Oceaneering International (OII) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 6% YoY to $784.6 million and adjusted EBITDA increased 7% to $119.4 million, the highest quarterly level since Q4 2015.

• Net income attributable declined 26% to $52.6 million, primarily reflecting a $19.0 million debt-extinguishment loss.

Financial highlights

• Operating income increased 7% to $92.2 million; gross margin was $164.6 million vs. $152.7 million YoY.

• Adjusted EBITDA margin was 15% in both periods; adjusted net income was $50.0 million and adjusted diluted EPS was $0.50.

• Operating cash flow was $163.0 million and free cash flow was $141.9 million, up from $101.3 million and $77.0 million, respectively.

• Q3 capex was $21.1 million, below plan largely due to timing; lower cash taxes also supported free cash flow.

Outlook and guidance

• Q4 revenue is expected to increase YoY; consolidated EBITDA guidance is $85 million–$95 million, with unallocated expenses near $50 million.

• FY2027 consolidated EBITDA guidance is $430 million–$480 million; free cash flow is expected to exceed the anticipated FY2026 level, with share repurchases expected to continue.

• FY2026 free cash flow is expected at the top end of the $100 million–$120 million guidance range; FY2026 organic capex is expected at $105 million–$115 million.

• Q4 outlook: Manufactured Products, IMDS and ADTech expect higher revenue and operating income; SSR expects higher revenue but lower operating income, while OPG expects flat revenue and lower operating income.

• FY2027 segment outlook reflects higher SSR revenue and operating income, significantly higher IMDS and ADTech operating income, broadly flat Manufactured Products, and lower OPG revenue with flat operating income; project timing drives uncertainty.