Americas and South America, Brazil, maybe in particular, as areas of interest where you felt like you could become larger. And now with Wilson, you're definitely doing that in Brazil. And from the strategic angle that you're talking about, does this mean that you're now maybe particularly focused on trying to get something done in the Americas? Or are you still open to every region as long as transaction has the right characteristics and benefits for you guys? Quintin Kneen: Yes. So Fredrik, I think I mentioned on the last call or maybe the call before last, but I was looking in the U.S. for a long while. I just couldn't find anything that I thought it was at the right value point for us. So less interested in the U.S. today, but always interested in a good opportunity. I think the opportunities that are developing throughout West Africa and into Asia are probably more attractive today. Operator: Your next question comes from Joshua Jayne with Daniel Energy Partners. Joshua Jayne: First, you entered into 25 contracts with a term of 12 months. Just given your day rate expectations, is it fair to say that the mindset is still to largely have a lot of the fleet available to reprice in '27 given this backdrop? Or could you just talk about how you're thinking about as we exit this year, how much of the fleet you'd like to have contracted? Quintin Kneen: Well, I'll tell you, West and Piers have a well-developed strategy and they follow that real closely. So let me give it over to them and let them speak to it. Piers Middleton: Josh, yes, I mean, I think -- I'll let West sort of opine afterwards. But we're still going to -- we believe in this market is probably clear from our comments. So we're going to keep a decent amount of ships, generally, the larger vessels, the larger PSVs, which support drilling and the large anchor handlers, that's always been the big driver for us in terms of being able to drive day rates. But I think once we start really, as Quintin mentioned, getting to that, really driving that $3,000 to $4,000 a day uplift on the rates as we go through the gears next year, then we may start looking to -- as we get into '28, a little bit longer and things like that. But I think in the short term, we're looking to keep a decent amount of availability in the fleet to take advantage of what we see coming in '27 and '28. So we're not going to change that strategy of going -- looking for the shorter term contracts and turning vessels over because we need to improve contract terms and we still need to obviously push day rate as well on that side. So that's what we're sort of focusing on as we go into '27. I don't know, West, do you have any other thoughts on top of that? West Gotcher: I'll add one item and it's something we've talked about in the past, which is not all of our vessels are the biggest and best vessels in the world. And so there are a subset of vessels that we are happy to put on longer term contracts. They just won't necessarily exhibit the same type of relative demand and day rate amplitude that some of our other vessels will. And I think there's a component of that in this quarter's average length of contract, is that there are some vessels that we were happy to put away for a little bit longer. And this is often the case from quarter-over-quarter with this measure is, there can be some -- both regional and vessel class, I don't want to use the term noise, but noise in there that can do that. And so that's what I'd say is that there are some vessels in there that we're happy to tuck away on longer term contracts. I think for the larger vessels, as Piers mentioned, I think our general philosophy is to continue to go relatively short because we do believe in the market and continue to push those day rates and contract terms. Joshua Jayne: Understood. And then second one for me is on the Middle East. You highlighted some of the short-term cost recoveries you're hoping for. But I just wanted to take a step back and think longer term, so as someone who's been running in that region for quite some time. Could you just give us some more -- a bit more color around conversations with customers, what it is ultimately going to take to get back to sort of a normal operating environment? And if you believe in any way that capital will shift away from that region as a result of the conflict, like is it structurally impaired at all? Or do you just believe that once things settle down, it will just be sort of full steam ahead back to normal and just your expectations over the next couple of years once we have a resolution? Quintin Kneen: Yes, Josh. So I actually think they'll show more strength in the future than it's shown in the recent past. The conflict certainly has the inherent result of actually improving activity levels as you move jackups in and out and around and relocate things. So post the conflict, I expect to see a bump in activity. But I also expect to see further developments and activities in that region as people reposition assets and redeploy other hydrocarbon basins into -- kind of throughout that region. So from my perspective, the customers have not shied away from any thinking about what they're going to do in the future, and everybody is just excited to get the conflict resolved so they can get back to work. But Piers, you probably had more recent conversations with them, if there's anything you'd like to add, go ahead. Piers Middleton: No, I think -- yes, it's still -- sentiment is still pretty strong. I think this is very much short term. I think there's going to be -- as Quintin mentioned, we come out of this conflict, there's going to be a sort of short-term bump as people sort of get projects back up and running, a little bit like we saw sort of post COVID in some ways where you suddenly saw a big kick of people just catching up with what they've sort of had to pause a little bit. But no, longer term, we're still seeing tendering activity from all the NOCs we work for in the region. The EPCI guys are -- maybe there's a bit of projects pushing to the right, but there's still FIDs in place. There's no slowdown. And then there's continued talk about putting more dollars into the region as well. The -- Obviously, UAE moving OPEC and things like that, that's going to cause -- for us, we feel a big sort of uptick in terms of future demand as well. So no, we're not -- we're seeing -- it's going to