Oceaneering International (OII) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual ...

Share HOUSTON--(BUSINESS WIRE)--Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) announced its participation at upcoming investor conferences during the fourth quarter of 2025. Oceaneering's most recent presentation is available on the Investor Relations page of Oceaneering's website at https://investors.oceaneering.com/presentations-webcasts/default.aspx. Oceaneering is a global technology company delivering engineered services and products and robotic solutions to the offshore energy, defense, a ...

Core Viewpoint - Oceaneering International, Inc. has been awarded a contract by bp Exploration (Caspian Sea) Ltd. for riserless light well intervention services in the Azeri-Chirag-Deepwater Gunashli oilfield, indicating a continued partnership and trust in Oceaneering's capabilities [1][3]. Group 1: Contract Details - The contract involves a multi-well mechanical wireline intervention campaign utilizing Oceaneering's deepwater riserless light well intervention systems integrated onto a customer-provided subsea construction vessel [2]. - Project management, engineering, and systems integration services will be provided by both local and international personnel from Oceaneering [2]. - Engineering and premobilization activities have already begun, with field operations expected to start in the fourth quarter of 2025 [2]. Group 2: Company Background - Oceaneering is a global technology company that delivers engineered services and products, as well as robotic solutions, to various industries including offshore energy, defense, aerospace, and manufacturing [4].

Core Insights - Oceaneering International, Inc. (OII) reported an adjusted profit of 55 cents per share for Q3 2025, exceeding the Zacks Consensus Estimate of 42 cents and up from 36 cents in the same quarter last year, driven by strong performance across multiple segments [1][9] - Total revenues reached $742.9 million, surpassing the Zacks Consensus Estimate of $710 million and reflecting a 9.3% increase from $679.8 million in the prior year, attributed to robust contributions from Subsea Robotics, Manufactured Products, Offshore Projects Group, and Aerospace and Defense Technologies [2][9] Financial Performance - Adjusted EBITDA for Q3 2025 was $111.1 million, marking a 13.2% year-over-year increase [2] - The company repurchased 440,814 shares for approximately $10.1 million during the quarter [3] Segment Performance - **Subsea Robotics**: Revenues were $218.8 million, slightly up from $215.7 million year-over-year but below the estimate of $226.4 million. Operating income was $65.1 million, down from $65.7 million a year ago, with an EBITDA margin of 36% [4][5] - **Manufactured Products**: Revenues increased to $156.4 million from $143.7 million year-over-year, exceeding the estimate of $152.8 million. Operating profit rose to $24.7 million from $11.3 million in the prior year [6] - **Offshore Projects Group**: Revenues grew by 15.9% to $171 million from $147.5 million year-over-year, surpassing the estimate of $147.7 million. Operating income increased to $23.7 million from $20.3 million [7][8] - **Integrity Management & Digital Solutions**: Revenues decreased to $70.8 million from $73.6 million year-over-year, missing the estimate of $73.7 million. Operating income rose to $2.8 million from $0.7 million [10] - **Aerospace and Defense Technologies**: Revenues increased to $125.9 million from $99.2 million year-over-year, exceeding the estimate of $109.4 million. Operating income improved to $16.6 million from $12.2 million [11][12] Capital Expenditure and Balance Sheet - Capital expenditure for Q3, including acquisitions, totaled $31.4 million. As of September 30, OII had cash and cash equivalents of $506 million and long-term debt of approximately $486 million, resulting in a debt-to-total capital ratio of 34.7% [13] Outlook - OII anticipates lower revenues in Q4 2025 compared to the same period in 2024, with consolidated EBITDA expected to be between $80 million and $90 million [14] - For the full year 2025, the company projects adjusted EBITDA between $391 million and $401 million, with free cash flow expected to remain strong [19] - The company expects continued share repurchase activity and stable cash flow generation into 2026 [20]

