Tidewater Inc

Tidewater reported second-quarter 2026 revenue of $342.3 million, a 4.9% sequential increase that exceeded expectations, driven by higher day rates and stronger utilization. The weighted average leading edge day rate rose 7.5% sequentially to $24,341 per day, reflecting tight supply and demand dynamics in global offshore markets. Gross margin was 46.9%, nearly three percentage points above prior expectations but down from 48.8% in the first quarter, as $6.8 million in conflict-related costs from Operation Epic Fury weighed on results. Free cash flow nearly doubled from the first quarter to $64.4 million, helped by the deferral of seven vessel dry docks. The company now expects the Wilsons acquisition to close around September 1, 2026, a two-month delay, and revised full-year revenue guidance to $1.42 billion to $1.47 billion with a gross margin range of 49% to 50%.

Black Bear Value Fund highlighted Tidewater Inc. in its second-quarter 2026 investor letter, noting the stock declined approximately 20% during the quarter but remains up roughly 32% year-to-date. The fund described Tidewater as the world's largest owner and operator of offshore support vessels, providing essential marine services to the offshore energy industry. While acknowledging near-term uncertainty, the fund expressed a constructive view on long-term fundamentals, expecting offshore capital spending to recover over the next one to two years as producers commit capital to replacing depleted reserves. Tidewater shares closed at $70.69 on July 9, 2026, with a market capitalization of $3.51 billion.

Third Avenue Value Fund disclosed in its first-quarter 2026 investor letter that Valaris Limited became the subject of a takeover offer from larger industry peer Transocean. The fund noted that the premium price offered to Valaris shareholders reflects a building cyclical recovery in demand for offshore energy services, Valaris' hard-to-replicate fleet of high-quality floating drilling rigs, and its well-capitalized balance sheet, which would allow indebted Transocean to reduce its own financial leverage through an all-stock merger. Valaris was among the largest contributors to fund performance during the quarter, with most of the gains occurring before the onset of military action in Iran on February 28. The fund's other offshore energy services holdings, Tidewater and Subsea 7, also performed strongly, with Subsea 7 undergoing an industry-consolidating acquisition announced in July 2025.

Third Avenue Value Fund highlighted Tidewater Inc. in its first-quarter 2026 investor letter, noting that the offshore support vessel provider agreed to purchase Wilson Sons Ultratug, an owner of 22 mostly Brazilian-built platform supply vessels operating in Brazil. The all-cash transaction will give Tidewater a much larger presence in Brazil, making it one of the largest operators in one of the world's most attractive deepwater markets. The fund stated that this marks the third significant consolidating acquisition by Tidewater during its ownership, each enabled by financial flexibility unrivaled within the platform supply vessel industry. Tidewater shares closed at $64.67 on June 18, 2026, with a market capitalization of $3.22 billion.

StockStory identifies Charles Schwab and Tidewater as two value stocks to consider while recommending investors avoid Murphy Oil. Charles Schwab, trading at $91.60 per share with a forward P/E of 14.2x, is backed for its 15.9% annual revenue growth over two years and 33.9% annual EPS growth driven by share repurchases. Tidewater, at $66.92 per share and a 14.1x forward P/E, is favored for 29.9% annual revenue growth over five years and a 31.3 percentage point EBITDA margin improvement. Murphy Oil, priced at $34.34 with a 7.7x forward P/E, faces caution due to an 11.7 percentage point decline in its EBITDA margin over five years.