be positive in the region. I mean it's always -- as I've mentioned on previous calls, it's always a tough region just because it's highly fragmented in terms of competition, et cetera, et cetera. But I think from an investment in the region, we're not seeing any slowdown or any expected slowdown from our big customers that we work with. Operator: Your next question comes from Keith Beckmann with Pickering Energy Partners. Keith Beckmann: I just wanted to step back and ask a very -- a long, long-term question around the vessel, the OSV fleet is somewhat aged 15-ish years kind of as a whole, I'm thinking about the macro market. How long do you think you can realistically keep -- not have to retire these assets kind of from a macro perspective? And then maybe backing up to what day rates do you -- where do you think day rates would need to go to incentivize new builds, maybe a decade down the road once a lot of these vessels start aging out potentially? Just any thoughts around all that? Quintin Kneen: Sure. So before the downturn in 2014 and '15, we were routinely operating vessels into the high 20s, early 30-year range. And there's no reason why vessels can't operate that long. There certainly was in that same time frame, kind of '11 to '14, a bit of a transformation in the sense that vessels got larger. They all stepped up to be about 1,000 square meter deck or 300-foot length overall. Everybody went to diesel electric and a lot of them went to DP2 and so forth. But there's no technological transformation that's happening today. So what we saw during the worst part of the downturn, so '16 to '18 in that time frame, where people putting up age restrictions as a way just to cull the number of vessels that were being tendered in every situation. And so I fully expect all of that to go away. And right now, it's already started. So I expect to see the fleet age still to run for another 5 or 6 years before people need to rebuild. And now what is the price that it takes? Well, in today's market, today's cost structure, it's in the low 30s that would justify building today. And we might get there in a couple of years. I think that takes a couple of strong years to achieve. And maybe by the time we get to '29, that can make some sense. But no, it's -- the fleet has a lot of duration left in it, in our perspective. Operator: Your next question comes from Greg Lewis with BTIG. Gregory Lewis: Sorry, I might have missed this. But I realize in the Q&A, there was a little bit of talk around term structure in the market. West, are you guys providing any color around what contracted capacity is in either Q3 or the second half of this year? West Gotcher: We did, Greg. We had that in our prepared remarks, and I'll update you, but let me just grab that for you. We have -- about 69% of the remaining available days for 2026 are captured in our backlog and options, which includes the Wilsons' fleet. So you can look at the remainder of that, if you will, as to what capacity we have. And just to be clear, what's contemplated in our financial guidance is 80% utilization. So I think you can use those two data points to determine that answer. Gregory Lewis: And then just as we think about -- you mentioned the 1-year deals and Piers, you kind of alluded to the fact that there are some term contracts out there that have kind of yet to come to fruition. If we were to kind of think about what '27 already looks like, is it kind of a rough estimate, maybe 20% to 30% of the fleet is already contracted for '27? Yes, probably about right? Piers Middleton: A little bit more than that. Yes, we're sort of -- as sort of West alluded to, there's certain -- obviously, some of our smaller vessels last as we've gone a little bit longer term, but we try to keep the bigger ships available so we can really push into 2027, so yes. Gregory Lewis: Okay. Super helpful. And then there was that transaction, the dock transaction. There's just a few PSVs. I think it's sold in the last couple of weeks. Was that something that the company was looking at? Was there anything interesting about those PSVs that were sold? I believe it was a private deal. Any thoughts around the price of those? Or I mean, I think they were all kind of in that 15-year-old range just simply because there is no real new tonnage. But is that just not -- Quint, I know you always talk about the potential to kind of really establish a position in a new market. Is the read-through there that these kind of smaller one-off acquisitions just really -- don't really get us anywhere? Quintin Kneen: I think that's right. I mean the amount of work it takes to do a three-vessel transaction is about the same as it takes for 20 transactions. So we've been focused on larger deals. And as I was indicating earlier, if there's a real strategic reason for a particular vessel location or vessel type to be acquired, I'm definitely very interested in those types of opportunities. But I made a joking comment earlier that I just can't consolidate this industry all by myself. So I'm glad for some people to start helping me do it. And so that's great. But no, not bad vessels, it's just work -- more work for us. Gregory Lewis: And then just really following up on that, just given the fact that there has been some technological advances in the offshore. As we think -- and realizing that the economics for large-scale new builds maybe aren't there, are there starting to come in requests from customers about potentially having to take some vessels into the dry dock for like upgrades to kind of do some of this work that's kind of coming down the pipeline or at this point, just the requirements of that conventional PSV, the work can be done with the fleet that's there? Quintin Kneen: Well, we are doing some of that. And in fact, we're doing some of it in the North Sea right now. But Piers may have a better perspective on what the customers are asking for. There are certainly a couple of opportunities where we're making large investments in vessels, but we're generally pushing them out of the PSV space into a more specialized space. Piers Middleton: Yes. I mean, Greg, I think Quintin touched on the previous comments, I think, to Keith. I mean there's not been a big technological advance in terms of vessel designs really. I mean the only thing that's come in, I suppose, is putting batteries on the back of the ships, and we've obviously