Key Takeaways OII signed a vessel services deal to deploy the Harvey Deep Sea for subsea ops in the Gulf of Mexico. MPSV Harvey Deep Sea is chartered by Oceaneering through February 2027. The Harvey Deep Sea uses advanced remote operations tech to support IMR solutions in the region.Oceaneering International, Inc.’s (OII) Offshore Projects Group (“OPG”) segment has signed a vessel services agreement with a major operator to deploy the MPSV Harvey Deep Sea for performing subsea operations in the Gulf of Me ...

Key Takeaways OII secured a $33M IDIQ contract to supply submarine systems for the U.S. Navy's Virginia-class fleet. Components include sail racetracks, payload tube platforms and canister support kits with shipping crates. All work will be executed in Chesapeake, VA, supporting Navy readiness and boosting regional defense jobs.Oceaneering International, Inc. (OII) has secured a major firm-fixed-price, indefinite-delivery/indefinite-quantity (“IDIQ”) contract from the United States Navy. Valued at $33,134 ...

Core Viewpoint - Oceaneering International (OII) shares have increased by approximately 6% over the past month, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Group 1: Earnings Report and Market Reaction - No earnings estimate revisions have been made by analysts in the last two months, indicating a period of stability in expectations [2] - The stock has an average Growth Score of C and a similar score for momentum, while achieving a B grade for value, placing it in the top 40% for this investment strategy [3] Group 2: Outlook and Ratings - Oceaneering International holds a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return from the stock in the upcoming months [4]

Group 1 - The year 2025 is anticipated to be challenging for market participants, with the S&P 500 down 6% despite some recovery from previous lows [1] - Certain companies and industries have experienced more significant difficulties than others, indicating a disparity in performance across the market [1] - Crude Value Insights focuses on oil and natural gas investments, emphasizing cash flow generation as a key factor for value and growth prospects [1] Group 2 - Subscribers of Crude Value Insights benefit from a model account featuring over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [2] - The service aims to provide insights and support for investors interested in the oil and gas industry [2][3]

Financial Data and Key Metrics Changes - The company reported net income of $50.4 million, or $0.49 per share, representing a 233% year-over-year increase [8] - Consolidated revenue reached $675 million, a 13% improvement compared to the first quarter of 2024, with a consolidated adjusted EBITDA of $96.7 million, up 57% year-over-year [9] - The backlog as of March 31, 2025, was $543 million, a decrease of $54 million from the first quarter of 2024 [14] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) segment saw a 25% increase in EBITDA, driven by an 8% increase in average ROV revenue per day utilized and a 4% increase in days utilized [10] - Offshore Projects Group (OPG) achieved a revenue increase of 43% and significant improvements in operating income, with operating income of $35.7 million and a margin of 22% [15] - The manufactured products segment experienced a 4% increase in revenue, but operating income declined significantly due to a $10.4 million inventory reserve related to the theme park ride business [13] Market Data and Key Metrics Changes - The company maintained a fleet count of 250 ROV systems, with 60% of the contracted floating rig market covered by ROV contracts [12] - Average ROV revenue per day utilized increased to $10,788, with fleet utilization improving to 67% [11] Company Strategy and Development Direction - The company is focused on leveraging its strong balance sheet and diverse geographies to navigate market uncertainties, with a first quarter order intake of approximately $1.2 billion [7] - The Aerospace and Defense Technologies (AdTech) segment was awarded the largest initial contract value in the company's history, expected to drive significant operating income growth in 2025 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for 2025 despite market uncertainties, citing a strong backlog and order intake [7][26] - The company anticipates revenue and EBITDA increases for the second quarter of 2025, with EBITDA projected to be in the range of $95 million to $105 million [18] Other Important Information - The company utilized $80.7 million in cash for operating activities and $26.1 million in capital expenditures, resulting in negative free cash flow of $106.8 million [16] - The ending cash position was $382 million, with no borrowings under the secured revolving credit facility [17] Q&A Session Summary Question: Opportunities for GDI and ROV demand - Management discussed the potential for GDI to enhance integrity management and data solutions, which could drive demand for ROVs through underwater inspections [32][36] Question: Confidence in second half activity levels - Management expressed confidence in maintaining activity levels based on strong customer relationships and a growing pipeline, despite potential commodity price volatility [46][50] Question: ROV average revenue per day outlook - Management projected a potential increase in ROV day rates, expecting to touch on $11,000 per day, with a 5% to 10% exit rate increase anticipated [56][57] Question: Growth opportunities for ROV business in 2026 - Management indicated that growth in the ROV business would depend on vessel activity, which remains strong, and emphasized the importance of providing holistic solutions to customers [62][67]

