Tidewater (TDW), a leading offshore vessel operator, saw its stock plummet 6.64% in pre-market trading on Tuesday, following the release of its disappointing third-quarter 2025 financial results and updated guidance after market close on Monday. The significant drop comes as investors digest 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, catching many investors off guard.
Adding to the market's 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%. While Tidewater highlighted 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. The unclear visibility into the timing of incremental drilling projects in the latter half of 2026, as acknowledged by CEO Quintin Kneen, further contributed to the bearish sentiment surrounding the stock.
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