Core Viewpoint - Oceaneering International, Inc. is set to participate in several investor conferences in the fourth quarter of 2025, highlighting its focus on engaging with institutional investors and showcasing its technological capabilities in various sectors [1][3]. Group 1: Upcoming Conferences - Oceaneering will attend the Bank of America Securities Global Energy Conference in Houston, TX on November 11, 2025, where CFO Alan Curtis and Senior Director of Investor Relations Hilary Frisbie will meet with institutional investors [3]. - The company will also participate in the Baird Defense & Government Conference in Tysons Corner, VA on November 18, 2025, with President and CEO Rod Larson presenting on the Aerospace and Defense Technologies segment, and Bill Merz participating in a panel discussion on autonomous maritime technology [3]. - Additionally, Oceaneering will be present at the TD Cowen Energy Conference in New York, NY on November 18-19, 2025, where Alan Curtis will join a panel discussion on Offshore Services and meet with institutional investors [3]. Group 2: Company Overview - Oceaneering is a global technology company that provides engineered services and products, as well as robotic solutions, to various industries including offshore energy, defense, aerospace, and manufacturing [2]. - The company emphasizes its commitment to delivering innovative solutions in a dynamic market environment [6].

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]

[Executive Summary & Business Outlook](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Outlook) [Third Quarter 2025 Performance Highlights](index=1&type=section&id=Third%20Quarter%202025%20Performance%20Highlights) Oceaneering reported strong Q3 2025 results, exceeding guidance with adjusted EBITDA of **$111 million**, driven by solid performance across all segments including higher-margin backlog conversion in Manufactured Products, favorable project mix in OPG, and improved ROV revenue per day in Subsea Robotics. The company also secured **$854 million** in new orders - Adjusted EBITDA in excess of guidance range and consensus estimates through solid performance across segments[4](index=4&type=chunk) - Secured total inbound orders of **$854 million**, with notable contract wins in SSR, Aerospace and Defense Technologies (ADTech), and Manufactured Products[4](index=4&type=chunk) [Full-Year 2026 Outlook](index=1&type=section&id=Full-Year%202026%20Outlook) Oceaneering is optimistic about consolidated growth opportunities for 2026, primarily led by ADTech, with an initial full-year consolidated EBITDA guidance of **$390 million** to **$440 million**. Activity levels are expected to be seasonally lower in energy-focused businesses in Q1, increasing in Q2 and Q3 - Optimistic about consolidated growth opportunities for 2026, to be led by ADTech[5](index=5&type=chunk) Initial Full-Year 2026 Consolidated EBITDA Guidance | Metric | Range (Millions) | | :----------------------- | :--------------- | | Consolidated EBITDA | $390 - $440 | - Anticipate seasonally lower activity levels in energy-focused businesses in Q1 2026, with activity levels increasing in Q2 and Q3[5](index=5&type=chunk) [Third Quarter 2025 Financial Results](index=1&type=section&id=Third%20Quarter%202025%20Financial%20Results) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) In Q3 2025, Oceaneering achieved significant year-over-year growth in key financial metrics, with revenue up **9%** to **$743 million**, operating income up **21%** to **$86.5 million**, net income soaring **73%** to **$71.3 million**, and adjusted EBITDA increasing **13%** to **$111 million**. The company also generated strong cash flow from operations and free cash flow Q3 2025 Consolidated Financial Highlights (YoY vs Q3 2024) | Metric | Q3 2025 (Millions) | Q3 2024 (Millions) | Change (%) | | :-------------------------------- | :----------------- | :----------------- | :--------- | | Revenue | $743 | $680 | +9% | | Operating Income | $86.5 | $71.3 | +21% | | Net Income | $71.3 | $41.2 | +73% | | Adjusted EBITDA | $111 | $98.1 | +13% | | Cash flow