Financial Data and Key Metrics Changes - Oceaneering reported a net income of $50.4 million or $0.49 per share, a 233% year-over-year increase [5] - Consolidated revenue reached $675 million, improving by 13% compared to Q1 2024, with operating income doubling to $73.5 million and adjusted EBITDA increasing by 57% to $96.7 million [6][10] - The company achieved an order intake of approximately $1.2 billion in Q1 2025, with a current backlog of $543 million [5][10] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) saw a 10% increase in revenue, with operating income rising by 35% to $59.6 million and EBITDA margin improving to 35% from 31% [8][10] - Offshore Projects Group (OPG) experienced a 43% revenue increase, with operating income of $35.7 million and an operating income margin of 22% [10] - Manufactured Products revenue increased by 4%, but operating income declined due to a $10.4 million inventory reserve [9][10] - Integrity Management and Digital Solutions (IMDS) reported flat revenue and operating income compared to Q1 2024 [10] Market Data and Key Metrics Changes - As of March 31, 2025, Oceaneering held 60% of the contracted floating rig market with ROV contracts on 79 of 131 floating rigs [9] - Average ROV revenue per day utilized increased to $10,788, with fleet utilization improving to 67% [8] Company Strategy and Development Direction - Oceaneering aims to leverage its strong backlog and diverse geographies to navigate market uncertainties, focusing on energy services and products [4][5] - The company is investing in data-driven solutions through its acquisition of Global Design Innovation (GDI) to enhance integrity management and underwater inspections [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for 2025 despite market uncertainties, citing strong order intake and backlog [5][18] - The company anticipates EBITDA for 2025 to be in the range of $380 million to $430 million, supported by a diverse backlog [18] Other Important Information - Oceaneering utilized $80.7 million in cash for operating activities and $26.1 million in capital expenditures, resulting in negative free cash flow of $106.8 million [11] - The company repurchased approximately $10 million worth of shares during the quarter [11] Q&A Session Summary Question: Opportunities from GDI acquisition - Management highlighted the potential for GDI to enhance data-driven approaches in integrity management and underwater inspections, which could increase ROV demand [22][24] Question: ROV support mix in Q1 - The mix was reported as 62% drill support and 38% vessel-based activity [25] Question: Confidence in second half activity - Management noted strong order intake and backlog, indicating confidence in maintaining activity levels despite potential commodity price volatility [34][36] Question: ROV average revenue per day outlook - Management projected a potential increase in ROV day rates, expecting to touch $11,000 per day [44] Question: Growth opportunities for ROV business - Management indicated that strong vessel activity could offset any declines in rig count, maintaining optimism for ROV business growth [47][49]

Core Viewpoint - Oceaneering International, Inc. (OII) reported strong financial results for the first quarter of 2025, with adjusted profit and revenue exceeding expectations, driven by robust performance in several segments, particularly Subsea Robotics and Offshore Projects Group [1][2]. Financial Performance - Adjusted profit for Q1 2025 was 43 cents per share, surpassing the Zacks Consensus Estimate of 36 cents and significantly up from 14 cents in the same quarter last year [1]. - Total revenues reached $674.5 million, exceeding the Zacks Consensus Estimate of $664 million and reflecting a year-over-year increase of approximately 12.6% from $599.1 million [1]. Segment Performance - **Subsea Robotics**: Revenues totaled $206 million, up from $186.9 million year-over-year, but missed the estimate of $214.2 million. Operating income was $59.6 million, an increase from $44.2 million, but also below the estimate of $64.1 million [3][4]. - **Manufactured Products**: Revenues increased to $135 million from $129.5 million year-over-year, beating the estimate of $129.6 million. However, operating profit decreased to $8.7 million from $13.2 million, missing the estimate [4][5]. - **Offshore Projects Group**: Revenues surged by about 43.4% to $164.9 million from $115.1 million year-over-year, exceeding the estimate of $151.9 million. Operating income rose to $35.7 million from $0.8 million, also beating the estimate [6]. - **Integrity Management & Digital Solutions**: Revenues increased to $71.4 million from $69.7 million year-over-year, surpassing the estimate. Operating income slightly decreased to $3.5 million from $3.6 million, matching the projection [7]. - **Aerospace and Defense Technologies**: Revenues fell to $97.2 million from $98 million year-over-year, missing the estimate. Operating income dropped to $10.7 million from $12.8 million, also below the estimate [8]. Capital Expenditure and Balance Sheet - Capital expenditure for Q1 2025, including acquisitions, totaled $27.8 million. As of March 31, 2025, OII had cash and cash equivalents of $382 million and long-term debt of approximately $483.3 million, resulting in a debt-to-total capital ratio of 38.3% [9]. Outlook - OII expects full-year 2025 EBITDA to be in the range of $380 million to $430 million, with consolidated revenues projected to increase in Q2 2025 compared to Q2 2024. The company anticipates improvements in operating profitability across several segments [10][11][12].

