Delivered record annual performance in 2025 despite softer offshore drilling demand, driven by a focus on scalable infrastructure and operational excellence.

Achieved gross margin expansion to 49% in Q4, exceeding expectations due to improved vessel uptime and lower-than-anticipated dry dock and repair days.

Attributed revenue growth to higher average day rates and resilient demand across production support and offshore construction segments.

Completed a strategic internal realignment of vessel ownership to consolidate the fleet under a single U.S. entity, optimizing the corporate structure.

Maintained pricing leverage as global vessel supply remains essentially unchanged or declining, with no newbuild orders recorded since 2024.

Noted that while Operation Epic Fury introduces Middle East uncertainty, 80% of regional revenue from Saudi Arabia remains 'business as usual' with immaterial cost impacts.

Identified a structural shift where a decade of underinvestment is forcing E&P companies to pivot from capital returns back to exploration to address declining resource bases.

Raised 2026 revenue guidance to $1.43 billion–$1.48 billion to account for the Wilson Sons acquisition, assuming a June 30, 2026, closing date.

Anticipates a market tightening in the second half of 2026, supported by a material increase in tenders and contracts compared to early 2025.

Assumes a 2026 utilization rate of approximately 80%, leaving 11% capacity available to capture potential rate spikes if the market tightens faster than expected.

Projects 2026 dry dock costs of $122 million, including $46 million for engine overhauls, impacting utilization by approximately five percentage points.

Maintains a capital allocation strategy targeting net debt below 1x EBITDA, with a goal to return to net debt zero within approximately six quarters of any major outlay.

Announced the $500 million acquisition of Wilson Sons Offshore Ultratug to strengthen Tidewater's platform in the high-growth Brazilian market.

Recognized a one-time non-cash tax benefit of $201.5 million in 2025 related to the utilization of foreign tax credits following the vessel ownership realignment.

Exercised purchase options for two leased vessels at prices explicitly stated to be below current market value, requiring a $24.4 million capital outlay in 2026.

Reported a significant working capital benefit in Q4 2025 driven by a $40 million reduction in receivables from the company's largest customer in Mexico.

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Management expects day rates to remain relatively flat for much of 2026 before potentially climbing by $3,000 to $4,000 per day in 2027 and 2028.

The market is highly responsive to small increases in demand due to the inelastic nature of current vessel supply.

Management believes the industry remains highly capital disciplined and does not expect significant newbuild activity in the next year.

Average day rates would likely need to reach closer to $30,000 per day before newbuild orders become economically viable or gain bank support.

Management clarified that Saudi Aramco contracts do not contain 'cancel at will' provisions, though the customer holds significant influence.

Current hostilities are expected to impact insurance and personnel costs rather than halt production-focused offshore activity.

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