In This Article:
-
Revenue: $333.4 million for Q1 2025.
-
Gross Margin: 50.1% for Q1 2025.
-
Net Income: $42.7 million or $0.83 per share for Q1 2025.
-
Free Cash Flow: $94.7 million for Q1 2025.
-
Average Day Rate: $22,303 per day, setting a new quarterly record.
-
Utilization Rate: Increased to 78.4% in Q1 2025 from 77.7% in Q4 2024.
-
Adjusted EBITDA: $154.2 million for Q1 2025.
-
Share Repurchase: $90 million spent, reducing share count by approximately 2.5 million shares.
-
Capital Expenditures: $10.3 million in Q1 2025.
-
Dry Dock Costs: $43.3 million incurred in Q1 2025.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Tidewater Inc (NYSE:TDW) reported first quarter revenue of $333.4 million, exceeding expectations due to higher average day rates and better utilization.
-
The company achieved a gross margin of over 50% for the second consecutive quarter, indicating strong operational efficiency.
-
Tidewater Inc (NYSE:TDW) generated approximately $95 million of free cash flow in the first quarter, marking the second highest quarterly free cash flow since the offshore recovery began.
-
The company fully utilized its $90 million share repurchase program, reducing the outstanding share count by 2.5 million shares, demonstrating a commitment to returning capital to shareholders.
-
Tidewater Inc (NYSE:TDW) maintains a relatively low leverage profile and a highly scalable global operating footprint, providing flexibility to optimize the business amid macroeconomic uncertainties.
Negative Points
-
The company anticipates a 5% sequential decline in revenue for the second quarter, with a projected gross margin of 44%, due to lower revenue and higher costs associated with idle days and repair expenses.
-
Tidewater Inc (NYSE:TDW) faces challenges in the North Sea and Mexico markets, which continue to experience demand-side issues.
-
The company has not received payment for several quarters from its primary customer in Mexico, with an outstanding receivable balance of $35.1 million as of March 31.
-
There is uncertainty regarding the impact of recent US-led tariff regimes on global trading patterns and the subsequent effect on the global economy and energy needs.
-
The vessel supply outlook remains unchanged, with newbuild discussions largely ceased, and the modest number of newbuilds on order not expected to deliver until late 2026 or 2027.
Q & A Highlights
Q: Are you seeing any changes in customer plans or activity levels for the back half of 2026 and 2027? A: Piers Middleton, Chief Commercial Officer: We haven't seen any changes from our customers regarding their outlook and plans. Conversations with customers remain positive, and we are seeing pre-tender discussions for 2026 and 2027, indicating continued interest and activity.