Why Is Oceaneering International (OII) Down 1.8% Since Last Earnings Report?

Core Viewpoint - Oceaneering International reported strong third-quarter earnings for 2025, with adjusted profits and revenues exceeding estimates, driven by robust performance across multiple segments [2][3][12]. Financial Performance - Adjusted profit for Q3 2025 was 55 cents per share, surpassing the Zacks Consensus Estimate of 42 cents and the previous year's 36 cents [2]. - Total revenues reached $742.9 million, exceeding the estimate of $710 million and reflecting a 9.3% increase from $679.8 million in the prior year [3]. - Adjusted EBITDA for the quarter was $111.1 million, marking a 13.2% year-over-year increase [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 [5][6]. - Manufactured Products: Revenues increased to $156.4 million from $143.7 million, exceeding the estimate of $152.8 million. Operating profit rose to $24.7 million from $11.3 million [7]. - Offshore Projects Group: Revenues grew by 15.9% to $171 million, surpassing the estimate of $147.7 million. Operating income was $23.7 million, up from $20.3 million [8][9]. - Integrity Management & Digital Solutions: Revenues decreased to $70.8 million from $73.6 million, missing the estimate of $73.7 million. Operating income increased to $2.8 million from $0.7 million [9][10]. - Aerospace and Defense Technologies: Revenues rose to $125.9 million from $99.2 million, exceeding the estimate of $109.4 million. Operating income increased to $16.6 million from $12.2 million [10][11]. Capital Expenditure and Balance Sheet - Capital expenditure for Q3 2025 totaled $31.4 million. As of September 30, the company 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% [12]. Outlook - The company 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 [13]. - For the full year 2025, adjusted EBITDA is projected to be between $391 million and $401 million, with free cash flow expected to remain strong [18]. - The company expects continued share repurchase activity and stable ROV utilization in Subsea Robotics, along with improved operating income in Manufactured Products despite lower revenues [19][20].