Oceaneering International (OII) investor relations material

Executive summary

• Q1 2026 revenue rose 3% year-over-year to $692–$692.4 million, while operating income fell 21% to $57.8 million and net income dropped 28% to $36 million ($0.36/share), reflecting lower profitability despite higher sales.

• Adjusted EBITDA was $83.7 million, down 13% year-over-year but within guidance; excluding an ADTech contract dispute, it would have been at the upper end of guidance.

• Strong commercial momentum with order intake of approximately $1 billion, including $300 million in SSR and $175 million in ADTech awards, resulting in a constructive book-to-bill ratio.

• ADTech posted significant year-over-year revenue growth, offsetting weaker IMDS results impacted by Middle East conflict.

• Cash balance declined by $81 million in Q1 2026, mainly due to operating and capital expenditures.

Financial highlights

• Revenue was $692–$692.4 million, up 3% year-over-year; operating income was $57.8 million, down 21%; net income was $36–$36.1 million, down 28%; adjusted EBITDA was $83.7 million, down 13%.

• Gross margin was $127.3 million, down from $135.0 million year-over-year; operating margin was 8.3%, down from 10.9%.

• Negative free cash flow of $76.5 million, an improvement from $(106.8) million a year ago; operating cash flow was negative $59.1 million.

• Ended the quarter with $607 million in cash and $215 million available under the credit facility, totaling $822 million in liquidity.

• Capital expenditures were $17.4–$24.4 million in Q1 2026.

Outlook and guidance

• Sequential improvement expected in Q2 2026, with revenue growth and EBITDA guidance of $100–$110 million.

• Full-year 2026 guidance reaffirmed: low- to mid-single-digit revenue growth and EBITDA of $390–$440 million.

• Manufactured Products book-to-bill ratio for 2026 expected between 0.9 and 1.0.

• IMDS operating income for 2026 expected to increase year-over-year, but at a lower level than previously anticipated.

• Management expects 2026 capital expenditures between $105 million and $115 million, funded by available cash.