Open the filing on EDGAROceaneering Reports Third Quarter 2025 Results
HOUSTON, October 22, 2025 - Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported third quarter 2025 results.
- As compared to the third quarter of 2024:
- Revenue increased 9% to $743 million;
- Operating income increased 21% to $86.5 million;
- Net income increased 73% to $71.3 million; and
- Adjusted EBITDA increased 13% to $111 million.
- Cash flow provided by operating activities was $101 million and free cash flow was $77.0 million, with an ending cash position of $506 million.
- Shares repurchased were 440,814 for approximately $10.1 million.
Rod Larson, Oceaneering's President and Chief Executive Officer, stated, "Our team continues to deliver positive results in a dynamic market environment. In the third quarter, we generated adjusted EBITDA in excess of our guidance range and consensus estimates through solid performance across our segments. This includes the ongoing conversion of higher-margin backlog in Manufactured Products, a continued favorable project mix and steady vessel utilization in our Offshore Projects Group (OPG), and improvement in average remotely operated vehicle (ROV) revenue per day utilized in Subsea Robotics (SSR). In addition, we secured total inbound orders of $854 million, with notable contract wins in SSR, Aerospace and Defense Technologies (ADTech), and Manufactured Products.
"Looking forward to 2026, we are optimistic about our consolidated growth opportunities to be led by ADTech, although we expect the year to unfold differently than 2025. In the first quarter, we anticipate seasonally lower activity levels in our energy-focused businesses, with activity levels increasing in the second and third quarters. Accordingly, we are initiating full-year 2026 consolidated EBITDA guidance in the range of $390 million to $440 million."
Third Quarter 2025 Segment Results
As compared to the third quarter of 2024:
- SSR revenue of $219 million, operating income of $65.1 million, and EBITDA margin of 36% were essentially flat. ROV revenue per day utilized increased 6% to $11,254. ROV fleet utilization declined to 65%.
- Manufactured Products operating income of $24.7 million improved 119% and operating income margin expanded to 16% on a 9% increase in revenue. Backlog was $568 million on September 30, 2025. The book-to-bill ratio was 0.82 for the 12-month period ending on September 30, 2025.
- OPG operating income increased 17% to $23.7 million on a 16% increase in revenue. Operating income margin was flat at 14%.
- Integrity Management and Digital Solutions (IMDS) operating income increased significantly, and operating income margin improved on a 4% decrease in revenue due to the absence of a one-time, non-cash charge in the third quarter of 2024 related to the divestiture of the Maritime Intelligence division.
- ADTech operating income of $16.6 million represented an increase of 36% on a 27% increase in revenue. Operating income margin improved to 13%.
- At the corporate level, Unallocated Expenses increased 19% to $46.3 million.
Fourth Quarter 2025 Guidance
As compared to the fourth quarter of 2024, consolidated fourth quarter 2025 revenue is expected to be lower. Consolidated EBITDA is forecast to be in the range of $80 million to $90 million.
At the segment level, for the fourth quarter of 2025, as compared to the fourth quarter of 2024:
- SSR revenue and operating income are expected to increase.
- Manufactured Products operating income is expected to increase significantly on lower revenue.
- OPG revenue and operating income are expected to decrease significantly due to the absence of international projects that positively impacted the fourth quarter of 2024.
- IMDS operating income is expected to decrease significantly on lower revenue.
- ADTech revenue and operating income are expected to increase significantly.
- Unallocated Expenses are expected to be in the $45 million range.
Initial Full-Year 2026 Guidance
- Consolidated EBITDA is projected to be in the range of $390 million to $440 million.
- Free cash flow generation is forecast to be consistent with 2025 levels.
- Share repurchase activity is expected to continue.
Oceaneering will provide more specific guidance on its expectations for 2026 in its fourth quarter 2025 earnings release and conference call.
Non-GAAP Financial Measures
Adjusted net income (loss) and earnings (loss) per share; EBITDA and adjusted EBITDA on a consolidated and on a segment basis (as well as EBITDA and adjusted EBITDA margins); and free cash flow are non-GAAP measures that exclude the impacts of certain identified items. Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS), EBITDA and Adjusted EBITDA and Margins, Free Cash Flow, Fourth Quarter 2025 Consolidated EBITDA Estimate, 2025 Free Cash Flow Estimate, 2026 Consolidated EBITDA Estimate, and EBITDA and Adjusted EBITDA and Margins by Segment. These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information.
