Oceaneering International has reported its fourth-quarter and full-year 2025 results.

Fourth Quarter 2025 Results

• As compared to the fourth quarter of 2024:
  • Revenue was $669 million, a decrease of 6%.
  • Operating income was $65.4 million, a decrease of 16%.
  • Net income was $178 million, an increase of 217%, which included a discrete tax benefit due to the release of valuation allowances for deferred tax assets.
  • Adjusted EBITDA was $90.5 million, a decrease of 11%.
• Cash Flow and Share Repurchases
  • Cash flow provided by operating activities was $221 million.
  • Free cash flow was $191 million.
  • Shares repurchased were 419,005 for approximately $10.1 million.

Full Year 2025 Results

• As compared to the full year 2024:
  • Revenue was $2.8 billion, an increase of 5%.
  • Operating income was $305 million, an increase of 24%.
  • Net income was $354 million, an increase of 140%.
  • Adjusted EBITDA was $401 million, an increase of 16%.
• Cash Flow and Share Repurchases
  • Cash flow provided by operating activities was $319 million.
  • Free cash flow was $208 million.
  • Year-end cash and cash equivalents totaled $689 million, compared to $498 million at the end of 2024.
  • Shares repurchased were 1,810,732 for approximately $40.3 million. Approximately 5.4 million shares remain under the current repurchase authorization.

Rod Larson, Oceaneering's President and Chief Executive Officer, commented,
"Our team concluded 2025 with strong operational execution, delivering fourth quarter adjusted EBITDA at the high end of our guidance range. We generated robust free cash flow of $191 million, driven primarily by the timing of customer collections. As expected, revenue and adjusted EBITDA declined compared to the fourth quarter of 2024 due to the unusually high level of international intervention and installation projects in our Offshore Projects Group segment (OPG) in the prior year.

"For the full year, we delivered solid financial results despite a challenging environment. Consolidated revenue and adjusted EBITDA both increased, making 2025 our seventh consecutive year of adjusted EBITDA growth. All of our operating segments achieved EBITDA improvements, with Manufactured Products and Aerospace and Defense Technologies (ADTech) recording the largest percentage increases. We secured $3.7 billion of orders in 2025 and ended the year with an enterprise-wide book-to-bill ratio of 1.33. Our backlog includes multi-year contracts in several segments, highlighted by a landmark ADTech award representing the largest initial contract value in our history.

"Looking ahead to 2026, we expect ADTech to be our primary growth engine, supported by our existing backlog and increased spending across defense and government markets. We anticipate results in our energy-focused businesses to be weighted towards the second half of the year as offshore activity improves. Based on these market dynamics and our current backlog, we are issuing our full year 2026 guidance."

Full Year 2026 Guidance

• Net income is expected to be in the range of $178 million to $203 million.
• Consolidated EBITDA is projected to be in the range of $390 million to $440 million.
• Free cash flow generation is forecasted to be in the range of $100 million to $120 million.
• Capital expenditures are expected to be in the range of $105 million to $115 million.
• Share repurchase activity is expected to continue.

Fourth Quarter 2025 Segment Results

As compared to the fourth quarter of 2024:

• Subsea Robotics (SSR) revenue of $212 million was essentially flat while operating income improved 7% to $67.8 million, and EBITDA margin improved to 38%. Margin expansion was driven by a 7% increase in ROV revenue per day utilized to $11,550, more than offsetting a decrease in ROV fleet utilization from 66% to 62%.
• Manufactured Products operating income of $20.4 million improved significantly and operating income margin expanded to 15% on 7% less revenue. Backlog was $511 million on December 31, 2025. The book-to-bill ratio was 0.84 for the 12-month period ending on December 31, 2025.
• OPG operating income of $15.0 million represented a year-over-year decrease of 62% on a 29% decrease in revenue. Operating income margin declined to 11%. These results reflect fewer high-margin international projects that positively benefited the fourth quarter of 2024.
• Integrity Management and Digital Solutions (IMDS) revenue decreased by 11%, with operating income and operating income margin declining significantly. The revenue decline largely reflects lower activity in Europe and West Africa, while the operating income decline was due to the revenue decline plus a loss realized as the result of the resolution of a commercial dispute.
• ADTech operating income increased 43% to $14.2 million on a 29% increase in revenue. Operating income margin was relatively flat at 11%.
• At the corporate level, Unallocated Expenses increased 26% to $52.0 million, due to additional accruals for performance-based compensation.

First Quarter 2026 Guidance

As compared to the first quarter of 2025, consolidated first quarter 2026 revenue is expected to be lower and EBITDA is expected to be in the range of $80 million to $90 million. This is driven by lower activity levels in energy markets at the start of 2026, which are expected to improve as the year progresses.

At the segment level, for the first quarter of 2026, as compared to the first quarter of 2025:

• SSR revenue is expected to increase slightly while operating income is expected to decrease due to changes in geographic mix.
• Manufactured Products operating income is forecasted to increase significantly on slightly lower revenue.
• OPG revenue and operating income are projected to decrease significantly due to year-over-year changes in volume and project mix.
• IMDS revenue and operating income are expected to be relatively flat.
• ADTech revenue is forecasted to increase significantly while operating income will expand marginally on project mix.
• Unallocated Expenses are expected to be in the $50 million range, due to higher costs associated with wage inflation, increased information technology costs, and foreign exchange impacts.

KeyFacts Energy Industry Directory: Oceaneering