Shares of Tidewater (TDW), a leading offshore vessel operator, experienced a significant pre-market plunge of 6.64% on Tuesday, following the release of its third-quarter 2025 financial results and updated guidance. The sharp decline comes as investors react to the company's unexpected net loss and cautious outlook for the coming years.
Tidewater reported Q3 revenue of $341.1 million, a modest 0.2% increase year-over-year. However, the company posted a net loss of $1.018 million for the quarter, primarily due to a substantial $27.1 million loss on early extinguishment of debt related to its July 2025 refinancing. This one-time charge overshadowed the company's operating income of $62.651 million and pretax profit of $20.693 million for the quarter.
Adding to investor concerns, Tidewater updated its 2025 revenue guidance to a range of $1.33 to $1.35 billion, with a gross margin forecast of 49% to 50%. The company also introduced its 2026 revenue guidance of $1.32 to $1.37 billion, with an expected gross margin between 48% and 50%. Despite some positive factors such as improved vessel up-time and day rate increases in certain segments, the market's negative reaction suggests that investors may have been expecting more robust growth projections or were disappointed by the impact of the debt refinancing on the company's near-term profitability.
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