Conference Call Details
Oceaneering has scheduled a conference call and webcast on Thursday, October 23, 2025 at 10:00 a.m. Central Time, to discuss its results for the third quarter of 2025, guidance for the fourth quarter and full year of 2025, and initial guidance for the full year of 2026. Interested parties may listen to the call through a webcast link posted in the Investor Relations section of Oceaneering's website. A replay of the conference call will be made available on the website approximately two hours following the conclusion of the live call.
Forward-Looking Statements
This release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs, future expected business, and financial performance and prospects of Oceaneering. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering’s: fourth quarter 2025 guidance for consolidated revenue, consolidated EBITDA, revenue and operating profitability by segment, and Unallocated Expenses; implied full-year 2025 guidance for consolidated
EBITDA; initial full-year 2026 guidance for consolidated EBITDA; the expectations that 2026 free cash flow will be similar to 2025 levels and that share purchase activity will continue in 2026; activity levels quarter by quarter in 2026; and the characterization, whether positive or otherwise, of market fundamentals, conditions, and dynamics, robotics markets, offshore energy activity levels (including by geographic location), pricing levels, day rates, ROV days utilized, average ROV revenue per day utilized, vessel utilization, growth, bidding activity, outlook, performance, opportunities, and future financials, including as increasing, favorable, positive, encouraging, improving, seasonal, strong, supportive, robust, meaningful, considerable, healthy, or significant (which is used herein to indicate a change of 20% or greater).
Forward-looking statements notice
The forward-looking statements included in this release are based on Oceaneering's current expectations and are subject to certain risks, assumptions, trends, and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could cause actual results to differ materially include: factors affecting the level of activity in the oil and gas industry, including worldwide demand for and prices of oil and natural gas, oil and natural gas production growth, and the supply and demand of offshore drilling rigs; the indirect consequences of climate change and climate-related business trends; actions by members of OPEC and other oil exporting countries; decisions about offshore developments to be made by oil and gas exploration, development, and production companies; the use of subsea completions and our ability to capture associated market share; general economic and business conditions and industry trends and uncertainty, including those related to tariffs and retaliatory tariffs; the strength of the industry segments in which we are involved; cancellations of contracts, customer contract disputes, change orders, and other contractual modifications, force majeure declarations, and the exercise of contractual suspension rights and the resulting adjustments to our backlog; collections from our customers; our future financial performance, including as a result of the availability, terms, and deployment of capital; the consequences of significant changes in currency exchange rates; the volatility and uncertainties of credit markets; changes in data privacy and security laws, regulations, and standards; changes in tax laws, regulations, and interpretation by taxing authorities; changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment; the continued availability of qualified personnel; our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources; operating risks normally incident to offshore exploration, development, and production operations; hurricanes and other adverse weather and sea conditions; cost and time associated with drydocking of our vessels; the highly competitive nature of our businesses; adverse outcomes from legal or regulatory proceedings; the risks associated with integrating businesses we acquire; rapid technological changes; and social, political, military, and economic situations in foreign countries where we do business and the possibilities of civil disturbances, war, other armed conflicts, or terrorist attacks. For a more complete discussion of these and other risk factors, please see Oceaneering’s latest annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements. Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement.
About Oceaneering
Oceaneering is a global technology company delivering engineered services and products and robotic solutions to the offshore energy, defense, aerospace, and manufacturing industries.
