Greg Clements

Greg Clements asked for insights into Tidewater's M&A preferences, specifically regarding desired asset types (large PSVs, medium/large AHTS) and target regions (South America). He also inquired why larger vessels command stronger pricing relative to medium/small vessels and about the 2026 utilization guidance, including any cushion for unexpected downtime and the expected revenue cadence.

Answer

Quintin Kneen, President and CEO, indicated a focus on the Americas, particularly South America, with a preference for large PSVs and medium/large anchor handlers, acknowledging interest in the subsea market but noting the need for scale. Piers Middleton, COO, attributed stronger pricing for larger PSVs to customer preference for size, relative scarcity, and the flexibility to reposition them globally. Mr. Kneen stated that the 2026 revenue cadence is expected to be fairly even quarterly, with potential for H2 uplift if drilling strengthens, and noted improved uptime performance over the past three quarters, indicating greater confidence in vessel reliability.

Greg Clements asked for further color on potential M&A opportunities, beyond the non-public information, specifically regarding Tidewater's preference for asset types (e.g., large PSVs, medium/large AHTS) and geographical focus. He also inquired about the factors contributing to stronger pricing for larger vessels compared to medium/small vessels in key basins like West Africa. Lastly, Mr. Clements asked about the 2026 guidance, specifically if it includes a cushion for unplanned downtime and how revenue is expected to be distributed between the first and second halves of the year.

Answer

President and CEO Quintin Kneen indicated a preference for M&A in the Americas, particularly South America, focusing on large PSVs and medium/large anchor handlers, while noting subsea market entry would require significant scale. COO Piers Middleton attributed stronger large vessel pricing to customer preference for size, scarcity, and the ability to reposition these vessels globally. Mr. Kneen clarified that the 2026 revenue guidance anticipates a "fairly even" quarterly cadence, with potential for H2 uplift if drilling activity strengthens beyond current expectations. He also expressed increased confidence in vessel operational uptime due to past investments.