Financial Performance - Operating income for Q3 2025 was $87 million, up from $71 million in Q3 2024, representing a 22.5% increase [122]. - Revenue for Q3 2025 reached $742.9 million, compared to $679.8 million in Q3 2024, marking a 9.3% increase [125]. - Diluted earnings per share for Q3 2025 increased to $0.71 from $0.40 in Q3 2024, reflecting a 77.5% rise [122]. - Subsea Robotics segment revenue for Q3 2025 was $218.8 million, slightly up from $215.7 million in Q3 2024 [129]. - Manufactured Products segment revenue for Q3 2025 was $156.4 million, an increase from $143.7 million in Q3 2024, showing an 8.9% growth [129]. - Offshore Projects Group revenue for Q3 2025 was $171.0 million, up from $147.5 million in Q3 2024, indicating a 15.9% increase [129]. - Total Energy segment revenue for Q3 2025 was $617.0 million, compared to $580.6 million in Q3 2024, a 6.3% increase [129]. - The ADTech segment's revenue for the three months ended September 30, 2025, was $125.9 million, up from $99.2 million in the same period of 2024, with operating income increasing to $16.6 million from $12.2 million [138]. Cash Flow and Capital Expenditures - Cash balance increased by $8.5 million during the nine-month period ended September 30, 2025 [123]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $97.7 million, compared to $74.8 million for the same period in 2024 [150]. - Capital expenditures for the first nine months of 2025 were $81 million, an increase from $73 million in the same period of 2024, driven by investments in Subsea Robotics and the OPG segment [153]. - The company expects organic capital expenditures for 2025 to total between $115 million and $120 million, excluding business acquisitions [153]. Debt and Equity - As of September 30, 2025, the company had long-term debt of $500 million, consisting entirely of 6.000% Senior Notes due 2028 [155]. - The company had $215 million of unused commitments under its Revolving Credit Facility as of September 30, 2025, and was in compliance with all financial covenants [156]. - The company repurchased approximately 1.4 million shares of common stock for about $30 million in the nine months ended September 30, 2025 [154]. - The share repurchase program allowed for the repurchase of up to 10 million shares, with approximately 4.2 million shares repurchased for a total cost of approximately $151 million as of September 30, 2025 [157]. - The company expects that any additional shares repurchased under the share repurchase plan will be held as treasury stock for possible future use [157]. Backlog and Utilization - The backlog for Manufactured Products at the end of Q3 2025 was $568 million, unchanged from the previous year [129]. - As of September 30, 2025, the Manufactured Products backlog was $568 million, down from $604 million as of December 31, 2024, and $671 million as of September 30, 2024, with a book-to-bill ratio of 0.82 for the trailing 12 months [133]. - ROV utilization for Q3 2025 was 65%, down from 69% in Q3 2024 [130]. - The Offshore Projects Group (OPG) segment reported increased revenue for the three- and nine-month periods ended September 30, 2025, primarily due to improved vessel utilization in the U.S. Gulf of Mexico and a favorable project mix [133]. Operating Expenses and Adjustments - Unallocated operating expenses for the three months ended September 30, 2025, were $46.3 million, compared to $38.9 million in the same period of 2024, primarily due to increased accruals for incentive-based compensation [140]. - Foreign currency transaction losses were $(1.0) million and gains were $5.5 million for the three- and nine-month periods ended September 30, 2025, respectively [163]. - The company recorded net adjustments to equity accounts of $0.5 million and $42 million for the three- and nine-month periods ended September 30, 2025, reflecting the impact of foreign currency fluctuations [162]. Financial Management and Risk - The company has not guaranteed any off-balance sheet debt as of September 30, 2025, and has no off-balance sheet arrangements [158]. - The company has not entered into any market-risk-sensitive instruments for speculative or trading purposes as of September 30, 2025 [161]. - The company manages exposure to interest rate changes through a combination of fixed- and floating-rate debt [161]. - There have been no material changes to the critical accounting policies and estimates as of September 30, 2025 [159]. - Interest income for the three months ended September 30, 2025, was $3.7 million, up from $3.3 million in the same period of 2024, primarily due to higher average interest-earning cash balances [141].

