Oceaneering's Q4 Earnings Miss Estimates, Revenues Beat

Core Insights - Oceaneering International, Inc. (OII) reported an adjusted profit of 37 cents per share for Q4 2024, missing the Zacks Consensus Estimate of 45 cents due to lower-than-expected operating income from several segments [1] - Total revenues reached $713 million, exceeding the Zacks Consensus Estimate of $682 million and representing an 8.9% increase from $655 million in the same quarter last year [2] Financial Performance - The company achieved a net income of $56.1 million, reflecting a 26% year-over-year growth, and reported an operating income of $77.9 million, a 64% increase compared to the previous year [4] - Adjusted EBITDA for the quarter was $102 million, marking a 35% increase from the prior year, with cash flow from operating activities at $128 million and free cash flow at $94.5 million [4] Segment Performance - Subsea Robotics segment revenues totaled $212.2 million, up from $199.5 million year-over-year, but missed the estimate of $214.1 million; operating income increased to $63.5 million from $50.6 million [5][6] - Manufactured Products segment revenues rose to $143 million from $133 million, but fell short of the estimate of $149 million; operating profit decreased to $4.2 million from $5.4 million [6][7] - Offshore Projects Group revenues increased by 14.4% to $184.4 million, surpassing the estimate of $149.1 million, with operating income rising to $39.3 million from $15.2 million [8][9] - Integrity Management & Digital Solutions segment revenues grew to $75.1 million from $66 million, exceeding the estimate of $72.6 million, while operating income fell to $2 million from $3.2 million [9][10] - Aerospace and Defense Technologies segment revenues increased to $98.8 million from $94.9 million, beating the estimate of $97 million, but operating income dropped to $9.9 million from $11 million [10][11] Capital Expenditure and Balance Sheet - Capital expenditure for Q4 totaled $61 million, with cash and cash equivalents at $497.5 million and long-term debt at approximately $482 million, resulting in a debt-to-total capital ratio of 40.1% [12] Outlook - The company anticipates growth across key segments for Q1 2025, particularly in Subsea Robotics and Offshore Projects Group, while expecting stable performance in Manufactured Products and flat revenues in Integrity Management & Digital Solutions and Aerospace & Defense Technologies [14][15] - For 2025, net income is projected between $160 million and $190 million, with consolidated EBITDA expected between $380 million and $430 million, and free cash flow anticipated between $110 million and $130 million [16] - The company aims for strong growth throughout 2025, focusing on revenue and operating income increases across all segments and integrating a recently acquired digital services provider [17]