Company Performance - Oceaneering International (OII) reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, and showing a significant increase from $0.14 per share a year ago, representing an earnings surprise of 19.44% [1] - The company posted revenues of $674.52 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.65%, and up from $599.09 million in the same quarter last year [2] - Oceaneering International has surpassed consensus revenue estimates four times over the last four quarters [2] Stock Performance - Oceaneering International shares have declined approximately 33.4% since the beginning of the year, compared to a decline of 10.1% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.40 on revenues of $698.49 million, and for the current fiscal year, it is $1.75 on revenues of $2.73 billion [7] Industry Outlook - The Oil and Gas - Field Services industry, to which Oceaneering International belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Performance - Oceaneering reported Q1 2025 revenue of $675 million, a 13% increase year over year, with operating income of $73.5 million, a 100% increase year over year[6]. - Adjusted EBITDA for Q1 2025 was $96.7 million, reflecting a 57% increase year over year, exceeding guidance and consensus estimates[4]. - Net income for Q1 2025 reached $50.4 million, a 233% increase compared to the same quarter last year[6]. - Total revenue for the three months ended March 31, 2025, was $674,523,000, an increase of 12.6% compared to $599,092,000 for the same period in 2024[21]. - Operating income for the same period was $73,472,000, representing an operating income margin of 11%, up from 6% in the prior year[21]. - Adjusted Net Income for Q1 2025 was $44,017,000, with a diluted EPS of $0.43, compared to $13,888,000 and $0.14 in Q1 2024[28]. - EBITDA for Q1 2025 was $97,701,000, with an EBITDA margin of 14%, compared to 11% in Q1 2024[29]. - The company has shown consistent growth in EBITDA margins across various segments, indicating strong operational efficiency[38]. Segment Performance - The Aerospace and Defense Technologies segment secured the largest initial contract in Oceaneering's history, contributing to the 2025 growth outlook[4]. - The Subsea Robotics segment's operating income improved by 35% to $59.6 million, with an EBITDA margin expansion of 413 basis points to 35%[7]. - Subsea Robotics segment revenue increased to $205,976,000, a rise of 10.2% from $186,932,000 year-over-year[21]. - The Offshore Projects Group (OPG) reported operating income of $35.7 million, with revenue increasing to $165 million and an operating income margin of 22%[12]. - The Offshore Projects Group reported revenue of $164,941,000, significantly up from $115,054,000, marking a 43.5% increase[21]. Cash Flow and Guidance - Cash flow used in operating activities was $(80.7) million, with a free cash flow of $(107) million, and an ending cash position of $382 million[6]. - Free Cash Flow for the three months ended March 31, 2025, was $(106,806,000), a decrease from $(95,235,000) in the same period last year[31]. - Full-year 2025 EBITDA guidance is reiterated at $380 million to $430 million, with a book-to-bill ratio for Manufactured Products expected between 0.9 and 1.0[5]. - For Q2 2025, consolidated revenue is expected to increase, with EBITDA projected in the range of $95 million to $105 million[9]. - For the year ending December 31, 2025, consolidated EBITDA is expected to range from $380,000 to $430,000 thousand[33]. - The estimated free cash flow for the year ending December 31, 2025, is projected to be between $110,000 and $130,000 thousand[35]. - For the year ending December 31, 2025, net income is anticipated to be between $160,000 and $190,000 thousand[35]. Operational Metrics - ROV utilization rate improved to 67% in Q1 2025, up from 64% in the same quarter last year[21]. - Unallocated expenses for the quarter were $44.6 million, consistent with guidance[12]. - Capital expenditures for the period totaled $27,815,000, slightly higher than $25,518,000 in Q1 2024[24]. - The backlog at the end of the period was $543,000,000, down from $597,000,000 in Q1 2024[21].

Core Viewpoint - Oceaneering International, Inc. (OII) is expected to report first-quarter earnings on April 23, with earnings estimated at 36 cents per share and revenues at $663.56 million, reflecting a year-over-year revenue increase of 10.76% [1][3]. Group 1: Previous Quarter Performance - In the last reported quarter, OII's earnings were 37 cents per share, missing the consensus estimate by 8 cents, attributed to lower operating income from several segments [2]. - Revenues for the last quarter were $713 million, exceeding the Zacks Consensus Estimate by 4.5% [2]. - OII has missed earnings estimates in each of the last four quarters, with an average negative surprise of 28.40% [3]. Group 2: Factors Influencing Q1 Performance - OII's revenues are expected to have improved due to strong demand from the offshore energy industry, particularly in deepwater exploration and production [4]. - The anticipated revenue growth is driven by robust performance in the energy services and products segments, with expected growth of 14.6% in Subsea Robotics and 32% in Offshore Projects Group compared to the previous year [5]. - Strong relationships with financially stable exploration and production companies provide OII with consistent revenues and stability [6]. Group 3: Demand and Cost Considerations - Demand for OII's services is expected to remain strong due to ongoing offshore energy exploration and production, supported by rising global energy consumption and a shift to cleaner energy [7]. - However, OII's costs are projected to increase, with the cost of services and products expected to reach $546.8 million, a 7.3% increase from the previous year [8]. - Selling, general, and administrative expenses are also expected to rise from $55.7 million to $59.7 million [8]. Group 4: Earnings Prediction - The model predicts an earnings beat for OII, supported by a positive Earnings ESP of +4.23% and a Zacks Rank of 3 [10][11].