got the largest hybrid fleet. We're seeing a few customers sort of asking about that. But to be honest, it really comes down to what they're prepared to pay and it costs money to go and retrofit batteries onto our vessels, and there's a cost to that, and that needs to be borne by the customer. So yes, some of the tenders, they certainly come out, and we've seen some in Brazil and some in the Middle East are asking about that. And yes, we'll just have to see if that sort of bears out. But there's nothing in terms of the sort of do you want to put methanol or ammonia or these things and that sort of discussion has really gone away in the last couple of years, is just not being financially viable really in terms of how our business is set up today. Operator: There are no further questions at this time. I will now turn the call back to President and CEO, Quintin Kneen, for closing remarks. Quintin Kneen: Well, thank you, everyone, and we will update you again in November. Goodbye. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Tidewater, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tidewater wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!* Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Tidewater (TDW) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Tidewater Inc.? Here are five stocks we like better. Second-quarter results exceeded expectations: Revenue rose to $342.3 million, adjusted EBITDA increased to $133.8 million, and higher day rates and utilization supported performance despite $6.8 million in conflict-related costs. Middle East conflict remains a cost headwind: Tidewater expects approximately $4 million in related third-quarter expenses, though regional activity remained stable and the company is pursuing customer reimbursements for eligible costs. Wilson Sons acquisition and outlook revised: The acquisition is now expected to close around Sept. 1, reducing 2026 revenue guidance to $1.42 billion–$1.47 billion. Tidewater ended the quarter with more than $850 million in liquidity and expects leverage of about 0.8 times after the transaction. Oil’s Rally Could Boost These 3 Shipping Stocks Tidewater (NYSE:TDW) reported second-quarter 2026 results that exceeded its expectations, as higher day rates, stronger utilization and delayed dry dock activity lifted revenue and margins despite elevated operating costs tied to the Middle East conflict referred to as Operation Epic Fury. Revenue rose to $342.3 million from $326.2 million in the first quarter, while net income totaled $21.7 million, or $0.43 per share. Gross margin was $160.5 million, representing a 46.9% margin, compared with 48.8% in the prior quarter. Adjusted EBITDA increased to $133.8 million from $129.3 million. → No Hangover: Revisiting Microsoft One Week After Earnings 3 Dependable Stocks Ready to Dominate Your Portfolio President and CEO Quintin Kneen said revenue and gross margin both exceeded company expectations. The quarter benefited from higher rates and utilization, including the timing shift of dry docks for seven vessels from the second quarter into later periods. Excluding $6.8 million of expenses associated with Operation Epic Fury, Tidewater said gross margin would have been about 49%. Tidewater’s weighted average leading-edge day rate increased approximately 7.5% sequentially during the quarter. The company entered 25 turn contracts with an average duration of about 12 months. → MarketBeat Week in Review – 08/03 - 08/07 Watch for Tech Giants to Boost Share Buybacks in 2024 Active utilization improved to 81.4% from 80.6% in the first quarter, while average day rates increased about 3%. Chief Financial Officer Sam Rubio said the company’s operational performance was supported by stronger demand, better-than-expected uptime and the movement of dry dock work into the second half of the year. Europe and the Mediterranean were particularly strong. Gross margin in that segment increased by 8 percentage points sequentially, aided by an 8 percentage-point improvement in utilization and an 11% rise in day rates. In the North Sea, large anchor-handling tug supply vessel spot rates averaged above GBP 160,000 per day, with some fixtures completed above GBP 200,000 per day, according to Chief Operating Officer Piers Middleton. → Why the Landlord of the AI Boom Could Outlast the Chipmakers Middle East utilization and day rates also improved despite the conflict, though higher costs reduced segment margins. Tidewater did not experience vessel off-hire related to Operation Epic Fury, Kneen said. Tidewater incurred approximately $6.8 million in additional second-quarter costs related to Operation Epic Fury, bringing year-to-date conflict-related costs to about $9.2 million through June 30. The costs included insurance, higher crew wages, fuel and travel expenses. Rubio said fuel expense rose more than 50% sequentially in the second quarter. The company has taken steps to limit war-related pay owed to mariners working in affected areas, which resulted in lower-than-expected crew costs during the latter half of the quarter. The company expects about $4 million of conflict-related costs in the third quarter. It is contractually permitted to seek reimbursement from customers for direct conflict-related costs, including war insurance and crew wages. Tidewater said those direct costs totaled approximately $5 million through the second quarter; it had invoiced nearly $1 million and collected less than $100,000. No reimbursements were included in guidance. Kneen said Tidewater is working to reduce costs through changes in personnel and insurance arrangements, while continuing to pursue customer reimbursements. He added that activity in the region remains largely unaffected and that management expects a potential increase in work once the conflict is resolved. Tidewater now expects to close its acquisition of Wilson Sons around Sept. 1, following completion of required regulatory steps and change-of-control waivers related to the assumed debt. The company is working with banks to finalize documentation for the debt transfer and has deployed personnel to support pre-closing integration planning. The later-than-anticipated closing date prompted a revision to full-year guidance because Tidewater will lose roughly two months of Wilson Sons revenue that had previously been expected in 2026. The company expects to pay approximately $270 million in