For more information, please visit www.oceaneering.com.
| | | | | | Sep 30, 2025 | Dec 31, 2024 |
|---|
| | | | | (in thousands) |
|---|
| Current assets (including cash and cash equivalents of $505,992 and $497,516) | | | $1,501,843 | $1,387,896 |
|---|
| Net property and equipment | | | | 442,274 | 420,098 |
|---|
| Other assets | | | | 595,201 | 528,353 |
|---|
| | | Total Assets | | | $2,539,318 | $2,336,347 |
|---|
| Current liabilities | | | | $763,859 | $796,938 |
|---|
| Long-term debt | | | | 486,022 | 482,009 |
|---|
| Other long-term liabilities | | | 375,706 | 337,078 |
|---|
| Equity | | | | 913,731 | 720,322 |
|---|
| | | Total Liabilities and Equity | | | $2,539,318 | $2,336,347 |
|---|
| | | For the Three Months Ended | For the Nine Months Ended |
|---|
| | | Sep 30, 2025 | Sep 30, 2024 | Jun 30, 2025 | Sep 30, 2025 | Sep 30, 2024 |
|---|
| | | (in thousands, except per share amounts) |
|---|
| Revenue | $742,898 | $679,811 | $698,161 | $2,115,582 | $1,947,711 |
|---|
| Cost of services and products | 590,166 | 548,849 | 549,734 | 1,679,412 | 1,604,154 |
|---|
| | Gross margin | 152,732 | 130,962 | 148,427 | 436,170 | 343,557 |
|---|
| Selling, general and administrative expense | 66,224 | 59,629 | 69,238 | 197,001 | 175,167 |
|---|
| | Operating income (loss) | 86,508 | 71,333 | 79,189 | 239,169 | 168,390 |
|---|
| Interest income | 3,704 | 3,275 | 3,017 | 10,365 | 8,717 |
|---|
| Interest expense, net of amounts capitalized | (9,381) | (9,456) | (9,472) | (27,928) | (28,176) |
|---|
| Equity in income (losses) of unconsolidated affiliates | 97 | 323 | 311 | 770 | 787 |
|---|
| Other income (expense), net | (1,021) | 3,133 | 5,371 | 5,325 | 6,372 |
|---|
| | Income (loss) before income taxes | 79,907 | 68,608 | 78,416 | 227,701 | 156,090 |
|---|
| Provision (benefit) for income taxes | 8,618 | 27,371 | 23,974 | 51,593 | 64,721 |
|---|
| | Net Income (Loss) | $71,289 | $41,237 | $54,442 | $176,108 | $91,369 |
|---|
| OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| ASSETS | | | | | |
| LIABILITIES AND EQUITY | | | | |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| Weighted average diluted shares outstanding | 101,057 | 102,613 | 101,372 | 101,446 | 102,445 |
| Diluted earnings (loss) per share | $0.71 | $0.40 | $0.54 | $1.74 | $0.89 |
| The above Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations should be read in conjunction with the Company's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q. |
| | For the Three Months Ended | For the Nine Months Ended |
|---|
| | Sep 30, 2025 | Sep 30, 2024 | Jun 30, 2025 | Sep 30, 2025 | Sep 30, 2024 |
|---|
| | ($ in thousands) |
|---|
| Revenue | $218,767 | $215,715 | $218,786 | $643,529 | $617,632 |
|---|
| SEGMENT INFORMATION |
| Subsea Robotics | | | | | | |
| Operating income (loss) | $65,142 | $65,698 | $64,505 | $189,279 | $171,685 |
| Operating income (loss) % | 30% | 30% | 29% | 29% | 28% |
| ROV days available | 23,000 | 23,000 | 22,750 | 68,250 | 68,500 |
| ROV days utilized | 14,962 | 15,796 | 15,289 | 45,344 | 46,171 |
| ROV utilization | 65% | 69% | 67% | 66% | 67% |
| Manufactured Products | | | | | |
| Revenue | $156,395 | $143,734 | $145,134 | $436,566 | $412,501 |
| Operating income (loss) | $24,651 | $11,278 | $18,772 | $52,090 | $38,837 |
| Operating income (loss) % | 16% | 8% | 13% | 12% | 9% |
| Backlog at end of period | $568,000 | $671,000 | $516,000 | $568,000 | $671,000 |
| Offshore Projects Group | | | | | |
| Revenue | $171,046 | $147,539 | $149,281 | $485,268 | $406,651 |
| Operating income (loss) | $23,692 | $20,294 | $21,663 | $81,021 | $34,386 |
| Operating income (loss) % | 14% | 14% | 15% | 17% | 8% |
| Integrity Management & Digital Solutions | | | | | |
| Revenue | $70,781 | $73,622 | $75,367 | $217,566 | $216,804 |
| Operating income (loss) | $2,756 | $714 | $4,647 | $10,865 | $7,802 |
| Operating income (loss) % | 4% | 1% | 6% | 5% | 4% |
| Aerospace and Defense Technologies | | | | | |
| Revenue | $125,909 | $99,201 | $109,593 | $332,653 | $294,123 |
| Operating income (loss) | $16,557 | $12,219 | $16,299 | $43,521 | $32,271 |
| Operating income (loss) % | 13% | 12% | 15% | 13% | 11% |
