Q4 2025 Tidewater Inc Earnings Call

March 3, 2026

Inc. Q4 in full year 2025 earnings conference call all lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question and answer session. You are limited to 1 question and 1. Follow-up question. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you'd like to withdraw your question, press star 1 again, thank you. I'd now like to turn the call over to West, go to senior vice president of strategy. Corporate development investor relations. Please go ahead.

Thank you, Jordan. Good morning everyone. And welcome to Tidewaters

Fourth quarter.

Speaker #3: Thank you for standing by. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Tidewater Inc Q4 and full year 2025 earnings conference call.

And full year 2025 earnings conference call. I'm joined on the call this morning by our president and CEO Clinton named our Chief Financial Officer, Sam Rubio, and our chief operating officer appears Middleton.

Speaker #3: All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will

During today's call, we'll make certain statements that are forward-looking and referring to our plans and expectations.

Speaker #3: be a question-and-answer

Speaker #3: session. You are limited to one question and one

Speaker #3: Follow-up question, if you would like to.

Speaker #3: ask a question during this time,

There are risks uncertainties and other factors that may cause the company's actual performance to be materially different, from that stated or implied by any comments that we're making during today's conference call.

Speaker #3: simply press star followed by the number one on

Speaker #3: your telephone keypad. If you would

Speaker #3: like to withdraw your question, press star

Please refer to our most recent forms in k for additional details on these factors.

Speaker #3: one again. Thank you. I'd now

Speaker #3: like to turn the call over to Wes

Speaker #3: Gaucher. Senior Vice President of

These documents are available on our website at tdw.com or through the SEC at sec.gov.

Speaker #3: Strategy, Corporate Development, and

Speaker #3: Investor Relations. Please go

Speaker #3: ahead.

Information presented on this call speaks only as of today March 3rd 2026.

Speaker #4: Thank you,

Speaker #4: Jordan. Good morning, everyone, and welcome to

Speaker #4: Tidewater's fourth

Therefore your advised that any time, since the information May no longer be accurate at the time of any replay.

Speaker #4: 2025 earnings conference call. I'm joined on the call this

Speaker #4: morning by our President and CEO, Quintin

Speaker #4: Kneen, our Chief Financial Officer,

Speaker #4: Sam Rubio, and our Chief Operating

Speaker #4: Officer, Piers Middleton. During

Speaker #4: today's call, we'll make certain statements that are

Also, during the call, we'll present both gaap and non-gaap financial measures. A Reconciliation of the app to non-gaap financial measures can be found in our earnings release located on our website at tdw.com. And now with that, I'll turn the call over to Quinny.

Speaker #4: forward-looking and referring to our plans and expectations. There are

Speaker #4: risks, uncertainties, and other factors that may 2025 earnings conference call.

Speaker #4: cause the company's actual performance to

Speaker #4: be materially different from that stated or

Thank you, West. Good morning, everyone. And welcome to the Tidewater fourth quarter and full year 2025 earnings conference call.

Speaker #4: implied by any comments that we're making

Speaker #4: during today's conference

Speaker #4: Please refer to our most recent form.

Speaker #4: 10-K for additional details on these

Speaker #4: factors. These documents are available forward-looking and referring to our plans and

Speaker #4: on our website at expectations.

Speaker #4: TDW.com or through the

Speaker #4: SEC@SEC.gov. Information presented on this call speaks only as of

Speaker #4: today, March 3rd,

I'll start the call this morning, discussing time orders, performance, during 2025, providing some highlights of the fourth quarter update. You on our current views on capital, allocation, and then discuss our outlook for the market and vessel supply and demand including our initial thoughts on any impact from operation epic Theory.

Speaker #4: Therefore, you're advised that any time-sensitive information may no longer be accurate

Speaker #4: at the time of any replay.

West will then provide some additional detail on our financial Outlook and give you our 2026 guidance.

Speaker #4: Also, during the call, we'll present both gap

Speaker #4: and non-gap financial

Speaker #4: measures. A reconciliation of GAAP to

Pierce will give you an overview of the global markets and Global operations, and then Sam will wrap it up with our Consolidated Financial results.

Speaker #4: non-gap financial measures can be found in our earnings release located on our website, at TDW.com. And

Speaker #4: now, with that, I'll turn the call over to

Speaker #5: Thank you, Wes. Good morning, everyone, and welcome to the

Entering 2025, there was a good deal of uncertainty as to how the market would unfold and what the pace of offshore activity would look like.

Speaker #5: Tidewater fourth quarter and full year

Speaker #5: 2025 earnings conference

Speaker #5: call. I'll start the

Speaker #5: call this morning discussing Tidewater's performance

Speaker #5: during 2025, now, with that, I'll turn the call over to providing some highlights of the fourth

Speaker #5: quarter, update you on our current Quintin.

Speaker #5: views on capital allocation, and then discuss our outlook for

Speaker #5: any impact from

Speaker #5: period. Wes will then provide some additional detail on our financial outlook and give you our 2026 guidance. Piers will give you an overview.

Our view was not dissimilar, but we did believe that the broader set of demand drivers for our vessels would help deliver a year consistent to 2024, which proved to be the case in the face of last year's software offshore drilling demand, and general macro uncertainty, I'm pleased to say that tight water nonetheless delivered its best year in recent memory by nearly. Every metric we generated year-over-year, Revenue growth gross, margin expansion and average day rate growth, we generated ipata of nearly million dollars and generated nearly 430 million dollars of free cash flow. Well, outpacing, the free cash flow generated in 2024, which itself was the recent high point for the offshore industry activity.

Quintin Kneen: Results. Entering 2025, there was a good deal of uncertainty as to how the market would unfold and what the pace of offshore activity would look like. Our view was not dissimilar. We did believe that the broader set of demand drivers for our vessels would help deliver a year consistent to 2024, which proved to be the case. In the face of last year's softer offshore drilling demand and general macro uncertainty, I'm pleased to say that Tidewater nonetheless delivered its best year in recent memory by nearly every metric. We generated year-over-year revenue growth, gross margin expansion, and average day rate growth. We generated EBITDA of nearly $600 million and generated nearly $430 million of free cash flow, well outpacing the free cash flow generated in 2024, which itself was the recent high point for the offshore industry activity.

This performance against the broader industry backdrop, not only speaks to the resiliency of tight Waters business model but also to the resiliency of the company, we've endeavored to build over the last 8 years with a Relentless focus on scalable infrastructure and operational excellence.

Fourth quarter, revenue and gross margin came in ahead of our expectations Revenue came in at 3 3 6. 8 8,

Gross margin came in at, nearly 49% for the quarter and an improvement quarter over quarter and about 250 basis points better than we expected.

Fleet utilization continued to benefit from better than anticipated uptime and lower than expected down for repair time and Dry Dock days.

Additionally, during the fourth quarter, we completed a strategic internal restructuring of our vessel ownership to consolidate a significant portion of the fleet under a single wholly owned us entity.

Quintin Kneen: This performance against the broader industry backdrop not only speaks to the resiliency of Tidewater's business model, but also to the resiliency of the company we've endeavored to build over the last eight years, with a relentless focus on scalable infrastructure and operational excellence. Q4 revenue and gross margin came in ahead of our expectations. Revenue came in at $336.8 million, due primarily to higher than anticipated average day rate and slightly better than anticipated utilization. Gross margin came in at nearly 49% for the quarter and an improvement quarter-over-quarter and about 250 basis points better than we expected. Fleet utilization continued to benefit from better than anticipated uptime and lower than expected down for repair time and dry dock days.

During the fourth quarter, we generated 151 million of free cash flow bringing the full year. 2025 total free cash flow to nearly 430 million dollars.

Detail on later combined, with our lowest quarterly Dry, Dock spend of the year.

We are very pleased with the pre-cast flow, generation of the business, ending the year with nearly 580 million dollars of cash on the balance sheet.

I made a comment last quarter that we would find it unacceptable to build this kind of cash on the balance sheet and would look for ways to put the cash to more productive economically a creative use

Subsequent to the end of the fourth quarter and has announced last week, we entered into an agreement to acquire. Wilson Sons offshore Ultra tug for $500 million.

Quintin Kneen: Additionally, during Q4, we completed a strategic internal restructuring of our vessel ownership to consolidate a significant portion of the fleet under a single wholly owned US entity. During Q4, we generated $151 million of free cash flow, bringing the full year 2025 total free cash flow to nearly $430 million. Q4 free cash flow came in materially higher than the first three quarters of the year, which was the result of a meaningful working capital benefit, which Sam will provide more detail on later, combined with our lowest quarterly dry dock spend of the year. We are very pleased with the free cash flow generation of the business, ending the year with nearly $580 million of cash on the balance sheet.

In addition to our expectation of maintaining the existing debt at Wilson's, we plan to fund the remaining purchase price with cash on hand.

We are very excited about the addition of Wilson's Pearl wide variety of strategic and financial reasons, many of which we discussed last week, but this is exactly the type of capital allocation opportunity. We target this acquisition has many areas as it relates to the Strategic and operational, capabilities. It offers, but it also provides a compelling use of capital to realize an economic return. Well, in excess of our cost of capital importantly, we're able to maintain a healthy balance sheet, proforma for the transaction. Given the structure of our unsecured debt revolving credit facility capacity and the continued cash flow generation of the business.

Quintin Kneen: I made a comment last quarter that we would find it unacceptable to build this kind of cash on the balance sheet and would look for ways to put the cash to more productive, economically accretive use. Subsequent to the end of the Q4, and as announced last week, we entered into an agreement to acquire Wilson Sons' Ultratug Offshore for $500 million. In addition to our expectation of maintaining the existing debt at Wilson Sons', we plan to fund the remaining purchase price with cash on hand. We are very excited about the addition of Wilson Sons' for a wide variety of strategic and financial reasons, many of which we discussed last week. This is exactly the type of capital allocation opportunity we target.

it's worth noting that during the fourth quarter, we did not repurchase any shares under our repurchase program as we were working on the Wilsons acquisition, we retain our million dollar share repurchase authorization and capacity which represents 13% of our shares outstanding as of yesterday's close,

We've discussed our Capital allocation philosophy over the last year or 2. We've said, consistently that give them the strength of our balance sheet. We felt comfortable using a substantial amount of cash for share repurchases and or m&a transactions. As long as the near-term cash flow. Visibility provides that the ability to quickly de-lever back down to below 1 times, net debt to EBA

Quintin Kneen: This acquisition has many merits as it relates to the strategic and operational capabilities it offers. It also provides a compelling use of capital to realize an economic return well in excess of our cost of capital. Importantly, we're able to maintain a healthy balance sheet pro forma for the transaction, given the structure of our unsecured debt, revolving credit facility capacity, and the continued cash flow generation of the business. It's worth noting that during Q4, we did not repurchase any shares under our repurchase program as we were working on the Wilson's acquisition. We retain our $500 million share repurchase authorization and capacity, which represents 13% of our shares outstanding as of yesterday's close. We've discussed our capital allocation philosophy over the last year or two.

as discussed last week, we expect to be below. 1 time and sent debt to Abba pro forma for the acquisition. Even as a closing assuming in June 30, Clos date.

Although still developing operation, epic Fury adds an aspect of uncertainty to our operations in the Middle East, but thus far no real changes.

Our largest geographic area of operation within this segment of Saudi Arabia which makes up 80% of this, segment's revenue for 2025,

We are very excited about the addition of Wilson's for a wide variety of strategic and financial reasons, many of which we discussed last week, but this is exactly the type of capital allocation opportunity. We target this acquisition has many areas as it relates to the Strategic and operational, capabilities, it offers but is also provides a compelling use of capital to realize an economic return. Well, in excess of our cost of capital importantly, we're able to maintain a healthy balance sheet, proforma for the transaction. Given the structure of our unsecured debt revolving credit facility capacity and the continued cash flow generation of the business.

And everything there is business, as usual, our vessels in the UAE and Qatar are safely in Port, but remain on higher and no customers have ordered evacuations.

We do expect an increase in Insurance costs while hostilities are ongoing. But that incremental cost is immaterial to our business. Diesel costs are also Rising, but fuel is a pass through to our customers.

Quintin Kneen: We've said consistently that given the strength of our balance sheet, we felt comfortable using a substantial amount of cash for share repurchases and/or M&A transactions as long as the near-term cash flow visibility provides us the ability to quickly delever back down to below 1x net debt to EBITDA. As discussed last week, we expect to be below 1x net debt to EBITDA pro forma for the acquisition, even as of closing, assuming a 30 June closing date. Although still developing, Operation Epic Fury adds an aspect of uncertainty to our operations in the Middle East, thus far, no real changes. Our largest geographic area of operation within this segment is Saudi Arabia, which makes up 80% of this segment's revenue for 2025. Everything there is business as usual.

Similar to the increase in Insurance costs. The impact is immaterial to our overall business.

It's still early in developing, but thus far, the developments do not change our outlook for 2026, which remains optimistic particularly as it relates to the pace of offshore drilling activity.

We've discussed our Capital allocation of philosophy over the last year or 2. We've said, consistently that given the strength of our balance sheet, we felt comfortable using the substantial amount of cash for share repurchases Andor m&a transactions. As long as the near-term cash flow, visibility provides the ability to quickly, de-lever, back down to below 1 times, net debt to have a d

as discussed last week, we expect to be below a 1 times, the net debt, to Abbott pro-forma for the acquisition, even as a closing,

Assuming of June 30th.

Observable offshore, drilling leading indicators such as tenders and contracts are materially higher over the past few months compared to earlier in 2025, which suggests that operators are progressing in Earnest to commence additional offshore projects in the future. In our conversations, with our customers, the commentary is similar to what we hear publicly offshore International projects are of high interest at pre-tenure and tender conversations for our vessels continue.

Quintin Kneen: Our vessels in the UAE and Qatar are safely in port but remain on hire and no customers have ordered evacuations. We do expect an increase in insurance costs while hostilities are ongoing, but that incremental cost is immaterial to our business. Diesel costs are also rising, but fuel is a pass-through to our customers. Similar to the increase in insurance costs, the impact is immaterial to our overall business. It's still early in developing, but thus far the developments do not change our outlook for 2026, which remains optimistic, particularly as it relates to the pace of offshore drilling activity. Observable offshore drilling leading indicators such as tenders and contracts are materially higher over the past few months compared to earlier in 2025, which suggests that operators are progressing in earnest to commence additional offshore projects in the future.

And everything there is business, as usual.

Our vessels in the UAE and Qatar are safely in Port, but remain on higher and no customers have ordered evacuations.

1 other indicator, which is a bit more. Structural in nature is from recent oil and gas, industry reports is that the last decade of underinvestment has led to a declining resource base for many ENT companies. There have been indications that oil companies are acknowledging. This challenge Beyond looking just to fill the Gap through their own m&a.

We do expect an increase in insurance costs while hostilities are ongoing. But that incremental cost is immaterial to our business. Diesel costs are also rising, but fuel is a pass-through to our customers.

Through the roll back of capital return programs to focus on exploring activities and otherwise on activities focused on growing a given company's resource base.

