Oceaneering International (OII) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 10% year-over-year to $768 million, with adjusted EBITDA reaching $115 million (15% margin), exceeding guidance and marking the highest since Q3 2015, driven by strong OPG and broad segment growth except IMDS, which was impacted by Middle East conflict.

• Major contract wins and extensions occurred in energy and defense, including a significant ROV services award in Brazil and a Defense Innovation Unit contract for an Extra-Large Unmanned Underwater Vehicle.

• Share repurchases totaled $10 million in Q2 2026; debt maturities were extended and the revolving credit facility expanded.

• Space Systems team was recognized as a best-in-class supplier for the Artemis program.

• Cash and equivalents at quarter-end were $629 million, up from $434 million a year ago.

Financial highlights

• Q2 2026 revenue: $768 million (up 10% year-over-year); adjusted EBITDA: $115 million (up 11%); adjusted EBITDA margin: 15%; operating income: $88.2 million (up 11%); net income: $65 million (up 19%).

• Free cash flow for Q2 2026 was $32 million; cash from operations was $55.2 million.

• Cash and equivalents at June 30, 2026: $629 million; working capital: $854 million.

• FY 2026 guidance: net income $184–$203 million, free cash flow $100–$120 million, EBITDA $400–$440 million.

• Diluted EPS for Q2 2026 was $0.65, up from $0.54 in Q2 2025.

Outlook and guidance

• Q3 2026 revenue and adjusted EBITDA expected to increase, with EBITDA guidance of $115–$125 million.

• Full-year 2026 adjusted EBITDA guidance raised to $400–$440 million.

• IMDS outlook revised downward due to ongoing uncertainty in the Middle East and reduced activity in West Africa; operating income margin expected in the low single digits.

• Manufactured Products Q3 revenue and operating income expected to slightly decrease; other segments expected to increase.

• 2026 organic capital expenditures expected at $105–$115 million, funded by available cash.