| Unallocated Expenses | | | | | |
| Operating income (loss) | $(46,290) | $(38,870) | $(46,697) | $(137,607) | $(116,591) |
| Total | | | | | | |
| Revenue | $742,898 | $679,811 | $698,161 | $2,115,582 | $1,947,711 |
| Operating income (loss) | $86,508 | $71,333 | $79,189 | $239,169 | $168,390 |
| Operating income (loss) % | 12% | 10% | 11% | 11% | 9% |
| The above Segment Information does not include adjustments for non-recurring transactions. See the tables below under the caption "Reconciliations of Non-GAAP to GAAP Financial Information" for financial measures that our management considers in evaluating our ongoing operations. |
| | For the Three Months Ended | For the Nine Months Ended |
|---|
| | Sep 30, 2025 | Sep 30, 2024 | Jun 30, 2025 | Sep 30, 2025 | Sep 30, 2024 |
|---|
| | (in thousands) |
|---|
| SELECTED CASH FLOW INFORMATION |
| Purchases of property and equipment | $24,215 | $24,886 | $30,272 | $80,575 | $73,262 |
| Capitalized cloud-based service contract costs | 7,161 | - | 2,536 | 11,424 | - |
| Total Capital Expenditures | $31,376 | $24,886 | $32,808 | $91,999 | $73,262 |
| Depreciation and Amortization: | | | | | |
| Energy Services and Products | | | | | |
| Subsea Robotics | $13,283 | $12,076 | $12,385 | $37,404 | $36,867 |
| Manufactured Products | 2,768 | 3,061 | 2,741 | 8,159 | 9,473 |
| Offshore Projects Group | 4,290 | 5,399 | 4,663 | 13,642 | 17,418 |
| Integrity Management & Digital Solutions | 1,830 | 1,348 | 1,839 | 5,399 | 4,410 |
| Total Energy Services and Products | 22,171 | 21,884 | 21,628 | 64,604 | 68,168 |
| Aerospace and Defense Technologies | 1,082 | 696 | 900 | 2,815 | 1,915 |
| Unallocated Expenses | 2,870 | 2,683 | 2,872 | 8,552 | 8,218 |
| Total Depreciation and Amortization | $26,123 | $25,263 | $25,400 | $75,971 | $78,301 |
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release also includes non-GAAP financial measures (as defined under certain rules and regulations promulgated by the Securities and Exchange Commission). We have included adjusted net income (loss) and diluted earnings (loss) per Share (EPS), each of which excludes the effects of certain specified items, as set forth in the tables that follow. As a result, these amounts are non-GAAP financial measures. We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business. Furthermore, our management uses these measures as measures of the performance of our operations. We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins, 2024 consolidated adjusted EBITDA and free cash flow, and 2025 consolidated EBITDA and free cash flow estimates, as well as the following by segment: EBITDA, EBITDA margins, adjusted EBITDA, and adjusted EBITDA margins. We define EBITDA margin as EBITDA divided by revenue. Adjusted EBITDA and adjusted EBITDA margins and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow. Due to the forward-looking nature of EBITDA for the fourth quarter of 2025, for the full year of 2025, and for the full year of 2026, we cannot reliably predict certain of the necessary line items for the reconciliations to net income and, accordingly, have excluded such line items in the reconciliation. EBITDA and EBITDA margins, adjusted EBITDA and adjusted EBITDA margins, and related information by segment are each non-GAAP financial measures. We define free cash flow as cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions). We have included these disclosures in this press release because EBITDA, EBITDA margins, and free cash flow are widely used by investors for valuation purposes and for comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof provide more consistent measures than the unadjusted amounts. Furthermore, our management uses these measures for purposes of evaluating our financial performance. Our presentation of EBITDA, EBITDA margins, and free cash flow (and the adjusted amounts thereof) may not be comparable to similarly titled measures that other companies report. Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows, or any other measure prepared and reported in accordance with GAAP. The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.