Similar to the increase in insurance costs, the impact is immaterial to our overall business.

It's still early in developing, but thus far, the developments do not change our outlook for 2026, which remains optimistic particularly as it relates to the pace of offshore drilling activity.

Combining this resource need with a longer term hydrocarbon demand curve. That looks to materially higher than estimated even a year ago. Provides a significant incentive for our customers to explore and develop existing assets and take advantage of healthy long-term hydrocarbon demand environment.

Quintin Kneen: In our conversations with our customers, the commentary is similar to what we hear publicly. Offshore international projects are of high interest and pre-tender and tender conversations for our vessels continue. One other indicator, which is a bit more structural in nature, is from recent oil and gas industry reports, is that the last decade of under-investment has led to a declining resource base for many E&P companies. There have been indications that oil companies are acknowledging this challenge beyond looking just to fill the gap through their own M&A, through the rollback of capital return programs to focus on exploring activities and otherwise on activities focused on growing a given company's resource base.

We believe that the offshore resource base provides a compelling opportunity for oil companies to find new resource bases, I can excuse me and believe that. These fundamental factors will support an increase in drilling activity. Not only as we progress through the year, but for at least the next few years,

Observable offshore drilling leading indicators, such as tenders and contracts, are materially higher over the past few months compared to earlier in 2025, which suggests that operators are progressing in earnest to commence additional offshore projects in the future. In our conversations with our customers, the commentary is similar to what we hear publicly: offshore international projects are of high interest, and pre-tenure and tender conversations for our vessels continue.

Offshore construction and epci work are all likely to benefit in the scenario outlines to the extent. That's drilling activity does increase in a structural way. This will likely occur in Frontier regions that require new subsidy infrastructure and ultimately fpso installations to efficiently move product to Market. This element of our business continues to service well today, and would also provide for incremental vessel demand.

Through the rollback of capital return programs to focus on exploration activities, and otherwise on activities focused on growing a given company's resource base.

Quintin Kneen: Combining this resource need with a longer-term hydrocarbon demand curve that looks materially higher than estimated even a year ago, provides a significant incentive for our customers to explore and develop existing assets and take advantage of a healthy long-term hydrocarbon demand environment. We believe that the offshore resource base provides a compelling opportunity for oil companies to find new resource bases, excuse me, and believe that these fundamental factors will support an increase in drilling activity, not only as we progress through the year, but for at least the next few years. I've only spoken about drilling, but the other areas of activity where we benefit, production support, offshore construction, and EPCI work, are all likely to benefit in the scenario outlined.

It's useful to contrast this intermediate demand picture with the current state of vessel Supply which as we often say, is the most important determinant of a long-term Financial Health of our business. The demand curve for vessels is highly inelastic. When vessel Supply slightly exceeds demand our pricing power is fairly restrained. However when demand slightly exceeds vessel Supply pricing, leverage accelerates quite quickly.

We believe that the offshore resource base provides a compelling opportunity for oil companies to find new resource bases, excuse me, and believe that these fundamental factors will support an increase in drilling activity. Not only as we progress through the year, but for at least the next few years,

Quintin Kneen: To the extent that drilling activity does increase in a structural way, this will likely occur in frontier regions that require new subsea infrastructure and ultimately FPSO installations to efficiently move product to market. This element of our business continues to serve us well today and would also provide for incremental vessel demand. It's useful to contrast this intermediate demand picture with the current state of vessel supply, which as we often say, is the most important determinant of the long-term financial health of our business. The demand curve for vessels is highly inelastic. When vessel supply slightly exceeds demand, our pricing power is fairly restrained. However, when demand slightly exceeds vessel supply, pricing leverage accelerates quite quickly. The global fleet of vessels has been essentially unchanged, if not declining slightly over the past few years.

The global Fleet of vessels has been essentially unchanged if not declining slightly over the past few years in 2024 there was a handful of new build vessels that were ordered representing roughly 3% of the global Fleet. We've not seen any new bills ordered since then, given the lead time on new build orders somewhere between 2, to 3 years and some of the structural reasons we that are limiting new, build ordering that we've discussed in the past, the vessel supply and demand picture, I've Illustrated to fix what we believed to be an exciting outlook for the offshore vessel industry.

I've only spoken about drilling but the other areas of activity where we benefit production support offshore construction and epci work are all likely to benefit in the scenario outlined to the extent that drilling activity does increase in a structural way. This will likely occur in Frontier regions that require new subsidy infrastructure and ultimately fpso installations to efficiently move product to Market. This element of our business continues to service well today, and would also provide for incremental vessel demand.

In summary, we are pleased with how the business performed through 2025, with a particularly strong, finish to close out the year. We are excited to welcome the Wilsons organization into the Tidewater family. And we'll work diligently to close the transaction and to integrate the business.

We will look to continue to efficiently allocate Capital to the highest returning opportunities. We have against a compelling vessel supply and demand and

That we believe is in the early stages of developing.

And with that, let me turn the call back over to West for additional commentary.

Thank you, Glenn.

It's useful to contrast this intermediate demand picture with the current state of vessel Supply which as we often say, is the most important determinant of the long-term Financial Health of our business. The demand curve for vessels is highly inelastic. When vessel Supply slightly exceeds demand our pricing power is fairly restrained. However when demand slightly exceeds vessel Supply pricing, leverage accelerates quite quickly.

Quintin Kneen: In 2024, there was a handful of new build vessels that were ordered, representing roughly 3% of the global fleet. We've not seen any new builds ordered since then, given the lead time on new build orders somewhere between two to three years, and some of the structural reasons that we're limiting new build ordering that we've discussed in the past. The vessel supply and demand picture I've illustrated depicts what we believe to be an exciting outlook for the offshore vessel industry. In summary, we are pleased with how the business performed through 2025 with a particularly strong finish to close out the year. We are excited to welcome the Wilson's organization into the Tidewater family, and we'll work diligently to close the transaction and to integrate the business.

Subsequent to the end of the fourth quarter. We announced the acquisition acquisition of Wilson's Sons officer for 500 million dollars in an all gas transaction. We expect to finance this transaction using cash on hand in the Assumption of approximately 261 million of debt provided by bndes and banca de Brazil.

He assumed that carries a weighted average cost of 3.6%.

Further the assumed debt has a long-term amortization profile. That stretches out to 2035 with no particular year of amortization. Adding any significant maturities to our current debt maturity profile.

Quintin Kneen: In summary, we are pleased with how the business performed through 2025 with a particularly strong finish to close out the year. We are excited to welcome the Wilson's organization into the Tidewater family, and we'll work diligently to close the transaction and to integrate the business.We will look to continue to efficiently allocate capital to the highest returning opportunities we have against a compelling vessel supply and demand environment that we believe is in the early stages of developing. With that, let me turn the call back over to Wes for additional commentary.

The global Fleet of vessels has been essentially unchanged if not declining slightly over the past few years in 2024 there was a handful of new build vessels that were ordered representing roughly 3% of the global Fleet. We've not seen any new bills ordered since then, given the lead time on new build orders somewhere between 2 to 3 years and some of the structural reasons we that are limiting new build ordering that we've discussed in the past, the vessel supply and demand picture. I've Illustrated it depicts what we believe to be an exciting outlook for the offshore vessel industry.

Assuming a June 30th 2026, closing date, we expect to have a net, leverage ratio below, 1 time.

As Quint mentioned, we do not repurchase any shares during the third quarter due to the Wilsons acquisition.

Quintin Kneen: We will look to continue to efficiently allocate capital to the highest returning opportunities we have against a compelling vessel supply and demand environment that we believe is in the early stages of developing. With that, let me turn the call back over to Wes for additional commentary.

Excuse me, during the fourth quarter, due to the Wilsons acquisition, at the end of the fourth quarter, we retained our 500 million. Share repurchase authorization.

We will look to continue to efficiently allocate capital to the highest returning opportunities. We have, against a compelling vessel supply and demand environ.

That we believe is in the early stages of developing.

As a reminder, under our outstanding unsecured bonds, we are Unlimited in our ability to return Capital shareholders. Provided our net debt debt has less than 1.25 times proforma for any share, repurchase.

And with that, let me turn the call back over to West for additional commentary.

West Gotcher: Thank you, Quentin. Subsequent to the end of Q4, we announced the acquisition of Wilson Sons Ultratug Offshore for $500 million in an all-cash transaction. We expect to finance this transaction using cash on-hand and the assumption of approximately $261 million of debt provided by BNDES and Banco do Brasil. The assumed debt carries a weighted average cost of 3.6%. Further, the assumed debt has a long-term amortization profile that stretches out to 2035, with no particular year of amortization adding any significant maturities to our current debt maturity profile. Assuming a 30 June 2026 closing date, we expect to have a net leverage ratio below 1x. As Quentin mentioned, we did not repurchase any shares during Q3 due to the Wilson's acquisition. Excuse me, during Q4 due to the Wilson's acquisition.

Thank you, Clinton.

Subsequent to the end of the fourth quarter, we announced the acquisition of Wilson Sons' offer, Ultra Tug, for $___ million in an all-cash transaction.

Under our revolving credit facility. We are also Unlimited in our ability to repurchase shares provided that net debt to you, but does not exceed 1 time. However, to the extent, we exceed 1 times net leverage, we still retain the flexibility to continue to return. To shareholders, provide the free cash flow generation is an excess of cumulative, returns to shareholders.

We expect to finance this transaction using cash on hand and the assumption of approximately $261 million of debt provided by BNDES and Banca de Brazil.

From a financial policy perspective, our approach to leverage remains consistent.

He assumed that carries a weighted average cost of 3.6%.

Our general test is that so long as we can return to net debt zero in about 6 quarters,

we are comfortable to proceed with a given outlay of capital.

And maturities to our current debt maturity profile.

Assuming in June, 3026, closing date. We expect to have a net leverage ratio below 1 time.

As Clinton mentioned, we do not repurchase any shares during the third quarter due to the Wilsons acquisition.

West Gotcher: At the end of the Q4, we retained our $500 million share repurchase authorization. As a reminder, under our outstanding unsecured bonds, we are unlimited in our ability to return capital shareholders, provided our net debt to EBITDA is less than 1.25x, pro forma for any share repurchase. Under our revolving credit facility, we are also unlimited in our ability to repurchase shares, provided that net debt to EBITDA does not exceed 1x. However, to the extent we exceed 1x net leverage, we still retain the flexibility to continue to return to shareholders, provided that free cash flow generation is in excess of cumulative returns to shareholders. From a financial policy perspective, our approach to leverage remains consistent.

Further our T Target, leverage at any given point in time. Is 1 time, although we will consider exceeding this target for m&a based on the relative merits of the transaction and the visibility and durability of the acquired cash flows, all with an eye, to returning to our Target, leverage level with an ability to return to net debt zero in about 6 quarters,

Excuse me, during the fourth quarter, due to the Wilsons acquisition, at the end of the fourth quarter, we retained our 500 million. Share repurchase authorization.

We will maintain a disciplined approach to deploying dead in such a way that we're able to achieve return. Enhancing uses of capital while maintaining the strength of our balance sheet.

As a reminder, under our outstanding unsecured bonds, we are Unlimited in our ability to return Capital shareholders, provided our net debt debt, but that has less than 1.25 times. Proforma for any share, repurchase.

We Remain the opportunistic on share repurchases, and we will look to execute share, repurchase transactions when suitable m&a targets are not available.

We retain the option of evaluating m&a and share repurchase concurrently but our financial policies and philosophies outlined dictate our relative appetite to pursue both concurrently

Turning to our Leading Edge day rates, I will reference the data, the data that was posted in our investment materials yesterday.

West Gotcher: Our general test is that so long as we can return to net debt zero in about six quarters, we are comfortable to proceed with a given outlay of capital. Our target leverage at any given point in time is 1x, although we will consider exceeding this target for M&A based on the relative merits of the transaction and the visibility and durability of the acquired cash flows, all with an eye to returning to our target leverage level and with an ability to return to net debt zero in about six quarters. We will maintain a disciplined approach to deploying debt in such a way that we're able to achieve return-enhancing uses of capital while maintaining the strength of our balance sheet. We remain opportunistic on share repurchases. We will look to execute share repurchase transactions when suitable M&A targets are not available.

Under our revolving credit facility, we are also unlimited in our ability to repurchase shares provided that net debt to EBITDA does not exceed 1x. However, to the extent that we exceed 1x net leverage, we still retain the flexibility to continue to return to shareholders, provided the free cash flow generation is in excess of cumulative returns to shareholders. From a financial policy perspective, our approach to leverage remains consistent.

Across the fleet, our weighted average Leading Edge day rate for was down slightly in the fourth quarter compared to the third quarter.

our general test is that so long as we can return to net debt zero in about 6 quarters,

6 months.

We are comfortable to proceed with the given outlay of capital.

So we were working to ensure that we maintain vessel availability for new contract opportunities. As the market is expected to tighten later this year.

Turning to our financial Outlook. We're updating our full year 2026 guidance to contemplate the Wilsons acquisition, assuming in June, 3020, 2026, closing date.

Further, our Target, leverage at any given point in time is 1 times. Although we will consider exceeding this target for m&a based on the relative merits of the transaction and the visibility and durability of the acquired cash flows, all with an eye, to returning to our Target, leverage level with an ability to return to net debt zero in about 6 quarters,

We are raising our full year. 2026 Revenue guidance, to 1.43 to 1.48 billion dollars and a full year, gross margin range of 49 to 51%.

We will maintain a disciplined approach to deploying debt in such a way that we're able to achieve return. Enhancing uses of capital while maintaining the strength of our balance sheet.

The updated guidance is reflective of the addition of the Wilsons Fleet and does not contemplate. Any changes to our guidance for the Legacy Tidewater business.

West Gotcher: We retain the option of evaluating M&A and share repurchase concurrently, but our financial policies and philosophies outlined dictate our relative appetite to pursue both concurrently. Turning to our leading-edge dayrates, I will reference the data that was posted in our investor materials yesterday. Across the fleet, our weighted average leading-edge dayrate was down slightly in Q4 compared to Q3. During the quarter, we entered into 21 term contracts with an average duration of 6 months as we were working to ensure that we maintain vessel availability for new contract opportunities as the market is expected to tighten later this year. Turning to our financial outlook, we're updating our full year 2026 guidance to contemplate the Wilson's acquisition, assuming a 30 June 2026 closing date.

We remain opportunistic on share repurchases. And we will look to execute share, repurchase transactions when suitable m&a targets are not available.

Our expectation remains that there is the potential for uplifting on the strength of drilling activity picking up towards the end of this year.

We retain the option of evaluating m&a and chair repurchase. Concurrently but our financial policies and philosophies outlined dictate our relative appetite to pursue both concurrently

Turning to our Leading Edge day rates, I will reference the data, the data that was posted in our investor materials yesterday.

Looking across 2026 firm, backlog and options, in January revenue for the Legacy. Tidewater Fleet represents approximately 1.1 billion, dollars of revenue for the full year, representing Approximately 80% of the midpoint of our Legacy Tidewater 2026 Revenue guidance.

