A global operator of offshore service vessels, Tidewater runs a fleet of ships that carry supplies, tow anchors, and support drilling and windfarm projects for oil companies and offshore contractors around the world. Its vessels work across five regions, from the Americas to West Africa, and include platform supply vessels and anchor-handling tugboats. The company is expanding in Brazil through a planned acquisition of 22 supply vessels from Wilson Sons Ultratug.
Tidewater Q2 2026 net income rose to $21.7M as a seasonal North Sea recovery lifted revenue 5% sequentially, while Middle East war costs pressured margins.
rebounded from a weak first quarter, rising 5% sequentially to $342.3 million as the North Sea fleet returned to work. reached $21.7 million, up from $6.1 million in Q1, helped by a $3.3 million gain on vessel sales, though war-related crew costs in the Middle East pushed vessel operating expenses up 9%. The company sits on $616.1 million in cash ahead of a $500 million acquisition of 22 Brazilian vessels expected to close in September.
Key takeaways
rose 5% sequentially to $342.3 million, driven by a seasonal recovery in the Europe/Mediterranean , where revenue climbed 29% to $112.1 million on an 8.5-point increase in utilization and 10.9% higher day rates.
attributable to Tidewater was $21.7 million, up from $6.1 million in Q1 2026, aided by a $3.3 million gain on asset sales and lower income tax expense.
Vessel operating costs rose 9% sequentially to $180.7 million, pressured by war-related crew bonuses and travel costs in the Middle East, plus higher repair and fuel expenses.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue rose 5% sequentially to $342M on higher utilization and day rates, while net income surged to $21.7M.
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Consolidated increased 5% sequentially to $342.3M, driven by higher (79.2%) and average ($22,938), particularly in Europe/Mediterranean.
Average day rates increased to $22,938 from $22,283 in Q1 2026, and active utilization improved to 79.2% from 77.7%, reflecting the seasonal uptick in the North Sea.
The company agreed to acquire the Wilson Companies for $500 million in cash, adding 22 platform supply vessels in Brazil, with closing expected around September 1, 2026.
Liquidity stood at $616.1 million in cash and equivalents plus an undrawn $250 million ; was $86.2 million for the first half of 2026.
What changed
The Q1 2026 watch item on average day rates and utilization resolved positively: day rates rose to $22,938 from $22,283 and utilization improved to 79.2% from 77.7%, driven by the seasonal North Sea recovery.
The pending $500 million Wilson Sons Ultratug acquisition, flagged in FY 2025 and Q1 2026, was renamed the Wilson Companies acquisition with closing now expected around September 1, 2026, rather than late Q2.
Incremental costs from the Iran conflict in the Middle East, flagged in Q1 2026 at $1.9 million, persisted and expanded, contributing to a 9% sequential rise in vessel operating costs to $180.7 million.
recovered from the Q1 2026 low of $19.2 million, with the first half of 2026 totaling $86.2 million, suggesting the Q1 decline was partly driven by timing.
What to watch
Close of the $500 million Wilson Companies acquisition in Brazil around September 1, 2026, and its immediate impact on the Americas , fleet count, and .
Q3 2026 vessel operating costs after the 9% sequential rise to $180.7 million, to gauge whether Middle East war-related crew costs and repair expenses persist or moderate.
Europe/Mediterranean and utilization in Q3 2026 to see whether the seasonal Q2 uplift holds or retreats as North Sea activity winds down.
Average day rate trajectory from $22,938 in Q3 2026, to assess whether the sequential improvement continues or the flat trend of recent quarters reasserts itself.
attributable to Tidewater jumped to $21.7M from $6.1M in Q1, aided by a $3.3M gain on asset sales and lower income tax expense.
Vessel operating costs rose 9% sequentially to $180.7M, pressured by war-related crew bonuses and travel costs in the Middle East, plus higher repair and fuel expenses.
The Europe/Mediterranean led growth with a 29% surge to $112.1M on an 8.5-point jump and 10.9% higher , reflecting seasonal recovery in the North Sea.
The company agreed to acquire the Wilson Companies for $500M in cash, adding 22 platform supply vessels in Brazil, with closing expected around September 1, 2026.
Liquidity remained strong with $616.1M in cash and an undrawn $250M ; was $86.2M for the first half of 2026.
Quantitative and Qualitative Disclosures About Market Risk
For quantitative and qualitative disclosures about market risk affecting us, see Item 7A. “Quantitative and Qualitative Disclosures about Market Risk,” in our 2025 Annual Report. Our exposure to market risk has not changed materially since December 31, 2025.
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For quantitative and qualitative disclosures about market risk affecting us, see Item 7A. “Quantitative and Qualitative Disclosures about Market Risk,” in our 2025 Annual Report. Our exposure to market risk has not changed materially since December 31, 2025.
See discussion of legal proceedings in (i) “Note (9) - Commitments and Contingencies” of the Notes to Unaudited Condensed Consolidated Financial Statements in this Quarterly Report; (ii) Item 3 of Part I of our 2025 Annual Report; and (iii) “Note (11) – Commitments and Contingen…
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See discussion of legal proceedings in (i) “Note (9) - Commitments and Contingencies” of the Notes to Unaudited Condensed Consolidated Financial Statements in this Quarterly Report; (ii) Item 3 of Part I of our 2025 Annual Report; and (iii) “Note (11) – Commitments and Contingencies” of the Notes to Consolidated Financial Statements included in Item 8 of our 2025 Annual Report.
There are numerous factors that affect our business and results of operations, many of which are beyond our control. In addition to other information presented in this quarterly report, you should carefully read and consider “Item 1A - Risk Factors” in Part I and “Item 7 - Manag…
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There are numerous factors that affect our business and results of operations, many of which are beyond our control. In addition to other information presented in this quarterly report, you should carefully read and consider “Item 1A - Risk Factors” in Part I and “Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II of our 2025 Annual Report, and “Item 1A. Risk Factors” in Part II of our Quarterly Report on Form 10-Q for the quarterly period ending June 30, 2026, which contain descriptions of significant risks that may cause our actual results of operations in future periods to differ materially from those currently anticipated or expected.
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