from operating activities | $101 | $91.9 | +10% | | Free Cash Flow | $77.0 | $67.0 | +15% | - Ending cash position: **$506 million**[6](index=6&type=chunk) - Shares repurchased: **440,814** for approximately **$10.1 million**[6](index=6&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) Oceaneering's segments showed varied performance in Q3 2025. Manufactured Products and ADTech demonstrated strong growth in both revenue and operating income, while OPG also saw revenue and operating income increases. SSR's revenue and operating income were flat, and IMDS experienced a revenue decrease but a significant operating income improvement due to the absence of a prior-year charge Q3 2025 Segment Performance Overview (YoY vs Q3 2024) | Segment | Revenue Change (%) | Operating Income Change (%) | Operating Income Margin (Q3 2025) | | :-------------------------------- | :----------------- | :-------------------------- | :-------------------------- | | Subsea Robotics (SSR) | Flat | Flat | 30% | | Manufactured Products | +9% | +119% | 16% | | Offshore Projects Group (OPG) | +16% | +17% | 14% | | Integrity Management & Digital Solutions (IMDS) | -4% | Significantly increased | 4% | | Aerospace and Defense Technologies (ADTech) | +27% | +36% | 13% | | Unallocated Expenses | N/A | +19% (increase) | N/A | [Subsea Robotics (SSR)](index=1&type=section&id=Subsea%20Robotics%20(SSR)) - ROV revenue per day utilized increased **6%** to **$11,254**[7](index=7&type=chunk) - ROV fleet utilization declined to **65%**[7](index=7&type=chunk) - Operating income margin was **36%**[7](index=7&type=chunk) [Manufactured Products](index=1&type=section&id=Manufactured%20Products) - Operating income improved **119%** and operating income margin expanded to **16%** on a **9%** increase in revenue[7](index=7&type=chunk) - Backlog was **$568 million** on September 30, 2025[7](index=7&type=chunk) - The book-to-bill ratio was **0.82** for the 12-month period ending on September 30, 2025[7](index=7&type=chunk) [Offshore Projects Group (OPG)](index=1&type=section&id=Offshore%20Projects%20Group%20(OPG)) - Operating income increased **17%** on a **16%** increase in revenue[7](index=7&type=chunk) - Operating income margin was flat at **14%**[7](index=7&type=chunk) [Integrity Management and Digital Solutions (IMDS)](index=1&type=section&id=Integrity%20Management%20and%20Digital%20Solutions%20(IMDS)) - Operating income increased significantly, and operating income margin improved on a **4%** decrease in revenue[7](index=7&type=chunk) - Improvement due to the absence of a one-time, non-cash charge in Q3 2024 related to the divestiture of the Maritime Intelligence division[7](index=7&type=chunk) [Aerospace and Defense Technologies (ADTech)](index=1&type=section&id=Aerospace%20and%20Defense%20Technologies%20(ADTech)) - Operating income of **$16.6 million** represented an increase of **36%** on a **27%** increase in revenue[7](index=7&type=chunk) - Operating income margin improved to **13%**[7](index=7&type=chunk) [Unallocated Expenses](index=1&type=section&id=Unallocated%20Expenses) - Unallocated Expenses increased **19%** to **$46.3 million**[7](index=7&type=chunk) [Financial Guidance](index=2&type=section&id=Financial%20Guidance) [Fourth Quarter 2025 Guidance](index=2&type=section&id=Fourth%20Quarter%202025%20Guidance) Oceaneering anticipates lower consolidated revenue for Q4 2025 compared to Q4 2024, with consolidated EBITDA projected to be in the range of **$80 million** to **$90 million**. Segment-level expectations vary, with SSR and ADTech expecting increases, Manufactured Products expecting significant operating income increase on lower revenue, and OPG and IMDS expecting significant decreases - Consolidated fourth quarter 2025 revenue is expected to be lower compared to the fourth quarter of 2024[8](index=8&type=chunk) Q4 2025 Consolidated EBITDA Forecast | Metric | Range (Millions) | | :-------------------- | :--------------- | | Consolidated EBITDA | $80 - $90 | Q4 2025 Segment-Level Expectations (YoY vs Q4 2024) | Segment | Revenue Expectation | Operating Income Expectation | | :-------------------------------- | :------------------ | :--------------------------- | | Subsea Robotics (SSR) | Increase | Increase | | Manufactured Products | Lower | Significantly increase | | Offshore Projects Group (OPG) | Significantly decrease | Significantly decrease | | Integrity Management & Digital Solutions (IMDS) | Lower | Significantly decrease | | Aerospace and Defense Technologies (ADTech) | Significantly increase | Significantly increase | | Unallocated Expenses | N/A | $45M range | [Full-Year 2026 Guidance](index=2&type=section&id=Full-Year%202026%20Guidance) Oceaneering has initiated full-year 2026 consolidated EBITDA guidance in the range of **$390 million** to **$440 million**. The company also expects free cash flow generation to be consistent with 2025 levels and anticipates continued share repurchase activity. More specific guidance will be provided in the Q4 2025 earnings release Full-Year 2026 Consolidated EBITDA Guidance | Metric | Range (Millions) | | :-------------------- | :--------------- | | Consolidated EBITDA | $390 - $440 | - Free cash flow generation is forecast to be consistent with 2025 levels[12](index=12&type=chunk) - Share repurchase activity is expected to continue[12](index=12&type=chunk) [Company Information & Disclosures](index=2&type=section&id=Company%20Information%20%26%20Disclosures) [About Oceaneering](index=3&type=section&id=About%20Oceaneering) Oceaneering is a global technology company that provides engineered services and products, along with robotic solutions, to various industries including offshore energy, defense, aerospace, and manufacturing - Oceaneering is a global technology company delivering engineered services and products and robotic solutions[15](index=15&type=chunk) - Serves the offshore energy, defense, aerospace, and manufacturing industries[15](index=15&type=chunk) [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) Oceaneering scheduled a conference call and webcast for October 23, 2025, at 10:00 a.m. Central Time to discuss Q3 2025 results, Q4 and full-year 2025 guidance, and initial 2026 guidance. A replay will be available on the Investor Relations section of their website - Conference call and webcast scheduled for Thursday, October 23, 2025, at 10:00 a.m. Central Time[10](index=10&type=chunk) - Topics include Q3 2025 results, guidance for Q4 and full year 2025, and initial guidance for full year 2026[10](index=10&type=chunk) - A replay of the conference call will be made available on the Investor Relations section of Oceaneering's website[10](index=10&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, regarding future business and financial performance, including guidance and market conditions. These statements are based on current expectations and are subject to risks, assumptions, trends, and uncertainties that could cause actual results to differ materially - This release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995[11](index=11&type=chunk) - Statements concern Oceaneering's future expected business, financial performance, prospects, and market conditions[11](index=11&type=chunk)[13](index=13&type=chunk) - Subject to certain risks, assumptions, trends, and uncertainties that could cause actual results to differ materially[14](index=14&type=chunk) [Non-GAAP Financial Measures Explanation](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The report includes non-GAAP financial measures such as adjusted net income (loss), adjusted EPS, EBITDA, adjusted EBITDA, and free cash flow. These measures exclude certain identified items and are used by management and investors to assess underlying business performance and for valuation purposes, but should not be considered substitutes for GAAP measures - Non-GAAP measures include adjusted net income (loss) and earnings (loss) per share; EBITDA and adjusted EBITDA (and margins); and free cash flow[9](index=9&type=chunk)[26](index=26&type=chunk) - These measures exclude the impacts of certain identified items to provide consistent measures of the underlying results of ongoing business[26](index=26&type=chunk) - Used by