Across the fleet, our weighted average Leading Edge day rate for was down slightly in the fourth quarter compared to the third quarter.

Approximately 65% of available days for 2026 are captured in firm, backlog, and options.

During the quarter, we entered into 21 term contracts with an average duration of 6 months.

A full year Revenue guidance assumes utilization of Approximately 80%.

Leaving us with about 11% of capacity to be charged if the market Titans.

Quicker than we are anticipating.

So we're working to ensure that we maintain vessel availability for new contract opportunities as the market is expected to tighten later this year.

Our largest class of psvs and anchor, handlers retain the most opportunity for incremental work.

West Gotcher: We are raising our full year 2026 revenue guidance to $1.43 to $1.48 billion and a full year gross margin range of 49% to 51%. The updated guidance is reflective of the addition of the Wilson fleet and does not contemplate any changes to our guidance for the legacy Tidewater business. Our expectation remains that there is the potential for uplift depending on the strength of drilling activity picking up towards the end of the year. Looking across 2026, firm backlog and options in January revenue for the legacy Tidewater fleet represents approximately $1.1 billion of revenue for the full year, representing approximately 80% of the midpoint of our legacy Tidewater 2026 revenue guidance. Approximately 65% of available days for 2026 are captured in firm backlog and options.

Followed by followed by our mid-sized anchor handlers and small and mid-size psvs.

Turning to our financial Outlook. We're updating our full year 2026 guidance to contemplate the Wilsons acquisition, assuming a June 30th 2026 closing date,

Contract covers higher earlier in the part of the year with opportunity available later in the year.

We are raising our full year, 2026 Revenue guidance to 1.43 to 1.48 billion dollars.

And a full year, gross margin range of 49 to 51%.

the bigger risks to our backlog revenue is unanticipated downtime due to unplanned maintenance and then

General time spent on dry docks.

With that, I'll turn the call over to peers for an overview of the commercial landscape.

The updated guidance is reflective of the addition of the Wilsons Fleet does not contemplate. Any changes to our guidance for the Legacy Tidewater business.

Thank you, Wes and good morning, everyone.

Our expectation remains that there is potential for uplift, depending on the strength of drilling activity picking up towards the end of this year.

Looking across 2026, sperm, backlog, and options in January revenue for the Legacy. Tidewater Fleet represents approximately 1.1 billion, dollars of revenue for the full year, representing Approximately 80% of the midpoint of our Legacy Tidewater 2026 Revenue guidance.

West Gotcher: Our full year revenue guidance assumes utilization of approximately 80%, leaving us with about 11% of capacity to be charged as the market tightens quicker than we are anticipating. Our largest class of PSVs and anchor handlers retain the most opportunity for incremental work, followed by our mid-sized anchor handlers and small and mid-sized PSVs. Contract cover is higher earlier in the part of the year, with opportunity available later in the year. The bigger risk to our backlog revenue is unanticipated downtime due to unplanned maintenance and incremental time spent on dry docks. With that, I'll turn the call over to Piers for an overview of the commercial landscape.

Approximately 65% of available days for 2026 are captured in firm backlog and options.

Before I talk about the market and put some of Quentin and West comments into a wider Global context. I wanted to mention that we will be releasing our sixth sustainability report, in early April this report, as always is a global team effort. And I'd like to take this opportunity to thank everyone within the Tidewater team for their hard work and commitment helping to put this report together as we continue to Showcase to all our stakeholders, our historical, as well as our future commitment to sustainability, please look out for the report.

Our full-year revenue guidance assumes utilization of approximately 80%.

Leaving us with about 11% of capacity to be charged if the market Titans.

Quicker than we are anticipating.

Our largest class of psvs and anchor, handlers retain the most opportunity for incremental work.

For by followed by our midsize anchor handling and small midsize psvs.

Contract covers higher earlier in the part of the year with the opportunity available later in the year.

The bigger risk to our backlog revenue is unanticipated downtime due to unplanned maintenance and incremental time spent on dry docks.

Turning back to the offshore space as Quinton has already mentioned. 2025 was a very good year for Tidewater which is Testament to the hard work of the whole team, not just in maintaining market-leading day rates, but also continuing to improve our vessels uptime. With a laser focus on making the right investments in the maintenance and operations of our vessels. To be the gold standard in the industry and thereby continuing to decrease our Advanced repair days year over year across the global Fleet. We all came into 2025 with a level of uncertainty as to how the market would turn out.

With that, I'll turn the call over to peers for an overview of the commercial landscape.

[Company Representative] (Tidewater): Thank you, West. Good morning, everyone. Before I talk about the market and put some of Quintin and West's comments into a wider global context, I wanted to mention that we will be releasing our 6th sustainability report in early April. This report, as always, is a global team effort, and I'd like to take this opportunity to thank everyone within the Tidewater team for their hard work and commitment, helping to put this report together as we continue to showcase to all our stakeholders our historical as well as our future commitment to sustainability. Please look out for the report.

Piers Middleton: Thank you, West. Good morning, everyone. Before I talk about the market and put some of Quintin and West's comments into a wider global context, I wanted to mention that we will be releasing our 6th sustainability report in early April. This report, as always, is a global team effort, and I'd like to take this opportunity to thank everyone within the Tidewater team for their hard work and commitment, helping to put this report together as we continue to showcase to all our stakeholders our historical as well as our future commitment to sustainability. Please look out for the report.

So for our Global teams to deliver such impressive results in a flattish market, we believe both very well for us as we start to see the expected tide of increasing demand, turn at the end of 2026.

[Company Representative] (Tidewater): Turning back to the offshore space, as Quintin has already mentioned, 2025 was a very good year for Tidewater, which is testament to the hard work of the whole team, not just in maintaining market-leading day rates, but also continuing to improve our vessels' uptime with a laser focus on making the right investments in the maintenance and operations of our vessels to be the gold standard in the industry, and thereby continuing to decrease our down for repair days year-over-year across the global fleet. We all came into 2025 with a level of uncertainty as to how the market would turn out. For our global teams to deliver such impressive results in a flattish market, we believe bodes very well for us as we start to see the expected tide of increasing demand turn at the end of 2026.

Piers Middleton: Turning back to the offshore space, as Quintin has already mentioned, 2025 was a very good year for Tidewater, which is testament to the hard work of the whole team, not just in maintaining market-leading day rates, but also continuing to improve our vessels' uptime with a laser focus on making the right investments in the maintenance and operations of our vessels to be the gold standard in the industry, and thereby continuing to decrease our down for repair days year-over-year across the global fleet. We all came into 2025 with a level of uncertainty as to how the market would turn out. For our global teams to deliver such impressive results in a flattish market, we believe bodes very well for us as we start to see the expected tide of increasing demand turn at the end of 2026.

Thank you, Wes and good morning everyone. Before I talk about the market and put some of Quinton and West comments into a wider Global context. I wanted to mention that we will be releasing our sixth sustainability report, in early April this report, as always is a global team effort. And I'd like to take this opportunity to thank everyone within the Tidewater team for their hard work and commitment, hoping to put this report together as we continue to Showcase to all our stakeholders, our historical, as well as our future commitment to sustainability, please look out for the report.

Demand for these back slightly during 2025, have a long-term, fundamentals of the business are still very much entitled. What does favor? And with the limited Supply Story, the only truly Global footprint and the largest and 1 of the youngest and best maintained fleets. In the industry we are well placed to springboard on from our 2025 results and make further progress in future years. As expected demand growth comes back online in the second half of 2026.

22 regions starting with Europe and the med.

The meds seemed set fair to be very active during the year with several all major announcing and tendering for drilling programs in the region for commencement in 2026, as well as several epci projects kicking off throughout the year. So we expect a very active 2026 in the med

Mentioned 2025 was a very good year for Tidewater which is Testament to the hard work of the whole team, not just in maintaining market-leading day rates, but also continuing to improve our vessels uptime. With a laser focus on making the right investments in the maintenance and operations of our vessels. To be the gold standard in the industry and thereby continuing to decrease our ban for repair days year over year across the global Fleet.

In the North Sea Norway, looks set for a good few years ahead with additional rigs, expected in the region and some piercings expected to leave the OC space.

We all came into 2025 with a level of uncertainty as to how the market would turn out.

The supply demand balance should further tilt in our favor over the next few years.

[Company Representative] (Tidewater): Demand did ease back slightly during 2025. However, long-term fundamentals of the business are still very much in Tidewater's favor. With the limited supply story, the only truly global footprint, and the largest and one of the youngest and best-maintained fleets in the industry, we are well-placed to springboard on from our 2025 results and make further progress in future years as expected demand growth comes back online in the second half of 2026. Turning to our regions, starting with Europe and the Med. The Med seems set fair to be very active during the year, with several oil majors announcing and tendering for drilling programs in the region for commencement in 2026, as well as several EPCI projects kicking off throughout the year. We expect a very active 2026 in the Med.

Piers Middleton: Demand did ease back slightly during 2025. However, long-term fundamentals of the business are still very much in Tidewater's favor. With the limited supply story, the only truly global footprint, and the largest and one of the youngest and best-maintained fleets in the industry, we are well-placed to springboard on from our 2025 results and make further progress in future years as expected demand growth comes back online in the second half of 2026. Turning to our regions, starting with Europe and the Med. The Med seems set fair to be very active during the year, with several oil majors announcing and tendering for drilling programs in the region for commencement in 2026, as well as several EPCI projects kicking off throughout the year. We expect a very active 2026 in the Med.

So, for our global teams to deliver such impressive results in a flattish market, we believe that bodes very well for us as we start to see the expected tide of increasing demand turn at the end of 2026.

Even in the UK Rumours continue to circulate but the UK government discussing an early end to its windfall tax levy. As soon as this year, although the more likely scenario is that this would not fully come into play until 2027,

but as we mentioned as 1, our last call this would be a significant shot in the arm for the industry in the UK.

Demand for these back slightly during 2025, have a long-term, fundamentals of the business are still very much entitled orders favor and with the limited Supply story is the only truly Global footprint and the largest and 1 of the youngest and best maintained fleets. In the industry, we are well placed to springboard on from our 2025 results and make further progress in future years. As expected demand growth comes back online in the second half of 2026.

222 regions starting with Europe and the med.

Makes this high so early in the year, but with a couple of larger hts's leaving the region over the winter for warmer climates. We do expect to continue to see strong rates for large. Hts's through the rest of 2026.

In Africa.

The Med seems set, fair to be very active during the year, with several majors announcing and tendering for drilling programs in the region for commencement in 2026, as well as several EPCI projects kicking off throughout the year.

[Company Representative] (Tidewater): In the North Sea, Norway looks set for a good few years ahead, with additional rigs expected in the region and some PSVs expected to leave the OSC space. The supply-demand balance should further tilt in our favor over the next few years. Even in the UK, rumors continue to circulate that the UK government is discussing an early end to its windfall tax levy as soon as this year, although the more likely scenario is that this would not fully come into play until 2027. As we mentioned on our last call, this would be a significant shot in the arm for the industry in the UK. Lastly, in the North Sea, where we operate 2 large AHTSs, we've seen some early signs of large AHTS spot rates, both in the UK and Norway, cresting over $100,000 per day.

Piers Middleton: In the North Sea, Norway looks set for a good few years ahead, with additional rigs expected in the region and some PSVs expected to leave the OSC space. The supply-demand balance should further tilt in our favor over the next few years. Even in the UK, rumors continue to circulate that the UK government is discussing an early end to its windfall tax levy as soon as this year, although the more likely scenario is that this would not fully come into play until 2027. As we mentioned on our last call, this would be a significant shot in the arm for the industry in the UK. Lastly, in the North Sea, where we operate 2 large AHTSs, we've seen some early signs of large AHTS spot rates, both in the UK and Norway, cresting over $100,000 per day.

So, we expect a very active 2026 in the med.

Sentiment remained cautiously optimistic for 2026, strengthening drilling activity, in West Africa and neighboring regions such as the med and mosambi. Coming back into play, are expected to support High utilization and day, rate increases across all HTS, and PSC segments, throughout the year.

In the North Sea Norway, looks set for a good few years ahead with additional rigs, expected in the region and some piercings expected to leave the osv space.

The supply demand balance should further tilt in our favor over the next few years.

A number of other companies have released tendons for further exploration campaigns in 2026 in Namibia which is the 900 square meter plus PSV region. And a country where over the last few years we've been very successful supporting our customers from our in-country base.

Even in the UK, rumours continue to circulate that the UK government is discussing an early end to its windfall tax levy, as soon as this year. Although, the more likely scenario is that this would not fully come into play until 2027.

but as we mentioned in our last call, this would be a significant shot in the arms of the industry in the UK.

And the expectation is that in early 2012, 27. We should start to see a number of our customers kicking off field development in an Earnest in Namibia, which is more vessel intensive, especially in countries like Namibia with limited infrastructure.

[Company Representative] (Tidewater): While these are very short-term contracts, it is quite unusual to see day rates this high so early in the year. With a couple of large AHTS leaving the region over the winter for warmer climates, we do expect to continue to see strong rates for large AHTS through the rest of 2026. In Africa, sentiment remains cautiously optimistic for 2026. Strengthening drilling activity in West Africa and neighboring regions such as the Med and Mozambique coming back into play, we're expected to support high utilization and day rate increases across all AHTS and PSC segments throughout the year. A number of oil companies have released tenders for further exploration campaigns in 2026 in Namibia, which is a 900sq m plus PSV region and a country where over the last few years we've been very successful supporting our customers from our in-country base.

Piers Middleton: While these are very short-term contracts, it is quite unusual to see day rates this high so early in the year. With a couple of large AHTS leaving the region over the winter for warmer climates, we do expect to continue to see strong rates for large AHTS through the rest of 2026. In Africa, sentiment remains cautiously optimistic for 2026. Strengthening drilling activity in West Africa and neighboring regions such as the Med and Mozambique coming back into play, we're expected to support high utilization and day rate increases across all AHTS and PSC segments throughout the year. A number of oil companies have released tenders for further exploration campaigns in 2026 in Namibia, which is a 900sq m plus PSV region and a country where over the last few years we've been very successful supporting our customers from our in-country base.

Similarly, in Mozambique, we're starting the year supporting technique between 3 to 4 of our larger osvs with the expectation that we will start to see several other projects kick off in Q3 and Q4 of this year and go well beyond 2027.

As things continue to settle down, safety wise in country.

Last year in the North Sea, where we operate 2 large hts's. We've seen some early signs of large HCS spot rates, both in the UK and Norway. Cresting over a hundred thousand dollars per day and while these are very short-term contracts it is quite unusual to see day rates this high so early in the year, but with a couple of large ACS is leaving the region over the winter for warmer climates. We do expect to continue to see strong rates for large ages through the rest of 2026.

In Africa.

Lastly, in Angola, we're seeing a lot of increased activity in country as the government continues to pressure, the ioc's to increase production and thereby a big focus on both improving existing Fields through improved, subsidy infrastructure. But also through expiration for new Fields as Angola sees, annual production rates, stagnating

Sentiment remained cautiously optimistic for 2026, strengthening drilling activity, in West Africa and neighboring regions such as the med and mosambi coming back into play. We're expected to support High utilization and day, rate increases across all HTS, and PSC segments, throughout the year.

