Oceaneering International Reports Strong Third Quarter 2025 Results, Driven by Broad-Based Segment Growth and Strategic Execution
Oceaneering International, a global leader in engineered services and products for the offshore energy, defense, aerospace, and manufacturing industries, today announced its financial results for the third quarter ended September 30, 2025. The company reported continued strength across key operating segments, exceeding guidance expectations and demonstrating robust execution despite a dynamic global market environment.
Financial Overview: Broad-Based Growth Across Core Metrics
For the third quarter of 2025, Oceaneering reported consolidated revenue of $743 million, marking a 9% increase compared to the third quarter of 2024. This growth was primarily driven by stronger activity levels across the Offshore Projects Group (OPG), Manufactured Products, and Aerospace and Defense Technologies (ADTech) segments.
Operating income rose by 21% year-over-year to $86.5 million, reflecting the company’s sustained focus on operational efficiency, improved project execution, and a favorable business mix. Net income surged 73% to $71.3 million, while adjusted EBITDA increased 13% to $111 million, underscoring steady profitability and disciplined cost control.
Oceaneering also reported strong cash generation. Cash flow from operating activities reached $101 million, and free cash flow stood at $77 million for the quarter. The company ended the period with a cash balance of $506 million, highlighting a solid liquidity position and flexibility to support growth initiatives, capital investments, and shareholder returns.
During the quarter, Oceaneering repurchased 440,814 shares of its common stock for approximately $10.1 million, reflecting management’s continued confidence in the company’s financial outlook and long-term value creation strategy.
CEO Commentary: Consistent Execution and Market Momentum
Rod Larson, Oceaneering’s President and Chief Executive Officer, commented on the results:
“Our team continues to deliver positive results in a dynamic market environment. In the third quarter, we generated adjusted EBITDA in excess of both our guidance range and market consensus through solid performance across all operating segments. This reflects ongoing conversion of higher-margin backlog in Manufactured Products, a favorable project mix and steady vessel utilization within our Offshore Projects Group, and higher average revenue per day in Subsea Robotics operations.
“We also achieved total inbound orders of $854 million, including several notable contract wins across our Subsea Robotics (SSR), Aerospace and Defense Technologies (ADTech), and Manufactured Products businesses. These bookings reflect both our competitive strength and the growing demand for our technology-driven solutions across energy and non-energy markets.”
Larson added that as the company looks ahead to 2026, it expects continued consolidated growth, led primarily by ADTech, but with activity levels that will vary by quarter.
“We anticipate seasonally lower activity levels in our energy-focused businesses during the first quarter of 2026, followed by increased activity through the second and third quarters,” Larson said. “We are initiating full-year 2026 consolidated EBITDA guidance in the range of $390 million to $440 million, demonstrating our confidence in maintaining strong financial performance and strategic momentum.”
Segment Results: Performance Highlights
Subsea Robotics (SSR)
Revenue for SSR totaled $219 million, with operating income of $65.1 million and an EBITDA margin of 36%, which remained essentially flat compared to the prior year. Average remotely operated vehicle (ROV) revenue per day increased 6% to $11,254, driven by improved pricing and operational optimization. However, ROV fleet utilization decreased slightly to 65%, reflecting typical seasonal and regional variations.
Manufactured Products
Manufactured Products delivered a standout performance, with operating income of $24.7 million, a 119% increase from the same quarter in 2024. Operating income margin expanded to 16% on a 9% revenue increase, indicating the benefit of higher-margin backlog conversion and disciplined project execution.
As of September 30, 2025, the backlog for Manufactured Products stood at $568 million, underscoring a solid pipeline of future work. The book-to-bill ratio for the trailing 12 months was 0.82, consistent with expectations amid strong order conversion and delivery schedules.
Offshore Projects Group (OPG)
The OPG segment continued to demonstrate solid performance, with operating income rising 17% to $23.7 million on a 16% revenue increase. Operating margin held steady at 14%, reflecting consistent project execution and efficient vessel utilization.
Integrity Management and Digital Solutions (IMDS)
In the IMDS segment, operating income and margins improved significantly despite a 4% decrease in revenue. This improvement was primarily due to the absence of a one-time non-cash charge recorded in the third quarter of 2024, which was associated with the divestiture of the Maritime Intelligence division. The result reflects Oceaneering’s ongoing focus on improving profitability within its digital and asset integrity services.
Aerospace and Defense Technologies (ADTech)
ADTech continued its upward trajectory, with operating income of $16.6 million, up 36% year-over-year, supported by a 27% increase in revenue. The operating margin improved to 13%, driven by strong demand from U.S. government programs, international defense clients, and aerospace technology customers.
Corporate and Unallocated Expenses
At the corporate level, unallocated expenses increased 19% to $46.3 million, primarily reflecting higher compensation costs and administrative expenses associated with ongoing corporate initiatives.
Fourth Quarter 2025 Guidance
Looking ahead, Oceaneering expects fourth quarter 2025 consolidated revenue to be lower compared to the fourth quarter of 2024, primarily due to the absence of certain international projects that positively impacted last year’s results. However, consolidated EBITDA is forecast to remain healthy, ranging between $80 million and $90 million.
At the segment level:
- Subsea Robotics (SSR): Revenue and operating income are expected to increase due to stronger project activity.
- Manufactured Products: Operating income is expected to rise significantly, even on lower revenue, driven by improved margins and cost management.
- Offshore Projects Group (OPG): Revenue and operating income are projected to decrease significantly due to the lack of international project contributions that benefited the fourth quarter of 2024.
- Integrity Management and Digital Solutions (IMDS): Operating income is expected to decline on lower revenue.
- Aerospace and Defense Technologies (ADTech): Both revenue and operating income are expected to increase significantly, supported by continued strength in defense-related contracts.
- Unallocated Expenses: Expected to be around $45 million for the quarter.
Initial Full-Year 2026 Outlook
For the full year 2026, Oceaneering expects consolidated EBITDA between $390 million and $440 million and free cash flow generation consistent with 2025 levels. The company plans to maintain ongoing share repurchase activity, reflecting continued capital discipline and commitment to returning value to shareholders.
Management will provide more detailed guidance for 2026 in the company’s fourth quarter 2025 earnings release and conference call, expected early next year.
Use of Non-GAAP Financial Measures
Oceaneering’s results include certain non-GAAP financial measures—such as Adjusted Net Income, EBITDA, Adjusted EBITDA, and Free Cash Flow—to provide investors with enhanced insight into operational performance. These measures exclude the impacts of certain identified items that management believes do not reflect ongoing operations.
The company has provided reconciliations of these non-GAAP measures to their most directly comparable GAAP measures in the accompanying tables, titled:
- Adjusted Net Income (Loss) and Diluted EPS
- EBITDA and Adjusted EBITDA and Margins
- Free Cash Flow
- Fourth Quarter 2025 Consolidated EBITDA Estimate
- 2025 Free Cash Flow Estimate
- 2026 Consolidated EBITDA Estimate
- EBITDA and Adjusted EBITDA and Margins by Segment
These reconciliations are included under the caption “Reconciliations of Non-GAAP to GAAP Financial Information.”
Oceaneering enters the final quarter of 2025 with a strong balance sheet, an expanding backlog, and a diverse portfolio of contracts spanning the energy, aerospace, and defense sectors. The company’s ongoing investments in robotics, digital solutions, and manufacturing capabilities continue to position it favorably for long-term growth.
With disciplined capital management, steady operational execution, and a clear strategic vision, Oceaneering remains well positioned to navigate market volatility while delivering sustained value to shareholders and customers alike.