Tidewater (TDW) Q1 FY26 earnings call: guidance and Q&A

Is the tightness in the anchor handler market, particularly in the North Sea, a regional development or a global trend?

Piers Middleton explained that the North Sea spot market, driven by consolidation and increased rig towing/subsea construction, is leading the tightness. He expects this regional trend to have a 'trickle-down effect' globally over the next few quarters, indicating it's a positive sign for larger anchor handlers.

“Generally, what we see is this -- the spot market in the North Sea tends to drive a lot of the sort of noise elsewhere as well. So we expect that to sort of have a trickle-down effect through the rest of the globe over the next few quarters.”

asked by Ben Summers · answered by Piers Middleton

Which specific basins will be most impacted by the long-term trend of increased focus on energy security?

Quintin Kneen and Piers Middleton identified smaller markets in Asia, specifically Indonesia and Malaysia, as well as the East Coast of Africa and the Western Mediterranean, as regions expected to see significant strength and increased investment due to the energy security focus.

“Principally the smaller markets in Asia, I believe. I think you're going to see a real strength growing over the next few years in Indonesia and Malaysia.”

asked by Ben Summers · answered by Quintin Kneen

Given the constructive outlook for offshore activity, is the company considering bringing forward any drydocks, or will the schedule be more favorable in 2027?

Piers Middleton stated that the company plans drydocks over a 5-year period to optimize supply chain and procurement, so they don't typically bring them forward. He noted that the drydock schedule is aligned with project rollouts, and they have good visibility for the next few years.

“We tend to try and plan out over a 5-year period, so it would help our supply chain and our procurement piece as well. So we have a pretty well set operations on that side and how we look at things.”

asked by Joshua Jayne · answered by Piers Middleton

Does the Helix-Hornbeck merger influence Tidewater's view on growing its business through different service offerings, or will M&A continue to focus on fleet acquisitions like Wilson's?

Quintin Kneen affirmed that the merger doesn't change their expansive view on other service lines, but they prefer M&A in their existing market or with well-performing franchises in specific verticals. He welcomed more consolidation in the industry.

“So it doesn't change our view because we always have that expansive view of other service lines. It's certainly a lot easier for us to do things that are in our existing market.”

asked by Joshua Jayne · answered by Quintin Kneen

How do multi-year extensions with Petrobras impact confidence in the Wilson acquisition and the Brazil market, especially regarding previously discussed asset extensions?

Quintin Kneen and Piers Middleton expressed continued positivity about the Brazil market. They acknowledged some short-term tendering delays due to elections but emphasized the strong long-term story driven by Petrobras, IOC activity, and new FPSO contracts, reinforcing confidence in the Wilson acquisition.

“But I think overall positive. Petrobras is positive. There's also the IOCs are coming out as well in that region. So even moving up the margin as well. So I think overall, we don't see any concerns in terms of future tendering.”

asked by Joshua Jayne · answered by Quintin Kneen

Given the improved oil macro and outlook, are customers mobilizing incremental activity, and how does this translate into the timing of day rate increases?

Quintin Kneen stated that while building activity from rig companies and EPCI contractors provides confidence, Tidewater is later in the chartering process. He expects day rate increases to be demonstrable later in 2026 and into 2027.

“But we're a little bit later in the chartering process for those customers. So I think we're not going to be able to demonstrate until later into '26 and into '27.”

asked by James Rollyson · answered by Quintin Kneen

Is the company leaning more towards stock buybacks as M&A opportunities potentially decrease, or will optionality be maintained?

Quintin Kneen clarified that he doesn't believe M&A opportunities are winding down. He stated that while share repurchases are a valid way to return capital, he would lean towards acquisitions if they offer more value by securing the right boats at the right price.

“I actually don't believe that the M&A opportunities are winding down. So yes, obviously, we have no issue returning money to the shareholders and share repurchases is our way to do it. But to the extent that we see more value in acquisitions by getting the right boats at the right price, then I would lean towards that.”

asked by Donald Crist · answered by Quintin Kneen