investors for valuation purposes and by management for evaluating financial performance, but should not be viewed as substitutes for GAAP measures[26](index=26&type=chunk) [Condensed Consolidated Financial Statements (GAAP)](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(GAAP)) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2025, Oceaneering's total assets increased to **$2.54 billion** from **$2.34 billion** at December 31, 2024. This was primarily driven by an increase in current assets, including cash and cash equivalents, and other assets. Total equity also increased significantly Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2025 | Dec 31, 2024 | Change | | :-------------------------- | :----------- | :----------- | :------- | | Total Assets | $2,539,318 | $2,336,347 | +$202,971 | | Current Assets | $1,501,843 | $1,387,896 | +$113,947 | | Cash and Cash Equivalents | $505,992 | $497,516 | +$8,476 | | Total Liabilities | $1,625,587 | $1,616,025 | +$9,562 | | Equity | $913,731 | $720,322 | +$193,409 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q3 2025, Oceaneering reported revenue of **$742.9 million**, a gross margin of **$152.7 million**, and net income of **$71.3 million**, resulting in diluted EPS of **$0.71**. For the nine months ended September 30, 2025, revenue was **$2.12 billion** and net income was **$176.1 million**, with diluted EPS of **$1.74** Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | | Revenue | $742,898 | $679,811 | $2,115,582 | $1,947,711 | | Gross margin | $152,732 | $130,962 | $436,170 | $343,557 | | Operating income (loss) | $86,508 | $71,333 | $239,169 | $168,390 | | Net Income (Loss) | $71,289 | $41,237 | $176,108 | $91,369 | | Diluted earnings (loss) per share | $0.71 | $0.40 | $1.74 | $0.89 | [Selected Cash Flow Information](index=7&type=section&id=Selected%20Cash%20Flow%20Information) Oceaneering generated **$101.3 million** in cash flow from operating activities and **$77.0 million** in free cash flow for Q3 2025. Total capital expenditures for the quarter were **$31.4 million**, including **$7.2 million** for capitalized cloud-based service contract costs. For the nine months ended September 30, 2025, cash flow from operating activities was **$97.7 million** and free cash flow was **$17.2 million** Selected Cash Flow Information (in thousands) | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Cash flow provided by operating activities | $101,263 | $91,931 | $97,732 | $74,837 | | Purchases of property and equipment | $(24,215) | $(24,886) | $(80,575) | $(73,262) | | Capitalized cloud-based service contract costs | $7,161 | — | $11,424 | — | | Total Capital Expenditures | $31,376 | $24,886 | $91,999 | $73,262 | | Free Cash Flow | $77,048 | $67,045 | $17,157 | $1,575 | - Total Depreciation and Amortization for Q3 2025 was **$26.1 million**[25](index=25&type=chunk) [Non-GAAP Financial Reconciliations & Estimates](index=8&type=section&id=Non-GAAP%20Financial%20Reconciliations%20%26%20Estimates) [Adjusted Net Income (Loss) and Diluted EPS](index=9&type=section&id=Adjusted%20Net%20Income%20(Loss)%20and%20Diluted%20EPS) For Q3 2025, adjusted net income was **$55.8 million**, resulting in adjusted diluted EPS of **$0.55**, after adjustments primarily for foreign currency gains/losses and discrete tax items. For the nine months ended September 30, 2025, adjusted net income was **$149.6 million**, with adjusted diluted EPS of **$1.47** Adjusted Net Income (Loss) and Diluted EPS (in thousands, except per share amounts) | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | | Net income (loss) as reported | $71,289 | $41,237 | $176,108 | $91,369 | | Total of adjustments | $(15,528) | $(4,007) | $(26,539) | $(11,685) | | Adjusted Net Income (Loss) | $55,761 | $37,230 | $149,569 | $79,684 | | Diluted EPS as reported | $0.71 | $0.40 | $1.74 | $0.89 | | Adjusted Diluted EPS | $0.55 | $0.36 | $1.47 | $0.78 | [Consolidated EBITDA and Adjusted EBITDA and Margins](index=11&type=section&id=Consolidated%20EBITDA%20and%20Adjusted%20EBITDA%20and%20Margins) Consolidated EBITDA for Q3 2025 was **$110.1 million**, with