Oceaneering Q4 Earnings Surpass Estimates, Revenues Miss

Oceaneering International, Inc. OII reported an adjusted profit of 45 cents per share for the fourth quarter of 2025, beating the Zacks Consensus Estimate of 44 cents. Moreover, the bottom line surpassed the year-ago quarter’s reported figure of 37 cents. This was driven by strong year-over-year operating income from its Subsea Robotics, Manufactured Products and Aerospace and Defense Technologies segments.

Total revenues were $668.6 million, which missed the Zacks Consensus Estimate of $711 million and decreased approximately 6.3% from the year-ago quarter’s $713.5 million due to lower revenues in the company’s energy-focused businesses. The revenue decrease in the energy business was primarily due to the unusually high number of international intervention and installation projects that OII’s Offshore Projects Group segment performed in the prior-year quarter, but that did not repeat in the fourth quarter of 2025. In the fourth quarter of 2025, the Houston, TX-based oil and gas equipment and services company reported adjusted EBITDA of $90.5 million, a 10.9% decrease year over year.

Oceaneering International, Inc. Price, Consensus and EPS Surprise

Oceaneering International, Inc. price-consensus-eps-surprise-chart | Oceaneering International, Inc. Quote

The company also repurchased 419,005 shares for approximately $10.1 million in the fourth quarter of 2025.

Q4 Segmental Information of Oceaneering

Subsea Robotics (SSR): The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.

Revenues totaled $211.7 million compared with the year-ago quarter’s $212.2 million. However, the top line missed our estimate of $225 million.

The segment also reported an operating income of $67.8 million compared with $63.5 million a year ago. The figure beat our estimate of $65 million.

The company’s segment delivered an EBITDA margin of 38% in the fourth quarter of 2025, improving from the prior-year period’s 36%. Revenue per day for remotely operated vehicles (“ROVs”) rose 7% to $11,550, while ROV fleet utilization declined to 62%.

Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.

Revenues totaled $132.4 million compared with the year-ago quarter’s $143 million. Additionally, the top line missed our estimate of $140 million.

The segment posted an operating profit of $20.4 million in the fourth quarter, up from the year-ago quarter’s $4.2 million. The reported figure beat our estimate of $9.4 million.

The backlog totaled $511 million as of Dec. 31, 2025, down 15.4% from the same time in 2024. For the 12 months ending Dec. 31, 2025, the book-to-bill ratio was 0.84.

Offshore Projects Group (OPG): This segment involves Oceaneering’s former Subsea Projects unit, excluding survey services and global data solutions, the service and rental business and ROV tooling.

Revenues decreased about 29.1% to $130.8 million from $184.4 million in the year-ago quarter. Moreover, the figure missed our estimate of $161 million.

The unit’s operating income totaled $15 million compared with the prior-year quarter’s $39.3 million. The figure also missed our estimate of $28.7 million. The company’s operating income margin decreased to 11% from the prior-year quarter’s 21%.

Integrity Management & Digital Solutions (IMDS): This segment covers Oceaneering’s Asset Integrity unit, along with its global data solutions business.

Revenues of $66.5 million decreased from the year-ago quarter’s $75.1 million. The figure also missed our estimate of $72 million.

The segment reported an operating loss of $0.12 million, reversing the prior-year quarter’s operating profit of $2 million. Moreover, the figure missed our projection of a profit of $0.65 million.

Aerospace and Defense Technologies (ADTech): The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems.

Revenues totaled $127.3 million, up from $98.8 million recorded in the fourth quarter of 2024. The figure beat our estimate of $113 million.

The operating income increased to $14.2 million from $9.9 million in the year-ago quarter. However, it missed our estimate of $16.6 million. Operating income margin improved to 11%.

OII’s Capital Expenditure & Balance Sheet

The capital expenditure in the fourth quarter, including acquisitions, totaled $36 million.

As of Dec. 31, 2025, OII had cash and cash equivalents worth $688.9 million and $497.5 million, respectively, along with a long-term debt of about $487.4 million. The debt-to-capitalization was 31.2%.