cash for the equity component of the acquisition and plans to use cash on hand rather than its revolving credit facility. Tidewater ended the second quarter with net debt essentially at zero and liquidity of more than $850 million. It expects net leverage to rise to approximately 0.8 times following the Wilson Sons transaction. Free cash flow nearly doubled sequentially to $64.4 million in the second quarter from $34.4 million in the first quarter. Rubio attributed the increase primarily to lower dry dock spending, proceeds from the sale of two vessels and lower working-capital use. Tidewater revised its 2026 revenue guidance to a range of $1.42 billion to $1.47 billion and maintained a full-year gross margin outlook of 49% to 50%. The guidance incorporates the expected September closing of Wilson Sons and additional conflict-related costs during the third quarter. Third-quarter revenue is expected to increase about 3%, including one month of Wilson Sons revenue. Legacy Tidewater revenue is expected to decline about 2% sequentially, reflecting dry docks and higher-than-anticipated repair downtime. Third-quarter gross margin is expected to be about 46%. Approximately 69% of remaining available 2026 days are covered by firm backlog and options, including the Wilson Sons fleet. Full-year guidance assumes utilization of about 80%, leaving roughly 11% of capacity available for additional charters if markets tighten faster than expected. Kneen said the company sees a realistic path to average day-rate increases of $3,000 to $4,000 per day in both 2027 and 2028. He cited rising tendering and pre-tendering activity, limited vessel supply and growing energy-security considerations among customers. While Tidewater has not repurchased shares this year ahead of the Wilson Sons closing, its $500 million repurchase authorization remains available. Management said it will continue to weigh buybacks against acquisitions, focusing on transactions that offer strategic benefits and immediate value rather than pursuing scale alone. Tidewater Inc is a leading global provider of offshore marine support vessels, serving the energy sector with a focus on the oil and gas industry. Headquartered in Houston, Texas, the company operates a diverse fleet of platform supply vessels (PSVs), anchor handling tug supply vessels (AHTSs), crew boats and other specialized vessels designed to support offshore drilling, production and construction activities. The company's fleet is equipped to handle a range of maritime services, including the transport of personnel, equipment and bulk materials; anchor handling and mooring operations; and subsea construction support. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Tidewater Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Tidewater Inc (NYSE:TDW) reported second quarter revenue and gross margin that exceeded expectations, with revenue reaching $342.3 million and gross margin just under 47%. The company saw a strong 7.5% sequential increase in its weighted average leading edge day rate, indicating a tight supply and demand balance in the market. Free cash flow nearly doubled sequentially to $64 million in the second quarter, driven by stronger operational performance and deferred drydocks. The company maintains a very strong balance sheet with net debt essentially at zero and liquidity exceeding $850 million at quarter end. Management expressed increased confidence in the market outlook, citing a significant uptick in tendering and pre-tendering activity across all vessel support services globally. Tidewater Inc (NYSE:TDW) continues to incur elevated costs related to Operation Epoch Fury, totaling approximately $6.8 million in the second quarter and an expected $4 million in the third quarter. The closing of the Wilson's acquisition has been delayed to around September 1, 2026, which has led to a modest reduction in the full-year 2026 revenue guidance. The company expects third-quarter legacy revenue to decline about 2% due to drydocks moving into the period and higher-than-anticipated downtime for repairs. Gross margin in the third quarter is expected to be around 46%, negatively impacted by conflict-related costs, higher fuel expenses, and increased repair and maintenance costs. The company has not repurchased any shares this year, pausing buybacks to fund the Wilson's acquisition, and faces uncertainty regarding the duration and financial impact of the Middle East conflict. Warning! GuruFocus has detected 6 Warning Signs with UTL. Is TDW fairly valued? Test your thesis with our free DCF calculator. Q: Over the last couple of quarters, you've been pretty bullish and reiterated the day rate growth potential for the next couple of years. As you sit here today with your recent travels, project tracking conversations, and tendering, are you thinking the market is on track with what you thought before, or are things getting better? A: Quentin Neane (President and CEO): I'm probably more bullish now than I've been in the last six to nine months. The amount of tendering and pre-tendering activity is quite strong around the world. I was in Asia about five weeks ago, and the talk in Indonesia, Malaysia, and Myanmar is all much stronger than I've seen in a while. I'm getting really confident about this next leg up in the cycle. Piers Middleton (COO) added that there has been a slight improvement from the beginning of the year, with a very positive outlook for Asia Pac, the Med, Namibia, Angola, and a strong uptick in Nigeria. While some projects may move to the right, overall sentiment is very positive, and Brazil is expected to come back strongly at the beginning of next year once elections are over. Q: On the M&A side, you have been pretty adamant that from a capital allocation perspective, that's been your preferred path. Do you see more or less opportunities in the M&A space now compared to 12 months ago, and do you think it's fair to see you doing anything more over the next one to two years? A: Quentin Neane (President and CEO): The M&A landscape is evolving, but there continues to be some really attractive opportunities out there. When we think about M&A, we're looking for a strategic element, like Brazil with Wilson's, the Solstad deal for larger and hybrid vessels, and the Swire acquisition to get back into Asia. Price is very important, but there also has to be a good strategic rationale. I fully