Oceaneering International (OII) AI Stock Analysis

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Oceaneering International

(NYSE:OII)

Rating:79Outperform

Price Target:

$28.00

▲(13.45% Upside)

Oceaneering International's stock is well-positioned with strong financial performance and positive technical indicators. The company's ability to exceed earnings guidance and maintain growth across key segments further supports a positive outlook. While valuation is fair, the lack of a dividend yield is a minor downside. Overall, the stock presents a solid investment opportunity with a focus on continued operational efficiency and strategic growth.

Oceaneering International (OII) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.44B

Dividend YieldN/A

Average Volume (3M)762.90K

Price to Earnings (P/E)11.9

Beta (1Y)1.15

Revenue Growth8.14%

EPS Growth62.72%

CountryUS

Employees10,400

SectorEnergy

Sector Strength66

IndustryOil & Gas Equipment & Services

Share Statistics

EPS (TTM)0.49

Shares Outstanding100,207,596

10 Day Avg. Volume604,393

30 Day Avg. Volume762,896

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.01

Enterprise Value/Revenue0.89

Enterprise Value/Gross Profit4.44

Enterprise Value/Ebitda5.84

Forecast

1Y Price Target

$22.00

Price Target Upside-10.86% Downside

Rating ConsensusHold

Number of Analyst Covering1

Oceaneering International Business Overview & Revenue Model

Company DescriptionOceaneering International, Inc. is a global provider of engineered services and products, primarily serving the offshore oil and gas industry. The company operates in various sectors, including subsea services, offshore engineering, robotics, and advanced technologies. Oceaneering's core offerings include remotely operated vehicles (ROVs), subsea intervention services, and asset integrity solutions, which are essential for the exploration and production of oil and gas in challenging underwater environments.

How the Company Makes MoneyOceaneering generates revenue through multiple streams, primarily by providing subsea services and products to the oil and gas industry. Key revenue streams include the rental and operation of ROVs, subsea tooling, and inspection services. The company also earns money from its engineering and project management services, which help clients design and implement complex offshore projects. Significant partnerships with major oil and gas companies and a focus on innovation in robotics and technology enhance Oceaneering's competitive edge, contributing to its earnings by securing long-term contracts and expanding its service offerings in emerging markets.

Oceaneering International Earnings Call Summary

Earnings Call Date:Jul 23, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 22, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong performance in revenue and adjusted EBITDA growth, driven by robust results in key business segments like ADTech and OPG. However, there were concerns regarding survey vessel utilization and muted bookings in Manufactured Products. Overall, the positive aspects outweigh the lowlights, suggesting a resilient business outlook.

Q2-2025 Updates

Positive Updates

Strong Adjusted EBITDA Performance

Oceaneering delivered a 20% increase in consolidated adjusted EBITDA, exceeding their projected year-over-year increase of 16%. This marks 8 straight quarters of meeting or exceeding adjusted EBITDA guidance.

Consistent Revenue and Income Growth

Consolidated revenue increased to $698 million, a 4% rise over the second quarter of 2024. Consolidated operating income rose by 31% to $79.2 million.

Impressive Performance in ADTech and OPG

ADTech operating income increased by 125% to $16.3 million on a 13% revenue increase. OPG operating income improved significantly to $21.7 million with a 4% increase in revenue.

Positive Cash Flow and Share Repurchase

Generated $77.2 million in operating activities and repurchased approximately $10 million worth of shares for the fourth consecutive quarter.

Robust Performance in ROV Business

Average ROV revenue per day increased to $11,265, surpassing expectations, contributing to a 4% improvement in operating income for Subsea Robotics.

Negative Updates

Survey Vessel Utilization Concerns

Potential cold stacking of one survey vessel due to lower-than-expected opportunities in the Survey Geoscience business.

Muted Bookings in Manufactured Products

Despite expectations of second-half recovery, bookings were muted in the first half of 2025, with a full-year book-to-bill ratio guidance of 0.9 to 1.0.

Lower OPG Activity in the Fourth Quarter

OPG is expected to see a shift from higher-margin projects to lower-margin IMR work in the U.S. Gulf, impacting results in the second half of 2025.

Slightly Lower ROV Utilization Outlook

Overall ROV fleet utilization is revised slightly lower than expected for the full year, with a mid- to high 60% range projection.

Company Guidance

In the second quarter of 2025, Oceaneering International exceeded its adjusted EBITDA guidance by delivering a 20% increase, marking eight consecutive quarters of meeting or exceeding guidance. The company's consolidated revenue rose to $698 million, a 4% increase from the previous year, with net income reaching $54.4 million, or $0.54 per share. Operating income improved by 31% to $79.2 million, while consolidated adjusted EBITDA grew to $103 million. The company generated $77.2 million from operating activities and repurchased $10 million in common stock. Notably, the average daily revenue for Remotely Operated Vehicles (ROV) increased earlier than expected to $11,265. Looking ahead to the third quarter, Oceaneering projects an increase in consolidated EBITDA to between $100 million and $110 million, with full-year 2025 EBITDA expected in the range of $390 million to $420 million. The company anticipates sustained growth across its segments, particularly in Aerospace and Defense Technologies, benefiting from increased defense contracts and favorable legislative impacts.

