Oceaneering International (OII) Q4 2025 earnings summary

Executive summary

• Achieved strong execution in 2025, with progress on strategic priorities and increased contributions from ADTech.

• 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, with a Q4 net income surge of 217% to $178 million due to a discrete tax benefit.

• Cash balance rose to $689 million at year-end, enhancing financial flexibility.

• Book-to-bill ratio improved to 1.33, with $3.7 billion in order intake.

• Repurchased 1.8 million shares for $40 million in 2025, with 5.4 million shares remaining under authorization.

Financial highlights

• Q4 2025 consolidated revenue was $669 million, down 6% year-over-year, with operating income of $65.4 million and net income of $178 million ($1.76/share), up 217% year-over-year, driven by a $156 million discrete tax benefit.

• Q4 adjusted EBITDA was $90.5 million; free cash flow was $191 million, aided by early customer payments.

• Full-year 2025 adjusted EBITDA increased 16% to $401 million; free cash flow was $208 million.

• Q4 2025 adjusted net income was $45.6 million ($0.45/share); full year 2025 adjusted net income was $195.2 million ($1.93/share).

• Year-end liquidity was $904 million, including $689 million in cash and $215 million in undrawn credit.

Outlook and guidance

• 2026 consolidated revenue expected to grow in the low- to mid-single-digit percentage range, with net income guidance of $178 million–$203 million.

• ADTech projected as primary growth driver, with significant revenue improvement and defense/government markets expected to drive growth.

• EBITDA guidance for 2026 is $390 million–$440 million; free cash flow expected at $100 million–$120 million.

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

• Q1 2026 revenue and EBITDA expected to decrease due to lower energy market activity.