expect to see other opportunities develop, and my hope is that we'll be able to continue to demonstrate value-accretive growth through acquisition in the next year or so. However, I'm not going to consolidate this industry all by myself, so I need other people out there doing something. Q: You entered into 25 term contracts with an average duration of 12 months. Given your day rate expectations, is it fair to say the mindset is still to have a lot of the fleet available to reprice in '27? A: Piers Middleton (COO): We're going to keep a decent amount of ships available, particularly the larger PSVs and anchor handlers, which are the big drivers for day rates. As we get to that $3,000 to $4,000 a day uplift next year, we may start looking to go a little bit longer as we get into '28. In the short-term, we're looking to keep a decent amount of availability to take advantage of what we see coming in '27 and '28. Wes Gotcher (SVP of Strategy) added that there is a subset of vessels that they are happy to put on longer-term contracts, but for the larger vessels, the general philosophy is to continue to go relatively short because they believe in the market. Q: On the cost side, with the added costs from the conflict and fuel prices, what's the playbook going forward to either recapture that in rates over time or improve the cost situation in the Middle East? A: Quentin Neane (President and CEO): There are a lot of game-day decisions because this is all relatively new. The team has been good at working with the labor force and mariners in the area to modify the significant premiums that were put in place to track and maintain personnel. Insurance is something we work on with our agents to keep manageable. Fuel costs are a product of the environment, and my hope is that it settles down. We're learning as we go through this conflict and finding new ways to bring costs down. We're also beginning to bill back to our customers, like Saudi Aramco, which is a strong but difficult customer, so there's a lot of paperwork involved. My hope is that we'll see all of that come to fruition over the next several months. Q: On the Middle East, could you give us more color around conversations with customers and what it will take to get back to a normal operating environment? Is the region structurally impaired, or will it be full steam ahead once things settle down? A: Quentin Neane (President and CEO): I actually think the region will show more strength in the future than it has in the recent past. The conflict has the inherent result of actually improving activity levels as you move jackups in and out and relocate things. Post-conflict, I expect to see a bump in activity, as well as further developments as people reposition assets. The customers have not shied away from thinking about the future, and everybody is excited to get the conflict resolved so they can get back to work. Piers Middleton (COO) added that sentiment is still strong, and there will be a short-term bump coming out of the conflict, similar to post-COVID. Longer-term, they are still seeing tendering activity from all the NOCs, and there is continued talk about putting more dollars into the region, such as UAE leaving OPEC, which will cause a big uptick in future demand. Q: Looking at the long-term macro market, the OSV fleet is somewhat aged at around 15 years. How long can you realistically keep these assets without having to retire them, and where do day rates need to go to incentivize new builds a decade down the road? A: Quentin Neane (President and CEO): Before the downturn in 2014 and '15, we were routinely operating vessels into the high 20s and early 30-year range, and there's no reason why vessels can't operate that long. There's no technological transformation happening today like there was in 2011-2014 when vessels got larger and went to diesel electric. I fully expect the fleet to run for another five or six years before people need to rebuild. In today's market and cost structure, it's in the low $30s that would justify building today, and we may get there in a couple of years. Maybe by the time we get to 2029, that can make some sense. The fleet has a lot of duration left in it. Q: Are you providing any color around what contracted capacity is in either Q3 or the second half of this year? A: Wes Gotcher (SVP of Strategy): We have about 69% of the remaining available days for 2026 captured in our backlog and options, which includes the Wilson's fleet. What's contemplated in our financial guidance is For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Second quarter performance exceeded expectations due to higher day rates and stronger utilization, despite $6.8 million in direct costs from Operation Epic Fury. Utilization benefited from the strategic shifting of dry docks for seven vessels from the second quarter to later in the year, alongside better-than-expected operational uptime. Leading edge day rates increased approximately 7.5% sequentially, signaling a tight supply-demand balance and growing conviction in the next leg of the offshore cycle. Management attributes the robust long-term outlook to energy security considerations and strategic resource proximity, factors they believe are more durable than near-term economics. The offshore vessel market remains supply-constrained with no meaningful newbuild activity and a laid-up fleet that management considers effectively scrapped in place. M&A remains a core strategic pillar, with the Wilsons' acquisition expected to close around September 1st, providing a significant footprint in the high-growth Brazilian market. Capital allocation remains disciplined, prioritizing value-accretive acquisitions over scale for its own sake, while maintaining a $500 million share repurchase authorization. Management projects a realistic path to year-over-year average day rate increases of $3,000 to $4,000 per day in both 2027 and 2028. Full-year 2026 revenue guidance was modestly revised to $1.42 billion to $1.47 billion, primarily reflecting a two-month delay in the Wilsons' acquisition closing. Third quarter guidance assumes approximately $4 million in conflict-related costs, nearly half of the second quarter levels, as the company identifies alternative management strategies. Free cash flow is expected to accelerate in the back half of the year, supported by the integration of Wilsons' vessels and improving operational performance in the legacy business. The company anticipates net leverage to increase to approximately 0.8x by the end of the third quarter following the funding of the Wilsons' acquisition. Operation Epic Fury resulted in $6.8 million of additional costs in Q2, primarily driven by war bonus pay for crews and elevated insurance premiums. The company is contractually permitted to rebill direct conflict-related costs to customers, though only $1 million has been invoiced to date with minimal collections. A planned $15 million major upgrade to a Norwegian vessel is included in the $52 million full-year capital expenditure budget. Unanticipated downtime due to unplanned maintenance or incremental dry dock duration remains the primary risk to the 2026 backlog revenue. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expressed increased bullishness compared to six months ago, citing a significant uptick in tendering and pre-tendering activity globally. Specific strength was noted in Asia (Indonesia, Myanmar, Malaysia) and West Africa (Nigeria and Namibia). The company has modified labor agreements to bring down initial premium pay levels and is working with agents to manage insurance volatility. While rebilling to major customers like Saudi Aramco is contractually allowed, management noted the process is administratively intensive and takes time to realize. Management is less interested in the U.S. market due to valuation concerns, finding West Africa and Asia more attractive for future growth. They emphasized that any future deals must have a strategic element, such as specific vessel types or geographic advantages, rather than just adding scale. Management believes the current fleet can operate for another 5 to 6 years before large-scale replacement is necessary, as technological shifts have stabilized. Day rates would likely need to reach the low $30,000s to justify newbuild orders at current cost structures, a level that may not be reached until 2029.

Tidewater (TDW) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $1.23 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +34.38%. A quarter ago, it was expected that this offshore energy services provider would post earnings of $0.75 per share when it actually produced earnings of $0.12, delivering a surprise of -84%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Tidewater, which belongs to the Zacks Oil and Gas - Integrated - United States industry, posted revenues of $342.29 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.02%. This compares to year-ago revenues of $341.43 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Tidewater shares have added about 48.6% since the beginning of the year versus the S&P 500's gain of 9.4%. While Tidewater has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Tidewater was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.52 on $400.19 million in revenues for the coming quarter and $3.52 on $1.45 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Integrated - United States is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Prairie Operating Co. (PROP), is yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -88.9%. The consensus EPS estimate for the quarter has been revised 3% lower over the last 30 days to the current level. Prairie Operating Co.'s revenues are expected to be $108.22 million, up 58.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tidewater Inc. (TDW) : Free Stock Analysis Report Prairie Operating Co. (PROP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second Quarter 2026 Highlights Revenue of $342.3 million, a 4.9% increase compared to the first quarter of 2026 Average day rate of $22,938 per day, an increase of $655 per day, or 2.9%, compared to the first quarter of 2026 Weighted average leading edge day rate of $24,341, a 7.5% increase compared to the first quarter of 2026 Net income of $21.7 million and Adjusted EBITDA of $133.8 million Net cash provided by operating activities of $67.0 million and free cash flow of $64.4 million Annual Guidance and Share Repurchase Program Updating 2026 revenue guidance range of $1.42 to $1.47 billion and 2026 gross margin guidance range of 49% to 50% pro forma for the previously announced Wilson Sons Ultratug Offshore ("WSUT") acquisition to reflect an expected closing around September 1, 2026 Outstanding share repurchase program authorization of $500 million HOUSTON, August 03, 2026--(BUSINESS WIRE)--Tidewater Inc. (NYSE:TDW) announced today revenue for the three and six months ended June 30, 2026 of $342.3 million and $668.5 million, respectively, compared with $341.4 million and $674.9 million for the three and six months ended June 30, 2025. Tidewater's net income for the three and six months ended June 30, 2026, was $21.7 million ($0.43 per common share) and $27.8 million ($0.56 per common share), respectively, compared with net income of $72.9 million ($1.46 per common share) and $115.6 million ($2.27 per common share), respectively, for the three and six months ended June 30, 2025. Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, "The second quarter of 2026 came in nicely above our expectations, driven by both revenue outperformance and lower-than-expected operating expenses. Day rate and utilization both outperformed, with revenue for the quarter coming in at $342.3 million. Gross margin of 46.9% came in well ahead of our expectations due to the increase in revenue and lower than anticipated operating expenses, but was down modestly from the first quarter due to costs associated with the conflict in the Middle East. Realized day rates improved materially during the quarter, up $655 per day, representing the largest absolute sequential day rate improvement since the third quarter of 2024. The improvement in day rates was driven primarily by our largest class of PSVs, with day rate momentum realized across multiple of our regional reporting segments. Further, new term contract fixture day rate momentum accelerated from the first quarter with our weighted average term contract rate increasing approximately 7.5% sequentially up approximately $1,690 per day to $24,341. Utilization also came in higher than anticipated during the quarter, though this was largely related to the timing of drydocks of certain vessels moving to later in the year. "During the first quarter, Operation Epic Fury commenced in the Middle East, one of our