| | For the Three Months Ended |
|---|
| | Sep 30, 2025 | Sep 30, 2024 | Jun 30, 2025 |
|---|
| | Net Income (Loss) | Diluted EPS | Net Income (Loss) | Diluted EPS | Net Income (Loss) | Diluted EPS |
|---|
| | (in thousands, except per share amounts) |
|---|
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION |
| (continued) |
| Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS) |
| Net income (loss) and diluted EPS as reported in accordance with GAAP | $71,289 | $0.71 | $41,237 | $0.40 | $54,442 | $0.54 |
| Pre-tax adjustments for the effects of: | | | | | | |
| Foreign currency (gains) losses | 999 | | (424) | | (5,430) | |
| Total pre-tax adjustments | 999 | | (424) | | (5,430) | |
| Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods | (902) | | 603 | | 5,452 | |
| Discrete tax items: | | | | | | |
| Share-based compensation | (4) | | (2) | | (2) | |
| Uncertain tax positions | (1,106) | | (1,178) | | (9) | |
| Valuation allowances | (6,279) | | (1,759) | | (2,453) | |
| Other | (8,236) | | (1,247) | | (2,209) | |
| Total discrete tax adjustments | (15,625) | | (4,186) | | (4,673) | |
| Total of adjustments | (15,528) | | (4,007) | | (4,651) | |
| Adjusted Net Income (Loss) | $55,761 | $0.55 | $37,230 | $0.36 | $49,791 | $0.49 |
| Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss) | | 101,057 | | 102,613 | | 101,372 |
| | For the Nine Months Ended |
|---|
| | Sep 30, 2025 | Sep 30, 2024 |
|---|
| | Net Income (Loss) | Diluted EPS | Net Income (Loss) | Diluted EPS |
|---|
| | (in thousands, except per share amounts) |
|---|
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION |
| (continued) |
| Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS) |
| Net income (loss) and diluted EPS as reported in accordance with GAAP | $176,108 | $1.74 | $91,369 | $0.89 |
| Pre-tax adjustments for the effects of: | | | | |
| Foreign currency (gains) losses | (5,481) | | (3,655) | |
| Total pre-tax adjustments | (5,481) | | (3,655) | |
| Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods | 5,235 | | 1,463 | |
| Discrete tax items: | | | | |
| Share-based compensation | (1,109) | | (1,976) | |
| Uncertain tax positions | (3,526) | | 379 | |
| Valuation allowances | (11,993) | | 3,332 | |
| Other | (9,665) | | (11,228) | |
| Total discrete tax adjustments | (26,293) | | (9,493) | |
| Total of adjustments | (26,539) | | (11,685) | |
| Adjusted Net Income (Loss) | $149,569 | $1.47 | $79,684 | $0.78 |
| Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss) | | 101,446 | | 102,445 |
| | | For the Three Months Ended | For the Nine Months Ended |
|---|
| | | Sep 30, 2025 | Sep 30, 2024 | Jun 30, 2025 | Sep 30, 2025 | Sep 30, 2024 |
|---|
| | | ($ in thousands) |
|---|
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION |
| (continued) |
| EBITDA and Adjusted EBITDA and Margins |
| Net income (loss) | $71,289 | $41,237 | $54,442 | $176,108 | $91,369 |
| Depreciation and amortization | 26,123 | 25,263 | 25,400 | 75,971 | 78,301 |
| Subtotal | 97,412 | 66,500 | 79,842 | 252,079 | 169,670 |
| Interest expense, net of interest income | 5,677 | 6,181 | 6,455 | 17,563 | 19,459 |
| Amortization included in interest expense | (1,627) | (1,537) | (1,590) | (4,773) | (4,520) |
| Provision (benefit) for income taxes | 8,618 | 27,371 | 23,974 | 51,593 | 64,721 |
