Download PDF

1. Company Snapshot

1.a. Company Description

Oceaneering International, Inc.provides engineered services, products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries worldwide.The company's Subsea Robotics segment provides remotely operated vehicles (ROVs) for drill support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair.


This segment also offers ROV tooling, and survey services, such as hydrographic survey and positioning services, as well as autonomous underwater vehicles for geoscience.As of December 31, 2021, this segment owned 250 work-class ROVs. Its Manufactured Products segment provides distribution and connection systems, including production control umbilicals and field development hardware, pipeline connection, and repair systems to the energy industry; and autonomous mobile robots and automated guided vehicle technology and entertainment systems to various industries.The company's Offshore Projects Group segment offers subsea installation and intervention, including riserless light well intervention services and inspection, and maintenance and repair services; installation and workover control systems, and ROV workover control systems; project management and engineering; and drill pipe riser services and systems, and wellhead load relief solutions.


Its Integrity Management & Digital Solutions segment provides asset integrity management; software and analytical solutions for the bulk cargo maritime industry; and software, digital, and connectivity solutions for the energy industry.The company's Aerospace and Defense Technologies segment offers government services and products, including engineering and related manufacturing in defense and space exploration activities to U.S. government agencies and their prime contractors.Oceaneering International, Inc.


was founded in 1964 and is headquartered in Houston, Texas.

Show Full description

1.b. Last Insights on OII

Oceaneering International's recent performance was driven by strong quarterly earnings, beating estimates with $0.45 per share, and a solid backlog. The company's ROV pricing and defense ramp-up also contributed positively. Analysts upgraded the stock to a Strong Buy, citing growing optimism about earnings prospects. A 21.1% increase in shares held by Old West Investment Management LLC also supported the stock. Despite weaker energy demand and seasonal headwinds, the company's strong fundamentals and positive earnings outlook have driven its recent success.

1.c. Company Highlights

2. Oceaneering Q1 2026: Steady Gains Amid Geopolitical Tension

Consolidated revenue rose to $692 million, a modest 3 % year‑over‑year gain, while operating income fell 21 % to $57.8 million and net income dropped 28 % to $36 million, producing $0.36 per share versus the $0.35 consensus. Adjusted EBITDA declined 13 % to $83.7 million. Rod Larson noted the company “performed well in the first quarter, with consolidated revenue and adjusted EBITDA consistent with guidance.”

Publication Date: Apr -24

📋 Highlights
  • Revenue & EBITDA Performance: Consolidated revenue reached $692 million (+3% YoY), while adjusted EBITDA was $83.7 million (-13% YoY).
  • Order Intake & Awards: First-quarter order intake hit $1 billion, driven by $300 million in SSR awards and $175 million in Ad Tech contract expansions.
  • Segment Growth: Aerospace & Defense Technologies saw significant revenue growth, alongside subsea robotics and manufactured products (+YoY revenue increases).
  • Conflict Impact: Middle East conflicts caused a net $5.5 million EBITDA impact, with operational disruptions remaining modest.
  • Full-Year Guidance: EBITDA projected at $390–$440 million for 2026, with Q2 EBITDA expected to rise to $100–$110 million sequentially.

Revenue Drivers

Revenue growth was largely driven by new awards and extensions across the portfolio, with the Aerospace and Defense Technologies segment posting significant gains and subsea robotics and manufactured products reporting year‑over‑year increases. The introduction of Momentum, a next‑generation electric work‑class ROV, underpins the company’s technology advantage.

Order Intake & Contracts

First‑quarter order intake reached roughly $1 billion, anchored by $300 million in SSR awards extending to 2031 and $175 million in new Ad Tech contract awards, exercised options, and value increases. These long‑term contracts, averaging over one year, signal a more stable demand base.

Segment Performance

The Aerospace and Defense Technologies segment delivered robust revenue growth, while subsea robotics and manufactured products showed consistent year‑over‑year revenue increases. Operating margin compression, however, reflects higher cost pressures and the impact of the Middle East conflict on some operations.

Geopolitical Impact

Rod Larson highlighted the Middle East conflict’s modest financial impact, citing established protocols and frequent communication with regional teams. The company’s safety protocols mitigated operational disruptions, and the net EBITDA impact was a modest $5.5 million, far below initial estimates.

Outlook & Guidance

For Q2, the company projects revenue growth and EBITDA between $100 million and $110 million. Full‑year guidance remains at low‑to‑mid‑single‑digit revenue growth and $390 million to $440 million EBITDA, reaffirming confidence in sequential improvement.

Capital Allocation

Capital deployment will be flexible, balancing organic growth, potential inorganic opportunities, and shareholder returns. The company’s free‑cash‑flow yield of 6.33 % and low Net Debt/EBITDA of 0.3 suggest ample capacity for strategic investment or share buybacks.

Regional Profitability

North Sea and Brazil operations currently exhibit lower margins compared to Gulf of America and West Africa, but the mix shift is expected to reverse later in the year. The company’s ROIC of 15.09 % and P/E ratio of 11.14 indicate disciplined profitability and valuation discipline.

3. NewsRoom

Card image cap

Oceaneering Q1 Earnings Fall Short of Estimates, Revenues Beat

Apr -24

Source: zacks.com

Card image cap

Oceaneering International, Inc. (OII) Q1 2026 Earnings Call Transcript

Apr -23

Source: seekingalpha.com

Card image cap

Oceaneering International (NYSE:OII) Sets New 12-Month High – Here’s What Happened

Apr -23

Source: defenseworld.net

Card image cap

Oceaneering Reports First Quarter 2026 Results

Apr -22

Source: businesswire.com

Card image cap

What's in Store for Oceaneering International Stock in Q1 Earnings?