principal operating regions. To date, we’ve yet to experience any material activity disruptions in the region and, in fact, realized our highest utilization and day rate in recent memory during the second quarter. From a cost perspective, we incurred less costs in the quarter than anticipated, though our costs do remain somewhat elevated compared to our cost structure prior to the commencement of the conflict. We’ve submitted our first batch of invoices for direct, conflict-related costs, and have received modest reimbursements associated with these submitted invoices; we continue to expect to realize additional reimbursements for conflict-related, direct cost increases. Looking forward, we expect to continue to incur conflict-related costs in the Middle East, though we have made structural adjustments to our wage schemes to minimize the impact of conflict-related wage increases. "We recently updated the market on our expected closing timing for the WSUT acquisition. We now anticipate to close the transaction around September 1, 2026. In the interim, our integration efforts have continued and we expect a swift integration of the organization onto Tidewater’s platform, consistent with our approach and integration cadence in prior acquisitions. "Volatility and uncertainty continue to be major themes in the global energy landscape as the conflict in the Middle East and the associated disruptions with the conflict persist. While these near-term factors can influence sentiment, the longer-term considerations for the energy sector, namely offshore activity, remain constructive. Our conversations with customers continue to point to a broad pick-up in offshore activity as we progress through this year and into 2027, with the pace of tendering for new contracts and opportunities picking up materially. We believe that the opportunity set we’re currently seeing is a function of projects already contemplated for commencement and that new projects contemplated in response to the reshaping of the global energy supply chain have yet to be developed and commercialized. We do anticipate that over time there will be incremental projects developed in response to regional energy security considerations, but the lead time to these projects is often measured in years rather than months, solidifying the long-term durability of the offshore cycle. "We remain confident that the geographic diversification of our fleet and an established onshore infrastructure in every major offshore market globally provides us a distinct advantage to capitalize on the broad-based offshore activity increase we see ahead of us. Each factor of demand of our vessels – production support, subsea and EPCI support and drilling support – are all poised for continued growth and the supply of available offshore vessels may be insufficient to meet this heightened level of demand. We anticipate that we will continue to see leading indicators of this supply and demand imbalance, as illustrated by this quarter’s weighted average leading edge day rate, as we progress through the remainder of 2026 and that we will be the beneficiary of in 2027. We are modestly revising our 2026 revenue guidance range of $1.42 billion to $1.47 billion and our 2026 gross margin guidance range of 49% to 50% to account for the approximately two-month delay in the closing of the WSUT transaction and continued elevated, but declining, operating costs associated with the conflict in the Middle East. We expect to incur approximately $13.1 million of conflict-related costs in 2026, approximately $7.6 million of which we are contractually permitted to bill back to our customers." In addition to the number of outstanding shares, as of June 30, 2026, the Company also has the following in-the-money warrants. Tidewater will hold a conference call to discuss results for the three months ending June 30, 2026 on August 4, 2026, at 8:00 a.m. Central Time. Investors and interested parties may listen to the earnings conference call via telephone by calling +1.833.461.5787 if calling from the U.S. or Canada (+1.365.657.4084 if calling from outside the U.S. or Canada) and provide Conference ID: 600 500 897 prior to the scheduled start time. A live webcast of the call will also be available in the Investor Relations section of Tidewater’s website at investor.tdw.com. A replay of the conference call will be available beginning at 11:00 a.m. Central Time on August 4, 2026. To access the replay, visit the Investor Relations section of Tidewater’s website at investor.tdw.com. About Tidewater Tidewater owns and operates the largest fleet of offshore support vessels in the industry, with 70 years of experience supporting offshore energy exploration, production and offshore wind activities worldwide. To learn more, visit www.tdw.com. Cautionary Statement This news release contains "forward-looking statements" within the meaning of the U.S. federal securities laws – that is, any statements that are not historical facts. Such statements often contain words such as "expect," "believe," "think," "anticipate," "predict," "plan," "assume," "estimate," "forecast," "target," "projections," "intend," "should," "will," "shall" and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain and based on our management’s current expectations and beliefs concerning future developments and their potential impact on Tidewater Inc. and its subsidiaries (the "Company"). These forward-looking statements involve risks and uncertainties that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: fluctuations in worldwide energy demand and oil and gas prices; fleet additions by competitors and industry overcapacity; limited capital resources available to replenish our asset base as needed, including through acquisitions or vessel construction, and to fund our capital expenditure needs; uncertainty of global financial market conditions and potential constraints in accessing capital or credit if and when needed with favorable terms, if at all; changes in decisions and capital spending by customers based on industry expectations for offshore exploration, field development and production; global trade trends, including evolving impacts from implementation of new tariffs and potential retaliatory measures; consolidation of our customer base; loss of a major customer; changing customer demands for vessel specifications, which may make some of our older vessels