| EBITDA | 110,080 | 98,515 | 108,681 | 316,462 | 249,330 |
| Adjustments for the effects of: | | | | | |
| Foreign currency (gains) losses | 999 | (424) | (5,430) | (5,481) | (3,655) |
| | Total of adjustments | 999 | (424) | (5,430) | (5,481) | (3,655) |
| Adjusted EBITDA | $111,079 | $98,091 | $103,251 | $310,981 | $245,675 |
| Revenue | $742,898 | $679,811 | $698,161 | $2,115,582 | $1,947,711 |
| EBITDA margin % | 15% | 14% | 16% | 15% | 13% |
| Adjusted EBITDA margin % | 15% | 14% | 15% | 15% | 13% |
| | For the Three Months Ended | For the Nine Months Ended |
|---|
| | Sep 30, 2025 | Sep 30, 2024 | Jun 30, 2025 | Sep 30, 2025 | Sep 30, 2024 |
|---|
| | (in thousands) |
|---|
| Free Cash Flow |
| Net Income (loss) | $71,289 | $41,237 | $54,442 | $176,108 | $91,369 |
| Non-cash adjustments: | | | | | |
| Depreciation and amortization | 26,123 | 25,263 | 25,400 | 75,971 | 78,301 |
| Other non-cash | (204) | 7,440 | 5,671 | 19,896 | 11,866 |
| Other increases (decreases) in cash from operating activities | 4,055 | 17,991 | (8,326) | (174,243) | (106,699) |
| Cash flow provided by (used in) operating activities | 101,263 | 91,931 | 77,187 | 97,732 | 74,837 |
| Purchases of property and equipment | (24,215) | (24,886) | (30,272) | (80,575) | (73,262) |
| Free Cash Flow | $77,048 | $67,045 | $46,915 | $17,157 | $1,575 |
| | For the Three Months Ending |
|---|
| | December 31, 2025 |
|---|
| | Low | High |
|---|
| | (in thousands) |
|---|
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION |
| (continued) |
| Fourth Quarter 2025 Consolidated EBITDA Estimate |
| Income (loss) before income taxes | $51,000 | $59,000 |
| Depreciation and amortization | 25,000 | 26,000 |
| Subtotal | 76,000 | 85,000 |
| Interest expense, net of interest income | 6,000 | 7,000 |
| Amortization included in interest expense | (2,000) | (2,000) |
| Consolidated EBITDA | $80,000 | $90,000 |
| 2025 Free Cash Flow Estimate |
| | For the Year Ending |
| | December 31, 2025 |
| | Low | High |
| | (in thousands) |
| Net income (loss) | $208,000 | $213,000 |
| Depreciation and amortization | 101,000 | 102,000 |
| Other increases (decreases) in cash from operating activities | (84,000) | (65,000) |
| Cash flow provided by (used in) operating activities | 225,000 | 250,000 |
| Purchases of property and equipment | (115,000) | (120,000) |
| Free Cash Flow | $110,000 | $130,000 |
| 2026 Consolidated EBITDA Estimate |
| | For the Year Ending |
| | December 31, 2026 |
| | Low | High |
| | (in thousands) |
| Income (loss) before income taxes | $270,000 | $307,000 |
| Depreciation and amortization | 105,000 | 114,000 |
| Subtotal | 375,000 | 421,000 |
| Interest expense, net of interest income | 21,000 | 26,000 |
| Amortization included in interest expense | (6,000) | (7,000) |
| Consolidated EBITDA | $390,000 | $440,000 |
| | | For the Three Months Ended September 30, 2025 |
|---|
| | | SSR | MP | OPG | IMDS | ADTech | Unallocated Expenses and other | Total |
|---|
| | | ($ in thousands) |
|---|
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION |
| (continued) |
| EBITDA and Adjusted EBITDA and Margins by Segment |
| Operating Income (Loss) as reported in accordance with GAAP | | $65,142 | | $24,651 | | $23,692 | | $2,756 | | $16,557 | $(46,290) | | $86,508 |
