Oceaneering International (OII) Q4 2025 earnings summary

Executive summary

• Ended 2025 with strong execution, improved pricing, and operational delivery, especially in ADTech, leading to increased cash generation and financial flexibility.

• Achieved record-low safety incident rate (TRIR 0.22) and repurchased 1.8 million shares for $40 million.

• Order intake reached $3.7 billion with a book-to-bill ratio of 1.33, up from 1.1 in 2024.

• Full year 2025 revenue grew 5% to $2.8 billion, operating income rose 24% to $305 million, and net income increased 140% to $354 million. Adjusted EBITDA was $401 million, up 16%.

• Free cash flow for Q4 was $191 million and $208 million for the year. Year-end cash and equivalents were $689 million, up from $498 million.

Financial highlights

• Q4 2025 consolidated revenue was $669 million, down 6% year-over-year due to lower energy segment revenue, partially offset by ADTech growth.

• Q4 operating income was $65.4 million, down year-over-year; net income was $178 million ($1.76/share), up 217% due to a $156 million discrete tax benefit.

• Q4 adjusted EBITDA was $90.5 million, at the high end of guidance but down year-over-year.

• Q4 cash from operations was $221 million; free cash flow was $191 million, aided by early customer payments.

• Full year 2025 adjusted net income was $195.2 million ($1.93/share), up from $117.1 million ($1.14/share) in 2024.

Outlook and guidance

• 2026 consolidated revenue expected to grow low- to mid-single digits; ADTech to be primary growth driver.

• 2026 EBITDA projected at $390–$440 million, with positive free cash flow of $100–$120 million.

• Organic capital expenditures forecasted at $105–$115 million, with 40% for growth and 60% for maintenance.

• Q1 2026 revenue expected to decrease with EBITDA of $80–$90 million due to lower energy market activity.

• 2026 net income expected between $178 million and $203 million.