HOUSTON: Oceaneering International Inc (NYSE:OII) on Wednesday reported a 73% jump in third-quarter net income, driven by solid execution across its business segments and higher-margin backlog conversion in Manufactured Products.
The Houston-based subsea engineering and services firm posted net income of $71.3 million, or 71 cents per share, up from $41.2 million a year earlier. Adjusted EBITDA rose 13% to $111 million, exceeding both internal guidance and consensus estimates.
Revenue for the quarter ended Sept. 30 rose 9% year-over-year to $743 million, while operating income climbed 21% to $86.5 million. Free cash flow totaled $77 million, with $10.1 million deployed for share repurchases.
CEO Rod Larson cited favorable project mix in Offshore Projects Group (OPG), improved remotely operated vehicle (ROV) revenue per day in Subsea Robotics (SSR), and strong order intake across Aerospace and Defense Technologies (ADTech) and Manufactured Products.
Inbound orders reached $854 million, with backlog in Manufactured Products standing at $568 million. Oceaneering initiated full-year 2026 EBITDA guidance of $390 million to $440 million, anticipating seasonal softness in Q1 followed by stronger activity in Q2 and Q3.
Segment highlights included:
- SSR revenue of $219 million with flat margins; ROV revenue/day rose 6% to $11,254.
- Manufactured Products operating income surged 119% to $24.7 million.
- ADTech revenue rose 27%, with operating income up 36% to $16.6 million.
- IMDS margins improved due to the absence of prior-year divestiture charges.
Fourth-quarter EBITDA is forecast between $80 million and $90 million, with mixed segment outlooks. Share repurchase activity is expected to continue into 2026.