Financial Data and Key Metrics Changes - In Q3 2025, the company generated revenue of $743 million, a 9% increase compared to Q3 2024, and operating income rose 21% to $86.5 million [5] - Adjusted EBITDA reached $111 million, the highest quarterly performance since Q4 2015 [4] - Free cash flow improved, generating $77 million after $24.2 million in business investments, with an ending cash position of $506 million [5] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) revenue and operating income were flat, with an EBITDA margin of 36%. ROV revenue per day increased to $11,254 from $10,576, despite a fleet utilization of 65% [5][6] - Manufactured Products operating income doubled to $24.7 million with a 16% operating income margin on a 9% revenue increase. Order intake was $208 million, with a backlog of $568 million [8] - Offshore Projects Group (OPG) operating income increased 17% to $23.7 million on a 16% revenue increase, maintaining a 14% operating income margin [9] - AdTech operating income rose 36% to $16.6 million, with a 27% revenue increase and a slight improvement in operating income margin to 13% [9] Market Data and Key Metrics Changes - The company maintained a 60% share of the contracted floating rig market, with ROV contracts on 78 of 131 floating rigs [6] - The company anticipates a decrease in revenue for OPG in Q4 2025 due to the absence of large-scale international projects [10] Company Strategy and Development Direction - The company plans to continue share repurchases in 2026, with approximately 5.8 million shares remaining under the existing repurchase authorization [13] - The focus is on growth opportunities in various markets, driven by long-term commodity prices and increasing demand for mobile robotics technologies [14] Management's Comments on Operating Environment and Future Outlook - Management expects revenue to decrease in Q4 2025, with consolidated EBITDA projected between $80 million and $90 million [10] - For 2026, the company initiated consolidated EBITDA guidance in the range of $390 to $440 million, anticipating significant growth in AdTech and stable activity levels across energy-focused businesses [12][13] Other Important Information - Alan Curtis, CFO, plans to retire on January 1, with Mike Sumrold introduced as the new Senior Vice President of Finance [15] Q&A Session Summary Question: Advantages of Ocean Intervention II for simultaneous autonomous survey operations - Management highlighted efficiency improvements, reduced fuel usage, and enhanced data quality through simultaneous operations [18][19] Question: Market outlook in Brazil and expected market share increase - Management expressed optimism about the robust market in Brazil, with significant opportunities and an expectation for increased market share [20][21][22] Question: Growth expectations for AdTech and competition for capital - Management noted low capital intensity in AdTech growth and alignment with existing energy business, indicating a strong future for the segment [23][24][25] Question: Revenue decline in manufactured products for Q4 - Management clarified that the focus is on quality of earnings rather than revenue decline, with a strong backlog expected to support future growth [32][34] Question: Cadence of AdTech growth in 2026 - Management indicated a ramp-up in revenue throughout 2026, driven by new large-scale projects [35][36]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated revenue of $743 million, a 9% increase compared to Q3 2024, and operating income rose 21% to $86.5 million [5] - Consolidated adjusted EBITDA reached $111 million, the highest quarterly performance since Q4 2015 [4] - Free cash flow improved, generating $77 million after investments of $24.2 million, with an ending cash position of $506 million [5] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) revenue and operating income were flat, with an EBITDA margin of 36%. ROV revenue per day increased to $11,254 from $10,576, while fleet utilization was 65% [5][6] - Manufactured Products operating income doubled to $24.7 million with a 16% operating income margin on a 9% revenue increase. Order intake was $208 million, with a backlog of $568 million [8] - Offshore Projects Group (OPG) operating income increased 17% to $23.7 million on a 16% revenue increase, maintaining a 14% operating income margin [9] - AdTech operating income rose 36% to $16.6 million on a 27% revenue increase, with a slight improvement in operating income margin to 13% [9] Market Data and Key Metrics Changes - The company maintained a 60% share of the contracted floating rig market, with ROV contracts on 78 of 131 floating rigs [6] - The company anticipates a decrease in revenue for OPG in Q4 2025 due to the absence of large-scale international projects [10] Company Strategy and Development Direction - The company plans to