Apr -20

Source: zacks.com

Card image cap

Oceaneering International, Inc. (NYSE:OII) Receives Average Rating of “Hold” from Analysts

Apr -13

Source: defenseworld.net

Card image cap

Oceaneering Schedules First Quarter 2026 Earnings Release and Conference Call

Mar -25

Source: businesswire.com

Card image cap

An Insider Just Sold 10,000 OII Shares Worth $400,000

Mar -21

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.44%)

6. Segments

Subsea Robotics

Expected Growth: 5.5%

Oceaneering International's Subsea Robotics segment growth of 5.5% is driven by increasing demand for offshore oil and gas exploration, rising adoption of autonomous underwater vehicles (AUVs) for inspection and maintenance, and growing need for efficient subsea operations. Additionally, advancements in robotics and artificial intelligence (AI) are enhancing the capabilities of subsea robots, further fueling growth.

Offshore Projects Group

Expected Growth: 5.8%

Oceaneering International's Offshore Projects Group growth of 5.8% is driven by increasing deepwater exploration and production activities, rising demand for subsea infrastructure, and growing adoption of advanced technologies such as ROVs and AUVs. Additionally, the group's strategic partnerships and expanding presence in regions like the Gulf of Mexico and Asia Pacific contribute to its growth momentum.

Manufactured Products

Expected Growth: 5.2%

Oceaneering International's 5.2% growth in manufactured products is driven by increasing demand for subsea equipment and services, expansion in the renewable energy sector, and growing adoption of remotely operated vehicles (ROVs) in offshore oil and gas exploration and production.

Aerospace and Defense Technologies

Expected Growth: 5.0%

Oceaneering International's Aerospace and Defense Technologies segment growth is driven by increasing demand for unmanned underwater vehicles, advanced sensors, and communication systems. Government investments in defense modernization, rising adoption of autonomous systems, and growing need for surveillance and reconnaissance capabilities are key growth catalysts, contributing to a 5.0% growth rate.

Integrity Management & Digital Solutions

Expected Growth: 5.6%

Oceaneering International's Integrity Management & Digital Solutions segment growth of 5.6% is driven by increasing demand for asset integrity services, adoption of digital technologies, and expansion into new markets. Growing need for predictive maintenance, inspection, and repair services, as well as investments in data analytics and cloud-based solutions, also contribute to this growth.

7. Detailed Products

Remotely Operated Vehicles (ROVs)

Oceaneering's ROVs are unmanned underwater vehicles that are operated remotely to perform a variety of tasks, including inspection, maintenance, and repair of offshore oil and gas platforms, wind farms, and other underwater infrastructure.

Diving Services

Oceaneering provides diving services for offshore oil and gas platforms, wind farms, and other underwater infrastructure, including saturation diving, surface diving, and remotely operated vehicle (ROV) support.

Asset Integrity

Oceaneering's asset integrity services provide inspection, maintenance, and repair of offshore oil and gas platforms, wind farms, and other underwater infrastructure to ensure the integrity and reliability of these assets.

Non-Destructive Testing (NDT) and Inspection

Oceaneering provides NDT and inspection services to detect and diagnose defects or damage in offshore oil and gas platforms, wind farms, and other underwater infrastructure.

Decommissioning and Abandonment

Oceaneering provides decommissioning and abandonment services for offshore oil and gas platforms, wind farms, and other underwater infrastructure, including plugging and abandonment of wells, and removal of infrastructure.

Renewable Energy Services

Oceaneering provides services for the renewable energy industry, including installation, maintenance, and repair of offshore wind farms and other renewable energy infrastructure.

Autonomous Underwater Vehicles (AUVs)

Oceaneering's AUVs are unmanned underwater vehicles that are used for a variety of tasks, including survey, inspection, and monitoring of offshore oil and gas platforms, wind farms, and other underwater infrastructure.

8. Oceaneering International, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Oceaneering International, Inc. is medium due to the availability of alternative products and services in the oil and gas industry.

Bargaining Power Of Customers

The bargaining power of customers for Oceaneering International, Inc. is low due to the company's strong relationships with its customers and the lack of buyer concentration in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Oceaneering International, Inc. is medium due to the presence of several suppliers in the industry, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants for Oceaneering International, Inc. is low due to the high barriers to entry in the oil and gas industry, including the need for significant capital investment and specialized expertise.

Intensity Of Rivalry

The intensity of rivalry for Oceaneering International, Inc. is high due to the competitive nature of the oil and gas industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.92%
Debt Cost 7.12%
Equity Weight 53.08%
Equity Cost 16.14%
WACC 11.91%
Leverage 88.40%

11. Quality Control: Oceaneering International, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Archrock

A-Score: 5.6/10

Value: 3.9

Growth: 4.9

Quality: 5.9

Yield: 8.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
NOV

A-Score: 5.4/10

Value: 7.7

Growth: 5.4

Quality: 5.0

Yield: 4.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Tidewater

A-Score: 5.2/10

Value: 6.7

Growth: 7.2

Quality: 7.0

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Weatherford

A-Score: 4.7/10

Value: 5.9

Growth: 7.2

Quality: 6.1

Yield: 1.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Cactus

A-Score: 4.4/10

Value: 5.5

Growth: 4.4

Quality: 8.1

Yield: 2.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Oceaneering

A-Score: 4.2/10

Value: 6.3

Growth: 4.6

Quality: 6.2

Yield: 0.0

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.61$

Current Price

37.61$

Potential

-0.00%

Expected Cash-Flows