Skip to contentHome page Seeking Alpha - Power to InvestorsDec. 09, 2025 6:13 AM ETTidewater Inc. (TDW) StockAlberto Ayuso Martín595 FollowersComment(1)SummaryTidewater presents a compelling opportunity after a recent price drop and strong Q3 results, with management signaling potential M&A activity.TDW's sector leadership, backlog, low leverage (0.4x EBITDA), and virtually non-existent OSV order book position it to benefit from tightening supply and rising rates by 2027.A $500 million share buyback authorization, about 18% of market cap, provides a robust safety net if M&A does not materialize.TheKaran/iStock via Getty ImagesIntroductionAfter exceeding the target price in CMBT in less than a month since my last article was published, it was time to consider other attractive opportunities in which to reinvest. Fortunately, one company I knew well and whereThis article was written byAlberto Ayuso Martín595 FollowersIndividual investor. Navigating the line between price and value.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TDW over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comment(1)Quick InsightsTDW is tactically prioritizing M&A over buybacks, aiming to consolidate its sector leadership; however, the $500 million buyback program remains a fallback if acquisitions do not occur.With virtually no new OSVs on order and demand expected to rise by 2027, TDW should benefit from tightening supply and higher freight rates, supporting its ~50% gross margins.TDW has about $49 million in outstanding Pemex receivables; recent payments and a strong collection history suggest a reasonable likelihood of near-term cash conversion.Recommended For YouTo ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.Is this happening to you frequently? Please report it on our feedback forum.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.