continue share repurchases in 2026, with approximately 5.8 million shares remaining under the existing repurchase authorization [13] - The company sees growth opportunities in various markets, driven by long-term commodity prices and increasing demand for mobile robotics technologies [14] Management's Comments on Operating Environment and Future Outlook - Management expects revenue to decrease in Q4 2025, with consolidated EBITDA projected between $80 to $90 million [10] - For 2026, the company initiated consolidated EBITDA guidance in the range of $390 to $440 million, expecting significant growth in AdTech and stable activity levels across energy-focused businesses [12][13] Other Important Information - Alan Curtis, CFO, plans to retire on January 1, with Mike Sumrold introduced as the new Senior Vice President of Finance [15] Q&A Session Summary Question: Advantages of Ocean Intervention II for simultaneous autonomous survey operations - Management highlighted the efficiency of performing more tasks with fewer resources, reducing costs and time while improving data quality through simultaneous data gathering [18][19] Question: Market outlook for Subsea Robotics in Brazil - Management expressed optimism about the robust market in Brazil, with significant opportunities and an expectation of increasing market share [20][21][22] Question: Growth expectations for AdTech business - Management noted that AdTech is low in capital intensity and is expected to grow significantly, with increasing international opportunities due to rising defense spending [23][25] Question: Revenue expectations for manufactured products in Q4 - Management clarified that while revenue may decline, operating income is expected to increase due to improved pricing and backlog execution [32][34] Question: Cadence of AdTech growth in 2026 - Management indicated that growth in AdTech will ramp up throughout 2026, driven by new projects and increased contractor onboarding [35][36]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated revenue of $743 million, a 9% increase compared to Q3 2024, and operating income rose 21% to $86.5 million [5] - Consolidated adjusted EBITDA reached $111 million, the highest quarterly performance since Q4 2015 [4] - Free cash flow improved, generating $77 million after investments of $24.2 million, with an ending cash position of $506 million [5] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) revenue and operating income were flat, with an EBITDA margin of 36%. ROV revenue per day increased to $11,254 from $10,576, despite a fleet utilization of 65% [5][6] - Manufactured products saw operating income of $24.7 million, with a 16% operating income margin, doubling on a 9% revenue increase [7] - Offshore Projects Group (OPG) operating income increased 17% to $23.7 million on a 16% revenue increase, with a flat operating income margin of 14% [8] - AdTech operating income increased by 36% to $16.6 million on a 27% revenue increase, with a slight improvement in operating income margin to 13% [9] Market Data and Key Metrics Changes - The company maintained a 60% share of the contracted floating rig market, with ROV contracts on 78 of the 131 floating rigs [6] - The backlog as of September 30, 2025, was $568 million, with a book-to-bill ratio of 0.82 for the trailing 12-month period [7] Company Strategy and Development Direction - The company plans to continue share repurchases in 2026, with approximately 5.8 million shares remaining under the existing repurchase authorization [13] - The focus remains on growth opportunities across all markets, driven by long-term commodity prices and increasing demand for mobile robotics technologies [14] Management's Comments on Operating Environment and Future Outlook - The company expects revenue to decrease in Q4 2025 due to lower international OPG projects, projecting consolidated EBITDA in the range of $80 to $90 million [10] - For 2026, the company initiated consolidated EBITDA guidance in the range of $390 to $440 million, anticipating significant growth in AdTech and stable activity levels across energy-focused businesses [12][13] Other Important Information - Alan Curtis, the CFO, plans to retire on January 1, transitioning to an advisory role, with Mike Sumrold introduced as the new Senior Vice President of Finance [16][17] Q&A Session Summary Question: Discussion on Ocean Intervention II capabilities - The company highlighted the advantages of simultaneous autonomous survey operations, emphasizing efficiency and improved data quality [19][20] Question: Market outlook for Subsea Robotics in Brazil - The market in Brazil is robust, with significant opportunities expected, and the company anticipates an increase in market share [21][22] Question: Growth of AdTech business and capital competition - The AdTech business is low capital intensity, allowing for