Oceaneering International(US:OII)2025-10-23 20:31Financial 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].