Shares of Tidewater (TDW) tumbled 6.55% in after-hours trading on Monday following the release of its third-quarter 2025 financial results and updated guidance. The offshore vessel operator reported mixed results, with a slight increase in revenue overshadowed by a net loss, primarily due to a one-time charge related to debt refinancing.
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, significantly impacted by a $27.1 million loss on early extinguishment of debt from its July 2025 refinancing. Despite the net loss, Tidewater's adjusted EBITDA reached $137.9 million, indicating underlying operational strength.
The company updated its 2025 revenue guidance to $1.33 to $1.35 billion, with a gross margin forecast of 49% to 50%. Tidewater also introduced 2026 revenue guidance of $1.32 to $1.37 billion, with a projected gross margin of 48% to 50%. While the guidance suggests continued growth, investors may have been concerned about potential margin pressure in the coming year. The after-hours stock plunge reflects market disappointment with the quarterly loss and cautious outlook, despite some positive factors such as improved vessel up-time and day rate increases in certain segments.
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