Overall, we are positive that the outlook for Africa, as we get towards the latter part of 2026. And for the next few years, Beyond,

In the Middle East, the market remains tight with very limited, availability of tonnage in the region and expect the region to remain Supply constrained to the short to medium term.

[Company Representative] (Tidewater): The expectation is that in early 2027, we should start to see a number of our customers kicking off field development in earnest in Namibia, which is more vessel intensive, especially in countries like Namibia with limited infrastructure. Similarly, in Mozambique, we're starting the year supporting Technip Energies in 3 to 4 of our larger OSVs, with the expectation that we will start to see several other projects kick off in Q3 and Q4 of this year and go well beyond 2027 as things continue to settle down safety-wise in country. Lastly, in Angola, we're seeing a lot of increased activity in country as the government continues to pressure the IOCs to increase production, and thereby a big focus on both improving existing fields through improved subsea infrastructure, but also through exploration for new fields as Angola sees annual production rates stagnating.

Piers Middleton: The expectation is that in early 2027, we should start to see a number of our customers kicking off field development in earnest in Namibia, which is more vessel intensive, especially in countries like Namibia with limited infrastructure. Similarly, in Mozambique, we're starting the year supporting Technip Energies in 3 to 4 of our larger OSVs, with the expectation that we will start to see several other projects kick off in Q3 and Q4 of this year and go well beyond 2027 as things continue to settle down safety-wise in country. Lastly, in Angola, we're seeing a lot of increased activity in country as the government continues to pressure the IOCs to increase production, and thereby a big focus on both improving existing fields through improved subsea infrastructure, but also through exploration for new fields as Angola sees annual production rates stagnating.

A number of other companies have released tenders for further, exploration campaigns in 2026 in Namibia which the 900 square meter plus PSV region. And a country where over the last few years we've been very successful supporting our customers from our in country base.

And the opportunity will be there to continue to push rates throughout 2026.

Of course, as a word of caution as Crimson just mentioned, we are watching carefully. The ongoing situation in the region and as of today, operations are continuing. However, the safety of our people and crew in the region are of the utmost importance and as such we will constantly be monitoring the situation and work with all of our stakeholders to make sure everyone stays safe.

In age Pacific.

Similarly, in Mozambique we're starting the year supporting techniques, 3 to 4 of our larger osvs with the expectation that we will start to see several other projects kick off in Q3 and Q4 of this year and go well beyond 2027.

As things continue to settle down—and, safety-wise, in country.

Australia looks to be a flat this year compared to 2025, with most of our customers focusing on production. So we don't expect any significant incremental demand during 2026.

In Malaysia and Patronis specifically. We saw an uptick in activity in the latter half of 2025, which has meant that locally owned. Osvs have now gone back to work. Meaning there's less Supply available to depress day rates in The Wider region.

[Company Representative] (Tidewater): Overall, we are positive of the outlook for Africa as we get towards the latter part of 2026 and for the next few years beyond. In the Middle East, the market remains tight with very limited availability of tonnage in the region. We expect the region to remain supply constrained for short to medium term, and the opportunity will be there to continue to push rates throughout 2026. Of course, as a word of caution, as Quintin just mentioned, we are watching carefully the ongoing situation in the region. As of today, operations are continuing. However, the safety of our people and crew in the region are of the utmost importance, and as such, we will constantly be monitoring the situation and work with all of our stakeholders to make sure everyone stays safe.

Piers Middleton: Overall, we are positive of the outlook for Africa as we get towards the latter part of 2026 and for the next few years beyond. In the Middle East, the market remains tight with very limited availability of tonnage in the region. We expect the region to remain supply constrained for short to medium term, and the opportunity will be there to continue to push rates throughout 2026. Of course, as a word of caution, as Quintin just mentioned, we are watching carefully the ongoing situation in the region. As of today, operations are continuing. However, the safety of our people and crew in the region are of the utmost importance, and as such, we will constantly be monitoring the situation and work with all of our stakeholders to make sure everyone stays safe.

Last year and Angola. We're seeing a lot of increased activity in country as the government continues to pressure, the ioc's to increase production and thereby a big focus on both improving existing Fields through improved, subsidy infrastructure. But also through expiration for new Fields as Angola sees, annual production rates, stagnating

Overall, we are supposed to develop Africa as we get all the last part of 2026. And for the next few years Beyond,

Which with increased tendering activity in in countries, like Indonesia Myanmar and Vietnam should mean that we are able to push rates upwards for the larger classes of psvs. As we move into the latter part of 2026.

in the Middle East, the

Tide with very limited.

Damage in the region.

We expect the region to remain supply constrained in the short to medium term.

And the opportunity will be there to continue to push rates throughout 2026.

In the Americas, the Gulf of America Market, Outlook for 2026, looks flat at best and we expect there to be some pressure through the year. As there will be very limited work on the East Coast which over the last few years has soaked up a number of boats in the Gulf during the summer months and kept the supply, demand balance and check.

We have limited Jones act exposure with only 4 or 5 of our us boats, currently working there. And we believe any softening in the Gulf will be more than offset by the growing demand story. We are seeing in the Caribbean.

[Company Representative] (Tidewater): In Asia Pacific, Australia looks to be a flattish year compared to 2025, with most of our customers focusing on production. We don't expect any significant incremental demand during 2026. In Malaysia and Petronas specifically, we saw an uptake in activity in the latter half of 2025, which has meant that locally owned OSVs have now gone back to work, meaning there is less supply available to depress day rates in the wider region. Which with increased tendering activity in countries like Indonesia, Myanmar, and Vietnam should mean that we're able to push rates upwards for the larger class of PSCs as we move into the latter part of 2026.

Piers Middleton: In Asia Pacific, Australia looks to be a flattish year compared to 2025, with most of our customers focusing on production. We don't expect any significant incremental demand during 2026. In Malaysia and Petronas specifically, we saw an uptake in activity in the latter half of 2025, which has meant that locally owned OSVs have now gone back to work, meaning there is less supply available to depress day rates in the wider region. Which with increased tendering activity in countries like Indonesia, Myanmar, and Vietnam should mean that we're able to push rates upwards for the larger class of PSCs as we move into the latter part of 2026.

Of course, as a word of caution as quentyn, just mentioned, we are watching carefully. The ongoing situation in the region and as of today, operations are continuing. However, the safety of our people and crew in the region are of the utmost importance and as such we will constantly be monitoring the situation and work with all of our stakeholders to make sure everyone stays safe.

Function. So we don't expect any significant incremental demand during 2026.

In Mexico with pics seeming to slowly be writing their listing ship, we're cautiously optimistic that by the end of this year, we will really start to see some significant increase in the Tenzing activity driven both by teammates, but also, by a number of new operators that are touted to be coming into the country to help Mexico, focus on increasing its falling production rates.

In Malaysia and Patronis specifically, we saw an uptake in activity in the latter, half of 2025, which has meant that locally owned. Osvs, have now gone back to work. Meaning there is less Supply available to depress day rates, in The Wider region.

[Company Representative] (Tidewater): In the Americas, the Gulf of Mexico market outlook for 2026 looks flat at best. We expect there to be some pressures through the year as there will be very limited work on the East Coast, which over the last few years has soaked up a number of boats in the Gulf during the summer months and kept the supply demand balance in check. We have limited Jones Act exposure with only four or five of our US boats currently working there. We believe any softening in the Gulf will be more than offset by the growing demand story we are seeing in the Caribbean.

Piers Middleton: In the Americas, the Gulf of Mexico market outlook for 2026 looks flat at best. We expect there to be some pressures through the year as there will be very limited work on the East Coast, which over the last few years has soaked up a number of boats in the Gulf during the summer months and kept the supply demand balance in check. We have limited Jones Act exposure with only four or five of our US boats currently working there. We believe any softening in the Gulf will be more than offset by the growing demand story we are seeing in the Caribbean.

Which, with increased tendering activity, in in countries, like Indonesia Myanmar, and Vietnam should mean that we're able to push rates upwards for the larger class of PCS as we move into the latter part of 2026.

Lastly, in Brazil, we're very excited about the long-term prospects in the country as evidenced by our recent announcement announcement to acquire Wilson's Ultra drug. And, as we talked about last week, we really believe that the combination of our 2 companies will create an even stronger platform in the country to allow us to continue to support and meet the growing demands of our customers in Brazil.

Overall, as Quinton mentioned, we're very pleased with how our Global team, both on and offshore performed through 2025.

In the Americas, the Gulf of America market outlook for 2026 looks flat at best, and we expect there to be some pressure through the year. As there will be very limited work on the East Coast, which over the last few years has soaked up a number of boats in the Gulf during the summer months and kept the supply-demand balance in check.

And while we saw some softening in the offshore space during 2025 the market, still continue to move in the right direction through the year and we remain positive. That the platform. We have created will continue to be able to reach significant rewards for all of our stakeholders for many years to come.

And with that, I'll hand over to Sam. Thank you.

[Company Representative] (Tidewater): In Mexico, with Pemex seeming to slowly be righting their listing ship, we're cautiously optimistic that by the end of this year, we will really start to see some significant increase in the tendering activity, driven both by Pemex but also by a number of new operators that are touted to be coming into the country to help Mexico focus on increasing its falling production rates. Lastly, in Brazil, we're very excited about the long-term prospects in the country, as evidenced by our recent announcement to acquire Wilson Sons Ultratug Offshore. As we talked about last week, we really believe that the combination of our two companies will create an even stronger platform in the country to allow us to continue to support and meet the growing demands of our customers in Brazil.

Piers Middleton: In Mexico, with Pemex seeming to slowly be righting their listing ship, we're cautiously optimistic that by the end of this year, we will really start to see some significant increase in the tendering activity, driven both by Pemex but also by a number of new operators that are touted to be coming into the country to help Mexico focus on increasing its falling production rates. Lastly, in Brazil, we're very excited about the long-term prospects in the country, as evidenced by our recent announcement to acquire Wilson Sons Ultratug Offshore. As we talked about last week, we really believe that the combination of our two companies will create an even stronger platform in the country to allow us to continue to support and meet the growing demands of our customers in Brazil.

My discussion will initially focus on the full year 2025.

Compared to 2024 followed by a deeper discussion of the sequential quarterly results from the fourth quarter of 2025 compared to the third quarter of 25.

In Mexico, with PICS ceiling to slowly be writing their listing ship. We're cautiously optimistic that by the end of this year, we will really start to see some significant increase in the Tenzing activity, driven both by teammates but also by a number of new operators that are touted to be coming into the country to help Mexico focus on increasing its falling production rates.

Was noted in our first release filed yesterday. We generated revenue of 1.35 billion for the year and increase of approximately 7 million versus our 2024 amount

Gross margin for the year. Was 665.8 Million compared to 6 4? 9. 2, 2 4?

[Company Representative] (Tidewater): Overall, as Quintin mentioned, we are very pleased with how our global team, both on and offshore, performed through 2025. While we saw some softening in the offshore space during 2025, the market still continued to move in the right direction through the year. We remain positive that the platform we have created will continue to be able to reap significant rewards for all of our stakeholders for many years to come. With that, I'll hand over to Sam. Thank you.

Piers Middleton: Overall, as Quintin mentioned, we are very pleased with how our global team, both on and offshore, performed through 2025. While we saw some softening in the offshore space during 2025, the market still continued to move in the right direction through the year. We remain positive that the platform we have created will continue to be able to reap significant rewards for all of our stakeholders for many years to come. With that, I'll hand over to Sam. Thank you.

Lastly, in Brazil, we're very excited about the long-term prospects in the country as evidenced by our recent announcement, announcement to acquire Wilson's Ultra jug. And as we talked about last week, we really believe that the combination of our 2 companies will create an even stronger platform in the country to allow us to continue to support and meet the growing demands of our customers in Brazil.

Our net income was 334.7 Million compared to 180.7 million in 2024.

Our net income for the quarter and full year, 2025 includes a previously mentioned tax benefit related to a strategic realignment of our vessel ownership.

Overall, as Quinton mentioned, we're very pleased with how our Global team both on and offshore performed through 2025. While we saw some softening in the offshore space during 2025, the market, still continued to move in the right direction through the year and we remain positive. That the platform. We have created will continue to be able to reach significant rewards for all of our stakeholders for many years to come.

And with that, I'll hand over to Sam. Thank you.

Sam: Thank you, Pierce, and good morning, everyone. At this time, I would like to take you through our financial results. My discussion will initially focus on the full year 2025 compared to 2024, followed by a deeper discussion of the sequential quarterly results from Q4 of 2025 compared to Q3 of 2025. As noted in our press release filed yesterday, we generated revenue of $1.35 billion for the year, an increase of approximately $7 million versus our 2024 amount. Gross margin for the year was $665.8 million, compared to $649.2 million in 2024. Our net income was $334.7 million, compared to $180.7 million in 2024.

Sam Rubio: Thank you, Pierce, and good morning, everyone. At this time, I would like to take you through our financial results. My discussion will initially focus on the full year 2025 compared to 2024, followed by a deeper discussion of the sequential quarterly results from Q4 of 2025 compared to Q3 of 2025. As noted in our press release filed yesterday, we generated revenue of $1.35 billion for the year, an increase of approximately $7 million versus our 2024 amount. Gross margin for the year was $665.8 million, compared to $649.2 million in 2024. Our net income was $334.7 million, compared to $180.7 million in 2024.

Including the net amount is a 1 time. Non-cash tax benefit of 2011.5 million primarily related to the utilization of foreign tax credits, which were previously subject to valuation allowances. The incremental tax basis is reflected in the first tax assets for property and equipment.

Thank you, pierce, and good morning everyone. At this time, I would like to take you through our financial results, my discussion will initially focus on the full year 2025

Average day rates improved by 1300 dollars per day for the full year to 22,573.

Compared to 2024, followed by a deeper discussion of the sequential quarterly results from the fourth quarter of 2025 compared to the third quarter of '25.

While active utilization decreased slightly to 78.7% due to more idle days partially offset by fewer Dry Dock and repair days.

As noted in our first release filed yesterday, we generated revenue of $1.35 billion for the year, an increase of approximately $7 million versus our 2024 amount.

the strength of the day rates combined, with a reduction of in operating costs versus 2024 increased, our gross margin by about 1 percentage point year-over-year, the 49.2%

Gross margin for the year. Was 665.8 Million compared to 649.2 million in 2024.

Adjusted IBA was 50098.1 Million for 2025, compared to 559.6 million in 2024.

Sam: Our net income for the quarter and full year 2025 includes the previously mentioned tax benefit related to a strategic realignment of our vessel ownership. Included in that amount is a one-time non-cash tax benefit of $201.5 million, primarily related to the utilization of foreign tax credits, which were previously subject to valuation allowances. The incremental tax basis is reflected in deferred tax assets for property and equipment. Average day rates improved by $1,300 per day for the full year to $22,573, while active utilization decreased slightly to 78.7% due to more idle days, partially offset by fewer dry dock and repair days.

