Oceaneering Reports Second Quarter 2026 Results
Oceaneering International, Inc. ("Oceaneering") (NYSE: OII) today reported second quarter 2026 results. Second Quarter 2026 Results As compared to the second quarter of 2025: Revenue increased 10% ...
HOUSTON: Oceaneering International, Inc. ("Oceaneering") (NYSE: OII) today reported second quarter 2026 results.
Second Quarter 2026 Results
- As compared to the second quarter of 2025:
- Revenue increased 10% to $768 million.
- Operating income increased 11% to $88.2 million.
- Net income attributable to Oceaneering increased 19% to $65.0 million.
- Adjusted EBITDA increased 11% to $115 million.
- Cash Generation
- Cash flow provided by operating activities was $55.2 million.
- Free cash flow was $32.0 million.
- Balance Sheet and Capital Allocation
- Quarter-end cash and cash equivalents totaled $629 million, compared to $434 million at the end of the same period last year.
- Shares repurchased were 263,335 for approximately $10.0 million.
Rod Larson, Oceaneering's President and Chief Executive Officer, commented, "We delivered a strong second quarter, with our consolidated adjusted EBITDA of $115 million exceeding the top end of our guidance. These positive results were driven by overperformance from our Offshore Projects Group (OPG), where favorable project mix and operational execution drove better-than-expected revenue and profitability. More broadly, our results demonstrate continued strength across our portfolio. All of our segments generated increased revenue and operating income, except for Integrity Management and Digital Solutions (IMDS), which was partially impacted by the ongoing Middle East conflict.
"We also made meaningful improvements to our capital structure. During the second quarter, we initiated a series of transactions to refinance our existing debt and to extend and expand our revolving credit facility. Those transactions will be completed during the third quarter, extending our existing debt maturities, increasing available liquidity, and providing us with flexibility to deliver on our strategic initiatives. As a result, we are better positioned to invest in future growth opportunities while maintaining our disciplined approach to capital allocation.
"As we enter the second half of 2026, we continue to see favorable trends in Aerospace and Defense Technologies (ADTech) and supportive conditions in offshore markets. These factors, combined with our backlog and differentiated portfolio, support our outlook for the remainder of the year. Based on our first-half performance and expectations for the balance of the year, we have updated our full-year consolidated adjusted EBITDA guidance range to $400 million to $440 million."
Updated 2026 Guidance
Full-year 2026 consolidated and segment guidance remains the same except as follows:
- Consolidated adjusted EBITDA is expected to be in the range of $400 million to $440 million.
- IMDS operating income is expected to decrease significantly with operating income margin expected to be in the low-single-digit percentage range.
Second Quarter 2026 Segment Results
As compared to the second quarter of 2025:
- Subsea Robotics (SSR) revenue increased to $232 million, operating income increased 3% to $66.3 million, and EBITDA margin remained flat at 35%. These results were attributable to higher ROV revenue per day utilized and increased Survey activity, as the Ocean Intervention II commenced operations. ROV revenue per day utilized increased to $11,894, while ROV fleet utilization decreased slightly to 66% from 67%, with solid activity levels in Europe and Africa largely offsetting lower activity in the U.S. Gulf.
- Manufactured Products operating income increased to $21.9 million and margin expanded to 15% on a 3% increase in revenue. These improvements were driven by increased profitability in the umbilicals business and improved results in mobility solutions. As of June 30, 2026, backlog was $445 million, with additional orders expected in the second half of the year to positively impact backlog. The book-to-bill ratio was 0.88 for the 12-month period ending on June 30, 2026.
- OPG operating income increased to $30.0 million and margin improved to 16% on a 22% increase in revenue. These results benefited from a favorable project mix, including additional international installation and intervention projects.
- IMDS revenue decreased by 6% on lower volume in West Africa, and operating income decreased by $4.5 million. The decrease in operating income was primarily due to lower activity levels and related cost absorption, as well as increased personnel-related costs, in West Africa and the Middle East.