| Adjustments for the effects of: | | | | | | | |
| Depreciation and amortization | | 13,283 | | 2,768 | | 4,290 | | 1,830 | | 1,082 | 2,870 | | 26,123 |
| Other pre-tax | | - | | - | | - | | - | | - | (2,551) | | (2,551) |
| EBITDA | | 78,425 | | 27,419 | | 27,982 | | 4,586 | | 17,639 | (45,971) | | 110,080 |
| Adjustments for the effects of: | | | | | | | |
| Foreign currency (gains) losses | | - | | - | | - | | - | | - | 999 | | 999 |
| | Total of adjustments | | - | | - | | - | | - | | - | 999 | | 999 |
| Adjusted EBITDA | | $78,425 | | $27,419 | | $27,982 | | $4,586 | | $17,639 | $(44,972) | | $111,079 |
| Revenue | | $218,767 | | $156,395 | | $171,046 | | $70,781 | | $125,909 | | | $742,898 |
| Operating income (loss) % as reported in accordance with GAAP | 30% | | 16% | | 14% | | 4% | | 13% | | | 12% | |
| EBITDA Margin | 36% | | 18% | | 16% | | 6% | | 14% | | | 15% | |
| Adjusted EBITDA Margin | 36% | | 18% | | 16% | | 6% | | 14% | | | 15% | |
| | | For the Three Months Ended September 30, 2024 |
| | | SSR | MP | OPG | IMDS | ADTech | Unallocated Expenses and other | Total |
| | | ($ in thousands) |
| Operating Income (Loss) as reported in accordance with GAAP | | $65,698 | | $11,278 | | $20,294 | | $714 | | $12,219 | $(38,870) | | $71,333 |
| Adjustments for the effects of: | | | | | | | |
| Depreciation and amortization | | 12,076 | | 3,061 | | 5,399 | | 1,348 | | 696 | 2,683 | | 25,263 |
| Other pre-tax | | - | | - | | - | | - | | - | 1,919 | | 1,919 |
| EBITDA | | 77,774 | | 14,339 | | 25,693 | | 2,062 | | 12,915 | (34,268) | | 98,515 |
| Adjustments for the effects of: | | | | | | | |
| Foreign currency (gains) losses | | - | | - | | - | | - | | - | (424) | | (424) |
| | Total of adjustments | | - | | - | | - | | - | | - | (424) | | (424) |
| Adjusted EBITDA | | $77,774 | | $14,339 | | $25,693 | | $2,062 | | $12,915 | $(34,692) | | $98,091 |
| Revenue | | $215,715 | | $143,734 | | $147,539 | | $73,622 | | $99,201 | | | $679,811 |
| Operating income (loss) % as reported in accordance with GAAP | 30% | | 8% | | 14% | | 1% | | 12% | | | 10% | |
| EBITDA Margin | 36% | | 10% | | 17% | | 3% | | 13% | | | 14% | |
| Adjusted EBITDA Margin | 36% | | 10% | | 17% | | 3% | | 13% | | | 14% | |
| | | For the Three Months Ended June 30, 2025 |
|---|
| | | SSR | MP | OPG | IMDS | ADTech | Unallocated Expenses and other | Total |
|---|
| | | ($ in thousands) |
|---|
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION |
| (continued) |
| EBITDA and Adjusted EBITDA and Margins by Segment |
| Operating Income (Loss) as reported in accordance with GAAP | | $64,505 | | $18,772 | | $21,663 | | $4,647 | | $16,299 | $(46,697) | | $79,189 |
| Adjustments for the effects of: | | | | | | | |
| Depreciation and amortization | | 12,385 | | 2,741 | | 4,663 | | 1,839 | | 900 | 2,872 | | 25,400 |
| Other pre-tax | | - | | - | | - | | - | | - | 4,092 | | 4,092 |
| EBITDA | | 76,890 | | 21,513 | | 26,326 | | 6,486 | | 17,199 | (39,733) | | 108,681 |
| Adjustments for the effects of: | | | | | | | |
| Foreign currency (gains) losses | | - | | - | | - | | - | | - | (5,430) | | (5,430) |
| | Total of adjustments | | - | | - | | - | | - | | - | (5,430) | | (5,430) |
| Adjusted EBITDA | | $76,890 | | $21,513 | | $26,326 | | $6,486 | | $17,199 | $(45,163) | | $103,251 |