Sam Rubio: Our net income for the quarter and full year 2025 includes the previously mentioned tax benefit related to a strategic realignment of our vessel ownership. Included in that amount is a one-time non-cash tax benefit of $201.5 million, primarily related to the utilization of foreign tax credits, which were previously subject to valuation allowances. The incremental tax basis is reflected in deferred tax assets for property and equipment. Average day rates improved by $1,300 per day for the full year to $22,573, while active utilization decreased slightly to 78.7% due to more idle days, partially offset by fewer dry dock and repair days.

Our net income was $334.7 million, compared to $180.7 million in 2024.

We also generated 426 million in free cash flow and increase of 95 million from 2024 due. In part to the reduction in Dry, Dock costs of 35 million.

Our net income for the quarter and full year, 2025 includes a previously mentioned tax benefit related to a strategic realignment or a vessel ownership.

We also sold 12 vessels for total cash proceeds of 17.6 million working capital was a source of cash due to the notable success in our cash collections during Q4.

Including in that amount is a 1 time. Non-cash tax benefit of 2011.5 million primarily related to the utilization of foreign tax credits, which were previously subject to valuation allowances.

Our success in our queue forecast, collections was a large contributor to our free cash flow generation in 2025.

The incremental tax basis is reflected in the first tax assets for property and equipment.

Average day rates improved by 1300 per day, for the full year to 22,573.

Overall, 25 was a good year with strong, free cash flow delivery and solid. Operational execution, as well as completing important strategic initiatives, including our debt refinance in Q3. And the previously mentioned vessel realignment

Sam: The strength in the day rates, combined with a reduction in operating costs versus 2024, increased our gross margin by about 1 percentage point year-over-year to 49.2%. Adjusted EBITDA was $598.1 million for 2025, compared to $559.6 million in 2024. We also generated $426 million in free cash flow, an increase of $95 million from 2024, due in part to a reduction in dry dock costs of $35 million. We also sold 12 vessels with total cash proceeds of $17.6 million. Working capital was a source of cash due to notable success in our cash collections. During Q4. Our success in our Q4 cash collections was a large contributor to our free cash flow generation in 2025.

Sam Rubio: The strength in the day rates, combined with a reduction in operating costs versus 2024, increased our gross margin by about 1 percentage point year-over-year to 49.2%. Adjusted EBITDA was $598.1 million for 2025, compared to $559.6 million in 2024. We also generated $426 million in free cash flow, an increase of $95 million from 2024, due in part to a reduction in dry dock costs of $35 million. We also sold 12 vessels with total cash proceeds of $17.6 million. Working capital was a source of cash due to notable success in our cash collections. During Q4. Our success in our Q4 cash collections was a large contributor to our free cash flow generation in 2025.

While active utilization decreased slightly to 78.7% due to more idle days, this was partially offset by fewer dry dock and repair days.

Our improved balance sheet and future cash flow. Generating capability will continue to provide opportunities to deploy capital in m&a as illustrated by the Wilsons announcement last week, as well as we purchased our own shares.

the strength of the day rates combined, with a reduction of in operating costs versus 2024 increased, our gross margin by about 1 percentage point year-over-year, the 49.2%

Adjusted EBITDA was $598.1 million for 2025, compared to $559.6 million in 2024.

As a reminder, although we did not repurchase shares during Q3 or Q4 for the full year, we use 98 million in cash to reduce approximately 2.8 million of our shares in the market year in the year, including shares, which were held back to pay roughly 8 million in taxes related to vesting of employee share based Awards.

We also generated 426 million of free cash flow and increase of 95 million from 2024 due in part to the reduction in dried up costs of 35 million.

I would now like to turn our attention to the fourth quarter, where we reported net income of 219.9 million or 4.41 cents per share, which includes the tax benefit mentioned previously.

We also sold 12 vessels for total cash proceeds of 17.6 million working capital was a source of cash due to the notable success in our cash collections during Q4.

We generated 336.8 million in Revenue, compared to 3 4 1. 1, 1 1.

Sam: Overall, 2025 was a good year with strong free cash flow delivery and solid operational execution, as well as completing important strategic initiatives, including our debt refinance in Q3 and the previously mentioned vessel realignment. Our improved balance sheet and future cash flow-generating capability will continue to provide opportunities to deploy capital in M&A, as illustrated by the Wilson's announcement last week, as well as repurchase our own shares. As a reminder, although we did not repurchase shares during Q3 or Q4, for the full year, we used $98 million in cash to reduce approximately 2.8 million of our shares in the market year-over-year, including shares which were held back to pay roughly $8 million in taxes related to vesting of employee share-based awards.

Sam Rubio: Overall, 2025 was a good year with strong free cash flow delivery and solid operational execution, as well as completing important strategic initiatives, including our debt refinance in Q3 and the previously mentioned vessel realignment. Our improved balance sheet and future cash flow-generating capability will continue to provide opportunities to deploy capital in M&A, as illustrated by the Wilson's announcement last week, as well as repurchase our own shares. As a reminder, although we did not repurchase shares during Q3 or Q4, for the full year, we used $98 million in cash to reduce approximately 2.8 million of our shares in the market year-over-year, including shares which were held back to pay roughly $8 million in taxes related to vesting of employee share-based awards.

Our success in our queue forecast, collections was a large contributor to our free cash flow generation in 2025.

Operational execution, as well as completing important strategic initiatives.

Including our debt refinance in Q3 and the previously mentioned vessel realignment.

Average a rates were down about 3% versus the third quarter. However, we did see a nice increase in inactive utilization from 78.5% in the third quarter to 81.7% in the fourth quarter, which was our highest active utilization since q1 2024.

This utilization increased resulted mainly from the decrease in idle and vital days.

First margin in the fourth quarter was 164 million compared to 163.7 million in the third quarter.

Most margin percentage in the fourth quarter was almost 49% nicely above our Q4 expectation. And slightly ahead of our Q3 margin of 48%.

Sam: I would now like to turn our attention to Q4, where we reported net income of $219.9 million, or $4.41 per share, which includes the tax benefit mentioned previously. We generated $336.8 million in revenue compared to $341.1 million in Q3. Average day rates were down about 3% versus Q3. However, we did see a nice increase in active utilization from 78.5% in Q3 to 81.7% in Q4, which was our highest active utilization since Q1 2024. This utilization increase resulted mainly from the decrease in idle and drydock days.

Sam Rubio: I would now like to turn our attention to Q4, where we reported net income of $219.9 million, or $4.41 per share, which includes the tax benefit mentioned previously. We generated $336.8 million in revenue compared to $341.1 million in Q3. Average day rates were down about 3% versus Q3. However, we did see a nice increase in active utilization from 78.5% in Q3 to 81.7% in Q4, which was our highest active utilization since Q1 2024. This utilization increase resulted mainly from the decrease in idle and drydock days.

As a reminder, although we did not repurchase shares during Q3 or Q4 for the full year, we used 98 million in cash to reduce approximately 2.8 million of our shares in the market year. In the year, including shares, which were held back to pay roughly 8 million in taxes related to vesting of employee share base Awards.

The increase in margin versus Q3 was primarily due to a decrease in operating costs. Operating costs for the for the quarter or 172.7 million compared to 177.4 million in Q3.

In the quarter, there were 3 vessels. 3 fewer vessels operating in Australia which is a high operating cost area.

I would now like to turn our attention to the fourth quarter where we reported net income of 219.9 million or 44.41 cents per share, which includes the tax benefit mentioned previously.

Overall we saw a decrease in salaries and travel and consumable expenses partially offset by increases in r&m and other vessel expenses.

We generated 336.8 million in Revenue, compared to 3 4 1. 1, 1 1.

In in the fourth quarter, compared to 137.9 million in the third quarter.

For the year, our total GNA cost was 134.5 Million which is 23.7 million higher than 2024.

Rates were down about 3% versus the third quarter. However, we did see a nice increase in active utilization from 78.5% in the third quarter, to 81.7% in the fourth quarter, which was our highest active utilization since q1 2024.

Primarily due to an increase in professional fees and Personnel costs.

Sam: Gross margin in Q4 was $164 million compared to $163.7 million in Q3. Gross margin percentage in Q4 was almost 49%, nicely above our Q4 expectation and slightly ahead of our Q3 margin of 48%. The increase in margin versus Q3 was primarily due to a decrease in operating costs. Operating costs for the quarter were $172.7 million compared to $177.4 million in Q3. In the quarter, there were three fewer vessels operating in Australia, which is a high operating cost area. Overall, we saw a decrease in salaries, travel, and consumable expenses, partially offset by increases in R&M and other vessel expenses.

Sam Rubio: Gross margin in Q4 was $164 million compared to $163.7 million in Q3. Gross margin percentage in Q4 was almost 49%, nicely above our Q4 expectation and slightly ahead of our Q3 margin of 48%. The increase in margin versus Q3 was primarily due to a decrease in operating costs. Operating costs for the quarter were $172.7 million compared to $177.4 million in Q3. In the quarter, there were three fewer vessels operating in Australia, which is a high operating cost area. Overall, we saw a decrease in salaries, travel, and consumable expenses, partially offset by increases in R&M and other vessel expenses.

The utilization increased resulted mainly from the decrease in idle and dried off days.

First margin in the fourth quarter was 164 million compared to 163.7 million in the third quarter.

DNA cost for the quarter was 309 million, 3.7 million higher than the third quarter. You primarily to an increase in professional fees and Personnel costs,

Gross margin percentage in the fourth quarter was almost 49% nicely above our Q4 expectation. And slightly ahead of our Q3 margin of 48%.

For 2026 exclusive of additional m&a costs, we expect high water Standalone, DNA costs to be about 123 million.

This includes an estimated 15 million of non-cash stock compensation.

The increase in margin versus Q3 was primarily due to a decrease in operating costs. Operating costs for the quarter were $172.7 million, compared to $177.4 million in Q3.

More moreover, we expect to incur approximately 7 million in additional GA costs in the second half of this year related to the Wilsons acquisition.

In the quarter, there were 3 vessels. Three fewer vessels operating in Australia, which is a high operating cost area.

Right? Our cost for the full year, was 98.6 million, which includes approximately 35 million of engine overhauls.

Sam: Adjusted EBITDA was $143.1 million in Q4 compared to $137.9 million in Q3. For the year, our total G&A cost was $134.5 million, which is $23.7 million higher than 2024, primarily due to an increase in professional fees and personnel costs. This amount includes approximately $8.3 million in transaction-associated costs related to our M&A diligence efforts. G&A cost for the quarter was $39 million, $3.7 million higher than Q3, due primarily to an increase in professional fees and personnel costs. For 2026, exclusive of additional M&A costs, we expect high water standalone G&A costs to be about $123 million. This includes an estimated $15 million of non-cash stock compensation.

Sam Rubio: Adjusted EBITDA was $143.1 million in Q4 compared to $137.9 million in Q3. For the year, our total G&A cost was $134.5 million, which is $23.7 million higher than 2024, primarily due to an increase in professional fees and personnel costs. This amount includes approximately $8.3 million in transaction-associated costs related to our M&A diligence efforts. G&A cost for the quarter was $39 million, $3.7 million higher than Q3, due primarily to an increase in professional fees and personnel costs. For 2026, exclusive of additional M&A costs, we expect high water standalone G&A costs to be about $123 million. This includes an estimated $15 million of non-cash stock compensation.

Overall we saw a decrease in salaries and travel and consumable expenses partially offset by increases in r&m and other vessel expenses.

Adjusted City, but I was 143.1 million in the fourth quarter. Compared to 1 3 7. 9 9.

Full year, 2025 Dry, Dock days, affected utilization by about 5, percentage points in the fourth quarter, we incurred 13.9 million in deferred dry out costs compared to 1 7. 6 4.

Costs were $134.5 million, which is $23.7 million higher than Q2.

We had 672 Dry Dock days. It affected utilization by about 4 percentage points in Q4.

Primarily due to an increase in special fees and personnel costs.

By our cost for 2026 is expected to be approximately 122 million, which includes 46 million of engine overhauls.

This amount includes approximately $8.3 million in transaction-associated costs related to our M&A diligence efforts.

DNA cost for the quarter was $39 million, $3.7 million higher than the third quarter, due primarily to an increase in professional fees and personnel costs.

2026 dry out days. Are expected to affect utilization by approximately 5 percentage points. Additionally, we expect to incur about 16 million in Dry Out costs.

In the second half of the year related to the Wilsons acquisition.

For 2026 exclusive additional m&a costs, we expect high water Standalone GNA costs to be about 123 million.

This includes an estimated 15 million of non-cash stock compensation.

Sam: Moreover, we expect to incur approximately $7 million in additional G&A costs in the second half of this year related to the Wilson's acquisition. Drydock costs for the full year was $98.6 million, which includes approximately $35 million of engine overhauls. Full year 2025 drydock days affected utilization by about 5 percentage points. In Q4, we incurred $13.9 million in deferred drydock costs compared to $17.6 million in Q3. We had 672 drydock days that affected utilization by about 4 percentage points in Q4. Drydock costs for 2026 is expected to be approximately $122 million, which includes $46 million of engine overhauls. 2026 drydock days are expected to affect utilization by approximately 5 percentage points.

Sam Rubio: Moreover, we expect to incur approximately $7 million in additional G&A costs in the second half of this year related to the Wilson's acquisition. Drydock costs for the full year was $98.6 million, which includes approximately $35 million of engine overhauls. Full year 2025 drydock days affected utilization by about 5 percentage points. In Q4, we incurred $13.9 million in deferred drydock costs compared to $17.6 million in Q3. We had 672 drydock days that affected utilization by about 4 percentage points in Q4. Drydock costs for 2026 is expected to be approximately $122 million, which includes $46 million of engine overhauls. 2026 drydock days are expected to affect utilization by approximately 5 percentage points.

Full year 2025 Capital expenditures total of 25.8 million. In Q4 we incurred 5.1 million in the capital expenditures related to vessel modifications and upgrades ballast, water treatment, insulations DP system and it upgrades

More moreover, we expect to incur approximately 7 million in additional GNA costs in the second half of this year related to the Wilsons acquisition.

Right? Our cost for the full year, was 98.6 million, which includes approximately 35 million of engine overhauls.

for the full year 2026. We expect to incur approximately 51 million in capital expenditures. The increase year-over-year is primarily due to the plan to a plan. Major upgrade to 1 of our Norwegian vessel which is supported by customer contract.

full year, 2025 Dry, Dock days, affected utilization by about 5, percentage points in the fourth quarter, we incurred 13.9 million in deferred dry out costs compared to 17.6%

We had 672 dry dock days. It affected utilization by about 4 percentage points in Q4.

Option, this upgrade or maintenance capex, is expected to be a proximately 36 million jury 2026. It will also spend an additional 24.4 million in 2026 related to 2 purchase options. We have exercise, for vessels that we've been Leasing.

The purchase option prices were were below market value for these vessels.