- ADTech revenue increased 22% to $133 million, operating income increased slightly to $16.4 million, and margin declined to 12%, primarily due to program cost mix and timing.
- At the corporate level, Unallocated Expenses were essentially flat at $46.6 million, consistent with expectations.
Third Quarter 2026 Guidance
As compared to the third quarter of 2025:
Consolidated third quarter 2026 revenue is projected to increase and EBITDA is expected to be in the range of $115 million to $125 million.
At the segment level, for the third quarter of 2026:
- SSR revenue and operating income are expected to increase.
- Manufactured Products revenue and operating income are expected to slightly decrease.
- OPG revenue and operating income are expected to increase.
- IMDS revenue is expected to increase and operating income is expected to be relatively flat.
- ADTech revenue and operating income are expected to increase.
- Unallocated Expenses are expected to be in the $50 million range.
Liquidity
During the second quarter, Oceaneering initiated a series of financing transactions designed to address the maturity of its 2028 senior notes. These transactions, which will be completed during the third quarter, included the issuance of $500 million aggregate principal amount of 6.875% senior notes due 2034, the completion of a tender offer for the outstanding 2028 senior notes, and an amendment to the senior secured revolving credit facility. The amendment increased commitments from $215 million to $345 million and extended the facility's maturity to July 2031. Together, these actions extended Oceaneering's debt maturity profile while preserving substantial liquidity and financial flexibility.
Non-GAAP Financial Measures
Adjusted net income (loss) and earnings (loss) per share; EBITDA and adjusted EBITDA on a consolidated and on a segment basis (as well as EBITDA and adjusted EBITDA margins); and free cash flow are non-GAAP measures that exclude the impacts of certain identified items. Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS), EBITDA and Adjusted EBITDA and Margins, Free Cash Flow, 2026 Consolidated EBITDA Estimates, 2026 Free Cash Flow Estimate, and EBITDA and Adjusted EBITDA and Margins by Segment. These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information.
Conference Call Details
Oceaneering has scheduled a conference call and webcast on Thursday, July 23, 2026 at 10:00 a.m. Central Time (11:00 a.m. Eastern Time), to discuss its results for the second quarter of 2026 and guidance for the third quarter and full year of 2026. A link to the webcast will be posted on Oceaneering's Investor Relations website. A replay of the conference call will be made available on the website approximately two hours following the conclusion of the live call.
Forward-Looking Statements
This release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs, future expected business, and financial performance and prospects of Oceaneering. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering’s expectations regarding: consolidated adjusted EBITDA for the full year of 2026; IMDS operating income and operating income margin for the full year of 2026; orders in the second half of 2026 having a positive impact on Manufactured Products backlog; third quarter 2026 guidance for consolidated revenue, consolidated EBITDA, revenue and operating income by segment, and Unallocated Expenses; and the characterization, whether positive or otherwise, of market fundamentals, conditions, and dynamics, robotics markets, offshore energy activity levels (including by geographic location), pricing levels, day rates, ROV days utilized, average ROV revenue per day utilized, vessel utilization, growth, bidding activity, outlook, performance, opportunities, and future financials, including as increasing, favorable, positive, encouraging, improving, seasonal, strong, supportive, robust, meaningful, considerable, healthy, or significant (which is used herein to indicate a change of 20% or greater).