| Revenue | | $218,786 | | $145,134 | | $149,281 | | $75,367 | | $109,593 | | | $698,161 |
| Operating income (loss) % as reported in accordance with GAAP | 29% | | 13% | | 15% | | 6% | | 15% | | | 11% | |
| EBITDA Margin | 35% | | 15% | | 18% | | 9% | | 16% | | | 16% | |
| Adjusted EBITDA Margin | 35% | | 15% | | 18% | | 9% | | 16% | | | 15% | |
| | | For the Nine Months Ended September 30, 2025 |
|---|
| | | SSR | MP | OPG | IMDS | ADTech | Unallocated Expenses and other | Total |
|---|
| | | ($ in thousands) |
|---|
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION |
| (continued) |
| EBITDA and Adjusted EBITDA and Margins by Segment |
| Operating Income (Loss) as reported in accordance with GAAP | | $189,279 | | $52,090 | | $81,021 | | $10,865 | | $43,521 | | $(137,607) | | $239,169 |
| Adjustments for the effects of: | | | | | | | |
| Depreciation and amortization | | 37,404 | | 8,159 | | 13,642 | | 5,399 | | 2,815 | | 8,552 | | 75,971 |
| Other pre-tax | | - | | - | | - | | - | | - | | 1,322 | | 1,322 |
| EBITDA | | 226,683 | | 60,249 | | 94,663 | | 16,264 | | 46,336 | | (127,733) | | 316,462 |
| Adjustments for the effects of: | | | | | | | |
| Foreign currency (gains) losses | | - | | - | | - | | - | | - | | (5,481) | | (5,481) |
| | Total of adjustments | | - | | - | | - | | - | | - | | (5,481) | | (5,481) |
| Adjusted EBITDA | | $226,683 | | $60,249 | | $94,663 | | $16,264 | | $46,336 | | $(133,214) | | $310,981 |
| Revenue | | $643,529 | | $436,566 | | $485,268 | | $217,566 | | $332,653 | | | $2,115,582 |
| Operating income (loss) % as reported in accordance with GAAP | 29% | | 12% | | 17% | | 5% | | 13% | | | 11% | |
| EBITDA Margin | 35% | | 14% | | 20% | | 7% | | 14% | | | 15% | |
| Adjusted EBITDA Margin | 35% | | 14% | | 20% | | 7% | | 14% | | | 15% | |
| | | For the Nine Months Ended September 30, 2024 |
| | | SSR | MP | OPG | IMDS | ADTech | Unallocated Expenses and other | Total |
| | | ($ in thousands) |
| Operating Income (Loss) as reported in accordance with GAAP | $171,685 | | $38,837 | | $34,386 | | $7,802 | | $32,271 | | $(116,591) | | $168,390 | |
| Adjustments for the effects of: | | | | | | | |
| Depreciation and amortization | 36,867 | | 9,473 | | 17,418 | | 4,410 | | 1,915 | | 8,218 | | 78,301 | |
| Other pre-tax | - | | - | | - | | - | | - | | 2,639 | | 2,639 | |
| EBITDA | 208,552 | | 48,310 | | 51,804 | | 12,212 | | 34,186 | | (105,734) | | 249,330 | |
| Adjustments for the effects of: | | | | | | | |
| Foreign currency (gains) losses | - | | - | | - | | - | | - | | (3,655) | | (3,655) | |
| | Total of adjustments | - | | - | | - | | - | | - | | (3,655) | | (3,655) | |
| Adjusted EBITDA | $208,552 | | $48,310 | | $51,804 | | $12,212 | | $34,186 | | $(109,389) | | $245,675 | |
| Revenue | $617,632 | | $412,501 | | $406,651 | | $216,804 | | $294,123 | | | $1,947,711 | |
| Operating income (loss) % as reported in accordance with GAAP | 28% | | 9% | | 8% | | 4% | | 11% | | | 9% | |
| EBITDA Margin | 34% | | 12% | | 13% | | 6% | | 12% | | | 13% | |
| Adjusted EBITDA Margin | 34% | | 12% | | 13% | | 6% | | 12% | | | 13% | |
Contacts
investorrelations@oceaneering.com
Hilary Frisbie
Senior Director, Investor Relations
Oceaneering International, Inc.
713-329-4755
Tables follow on next page -