Product costs for 2026 are expected to be approximately $122 million, which includes $46 million of engine overhauls.

Finally we expect to incur about 1 million in capex in the second half of the year related to the Wilsons acquisition.

Sam: Additionally, we expect to incur about $16 million in drydock costs in the second half of the year related to the Wilson's acquisition. Full year 2025 capital expenditures totaled $25.8 million. In Q4, we incurred $5.1 million in capital expenditures related to vessel modifications and upgrades, ballast water treatment installations, DP system, and IT upgrades. For the full year 2026, we expect to incur approximately $51 million in capital expenditures. The increase year-over-year is primarily due to a planned major upgrade to one of our Norwegian vessels, which is supported by a customer contract. Option this upgrade or maintenance CapEx is expected to be approximately $36 million during 2026. We will also spend an additional $24.4 million in 2026 related to 2 purchase options we have exercised for vessels that we've been leasing.

Sam Rubio: Additionally, we expect to incur about $16 million in drydock costs in the second half of the year related to the Wilson's acquisition. Full year 2025 capital expenditures totaled $25.8 million. In Q4, we incurred $5.1 million in capital expenditures related to vessel modifications and upgrades, ballast water treatment installations, DP system, and IT upgrades. For the full year 2026, we expect to incur approximately $51 million in capital expenditures. The increase year-over-year is primarily due to a planned major upgrade to one of our Norwegian vessels, which is supported by a customer contract. Option this upgrade or maintenance CapEx is expected to be approximately $36 million during 2026. We will also spend an additional $24.4 million in 2026 related to 2 purchase options we have exercised for vessels that we've been leasing.

We generated 151 151.2 million in free, cash flow in Q4 compared to 8 2. 7.

2026 Dry. Dock days are expected to affect utilization by approximately 5 percentage points. Additionally, we expect to incur about 16 million in Dry Out costs in the second half of the year related to the Wilsons acquisition.

The quarter. We saw 2 vessels for proceeds of 5.3 million and incurred 3.8 million less. In deferred dry do costs.

Full year 2025 Capital expenditures, total of 25.8 million. In Q4 we incurred 5.1 million in capital expenditures related to decimal, modifications and upgrades ballast, water treatment, insulations DP system. And it upgrades

However, the free cash flow increase quarter over quarter was mainly attributable to significant, working capital benefits achieved in Q4 due to an increased in cash collections. This was largely due or a cash collections related to our largest customer in Mexico.

It was overall receivable balance through increase by more than 40 million.

as a result, our overall DSO decreased by 14 days quarter over a quarter,

For the full year 2026, we expect to incur approximately $51 million in capital expenditures. The increase year-over-year is primarily due to the plan for a major upgrade to one of our Norwegian vessels, which is supported by a customer contract.

Maintenance capex, is expected to be approximately 36 million period 2026.

as a reminder, following our debt refinancing which was completed in Q3 2025, we only have small debt repayments that are related to the refinancing of recently. Constructed smaller crew vessels.

Sam: The purchase option prices were below market value for these vessels. Finally, we expect to incur about $1 million in CapEx in the second half of the year related to the Wilson's acquisition. We generated $151.2 million of free cash flow in Q4, compared to $82.7 million in Q3. In the quarter, we sold 2 vessels for proceeds of $5.3 million and incurred $3.8 million less in deferred drydock costs. However, the free cash flow increase quarter-over-quarter was mainly. There's significant working capital benefit achieved in Q4 due to an increase in cash collections. This was largely due to our cash collections related to our largest customer in Mexico, whose overall receivable balance decreased by more than $40 million. As a result, our overall DSO decreased by 14 days quarter-over-quarter.

Sam Rubio: The purchase option prices were below market value for these vessels. Finally, we expect to incur about $1 million in CapEx in the second half of the year related to the Wilson's acquisition. We generated $151.2 million of free cash flow in Q4, compared to $82.7 million in Q3. In the quarter, we sold 2 vessels for proceeds of $5.3 million and incurred $3.8 million less in deferred drydock costs. However, the free cash flow increase quarter-over-quarter was mainly. There's significant working capital benefit achieved in Q4 due to an increase in cash collections. This was largely due to our cash collections related to our largest customer in Mexico, whose overall receivable balance decreased by more than $40 million. As a result, our overall DSO decreased by 14 days quarter-over-quarter.

We will also spend an additional 24.4 million in 2026 related to 2 purchase options. We have exercise, for vessels that we've been Leasing.

The purchase option prices were were below market value for these vessels.

We have no payments until 2030 on our new unsecured notes following the anticipated close of the Wilsons acquisition, our debt, maturity and repayment profile will change to accommodate the newly assumed Wilson's debt.

Finally we expect to incur about 1 million in capex in the second half of the year related to the Wilsons acquisition.

We conduct our business. Through 5 operating segments are referred to the tables in the press release, and the segment, footnote and results of operations in our 10K, for more details of our segment results.

We generated $151.2 million in free cash flow in Q4, compared to $82.7 million in Q3.

In the quarter, we saw 2 vessels for proceeds of 5.3 million and incurred 3.8 million less in deferred Dry. Dock costs.

In the fourth quarter, Consolidated average day rates were down versus the third quarter. However, results varied by segment, with our Middle East, stay rates improving by 9%, which was offset by day rates declining in each of our other regions polar revenues were slightly lower compared to the third quarter.

However, the free cash flow increase quarter over quarter was mainly attributable to significant, working capital benefits achieved in Q4 due to an increased in cash collections. This was largely due to our cash collections related to our largest customer in Mexico.

with increase in our Middle East and African regions offset by decreases in our APAC, America's Europe, Administration regions,

His overall receivable balance to decrease by more than 40 million.

as a result, our overall DSO decreased by 14 days quarter over a quarter,

Sam: As a reminder, following our debt refinancing, which was completed in Q3 2025, we only have small debt repayments that are related to the refinancing of recently constructed smaller crew vessels. We have no payments until 2030 on our new unsecured notes. Following the anticipated close of the Wilson's acquisition, our debt maturity and repayment profile will change to accommodate the newly assumed Wilson's debt. We conduct our business through five operating segments. I refer you to the tables in the press release and the segment footnote and results of operations in our 10-K for more details of our segment results. In Q4, consolidated average day rates were down versus Q3. Results varied by segment, with our Middle East day rates improving by 9%, which was offset by day rates declining in each of our other regions.

Sam Rubio: As a reminder, following our debt refinancing, which was completed in Q3 2025, we only have small debt repayments that are related to the refinancing of recently constructed smaller crew vessels. We have no payments until 2030 on our new unsecured notes. Following the anticipated close of the Wilson's acquisition, our debt maturity and repayment profile will change to accommodate the newly assumed Wilson's debt. We conduct our business through five operating segments. I refer you to the tables in the press release and the segment footnote and results of operations in our 10-K for more details of our segment results. In Q4, consolidated average day rates were down versus Q3. Results varied by segment, with our Middle East day rates improving by 9%, which was offset by day rates declining in each of our other regions.

And we also saw a 3 percentage Point increase in our APAC region as well as a 1 percentage Point increase in the Middle East.

As a reminder, following our debt refinancing which was completed in Q3 2025, we only have small debt repayments that are related to the refinancing of recently. Constructed smaller crew vessels.

Our Europe and Mediterranean region. So I decreased of 1 percentage point and America's decline by 8 percentage points.

we have no payments until 2030 on our new unsecured notes following the anticipated close of the Wilsons acquisition, our debt, maturity and repayment profile will change to accommodate the newly assumed was instead

The gross margin increase in our African region was primarily due to a large increase in utilization of 13. Percentage points combined with a slight decrease in operating costs and partially offset by 2% decline in average day rates.

We conduct our business. Through 5 operating signals are referred to the tables in the press release and the segment footnote and results of operations in our 10K, for more details of our segment results.

The increase in utilization. Would you the fewer Idol Dry Dock and repair days. Gross margin, increase in the APAC region was due to an increase in utilization and a large decline in operating costs partially offset by a day rate and decrease of about 11%.

In the fourth quarter of Consolidated average day rates were down versus the third quarter. However results vary by segment, with our Middle East State rates, improving by 9%

Sam: Total revenues were slightly lower compared to Q3, with increases in our Middle East and African regions offset by decreases in our APAC, Americas, Europe, and Mediterranean regions. Regionally, gross margin increased in Africa by 6 percentage points, and we also saw a 3 percentage point increase in our APAC region, as well as a 1 percentage point increase in the Middle East. Our Europe and Mediterranean region saw a decrease of 1 percentage point, and Americas declined by 8 percentage points. The gross margin increase in our African region was primarily due to a large increase in utilization of 13 percentage points, combined with a slight decrease in operating costs and partially offset by a 2% decline in average day rates. The increase in utilization was due to fewer idle drydock and repair days.

Sam Rubio: Total revenues were slightly lower compared to Q3, with increases in our Middle East and African regions offset by decreases in our APAC, Americas, Europe, and Mediterranean regions. Regionally, gross margin increased in Africa by 6 percentage points, and we also saw a 3 percentage point increase in our APAC region, as well as a 1 percentage point increase in the Middle East. Our Europe and Mediterranean region saw a decrease of 1 percentage point, and Americas declined by 8 percentage points. The gross margin increase in our African region was primarily due to a large increase in utilization of 13 percentage points, combined with a slight decrease in operating costs and partially offset by a 2% decline in average day rates. The increase in utilization was due to fewer idle drydock and repair days.

The decline in operating costs and their rates are primarily due to 3. Fewer vessels operating in Australia versus Q3

Which was offset by day rates declining in each of our other regions. Total revenues were slightly lower compared to the third quarter.

Utilization increase is primarily due to a decrease in idle and dry out days. Partially offset by an increase in repair days.

With increases in our Middle East and African regions, offset by decreases in our APAC, Americas, and Europe administration.

The increase in the Middle East goes margin, which primarily due to a 9% increase in average day rates, partially offset by higher operating costs.

The cost increase was primarily due to higher rnm for personal expenses.

Utilization.

Regionally gross margin increased in Africa by 6 percentage points and we also saw a 3 percentage Point increase in our APAC region as well as a 1 percentage Point increase in the Middle East.

Was roughly flat order of a quarter.

Are Europe and Mediterranean region. So I decreased of 1 percentage point and America's decline by 8 percentage points.

Our Europe and Mediterranean region, gross margin was marginally, lower versus the previous quarter and the gross margin decrease, in our America's region was driven by a 9 percentage points declined, utilization, as well as a 6% increase in operating costs.

The cost increase was primarily due to higher r&m, higher fuel expense, due to lower utilization, compared to Q3

Sam: Gross margin increase in the Asia Pacific region was due to an increase in utilization and a large decline in operating costs, partially offset by a day rate decrease of about 11%. The decline in operating costs and day rates are primarily due to 3 fewer vessels operating in Australia versus Q3. Utilization increase is primarily due to a decrease in idle and drydock days, partially offset by an increase in repair days. The increase in the Middle East gross margin was primarily due to a 9% increase in average day rates, partially offset by higher operating costs. The cost increase was primarily due to higher R&M to personal expenses. Utilization was roughly flat quarter-over-quarter.

Sam Rubio: Gross margin increase in the Asia Pacific region was due to an increase in utilization and a large decline in operating costs, partially offset by a day rate decrease of about 11%. The decline in operating costs and day rates are primarily due to 3 fewer vessels operating in Australia versus Q3. Utilization increase is primarily due to a decrease in idle and drydock days, partially offset by an increase in repair days. The increase in the Middle East gross margin was primarily due to a 9% increase in average day rates, partially offset by higher operating costs. The cost increase was primarily due to higher R&M to personal expenses. Utilization was roughly flat quarter-over-quarter.

the decrease in utilization was due to higher dry off and idle days.

In summary Q4 was a strong quarter, we delivered both strong financial results and free cash flow.

The increase in utilization, with fewer idle dry dock and repair days. Gross margin increase in the APAC region was due to an increase in utilization and a large decline in operating costs, partially offset by a day rate decrease of about 11%.

The decline in operating costs and their rates are primarily due to 3. Fewer vessels operating in Australia versus Q3

Our balance sheet is an excellent position and the industry. Long-term fundamentals, remain very strong. We are especially excited about the Wilsons acquisition and the highly important Brazilian market. And we remain optimistic, about the opportunities that lie ahead for Tidewater.

Utilization increase is primarily due to a decrease in idle and dry out days. Partially offset by an increase in repair days.

With that, I'll turn it back over to Clinton.

Thank you Sam. Uh, Jordan. I think we can go ahead and open it up for questions.

The increase in the Middle East growth margin, which was primarily due to a 9% increase in average day rates, was partially offset by higher operating costs.

The cost increase was primarily due to higher rnm to Personnel expenses.

Ization.

Sam: Our Europe and Mediterranean region gross margin was marginally lower versus the previous quarter, and the gross margin decrease in our Americas region was driven by a 9 percentage points decline in utilization, as well as a 6% increase in operating costs. The cost increase was primarily due to higher R&M, higher fuel expense due to lower utilization compared to Q3. The decrease in utilization was due to higher drydock and idle days. In summary, Q4 was a strong quarter. We delivered both strong financial results and free cash flow. Our balance sheet is in excellent position and the industry long-term fundamentals remain very strong. We're especially excited about the Wilson's acquisition in the highly important Brazilian market, and we remain optimistic about the opportunities that lie ahead for Tidewater. With that, I'll turn it back over to Quintin.

Sam Rubio: Our Europe and Mediterranean region gross margin was marginally lower versus the previous quarter, and the gross margin decrease in our Americas region was driven by a 9 percentage points decline in utilization, as well as a 6% increase in operating costs. The cost increase was primarily due to higher R&M, higher fuel expense due to lower utilization compared to Q3. The decrease in utilization was due to higher drydock and idle days. In summary, Q4 was a strong quarter. We delivered both strong financial results and free cash flow. Our balance sheet is in excellent position and the industry long-term fundamentals remain very strong. We're especially excited about the Wilson's acquisition in the highly important Brazilian market, and we remain optimistic about the opportunities that lie ahead for Tidewater. With that, I'll turn it back over to Quintin.

Was roughly 5 quarter of a quarter.

great, in order to ask a question during this time, simply press star 1 on your telephone keypad, your first question comes from the line of Jimmy Rollies or Jim roly from Raymond James, your light is live,

Yeah, you can call me Jimmy. That's fine morning everyone. Good morning. Hey

um,

Our Europe and Mediterranean region, gross margin was marginally, lower versus the previous quarter. And the gross margin decrease, in our America's region was driven by a 9 percentage points, decline utilization, as well as a 6% increase in operating costs.

the cost increase with primarily due to higher r&m, higher fuel expense, the lower utilization, compared to Q3

Quinton or peers. So if you kind of lay out the the day rate picture, right Leading Edge is flipped the last couple quarters, which I guess just speaks to the white space timing and seasonality, and that kind of stuff, but with what Pierce went through.

The decrease in utilization was due to higher dried-off and idle days.

In summary Q4 was a strong quarter, we delivered both strong financial results and free cash flow.

