Tidewater Q4 net income rises, boosted by non-cash deferred tax benefit

Overview

• Offshore support vessel operator's Q4 revenue declined 2.4% yr/yr

• Net income boosted by $201.5 mln non-cash deferred tax benefit

• Company updated 2026 revenue guidance to $1.43-$1.48 bln

Outlook

• Tidewater updates 2026 revenue guidance to $1.43 to $1.48 bln

• Company expects 2026 gross margin of 49% to 51%

Result Drivers

• TAX BENEFIT - Net income was favorably impacted by a $201.5 mln non-cash deferred tax benefit due to vessel ownership restructuring

• VESSEL UTILIZATION - Improved vessel up-time and utilization contributed to operational performance, with fewer drydock days than anticipated

• FOREIGN EXCHANGE GAIN - A $2.1 mln foreign exchange gain from the weakening U.S. dollar positively impacted net income

Company press release: ID:nBw7ZB3qDa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil related services and equipment peer group is "buy."

• Wall Street's median 12-month price target for Tidewater Inc is $67.50, about 15% below its February 27 closing price of $79.42

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 15 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)