Will Tidewater’s (TDW) Shift to a Net Loss and New Guidance Change Its Investment Narrative?

• Tidewater Inc. recently reported its third quarter 2025 financial results, with revenue holding steady at US$341.11 million year-over-year while posting a net loss of US$0.81 million, along with updated 2025 and initial 2026 guidance projecting revenue between US$1.32 billion and US$1.37 billion and margins near 50%.
• Although quarterly revenues remained consistent, the shift from profit to a small net loss marked a significant change in Tidewater's profitability trajectory.
• We’ll assess how Tidewater’s updated multi-year revenue and margin guidance influences confidence in its investment case moving forward.

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Tidewater Investment Narrative Recap

To be a shareholder in Tidewater, you need to believe that tight global supply of offshore support vessels and a strong pipeline of projects will drive higher vessel utilization, day rates, and margins. The recent news of a flat year-over-year revenue and a small net loss in the third quarter is notable, but does not materially alter the short-term catalyst of rising deepwater investment, nor does it increase the biggest risk of vessel idleness tied to project delays in key offshore markets.

Among Tidewater’s recent announcements, the updated 2025 and initial 2026 guidance stands out as most relevant. Management is projecting continued high margins, near 50%, and stable revenue in the range of US$1.32 billion to US$1.37 billion, which supports the thesis of supply constraints and robust demand continuing to underpin near-term performance. Despite resilient margins, investors should be aware that...

Read the full narrative on Tidewater (it's free!)

Tidewater's outlook projects $1.5 billion in revenue and $306.5 million in earnings by 2028. This is based on analysts' assumptions of 3.6% annual revenue growth and a $107.6 million increase in earnings from the current $198.9 million figure.

Uncover how Tidewater's forecasts yield a $60.00 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Nine members of the Simply Wall St Community estimate Tidewater’s fair value between US$36.91 and US$188.53. While many see upside amid tight vessel supply, others warn that persistent offshore demand softness could pressure future revenues, so review multiple viewpoints as you consider your position.

Explore 9 other fair value estimates on Tidewater - why the stock might be worth 35% less than the current price!

Build Your Own Tidewater Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Tidewater research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Tidewater research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Tidewater's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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