Quintin Kneen: Thank you, Sam. Jordan, I think we can go ahead and open it up for questions.

With that, I'll turn it back over to Clinton.

You know without with maybe a couple exceptions it sounds like things are shaping up to get you know, materially better as we move through this year and into next maybe just some context around the guidance and kind of your thoughts on how your Fleet average day rates move throughout the year and and heading into next, right. You were going up 4,000 bucks a day for a couple years that kind of trimmed back to. I think it was 1300 at Sam mentioned. But you know, how do you think that trajectory looks and kind of what's embedded at the midpoint of guidance for 26?

Thank you Sam. Uh, Jordan. I think we can go ahead and open it up for questions.

Operator: Great. In order to ask a question during this time, simply press star one on your telephone keypad. Your first question comes from the line of Jim Rollison from Raymond James. Your line is live.

James Rollyson: Yeah, you can call me Jimmy. That's fine. Good morning, everyone.

Jim Rollyson: Yeah, you can call me Jimmy. That's fine. Good morning, everyone.

Star 1 on your telephone keypad. Your first question comes from the line of Jimmy Rollies or Jim roly from Raymond James, your light is live

and you can call me Jimmy, that's fine.

Operator: Good morning.

James Rollyson: Hey. Quintin or Quintin, if you kind of lay out the day rate picture, right? Leading edge has flipped the last couple quarters, which I guess just speaks to the white space timing and seasonality and that kind of stuff. With what Quintin went through, you know, with maybe a couple exceptions, it sounds like things are shaping up to get, you know, materially better as we move through this year and into next. Maybe just some context around the guidance and kind of your thoughts on how your fleet average day rates move throughout the year and heading into next, right? You were going up $4,000 a day for a couple years. That kind of trimmed back to, I think it was $1,300 that Sam mentioned.

Jim Rollyson: Hey. Quintin or Quintin, if you kind of lay out the day rate picture, right? Leading edge has flipped the last couple quarters, which I guess just speaks to the white space timing and seasonality and that kind of stuff. With what Quintin went through, you know, with maybe a couple exceptions, it sounds like things are shaping up to get, you know, materially better as we move through this year and into next. Maybe just some context around the guidance and kind of your thoughts on how your fleet average day rates move throughout the year and heading into next, right? You were going up $4,000 a day for a couple years. That kind of trimmed back to, I think it was $1,300 that Sam mentioned. You know, how do you think that trajectory looks and kind of what's embedded at the midpoint of guidance for 2026?

Good morning everyone. Good morning. Hey

Um, Quinton or Piers. So if you kind of lay out the data rate picture, right—Leading Edge has flipped the last couple quarters, which I guess just speaks to the white space timing and seasonality, and that kind of stuff. But with what Piers went through...

Well, what else start, uh, you know, obviously we're expecting things to be somewhat flattish for 26, but looking for, um, a tightening in the market in the second half, we're not banking that into the guidance. Um, but if we do see that tightening, my hope is that we're going to see those day rates. Climb in 27 and 28 and another 3 and 4 thousand dollars a day. So it's, um, it it is uh, quite responsive to even small increases in demand for vessel usage. Uh, we're starting to see some signs of that. So, you know, if you go back 2 or 3 years, there were some slackness in uh

James Rollyson: You know, how do you think that trajectory looks and kind of what's embedded at the midpoint of guidance for 2026?

You know without with maybe a couple exceptions it sounds like things are shaping up to get you know, materially better as we move through this year and into next maybe just some context around the guidance and kind of your thoughts on how your Fleet average day rates move throughout the year and and heading into next, right. You were going up 4,000 bucks a day for a couple years that kind of trimmed back to. I think it was 1300 that Sam mentioned. But you know, how do you think that trajectory looks and kind of what's embedded at the midpoint of guidance for 26?

Quintin Kneen: Well, I'll start. you know, obviously we're expecting things to be somewhat flattish for 2026, looking for a tightening in the market in the second half. We're not banking that into the guidance. If we do see that tightening, my hope is that we're gonna see those day rates climb in 2027 and 2028 at another $3,000 and $4,000 a day. It's, it is quite responsive to even small increases in demand for vessel usage. We're starting to see some signs of that. you know, if you go back 2 or 3 years, there was some slackness in the Middle East. you know, you see that region was one of our best movers in the past quarter.

In the Middle East. But you know, you see that that that that that region was 1 of Our Best movers in the past quarter. I expect that to continue. I I'm getting very excited about what I'm seeing, develop in West Africa, and we saw some Rave increased their. So, as long as the world can still hold itself together and maybe as pear syndicated, we get, uh, you know, some relief from some of the taxing authorities in the UK, we'll see that market tighten up globally, um, and then you'll see those those 3 and 4 thousand dollar a day movements per year. Um,

Was going to say, but but he and I are in separate locations, so let me just ask here. So we wanted to add anything before we hand it back to you.

No. I mean Quincy you should join the commercial team. That was brilliant.

Well, what else to start? Uh, you know, obviously we're expecting things to be somewhat flattish for '26, but looking for, um, a tightening in the market in the second half. We're not banking that into the guidance, but if we do see that tightening, my hope is that we're going to see those day rates climb in '27 and '28, and another $3,000 to $4,000 a day.

So it's, um, it is quite responsive to even small increases in demand for vessel usage. We're starting to see some signs of that. So, you know, if you go back two or three years, there was some slackness in, uh,

Quintin Kneen: I expect that to continue. I'm getting very excited about what I'm seeing develop in West Africa, and we saw some rate increase there. As long as the world can still hold itself together, and maybe as Quintin Kneen indicated, we get, you know, some relief from the taxing authorities in the UK, we'll see that market tighten up globally. You'll see those $3,000 and $4,000 a day movements per year. I may have covered what Quintin Kneen was gonna say, he and I are in separate locations, let me just ask Quintin Kneen if he wanted to add anything before we hand it back to you.

No nothing, nothing. Nothing more to add. Well actually just I think um Jim we are seeing you know a lot of I think is Quintin 7 is opening remarks a lot of additional gender and pretended type of um conversations at the moment with our customers which does really bode well for the sort of second half of this year you know big projects both on the upci stuff and also on on the drilling side as well. So yeah, very very um, optimistic as as we get towards the last half of the year and I think as Quinton said, then we get the chance to really push rates and 27 to sort of Hope to where we we were in. Um, the last big time we got to to Really push rates.

In the Middle East. But you know, you see that that that that region was 1 of Our Best movers in the past quarter. I expect that to continue. I I'm getting very excited about what I'm seeing. Develop in West Africa and we saw some raving increased their. So as long as the world can still hold itself together and maybe as Pearce indicated, we get, uh, you know, some relief from some of the taxing authorities in the UK, we'll see that market tighten up globally, um, and then you'll see those those 3 and 4 thousand dollar a day movements per year. Um,

So I I may have covered with Pierce was going to say but he and I are in separate locations and let me just ask here if we wanted to add anything before we hand it back to you.

[Company Representative] (Tidewater): No, I mean, Quintin, you should join the commercial team. That was brilliant. Yeah. No, nothing more to add. I mean, well, actually just I think, Jim, we are seeing, you know, a lot of, I think as Quintin said in his opening remarks, a lot of additional tender and pre-tender type of conversations at the moment with our customers, which does really bode well for the sort of second half of this year. You know, big projects both on the EPCI stuff and also on the drilling side as well. Yeah, very optimistic as we get towards the latter half of the year.

Piers Middleton: No, I mean, Quintin, you should join the commercial team. That was brilliant. Yeah. No, nothing more to add. I mean, well, actually just I think, Jim, we are seeing, you know, a lot of, I think as Quintin said in his opening remarks, a lot of additional tender and pre-tender type of conversations at the moment with our customers, which does really bode well for the sort of second half of this year. You know, big projects both on the EPCI stuff and also on the drilling side as well. Yeah, very optimistic as we get towards the latter half of the year. I think as Quintin said, we get the chance to really push rates in 27 to hopefully where we were in the last big time we got to really push rates.

Yeah, that's certainly exciting and nice. Nice to actually have visibility Beyond just, uh, kind of hopes of of things going and my, my follow-up is probably for Sam, Sam. If you kind of line up your midpoint of guidance, let's just say for 26 and the little bit higher dry Dot capex and a little bit higher overall capex. Um and then you know, however you're thinking about working capital as teamx is kind of catching up. How are you thinking about free cash flow generation right now for 26?

Uh yeah Jim thanks. Um no I think the free cash should stay um fairly strong for 26. Um, you know we did see 426 obviously, we had a big bump in our cash collection. So um, you know if we look back over the last few years, um, you know, it should average out in the, you know, 300

No. I mean Quincy you should join the commercial team. That was brilliant. Um, yeah, no, no, nothing, nothing. Nothing more to add. I don't well actually just I think um Jim. We are saying you know, a lot of I think, as 277 is opening remarks, a lot of additional tender and pre-tender type of um conversations at the moment with our customers which does really bode well for the sort of second half of this year. You know big projects both on the upci stuff and also on the drilling

[Company Representative] (Tidewater): I think as Quintin said, we get the chance to really push rates in 27 to hopefully where we were in the last big time we got to really push rates.

James Rollyson: Yeah, that's certainly exciting and nice to actually have visibility beyond just the kinda hopes of things going. My follow-up is probably for Sam. Sam, if you kinda line up your midpoint of guidance, let's just say for 26 and the little bit higher dry dock CapEx and the little bit higher overall CapEx, then, you know, however you're thinking about working capital as Pemex is kind of catching up, how are you thinking about free cash flow generation right now for 26?

Jim Rollyson: Yeah, that's certainly exciting and nice to actually have visibility beyond just the kinda hopes of things going. My follow-up is probably for Sam. Sam, if you kinda line up your midpoint of guidance, let's just say for 26 and the little bit higher dry dock CapEx and the little bit higher overall CapEx, then, you know, however you're thinking about working capital as Pemex is kind of catching up, how are you thinking about free cash flow generation right now for 26?

Side as well. So yeah, very very um, optimistic. As we get towards the last half of the year and I think as Quinton said, then we get the chance to really push rates and 27 to sort of Hope to where we we were in. Um, the last big time we got to really push rates.

11 somewhere. Yeah, I guess the other thing I'd add to that Jim is that we did have a disproportionate bump in Q4 from the lump sum collections from PMX. And for certainly, very happy left to see that. I need to see them continue to pay at that level. But if you look at the DSO for us, it's actually abnormally low for such an internationally and Broad company and that may normalize. So that may eat up some, uh, otherwise, you know, operational cash flow in, uh, in 26. That's kind of where I was going. Thank you. Appreciate it, guys.

Thanks Jim.

Your next question comes from the line of Keith Beckman from Pickering Energy Partners your line is live.

Hey, thanks for taking my question. Um,

Yeah, that's certainly exciting and nice. Nice to actually have visibility Beyond just uh, kind of hopes of of things going and my my follow up, it's probably for Sam Sam. If you kind of line up your midpoint of guidance, let's just say for 26 and the little bit higher dry Dot capex and a little bit higher overall capex. Um and then you know however you're thinking about working capital as teamx this kind of catching up. How are you thinking about free cash flow generation right now for 26?

Sam: Yeah, Jim, thanks. No, I think the free cash should stay fairly strong for 2026. You know, we did see $426. Obviously, we had a big bump in our cash collection. You know, if we look back over the last few years, you know, it should average out in the, you know, $300 level somewhere.

Piers Middleton: Yeah, Jim, thanks. No, I think the free cash should stay fairly strong for 2026. You know, we did see $426. Obviously, we had a big bump in our cash collection. You know, if we look back over the last few years, you know, it should average out in the, you know, $300 level somewhere.

I always appreciate the slide that you guys kind of put out on new build economics. Uh,

I just kind of wanted to get a sense on maybe where you see the maximum best of life for a lot of a majority of the psvs in the industry. And then when you think a rough timeline maybe on when you think we could face either serious upgrades and Renovations or a full new build cycle, obviously looking much further down the road.

Yeah.

Um, yeah, Jim, thanks. Um, no, I think the free cash should stay, um, fairly strong for '26. Um, you know, we did see $426 million, obviously, we had a big bump in our cash collection. So, um, you know, if we look back over the last few years, um, you know, should average up in the, you know, $300 million range.

Quintin Kneen: Yeah. I guess the other thing I'd add to that, Jim, is that we did have a disproportionate bump in Q4 from the lump sum collections from Pemex, and we're certainly very happy and glad to see that. I need to see them continue to pay at that level. If you look at the DSO for us, it's actually abnormally low for such an internationally and broad company, and that may normalize. That may eat up some, otherwise, you know, operational cash flow in 2026.

James Rollyson: That's kinda where I was going. Thank you. Appreciate it, guys.

Jim Rollyson: That's kinda where I was going. Thank you. Appreciate it, guys.

11 somewhere. Yeah, I guess the other thing I'd add to that Jim is that we did have a disproportionate bump in Q4 from the lump sum collections from Pax. And we're certainly very happy and let's see that. I need to see them continue to pay at that level. But if you look at the DSO for us, it's actually abnormally low for such an internationally and Broad company and that may normalize. So that may eat up some uh, otherwise, you know, operational cash flow in uh in 26.

Quintin Kneen: Thanks, Jim.

That's kind of where I was going. Thank you, appreciate it, guys.

Thanks Jim.

Operator: Your next question comes from the line of Keith Beckman from Pickering Energy Partners. Your line is live.

Keith Beckman: Hey, thanks for taking my question. I always appreciate the slide that you guys kind of put out on new build economics. I just kinda wanted to get a sense on maybe where you see the maximum vessel life for a majority of the PSCs in the industry, and then when you think a rough timeline maybe on when you think we could face either serious upgrades and renovations or a full new build cycle, obviously looking much further down the road.

Keith Beckmann: Hey, thanks for taking my question. I always appreciate the slide that you guys kind of put out on new build economics. I just kinda wanted to get a sense on maybe where you see the maximum vessel life for a majority of the PSCs in the industry, and then when you think a rough timeline maybe on when you think we could face either serious upgrades and renovations or a full new build cycle, obviously looking much further down the road.

Partners, your line is live.

Hey, thanks for taking my question. Um,

I always appreciate the slide that you guys kind of put out on new build economics.

Well, I'll start and as I indicated, the Pierce West and I are in separate locations, I'm here with Sam. So he West me want to add something because he maintains those slides. But I will tell you that the industry is a lot more Capital discipline than it's ever been in. In in, in my 2 decades, in the industry, I was at an entry conference about a month ago and there this was a big discussion and nobody is interested in building. I mean, if you look at most people's financial statements, they use a 25 year depreciation life but the fact is these boats can can work well into 3035 years, uh, but they will need serious upgrades as they go forward. And that needs to be supported by day rates and so forth. So, you know, I think that uh, we're going to see real modest to almost no building in the next year. Um, and then if the industry does pull back, like I was just mentioning to Jim and, and 26 and 27, and you start to see average day rates closer to, 30,000 dollars a day.