technologically obsolete for certain customer projects or in certain markets; rapid technological changes; delays and other problems associated with vessel maintenance; the continued availability of qualified personnel and our ability to attract and retain them; the operating risks normally incident to our lines of business, including the potential impact of liquidated counterparties; our ability to comply with covenants in our indentures and other debt instruments; acts of terrorism and piracy; the impact of regional or global public health crises or pandemics; the impact of potential information technology, cybersecurity or data security breaches; uncertainty around the use and impacts of artificial intelligence applications; integration of acquired businesses and entry into new lines of business; disagreements with our joint venture partners; natural disasters or significant weather conditions; unsettled political conditions, war, civil unrest and governmental actions, such as expropriation or enforcement of customs or other laws that are not well developed or consistently enforced; risks associated with our international operations, including local content, local currency or similar requirements especially in higher political risk countries where we operate; interest rate and foreign currency fluctuations; labor changes proposed by international conventions; increased regulatory burdens and oversight; changes in laws governing the taxation of foreign source income; retention of skilled workers; enforcement of laws related to the environment, labor and foreign corrupt practices; increased global concern, regulation and scrutiny regarding climate change; increased stockholder activism; the potential liability for remedial actions or assessments under existing or future environmental regulations or litigation; the effects of asserted and unasserted claims and the extent of available insurance coverage; the resolution of pending legal proceedings; and other risks and uncertainties detailed in our most recent Form 10-K, Form 10-Qs and Form 8-Ks filed with or furnished to the SEC. If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this presentation regarding our environmental, social and other sustainability plans, goals or activities are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards still developing, internal controls and processes that we continue to evolve, and assumptions subject to change in the future. Statements in this release are made as of the date hereof, and the Company disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise. Financial information is displayed beginning on the next page. The supplementary information presented in this press release was not audited. This press release presents extracts from the Consolidated Balance Sheets at June 30, 2026 and December 31, 2025; the Condensed Consolidated Income Statements and Condensed Consolidated Statements of Equity for the three and six months ended June 30, 2026 and 2025; and the Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025. Extracts are drawn from the June 30, 2026 unaudited quarterly and December 31, 2025 audited annual financial statements of Tidewater Inc. All per-share amounts are stated on a diluted basis. Revision of Previously Issued Financial Statements Certain prior year amounts have been reclassified to conform to the current year presentation. The effects of exchange rate changes on cash and cash equivalent balances were not previously presented as a separate item in the reconciliation of the net change in cash, cash equivalents and restricted cash in our Statements of Cash Flows, but rather included as a component of net cash provided by operating activities. Accordingly, we have revised our Condensed Consolidated Statements of Cash Flows to reflect the effects of exchange rate changes on cash and cash equivalent balances for the three months ended June 30, 2025. Also, the presentation of Free cash flow has been revised to reflect the effects of exchange rate changes on cash and cash equivalent balance. Non-GAAP Financial Measures We disclose and discuss EBITDA and Adjusted EBITDA as non-GAAP financial measures in our public releases, including quarterly earnings releases, investor conference calls and other filings with the Securities and Exchange Commission. We define EBITDA as earnings (net income or loss) before interest and other debt costs, income tax expense, depreciation and amortization. Additionally, Adjusted EBITDA excludes non-cash indemnification asset charge (credit), non-cash stock-based compensation expense, loss on early extinguishment of debt and acquisition, restructuring and integration related costs. Our measures of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures presented by other companies. Other companies may calculate EBITDA and Adjusted EBITDA differently than we do, which may limit its usefulness as a comparative measure. Because EBITDA and Adjusted EBITDA are not measures of financial performance calculated in accordance with GAAP, they should not be considered in isolation or as a substitute for operating income, net income or loss, cash provided (used) in operating activities, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. EBITDA and Adjusted EBITDA are widely used by investors and other users of our financial statements as a supplemental financial measure that, when viewed with our GAAP results and the accompanying reconciliations, we believe provide additional information that is useful to gain an understanding of the factors and trends affecting our ability to service debt, pay taxes and fund drydocking and survey costs and capital expenditures. We also believe the disclosure of EBITDA and Adjusted EBITDA helps investors meaningfully evaluate and compare our cash flow generating capacity from quarter-to-quarter and year-to-year. EBITDA and Adjusted EBITDA are also financial metrics used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) to compare to the EBITDA and Adjusted EBITDA of other companies when evaluating potential acquisitions; and (iii) to assess our ability to service existing fixed charges and incur additional indebtedness. View source version on businesswire.com: https://www.businesswire.com/news/home/20260727993376/en/ Contacts Tidewater Inc.West GotcherSenior Vice President,Strategy, Corporate Development and Investor Relations+1.713.470.5285