This discussion analyzes Tidewater Inc.'s expected pro forma net debt/EBITDA ratio at the closing of its Wilson Sons Offshore Ultratug acquisition and projects net leverage at year-end 2026 based on midpoint financial guidance. It highlights a disciplined capital structure and strong balance sheet management post-acquisition.
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What is the expected pro forma net debt/EBITDA at closing and your projected net leverage at 12/31/2026 assuming midpoint guidance?
Summary:
Summary:
| Metric | Value / Expectation | Citation(s) |
|---|---|---|
| Wilson’s Acquisition Transaction Price | $500 million (all cash) | 12 |
| Assumed Wilson’s Debt | ~$261 million at 3.6% interest | 12 |
| Net leverage at closing (pro forma) | Below 1x net debt / EBITDA | 12 |
| 2025 Adjusted EBITDA | $598.1 million | 74 |
| 2026 Revenue Guidance | $1.43B to $1.48B | 3 |
| 2026 G&A Costs (excluding M&A) | ~$123 million | 75 |
| 2026 CapEx Guidance | ~$51 million | 5 |
| 2025 Free Cash Flow | $426 million (record year) | 74 |
| 2026 Free Cash Flow Projection | ~$300 - $311 million (normalized) | 6 |
| Debt Maturity Profile Post-Refinancing and Wilson’s | No major maturities before 2030, Wilson’s debt amortizes to 2035 | 815 |
Tidewater Inc.'s management communicates a firm commitment to maintaining a prudent capital structure, targeting around 1x net debt/EBITDA leverage. The Wilson’s acquisition is expected to close mid-2026, with the pro forma net leverage already below 1x at that point, supported by the low-cost assumed debt and substantial cash on hand.
For the full year 2026, assuming midpoint guidance, the net leverage ratio is expected to remain stable near or below 1x, leveraging strong EBITDA, robust free cash flow generation, and the company's disciplined capital allocation and deleveraging capabilities.
This leverage positioning reflects a strong balance sheet with flexibility to pursue growth opportunities while maintaining shareholder returns consistent with their financial policies 31526.
This analysis comprehensively responds to the query regarding Tidewater’s expected pro forma net debt/EBITDA at closing and net leverage at year-end 2026, substantiated fully by the company’s own disclosures.
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