I just kind of wanted to get a sense on maybe where you see the maximum best of life for a lot of the majority of the PSVs in the industry. And then, when you think—a rough timeline maybe—on when you think we could face either serious upgrades and renovations, or a full new build cycle, obviously looking much further down the road.

Quintin Kneen: Well, I'll start, and as I indicated, Piers, Wes, and I are in separate locations. I'm here with Sam. Wes may wanna add something 'cause he maintains those slides. I will tell you that the industry is a lot more capital disciplined than it's ever been in my two decades in the industry. I was at an industry conference about a month ago, and there, this was a big discussion, and nobody is interested in building. I mean, if you look at most people's financial statements, they use a 25-year depreciation life. The fact is these boats can work well into 30, 35 years. They will need serious upgrades as they go forward, and that needs to be supported by day rates and so forth.

Then you're definitely going to see some building. Um but at least from my discussions recently, I I believe it's going to be very moderate and and be more replacement oriented. Um, so we'll we'll have to see how it plays out, but I still think that we need to see day raised closer to $30,000 a day before you see anybody, uh, spending a lot of money and certainly before you see Banks supporting

It that's very helpful and then my second question was just around like right now, obviously you guys are focused on integrating the Brazil acquisition. I was just wondering if there's any other regions that could make sense to increase your Fleet, uh, looking forward down the road or on the other end of that, uh, is there any sort of Fleet rationalization, that could make sense at this point on, uh, maybe some some lower spec boats?

Quintin Kneen: You know, I think that we're gonna see real modest to almost no building in the next year. If the industry does pull back, like I was just mentioning to Jim in 2026 and 2027, and you start to see average day rates closer to $30,000 a day, you're definitely gonna see some building. At least from my discussions recently, I believe it's gonna be very moderate and be more replacement oriented. We'll have to see how it plays out. I still think that we need to see day rates closer to $30,000 a day before you see anybody spending a lot of money, and certainly before you see banks supporting it.

Yeah, well I'll start and as I indicated Peters, West and I are in separate locations, I'm here with Sam. So either West may want to add something because he maintains, so slant. But I will tell you that the industry is a lot more Capital disciplined than it's ever been in in in in my 2nd and nobody is interested in building. I mean, if you look at most people's financial statements they use a 25 year depreciation line, but the fact is these boats can can work well into 3035 years, but they will need serious upgrades as they go forward. And that needs to be supported by day rates and so forth. So, you know, I think that uh, we're going to see real modest to almost no building in the next year. Um, and then if the industry does pull back, like I was just mentioning to Jim and and 26 and 27 and you start to see average day rates closer to 30.

Year, you know, there's some vessels, hit the wall so economically they'll you know, we'll sell them off. But certainly the reasons that we're in today, are reasons that we are dedicated to um I'm actually I mentioned it on in 1 of the remarks. Uh I think earlier on the call uh I can't remember if it's in the questions or on the call but I am excited about West Africa. I I started to see things really solidify their and um yeah you know historically I had been focused on the Americas and obviously we got the deal done in Brazil.

000 a day then you're definitely going to see some building. Um but at least from my discussions recently, I I believe it's going to be very moderate and and we be more replacement oriented. Um, so we'll we'll have to see how it plays out, but I still think that we need to see day raised closer to $30,000 a day before you see anybody, uh, spending a lot of money and certainly before you see Banks supporting

Um I guess now more I'm tilting towards West Africa, but we'll just have to see, you know, a lot of assets to do with price and and and that's always hard to say.

Keith Beckman: Awesome. That's very helpful. My second question was just around, like right now, obviously you guys are focused on integrating the Brazil acquisition. I was just wondering if there's any other regions that could make sense to increase your fleet looking forward down the road. On the other end of that, is there any sort of fleet rationalization that could make sense at this point on maybe some lower spec boats?

Keith Beckmann: Awesome. That's very helpful. My second question was just around, like right now, obviously you guys are focused on integrating the Brazil acquisition. I was just wondering if there's any other regions that could make sense to increase your fleet looking forward down the road. On the other end of that, is there any sort of fleet rationalization that could make sense at this point on maybe some lower spec boats?

I really appreciate you taking the time and I'll turn it back.

Thank you.

Your final question comes from the line of Greg Lewis from btig, your line is live.

Hey, thank you and good morning and thanks for taking my questions.

Certainly, good morning.

Them. That's very helpful and then my second question was just around like right now. Obviously you guys are focused on integrating the Brazil acquisition. I was just wondering if there's any other regions that could make sense to increase your Fleet, uh, looking forward down the road or on the other end of that, uh, is there any sort of Fleet rationalization, that could make sense at this point on, uh, maybe some some lower spec boats?

Quintin Kneen: Well, you know, we sell boats on a regular basis. Sam, I think, covered some of the boats we sold during the year. Every year, you know, some vessels hit the wall, so economically they'll, you know, we'll sell them off. Certainly the regions that we're in today are regions that we are dedicated to. I actually mentioned it on, in one of the remarks, I think earlier on the call. I can't remember if it was in the questions or on the call, I am excited about West Africa. I started to see things really solidify there. You know, historically I had been focused on the Americas, and obviously we got the deal done in Brazil. I guess now more I'm tilting towards West Africa, we'll just have to see.

Hey um, I did want to talk a little bit about um, you know, what's happening in the Middle East. You know, you mentioned these things are kind of just

Business, as usual. I get from Saudi Arabia, um, and realize it. It's been years right? Since Saudi evacuator rigs. I think you probably have to go back to uh,

uh what Desert Storm um which I don't, I don't I doubt maybe Quinton maybe you were in the industry, but I don't know anyone else was, um, as as we think about that, is there any kind of

Well, you know, we we sell both on a regular basis and Sam I think covered some of the boats we've sold during the year. So every year, you know there's some vessels hit the wall so economically they'll you know, we'll sell them off. But certainly the reasons that we're in today, are reasons that we are dedicated to, um, I'm actually I mentioned this on in 1 of the remarks. Uh, I think earlier on the call uh I can't remember if it was in the questions or on the call but I am excited about West Africa. I started to see things really solidify their. And um so you know historically I had been focused on the Americas and obviously we got the deal done in Brazil.

Way to think about if we do evacuate rigs, as we think about the contracts with a rampco, are there like, force majour Clauses are there? Is there any kind of

Quintin Kneen: you know, a lot of it has to do with price and that's always hard to say.

Um, I guess now more I'm tilting towards West Africa, but we'll just have to see, you know, a lot of it has to do with price and and that's always hard to say.

Operator: I really appreciate you taking the time, and I'll turn it back.

Keith Beckmann: I really appreciate you taking the time, and I'll turn it back.

Quintin Kneen: Thank you.

I really appreciate you taking the time, and I'll turn it back.

Is there any kind of contract language that allows them to pause pause Contracting or anything like that? How should we think about the you know realizing it's a changing by the hour? Probably

Operator: Your final question comes from the line of Greg Lewis from BTIG. Your line is live.

Thank you.

Your final question comes from the line of Greg Lewis from btig, your line is live.

Greg Lewis: Hey, thank you and good morning, and thanks for taking my questions.

Quintin Kneen: Certainly. Good morning.

Hey, thank you and good morning and thanks for taking my questions.

Greg Lewis: Hey. I did wanna talk a little bit about, you know, what's happening in the Middle East. You know, you mentioned things are kind of just business as usual, I guess, in Saudi Arabia. Realize it's been years, right, since Saudi evacuated rigs. I think you probably have to go back to, what? Desert Storm, which I doubt. Maybe Quintin, maybe you were in the in-industry, but I doubt anyone else was. As we think about that, is there any kind of way to think about if we do evacuate rigs, as we think about the contracts with Aramco, are there, like, force majeure clauses? Is there any kind of contract language that allows them to pause contracting or anything like that?

Certainly, good morning.

hey um, I did want to talk a little bit about um, you know, what's happening in the Middle East, you know, you mentioned the things are kind of just

Business as usual, I guess from Saudi Arabia, um, and realize it, it's been years, right? Since Saudi evacuated rigs. I think you probably have to go back to uh,

Right? So, you're right to think about the Middle East as the primary impact of the area, of course. Um, I will tell you that, when it comes to Saudi aramco, they rule the roost and no, there's nothing in the contract that gives them the privilege to, to cancel it. It will. But, you know, they are a strong force and they will come to us if they feel, they need to reduce the vessel account. But the reality is during these times, people need oil and in the production becomes very important uh and so in that particular area, where it is very production post

Uh, what, Desert Storm? Um, which I—I don't—I doubt they made, Quintin, maybe you were in the industry, but I don't know anyone else was. Um, as we think about that, is there any kind of—

Way to think about if we do evacuate rigs, as we think about the contracts with a Rampco, are there, like, force majeure clauses? Are there any kind of—

Greg Lewis: How should we think about the, you know, realizing it's changing by the hour probably?

Is there any kind of contract language that allows them to pause pause Contracting or anything like that? How should we think about the you know realizing it's a changing by the hour? Probably

Quintin Kneen: Right. You're right to think about the Middle East as the primary impacted area. I will tell you that when it comes to Saudi Aramco, they rule the roost. No, there's nothing in the contract that gives them the privilege to cancel at will. You know, they are a strong force, and they will come to us if they feel they need to reduce the vessel count. The reality is, during these times, people need oil and the production becomes very important. In that particular area where it is very production-focused offshore, yeah, I expect that, you know, we may see things like insurance costs go up.

Focused offshore. Yeah, I I expect that uh, you know, we may see things like Insurance costs. Go up. We may see things like uh, Personnel costs going up because it sometimes gets harder for people to, uh, you know, to, to go there, you know. During during those times, at least that's what we've seen in the past. But I, I'm honestly at this point, not concerned. Um, but you know, obviously, we'll we'll update you and, and the next month and a half or in May when, when we do the first quarter call but, uh, you know, it's, um, it's it's just, it's it's just what we do. So it's, it's right now, it's just not a concern.

Okay great and my other 1. Hey appreciating um you know, you guys have your ongoing uh merger with with Wilson and and happening, you know, I I guess I'm just kind of curious. It looked like ocean pack is a is acquiring CBO in Brazil. Also has anything changed in Brazil. That's kind of driving this kind of flurry of m&a, activity. I I feel like everybody's been waiting for potential consolidation in Brazil for. I don't know if a few years now and it just seems like all at once. This is happening, is, is there anything that's changed? That's driving this. Just kind of curious. If you have any kind of color, you could provide around that.

Quintin Kneen: We may see things like, personnel costs going up because it sometimes gets harder for people to, you know, to go there, you know, during those times. At least that's what we've seen in the past. I'm honestly, at this point, not concerned. You know, obviously, we'll update you in the next month and a half or in May when we do the Q1 call. No, it's just what we do. So it's right now it's just not a concern.

To reduce the vessel account. But the reality is during these times people need oil and in the production becomes very important, uh, and so in that particular area where it is very production focused offshore, you know, I I expect that uh, you know, we may see things like Insurance costs go up. We may see things like um,

it's the optimism that if it's in Brazil today, you know, there was some, um, back and forth in 25 about, you know, what Petros was going to be doing and what the activity levels were going to be and and generally, you know, the the strength of the South American market and and and and I I will tell you that people are just very focused on finding long-term contracts with good payers and good margins and Brazil, fits that bill

Personnel costs going up because it sometimes gets harder for people to, uh, you know, it's to to go there, you know. During during those times, at least that's what we've seen in the past. But I I'm honestly at this point, not concerned. Um, but you know, obviously, we'll we'll update you and, and the next month and a half or in May when, when we do the first quarter call but, uh, you know, it's um, it's it's it's it's just what we do. So it's it's right now, it's just not a concern.

Greg Lewis: Okay. Great. My other one, hey, appreciating, you know, you guys have your ongoing merger with Wilson and it happening. You know, I guess I'm just kinda curious. It looked like OceanPact is acquiring CBO in Brazil also. Has anything changed in Brazil that's kinda driving this kind of flurry of M&A activity? I feel like everybody's been waiting for potential consolidation in Brazil for, I don't know, a few years now. It just seems like all at once this is happening. Is there anything that's changed that's driving this? Just kinda curious if you've any kinda color you could provide around that.

Um I I think that it's just coincidental that these the these 2 transactions have happened um real quickly. Uh you know, whisper talk has been that they've been going on for a couple of years and so as a result, you know, yeah I think it's just more. What's the of the timing? But the general optimism in Brazil is, is quite nice.

Okay, super helpful and and and uh, congrats on the quarter too.

Thanks Greg, thanks Greg.

That concludes today's question and answer session. I'll now turn the call back over to Quinton mean for closing remarks.

Quintin Kneen: It's the optimism that's in Brazil today. You know, there was some back and forth in 25 about, you know, what Petrobras was gonna be doing and what the activity levels were going to be and generally, you know, the strength of the South American market. I will tell you that people are just very focused on finding long-term contracts with good payers at good margins, and Brazil fits that bill. I think that it's just coincidental that these two transactions have happened real quickly. You know, whisper talk has been that they've been going on for a couple of years, as a result, you know. Yeah, I think it's just more coincidental of the timing, but the general optimism in Brazil is quite nice.

Okay great and my other 1. Hey appreciating um you know, you guys have your ongoing uh merger with with Wilson and and happening, you know, I I guess I'm just kind of curious. It looked like ocean pack is a is acquiring CBO in Brazil. Also has anything changed in Brazil. That's kind of driving this kind of flurry of m&a, activity. I I feel like everybody's been waiting for potential consolidation in Brazil for. I don't know if a few years now and it just seems like all at once. This is happening is, is there anything that's changed? That's driving this just kind of curious. If you have any kind of caller, you can provide around that.

Jordan, thank you and thank you everyone. We will update you again in May goodbye.

that concludes today's meeting, you may now disconnect

It's the optimism that if it's in Brazil today, you know, there was some, um, back and forth in '25 about, you know, what Petrobras was going to be doing and what the activity levels were going to be and, and generally, you know, the strength of the South American market, and, and, and I, I will tell you that people are just very focused on finding long-term contracts with good payers and good margins, and Brazil fits that bill.

Um, I think that this just points to that. I know that these, these two transactions have happened, um, real quickly. Uh, you know,

Greg Lewis: Okay. Super helpful and, congrats on the quarter too.

Whisper talk has been that they've been going on for a couple of years, and so, as a result, you know, yeah, I think it's just more coincidental of the timing, but the general optimism in Brazil is quite nice. Okay, super helpful. And, and, and, uh, congrats on the quarter too.

Quintin Kneen: Thanks, Greg.

Operator: Thanks, Greg. That concludes today's question and answer session. I'll now turn the call back over to Quintin Kneen for closing remarks.

Thanks Greg, thanks Greg.

That concludes today's question and answer session. I'll now turn the call back over to Quintin Kneen for closing remarks.

Quintin Kneen: Jordan, thank you, and thank you, everyone. We will update you again in May. Goodbye.

Jordan, thank you and thank you everyone. We will update you again in May goodbye.

Operator: That concludes today's meeting. You may now disconnect.

That concludes today's meeting. You may now disconnect.

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