The forward-looking statements included in this release are based on Oceaneering's current expectations and are subject to certain risks, assumptions, trends, and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could cause actual results to differ materially include: factors affecting the level of activity in the oil and gas industry, including worldwide demand for and prices of oil and natural gas, oil and natural gas production growth, and the supply and demand of offshore drilling rigs; the indirect consequences of climate change and climate-related business trends; actions by members of OPEC and other oil exporting countries; decisions about offshore developments to be made by oil and gas exploration, development, and production companies; the use of subsea completions and our ability to capture associated market share; future budgetary and fiscal constraints imposed by the United States government, including the risk of government shutdowns; general economic and business conditions and industry trends and uncertainty, including those related to tariffs and retaliatory tariffs; the strength of the industry segments in which we are involved; cancellations of contracts, customer contract disputes, change orders, and other contractual modifications, force majeure declarations, and the exercise of contractual suspension rights and the resulting adjustments to our backlog; collections from our customers; our future financial performance, including as a result of the availability, terms, and deployment of capital; the consequences of significant changes in currency exchange rates; the volatility and uncertainties of credit markets; changes in data privacy and security laws, regulations, and standards; changes in tax laws, regulations, and interpretation by taxing authorities; changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment; the continued availability of qualified personnel; our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources; operating risks normally incident to offshore exploration, development, and production operations; hurricanes and other adverse weather and sea conditions; cost and time associated with drydocking of our vessels; the highly competitive nature of our businesses; adverse outcomes from legal or regulatory proceedings; the risks associated with integrating businesses we acquire; rapid technological changes; and social, political, military, and economic situations in foreign countries where we do business and the possibilities of civil disturbances, war, other armed conflicts, or terrorist attacks. For a more complete discussion of these and other risk factors, please see Oceaneering’s latest annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements. Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement.
About Oceaneering
Oceaneering is a global technology company delivering engineered services and products and robotic solutions to the offshore energy, defense, aerospace, and manufacturing industries.
For more information, please visit www.oceaneering.com.
- Tables follow -
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OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||
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CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
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| Jun 30, 2026 |
| Dec 31, 2025 |
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| (in thousands) |
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ASSETS |
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Current assets (including cash and cash equivalents of $629,473 and $688,874) |
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| $ | 1,580,267 |
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| $ | 1,512,400 |
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Net property and equipment |
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| 443,229 |
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| 451,693 |
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Other assets |
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| 665,342 |
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| 703,161 |
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Total Assets |
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| $ | 2,688,838 |
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| $ | 2,667,254 |
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LIABILITIES AND EQUITY |
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Current liabilities |
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| $ | 726,232 |
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| $ | 761,726 |
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Long-term debt |
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| 490,245 |
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| 487,417 |
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Other long-term liabilities |
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| 303,577 |
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| 341,448 |
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Equity |
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| 1,168,784 |
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| 1,076,663 |
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Total Liabilities and Equity |
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| $ | 2,688,838 |
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| $ | 2,667,254 |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
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| For the Three Months Ended |
| For the Six Months Ended |
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| Jun 30, 2026 |
| Jun 30, 2025 |
| Mar 31, 2026 |
| Jun 30, 2026 |
| Jun 30, 2025 |
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| (in thousands, except per share amounts) |
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Revenue | $ | 768,184 |
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| $ | 698,161 |
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| $ | 692,429 |
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| $ | 1,460,613 |
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| $ | 1,372,684 |
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Cost of services and products |
| 611,202 |
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| 549,734 |
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| 565,159 |
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| 1,176,361 |
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| 1,089,246 |
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Gross margin |
| 156,982 |
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| 148,427 |
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| 127,270 |
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| 284,252 |
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| 283,438 |
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Selling, general and administrative expense |
| 68,745 |
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| 69,238 |
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| 69,482 |
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| 138,227 |
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| 130,777 |
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Operating income (loss) |
| 88,237 |
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| 79,189 |
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| 57,788 |
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| 146,025 |
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| 152,661 |
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Interest income |
| 4,904 |
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| 3,017 |
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| 5,061 |
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| 9,965 |
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| 6,661 |
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Interest expense, net of amounts capitalized |
| (8,456 | ) |
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| (9,472 | ) |
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| (9,105 | ) |
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| (17,561 | ) |
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| (18,547 | ) |
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Equity in income (losses) of unconsolidated affiliates |
| 1,210 |
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| 311 |
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| 277 |
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| 1,487 |
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| 673 |
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Other income (expense), net | If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter. Related news
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