Tidewater Inc. — Nine Months Ended September 30, 2026 Earnings Summary

Financial Performance:

• Revenue for the three months ended September 30, 2026, was $360.4 million, a 5.3% increase compared to the second quarter of 2026; revenue for the nine months ended September 30, 2026, was $1,028.9 million, compared to $1,016.0 million for the same period in 2025.
• Net income for the three months ended September 30, 2026, was $17.5 million ($0.35 per diluted share), compared to a net loss of $0.8 million ($0.02 per diluted share) in the same period in 2025; net income for the nine months ended September 30, 2026, was $45.3 million ($0.91 per diluted share), compared to $114.8 million ($2.27 per diluted share) in 2025.
• Adjusted EBITDA for the third quarter of 2026 was $140.1 million.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $161.4 million; free cash flow for the period was $90.9 million.
• Gross margin for the third quarter of 2026 was 46.8%, exceeding expectations by one percentage point.
• Total vessel operating costs for the nine months ended September 30, 2026, were $537.2 million, compared to $508.5 million in 2025.
• Depreciation and amortization for the nine months ended September 30, 2026, was $207.7 million, compared to $196.2 million in 2025.
• Cash and cash equivalents as of September 30, 2026, were $390.8 million, down from $578.8 million as of December 31, 2025.
• Total debt (current and long-term) as of September 30, 2026, was $862.3 million, up from $654.9 million as of December 31, 2025.

Guidance and Future Outlook:

• Updated 2026 revenue guidance range to $1.43 billion to $1.44 billion and 2026 gross margin guidance range to 47.5% to 48.5%, inclusive of approximately 140 basis points of cost burden related to Operation Epic Fury.
• Initiated full-year 2027 revenue guidance range of $1.70 billion to $1.75 billion and full-year 2027 gross margin guidance range of 51% to 53%.
• Anticipates continued elevated operating costs associated with the conflict in the Middle East impacting the fourth quarter of 2026.
• Expects to incur approximately $19.8 million in conflict-related costs in 2026, of which approximately $8.7 million is contractually billable to customers.
• Management expects continued strength in vessel demand over the next year driven by drilling support, subsea, EPCI support, and production support activities.
• Management believes the coming years will provide durable factors to drive earnings and cash flow growth.

Business Segments and Product Lines:

• Closed the all-cash acquisition of Wilson Sons Ultratug Offshore ("WSUT") for $500 million, materially expanding presence in Brazil.
• Anticipates substantially integrating the WSUT business into the Tidewater platform by the start of 2027.
• Year-to-date acquisition, restructuring, and integration-related expenses for the WSUT acquisition totaled approximately $14.4 million.
• Realized average day rate for the third quarter of 2026 was $23,775, an increase of $837 per day (3.7%) compared to the second quarter of 2026.
• Weighted average leading edge day rate for the third quarter of 2026 was $27,373, an increase of $3,033 per day (12.5%) compared to the second quarter of 2026.
• Sequential day rate improvements were broad-based across nearly all vessel classes.
• Americas fleet revenue for the nine months ended September 30, 2026, was $184.5 million; Asia Pacific was $139.1 million; Middle East was $140.5 million; Europe/Mediterranean was $320.6 million; and West Africa was $236.1 million.
• Worldwide fleet active vessels totaled 207 as of September 30, 2026, compared to 206 active vessels as of September 30, 2025.

Market and Competitive Landscape:

• The offshore market is characterized by a tight supply backdrop, contributing to early benefits of strengthening market conditions observed in recent leading edge day rates.
• Broad-based confidence in the offshore cycle continues to improve.
• The company owns and operates the largest fleet of offshore support vessels in the industry.
• Opportunities are emerging across drilling support, subsea, EPCI support, and production support activities.

Risks and Challenges:

• Conflict in the Middle East continues to persist, causing elevated operating costs and impacting the fourth quarter of 2026.
• Forward-looking statements involve risks including fluctuations in worldwide energy demand, oil and gas prices, fleet additions by competitors, and industry overcapacity.
• Risks include limited capital resources to replenish the asset base, uncertainty in global financial markets, and changes in customer capital spending decisions.
• Other risks include potential liability for environmental regulations, litigation, cyber security breaches, and geopolitical instability.

Management Commentary and Tone:

• Quintin Kneen, President and CEO, stated that third quarter revenue and gross margin "nicely exceeded our expectations driven by continued strength in day rates and utilization."
• Management noted that the pace of new term contract day rate acceleration continued in the third quarter.
• Management expressed encouragement regarding progress for continued strength in 2027 and believes the coming years should allow for continued earnings and cash flow growth.
• Integration efforts for the WSUT acquisition are moving along well with good progress made to date.

Other Key Points:

• Repurchased approximately $25 million of shares since the last earnings release, with an outstanding share repurchase authorization of $475 million.
• As of September 30, 2026, there were 49,664,360 common shares outstanding, plus 21,400 New Creditor Warrants and 48,865 GulfMark Creditor Warrants.
• Acquisition, restructuring, and integration related costs for the nine months ended September 30, 2026, totaled $14.9 million.
• The company will hold a conference call on November 10, 2026, at 8:00 a.m. Central Time to discuss results.
• Cash paid for interest, net of amounts capitalized, for the nine months ended September 30, 2026, was $62.9 million.
• Cash paid for income taxes for the nine months ended September 30, 2026, was $53.1 million.