Oceaneering International Financial Statement Overview

Summary

Oceaneering International is showing strong financial performance, with significant improvements in revenue, profitability, and cash flow management. However, reliance on liabilities and modest EBIT margin volatility suggest areas for improvement.

Income Statement

Positive

Oceaneering International has demonstrated solid revenue growth, with a significant increase in total revenue from previous years, indicating a strong recovery and expansion. The gross profit margin and net profit margin are both improving, reflecting better cost management and profitability. However, EBIT margins show some volatility, and the EBITDA margin, while improving, still suggests room for efficiency enhancements.

Balance Sheet

Positive

The company has a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity is improving, showcasing better utilization of shareholders' investments. However, the equity ratio suggests that a significant portion of the company's assets is financed through liabilities, which could pose risks if not managed carefully.

Cash Flow

Very Positive

Oceaneering International shows strong cash flow management, with positive growth in free cash flow indicating robust operational efficiency. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to reported earnings. The company's ability to generate free cash flow relative to net income is a positive indicator of financial health and sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.66B	2.42B	2.07B	1.87B	1.83B
Gross Profit	485.49M	398.97M	307.38M	264.06M	163.94M
EBITDA	366.28M	302.54M	231.83M	179.52M	-269.98M
Net Income	147.47M	97.40M	25.94M	-49.31M	-496.75M
Balance Sheet
Total Assets	2.34B	2.24B	2.03B	1.96B	2.05B
Cash, Cash Equivalents and Short-Term Investments	504.52M	461.57M	575.11M	544.53M	462.19M
Total Debt	851.75M	848.66M	872.39M	879.35M	980.12M
Total Liabilities	1.62B	1.60B	1.51B	1.45B	1.49B
Stockholders Equity	714.26M	628.02M	519.74M	504.96M	552.09M
Cash Flow
Free Cash Flow	96.08M	109.23M	39.84M	175.12M	75.96M
Operating Cash Flow	203.21M	209.96M	120.88M	225.31M	136.65M
Investing Cash Flow	-124.17M	-86.35M	-76.86M	-34.16M	-52.59M
Financing Cash Flow	-27.04M	-227.30M	-1.86M	-101.68M	-1.70M

Oceaneering International Technical Analysis

Technical Analysis Sentiment

Positive

Last Price24.68

Price Trends

50DMA

22.15

Positive

100DMA

20.71

Positive

200DMA

22.57

Positive

Market Momentum

MACD

0.70

Negative

RSI

64.65

Neutral

STOCH

74.22

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OII, the sentiment is Positive. The current price of 24.68 is above the 20-day moving average (MA) of 23.11, above the 50-day MA of 22.15, and above the 200-day MA of 22.57, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 64.65 is Neutral, neither overbought nor oversold. The STOCH value of 74.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OII.

Oceaneering International Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DNOW	79 Outperform	$1.71B	20.82	7.29%	―	2.78%	-63.09%
OII	79 Outperform	$2.44B	11.95	27.08%	―	8.14%	62.72%
TDW	78 Outperform	$2.91B	14.65	17.91%	―	7.76%	26.49%
RES	72 Outperform	$1.05B	19.21	4.92%	3.33%	-2.74%	-54.52%
Sector *	66 Neutral	$15.26B	7.30	3.22%	5.27%	4.16%	-60.82%
LBRT	64 Neutral	$1.79B	8.48	10.92%	3.07%	-9.32%	-48.26%
HLX	64 Neutral	$959.82M	20.04	3.27%	―	-8.19%	―

* Energy Sector Average

Performance Comparison

OII

Oceaneering International

24.68

1.08

4.58%

HLX

Helix Energy

6.60

-3.15

-32.31%

RES

RPC

4.80

-0.99

-17.10%

TDW

Tidewater

57.20

-17.23

-23.15%

DNOW

Now

16.01

3.98

33.08%

LBRT

Liberty Oilfield Services

10.73

-7.97

-42.62%

Oceaneering International Corporate Events

Business Operations and Strategy

Oceaneering International Releases Investor Handout August 2025

Neutral

Aug 5, 2025

Oceaneering International announced that an investor handout will be available on their website for institutional investors starting August 4, 2025, after market close. This move aims to provide stakeholders with accessible information, potentially impacting investor relations and market engagement.

Executive/Board Changes

Oceaneering International Announces CFO Succession Plan

Neutral

Jun 6, 2025

Oceaneering International announced a CFO succession plan with Alan R. Curtis retiring as CFO effective January 1, 2026, after a long tenure with the company. Michael W. Sumruld will join as Senior Vice President of Finance in September 2025 and is expected to succeed Curtis, ensuring a smooth transition and continued focus on growth and shareholder value.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 28, 2025