an EBITDA margin of **15%**. Adjusted EBITDA was **$111.1 million**, also with an adjusted EBITDA margin of **15%**. For the nine months ended September 30, 2025, consolidated EBITDA was **$316.5 million** and adjusted EBITDA was **$311.0 million** Consolidated EBITDA and Adjusted EBITDA (in thousands) | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :----------------------- | :-------- | :-------- | :-------- | :-------- | | EBITDA | $110,080 | $98,515 | $316,462 | $249,330 | | Adjusted EBITDA | $111,079 | $98,091 | $310,981 | $245,675 | | EBITDA margin % | 15% | 14% | 15% | 13% | | Adjusted EBITDA margin % | 15% | 14% | 15% | 13% | [Free Cash Flow](index=11&type=section&id=Free%20Cash%20Flow) Free cash flow for Q3 2025 was **$77.0 million**, an increase from **$67.0 million** in Q3 2024. For the nine months ended September 30, 2025, free cash flow was **$17.2 million**, significantly higher than **$1.6 million** in the same period of 2024 Free Cash Flow (in thousands) | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------- | :-------- | :-------- | :-------- | :-------- | | Free Cash Flow | $77,048 | $67,045 | $17,157 | $1,575 | [Fourth Quarter 2025 Consolidated EBITDA Estimate](index=12&type=section&id=Fourth%20Quarter%202025%20Consolidated%20EBITDA%20Estimate) Oceaneering estimates consolidated EBITDA for the fourth quarter of 2025 to be between **$80 million** and **$90 million** Q4 2025 Consolidated EBITDA Estimate (in thousands) | Metric | Low | High | | :-------------------- | :-------- | :-------- | | Consolidated EBITDA | $80,000 | $90,000 | [2025 Free Cash Flow Estimate](index=12&type=section&id=2025%20Free%20Cash%20Flow%20Estimate) For the full year ending December 31, 2025, Oceaneering forecasts free cash flow to be in the range of **$110 million** to **$130 million** 2025 Free Cash Flow Estimate (in thousands) | Metric | Low | High | | :-------------- | :-------- | :-------- | | Free Cash Flow | $110,000 | $130,000 | [2026 Consolidated EBITDA Estimate](index=12&type=section&id=2026%20Consolidated%20EBITDA%20Estimate) Oceaneering's initial guidance for full-year 2026 consolidated EBITDA is projected to be between **$390 million** and **$440 million** 2026 Consolidated EBITDA Estimate (in thousands) | Metric | Low | High | | :-------------------- | :-------- | :-------- | | Consolidated EBITDA | $390,000 | $440,000 | [EBITDA and Adjusted EBITDA and Margins by Segment](index=13&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20and%20Margins%20by%20Segment) Segment-wise, SSR maintained strong EBITDA margins at **36%** in Q3 2025. Manufactured Products significantly improved its EBITDA margin to **18%**, while OPG's EBITDA margin was **16%**. ADTech also showed a healthy EBITDA margin of **14%** Q3 2025 Segment EBITDA and Adjusted EBITDA Margins | Segment | EBITDA Margin % | Adjusted EBITDA Margin % | | :-------------------------------- | :-------------- | :----------------------- | | Subsea Robotics (SSR) | 36% | 36% | | Manufactured Products | 18% | 18% | | Offshore Projects Group (OPG) | 16% | 16% | | Integrity Management & Digital Solutions (IMDS) | 6% | 6% | | Aerospace and Defense Technologies (ADTech) | 14% | 14% | Nine Months Ended Sep 30, 2025 Segment EBITDA and Adjusted EBITDA Margins | Segment | EBITDA Margin % | Adjusted EBITDA Margin % | | :-------------------------------- | :-------------- | :----------------------- | | Subsea Robotics (SSR) | 35% | 35% | | Manufactured Products | 14% | 14% | | Offshore Projects Group (OPG) | 20% | 20% | | Integrity Management & Digital Solutions (IMDS) | 7% | 7% | | Aerospace and Defense Technologies (ADTech) | 14% | 14% |

Core Insights - Oceaneering reported positive results for the third quarter of 2025, demonstrating resilience in a dynamic market environment [1] Financial Performance - The company continues to show strong financial performance, indicating effective management and strategic positioning within the industry [1] Market Environment - Oceaneering is navigating a dynamic market, which suggests adaptability and responsiveness to changing industry conditions [1]