Oceaneering International (OII) Q1 2025 earnings summary

Executive summary

• Revenue rose 13% year-over-year to $675 million, with net income up 233% to $50.4 million and operating income doubling to $73.5 million, driven by strong Subsea Robotics (SSR) and Offshore Projects Group (OPG) performance.

• ADTech secured the largest initial contract in company history, supporting significant year-over-year operating income growth and 2025 outlook.

• Order intake reached $1.2 billion, with improved backlog and diversified end markets.

• Share repurchases totaled $10 million in Q1 2025, with cash position at quarter-end of $382 million.

Financial highlights

• Q1 2025 net income was $50.4 million ($0.49/share), up from $15.1 million in Q1 2024.

• Consolidated revenue increased 13% year-over-year to $675 million; operating income doubled to $73.5 million (11% margin).

• Adjusted EBITDA grew 57% to $96.7 million; adjusted EBITDA margin expanded to 14%.

• Cash used in operations was $80.7 million; capital expenditures were $26.1–$27.8 million, resulting in negative free cash flow of $106.8–$107 million.

• Ended Q1 with $382 million in cash and no borrowings under the credit facility.

Outlook and guidance

• Full-year 2025 EBITDA guidance reiterated at $380–$430 million; Q2 2025 EBITDA expected at $95–$105 million.

• SSR projected to see high single-digit revenue growth and mid-30% EBITDA margins for 2025.

• Manufactured Products and OPG expected to deliver improved operating results and margins; book-to-bill ratio forecasted at 0.9–1.0 for 2025.

• ADTech to benefit from a major Department of Defense contract, driving revenue and margin growth.

• Full-year income tax payments estimated at $110–$120 million; capital expenditures for 2025 expected at $115–$120 million.