Oceaneering International (OII) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $35 million ($0.34/share) on $669 million revenue; adjusted net income was $28.6 million ($0.28/share) after FX and tax adjustments.

• Q2 diluted EPS rose to $0.34 from $0.19 year-over-year; six-month EPS at $0.49, up from $0.23.

• Q2 consolidated adjusted EBITDA reached $85.9 million; operating income was $60.4 million.

• All business segments achieved year-over-year revenue increases, with SSR and Manufactured Products showing improved operating income.

• Cash and equivalents at June 30, 2024, were $383 million; cash flow from operations was $52.6 million.

Financial highlights

• Q2 2024 revenue increased 12% year-over-year to $668.8 million; operating income up 23% to $60.4 million.

• Net income rose to $35.0 million from $19.0 million in Q2 2023; diluted EPS was $0.34 vs. $0.19.

• Adjusted EBITDA for Q2 was $85.9 million, with a margin of 13%.

• Book-to-bill ratio for Manufactured Products was 1.56 for the trailing 12 months; backlog at $713 million.

• Free cash flow improved to $29.8 million from negative $2.0 million in Q2 2023.

Outlook and guidance

• Q3 2024 adjusted EBITDA expected at $95–$105 million, with low- to mid-single-digit revenue growth.

• Full-year 2024 adjusted EBITDA guidance narrowed to $340–$370 million; net income forecasted at $130–$150 million.

• Organic capital expenditure for 2024 projected at $110–$130 million.

• Free cash flow for 2024 projected at $110–$150 million; $195 million expected in the second half.

• Estimated 2024 income tax payments: $80–$90 million.