Shares of Tidewater (TDW), a leading offshore vessel operator, plummeted 7.59% in after-hours trading on Monday following the release of its third-quarter 2025 financial results and updated guidance. The significant drop came as the company reported a net loss and provided a cautious outlook for the coming years.
Tidewater announced Q3 revenue of $341.1 million, a marginal 0.2% increase compared to the same period in 2024. However, the company swung to 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%. CEO Quintin Kneen acknowledged the challenging backdrop for accurately anticipating the pace and magnitude of offshore drilling activity, citing continued market factors from the current year. The unclear visibility into the timing of incremental drilling projects in the latter half of 2026 further contributed to the market's negative reaction, despite some positive factors such as improved vessel up-time and day rate increases in certain segments.
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