significant scaling without heavy investment, with increasing international opportunities noted [23][26] Question: Revenue expectations for manufactured products in Q4 - The company clarified that while revenue may decline, the quality of earnings is expected to improve due to backlog execution and operational excellence [29][30] Question: Cadence of AdTech growth in 2026 - The company expects to ramp up revenue throughout 2026, driven by new large-scale projects and ongoing contractor onboarding [33][34]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated revenue of $743 million, representing a 9% increase compared to 2024, and operating income rose 21% to $86.5 million [4] - Consolidated adjusted EBITDA reached $111 million, marking the highest quarterly performance since 2015 [4] - Free cash flow improved significantly, generating $77 million after investments of $24.2 million [4][5] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) revenue and operating income were flat, with an EBITDA margin of 36%. ROV revenue per day utilized increased to $11,254 from $10,576, despite a fleet utilization of 65% [5][6] - Manufactured Products operating income increased to $24.7 million with a margin of 16%, driven by higher margin backlog execution and pricing improvements [6][7] - Aerospace and Defense Technologies (AdTech) operating income increased by 36% to $16.6 million on a 27% revenue increase, with a slight improvement in operating income margin to 13% [9] Market Data and Key Metrics Changes - As of September 30, 2025, the company held 60% of the contracted floating rig market with ROV contracts on 78 of 131 floating rigs [6] - The backlog as of September 30, 2025, was $568 million, with a book-to-bill ratio of 0.82 for the trailing twelve months [7] Company Strategy and Development Direction - The company plans to continue share repurchases in 2026, with approximately 5.8 million shares remaining under the existing repurchase authorization [14] - The focus remains on growth opportunities across all markets, driven by long-term commodity prices and increasing demand for mobile robotics technologies [15] Management's Comments on Operating Environment and Future Outlook - Management expects revenue to decrease in 2025 due to lower international OPG projects, but anticipates improved results in SSR and AdTech [10][12] - For 2026, the company projects consolidated EBITDA in the range of $390 million to $440 million, driven by growth in AdTech and stable activity levels in energy-focused businesses [13][14] Other Important Information - Alan Curtis, the CFO, plans to retire on January 1, 2026, after 30 years with the company, and Mike Sumrall will take over [16][17] Q&A Session Summary Question: Advantages of the Ocean Intervention II for simultaneous autonomous survey operations - The vessel allows for more efficient operations, reducing service expression, fuel usage, and personnel on board, leading to better data quality through simultaneous data gathering [20][21] Question: Market outlook in Brazil and expected market share increase - The Brazilian market is robust with significant opportunities, and the company expects to increase its market share due to strong interest in technology and ongoing projects [23][25][26] Question: Growth of the AdTech business and capital competition - The AdTech business is low capital intensity, allowing for significant scaling without heavy investment, and is expected to grow due to increased defense spending and international opportunities [27][28][30] Question: Revenue decline in manufactured products and margin implications - The decline in revenue is not indicative of a lack of backlog, as improved pricing and operational excellence are expected to enhance operating income and margins [35][39] Question: Cadence of AdTech growth in 2026 - The growth in AdTech is expected to ramp up throughout 2026, with new projects contributing to revenue progression [40][41]

分组1 - Oceaneering International (OII) reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, and up from $0.36 per share a year ago, representing an earnings surprise of +30.95% [1] - The company achieved revenues of $742.9 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.62%, compared to $679.81 million in the same quarter last year [2] - Oceaneering International has surpassed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] 分组2 - The stock has underperformed the market, losing about 9.4% since the beginning of the year, while the S&P 500 has gained 14.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.53 on revenues of $711 million, and for the current fiscal year, it is $1.80 on revenues of $2.79 billion [7] - The Oil and Gas - Field Services industry, to which Oceaneering International belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, which may impact stock performance [8]