Offshore vessel operator Tidewater reported revenue of $342.3 million for the second quarter ended June 30, representing a 4.9 per cent increase from the previous quarter despite lower earnings.
Net income for the quarter declined to $21.7 million from $72.9 million in the corresponding period of 2025.
For the first six months of 2026, revenue totalled $668.5 million compared with $674.9 million in the prior-year period, while net income fell to $27.8 million from $115.6 million.
Average vessel day rates increased 2.9 per cent sequentially to $22,938 per day, with the weighted average leading-edge day rate rising 7.5 per cent to $24,341. Tidewater generated $67 million in net cash from operating activities and $64.4 million in free cash flow during the quarter.
Chief Executive Officer and President Quintin Kneen said second-quarter performance exceeded internal expectations, supported by higher revenue and lower operating expenses. He added that gross margin reached 46.9 per cent, although costs related to the conflict in the Middle East weighed slightly on sequential profitability.
The company expects to incur approximately $13.1 million in conflict-related expenses during 2026, of which around $7.6 million is contractually recoverable from customers. Tidewater also implemented structural adjustments to regional wage schemes to mitigate the impact of conflict-related wage increases in the Middle East.
Tidewater raised its full-year 2026 revenue guidance to between $1.42 billion and $1.47 billion, while maintaining a projected gross margin of 49 per cent to 50 per cent.
The updated outlook reflects an estimated two-month delay in completing the acquisition of Wilson Sons Ultratug Offshore, which is now expected to close around September 1.
“Our conversations with customers continue to point to a broad pick-up in offshore activity as we progress through this year and into 2027,” Kneen said.