Q1 & 2026 Outlook by Oceaneering

This Zacks Rank #2 (Buy) company anticipates lower revenues in the first quarter of 2026 compared with the same period in 2025. This is because of lower activity levels in energy markets at the start of 2026. The company anticipates consolidated EBITDA will be between $80 million and $90 million.

For SSR, the company expects a modest year-over-year uptick in revenues, while operating income is likely to decline due to shifts in geographic mix.

For Manufactured products, OII expects significantly higher operating income despite lower revenues.

For OPG, the company anticipates a significant decrease in revenues and operating income due to year-over-year changes in volume and project mix.

For IMDS, it expects both revenues and operating income to be relatively flat year over year

For ADTech, OII anticipates revenues to grow strongly, while operating income is projected to rise slightly due to changes in project mix.

During the first quarter of 2026, Oceaneering’s unallocated expenses are projected to be around the $50 million mark, driven by wage inflation, higher IT spending, and foreign exchange fluctuations.

For the full-year 2026, Oceaneering expects consolidated revenues to grow in the low to mid-single-digit percentage range. The company projects EBITDA of $390 million to $440 million, representing a modest increase at the midpoint versus 2025. Free cash flow is forecast at $100 million to $120 million, with the year-over-year decline reflecting the early receipt of approximately $37 million in customer payments in the fourth quarter of 2025. Combined 2025-2026 cash conversion is expected to be nearly 40%. Organic capital expenditures are projected at $105 million to $115 million, with 40% allocated to growth and 60% to maintenance. Energy-focused capex is expected to decline 12%, while ADTech spending increases. Net interest expense is forecast at $21 million to $26 million, and cash tax payments are expected at $95 million to $105 million.

Segmentally, SSR revenues are expected to grow in the low to mid-single digits, with EBITDA margins in the mid-30% range. ROV fleet utilization is projected in the mid-60% range, drill-support mix at 65%, and market share at 55% to 60%. Manufactured Products and OPG operating income margins are expected in the mid-teens, IMDS margins in the mid-single digits, and ADTech margins in the low teens. Unallocated expenses are anticipated at approximately $50 million per quarter.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Earnings at a Glance

While we have discussed OII’s fourth-quarter results in detail, let us take a look at three other key reports in this space.

Expand Energy Corporation EXE reported fourth-quarter 2025 adjusted earnings per share of $2, beating the Zacks Consensus Estimate of $1.89. Moreover, the company’s bottom line increased from the year-ago adjusted profit of 55 cents, fueled by strong production and higher natural gas price realization.

Expand Energy’s ‘natural gas, oil and NGL’ revenues of $2.3 billion surpassed the Zacks Consensus Estimate of $2.2 billion. Additionally, the top line was also higher than the year-ago figure of $1.6 billion.

As of Dec. 31, 2025, the company had $616 million in cash and cash equivalents. Expand Energy had a long-term debt of $5 billion, reflecting a debt-to-capitalization of 21.2%.

NOV Inc. NOV reported fourth-quarter 2025 adjusted earnings of 2 cents per share, which missed the Zacks Consensus Estimate of 25 cents. The bottom line also decreased significantly from the year-ago quarter’s 41 cents due to the underperformance of the Energy Products and Services segment.

The oil and gas equipment and services company’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4.9%, driven by stronger-than-expected revenues from the Energy Equipment segment, which was backed by strong execution on backlog. However, revenues fell 1.3% from the year-ago quarter’s figure due to a decline in global drilling activity of 6%.

As of Dec. 31, 2025, the company had cash and cash equivalents of $1.6 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.1%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.

Nabors Industries Ltd. NBR reported a fourth-quarter 2025 adjusted profit of 17 cents per share, beating the Zacks Consensus Estimate of a loss of $2.93. Additionally, the metric is well above the prior-year quarter’s reported loss of $6.67 per share. This outperformance was mainly driven by higher adjusted operating income from its International Drilling and Drilling Solutions segments.

The oil and gas drilling company’s operating revenues of $797.5 million beat the Zacks Consensus Estimate of $797 million. The figure also increased from the year-ago quarter’s $729.8 million, driven by stronger revenue contributions from the International Drilling and Drilling Solutions segments.

As of Dec. 31, 2025, NBR had $940.7 million in cash and short-term investments.

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