Oceaneering International (OII) AI Stock Analysis

• Market Cap: $3.57B
• Dividend Yield: N/A
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): 10.2
• Beta (1Y): 1.27
• Revenue Growth: 8.71%
• EPS Growth: 72.09%
• Country: US
• Employees: 10,400
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.45
• Shares Outstanding: 99,393,745
• 10 Day Avg. Volume: 1,754,584
• 30 Day Avg. Volume: 1,357,386
• PEG Ratio: 0.05
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 11.71
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 5.81
• Enterprise Value/Ebitda: 7.77
• 1Y Price Target: $33.00
• Price Target Upside: -8.00% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.76
• Revenue Forecast (FY): $2.83B

• Rating: 77 Outperform
• Price Target: $44.00 ▲(22.67% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

The score is driven primarily by strengthened financial performance (profitability, improving leverage, and higher free cash flow) and strong technical momentum with the stock trading above key moving averages. Valuation is supportive with a ~10.3 P/E, while earnings-call guidance is positive but tempered by lower 2026 free cash flow guidance and near-term segment softness; corporate events are a small, secondary positive.

Positive Factors

Improved profitability & cash generation

A multi-year turnaround delivered material earnings and cash generation in 2025 (net income ~$354M, OCF ~$319M, FCF ~$208M). Reliable FCF at this scale supports durable reinvestment into ADTech, debt reduction and shareholder returns, strengthening resilience across cycles.

Stronger balance sheet and lower leverage

Leverage reduction from peak levels to a markedly stronger 2025 position improves financial flexibility. Lower debt and higher equity reduce refinancing and covenant risk, enabling management to fund capex, pursue ADTech growth and better withstand industry cyclicality over the medium term.

ADTech growth & robust backlog

Rapid ADTech expansion (29% YoY) plus a record initial contract and a 1.33 book-to-bill ratio signal structural diversification into higher‑growth, higher‑margin work. A growing ADTech backlog supports multi‑quarter revenue and margin upside less tied to traditional offshore cycles.

Negative Factors

Lower 2026 free cash flow guidance

Management expects materially lower FCF in 2026 due to timing (including ~$37M early 4Q25 receipts) and a Q1 working‑capital cash draw. Reduced near‑term cash generation constrains capacity for debt paydown, growth capex or returns and highlights cash volatility risks.

Weakening revenue momentum

Top‑line momentum softened with negative overall 2025 revenue growth and Q4 decline. Slower revenue growth limits operating leverage and makes sustained margin improvement contingent on recovering demand mix rather than one‑time cost or cash timing benefits.

Segment cyclicality & OPG/IMDS pressures

Substantial weakness in OPG and IMDS and lower ROV utilization underscore the firm's exposure to volatile offshore project cycles. Significant swings in these segments can materially reduce consolidated revenue, margins and cash flow for multiple quarters.

Oceaneering International Business Overview & Revenue Model

Company Description

Oceaneering International, Inc. provides engineered services, products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries worldwide. The company's Subsea Robotics segment provides remotely operated vehicles (ROVs) for drill support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair. This segment also offers ROV tooling, and survey services, such as hydrographic survey and positioning services, as well as autonomous underwater vehicles for geoscience. As of December 31, 2021, this segment owned 250 work-class ROVs. Its Manufactured Products segment provides distribution and connection systems, including production control umbilicals and field development hardware, pipeline connection, and repair systems to the energy industry; and autonomous mobile robots and automated guided vehicle technology and entertainment systems to various industries. The company's Offshore Projects Group segment offers subsea installation and intervention, including riserless light well intervention services and inspection, and maintenance and repair services; installation and workover control systems, and ROV workover control systems; project management and engineering; and drill pipe riser services and systems, and wellhead load relief solutions. Its Integrity Management & Digital Solutions segment provides asset integrity management; software and analytical solutions for the bulk cargo maritime industry; and software, digital, and connectivity solutions for the energy industry. The company's Aerospace and Defense Technologies segment offers government services and products, including engineering and related manufacturing in defense and space exploration activities to U.S. government agencies and their prime contractors. Oceaneering International, Inc. was founded in 1964 and is headquartered in Houston, Texas.

How the Company Makes Money

Oceaneering generates revenue through multiple key streams. The primary source is the provision of subsea services, which includes the rental and operation of ROVs for underwater exploration, inspection, and maintenance tasks. Additionally, the company earns income from engineering services that support complex projects in the oil and gas sector. Oceaneering also benefits from the sale of specialized equipment and technology solutions, such as tooling and subsea hardware. Significant partnerships with major oil and gas companies and government contracts in defense and aerospace projects further contribute to its earnings. The company’s diversified portfolio allows it to mitigate market risks while capitalizing on opportunities in various sectors.

Oceaneering International Financial Statement Overview

Summary

Multi-year turnaround with strong profitability and cash generation: net income reached ~$354M in 2025 with ~12.7% net margin, operating cash flow rose to ~$319M, and free cash flow increased to ~$208M. Balance sheet leverage improved meaningfully with total debt down to ~$487M and equity up to ~$1.08B. Key watchouts are negative 2025 revenue growth and cyclicality-driven variability in cash flows.

Income Statement

Profitability and earnings power have improved meaningfully over the period. Revenue expanded from $1.83B (2020) to $2.78B (2025), and the company moved from deep losses in 2020–2021 to strong profitability in 2023–2025, with 2025 net income reaching ~$354M and net margin rising to ~12.7% (vs. ~5.5% in 2024 and ~1.3% in 2022). EBITDA margin also improved versus earlier years (~14.7% in 2025 vs. ~9.2% in 2021). The key weakness is near-term top-line momentum: 2025 revenue growth turned negative, and 2025 gross/EBIT margin fields appear unavailable (recorded as 0.0), limiting margin transparency for the most recent year.

Balance Sheet

Leverage has improved substantially, strengthening financial flexibility. Total debt declined from ~$980M (2020) to ~$487M (2025), while equity increased to ~$1.08B (2025) from ~$0.71B (2024) and ~$0.50–0.63B (2021–2023). As a result, debt-to-equity moved from elevated levels (~1.7–1.8x in 2020–2022) to a much healthier profile in 2025 (ratio not provided for 2025, but the debt and equity levels imply materially lower leverage). A remaining risk is that the business historically carried high leverage and experienced sizable losses earlier in the cycle, so balance sheet resilience is improved but still relevant for a cyclical industry.

Cash Flow

Cash generation is solid and trending better. Operating cash flow increased to ~$319M in 2025 from ~$203–210M in 2023–2024, and free cash flow rose to ~$208M in 2025 (up sharply from ~$96M in 2024). Free cash flow as a share of net income was moderate in 2025 (~65%), indicating earnings are translating into cash reasonably well, though not perfectly. The main drawback is variability: free cash flow declined in 2024 versus 2023 and has fluctuated over the cycle, consistent with working-capital swings and industry cyclicality.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.78B	2.66B	2.42B	2.07B	1.87B
Gross Profit	568.44M	485.49M	398.97M	307.38M	264.06M
EBITDA	425.13M	366.28M	302.54M	238.24M	172.82M
Net Income	353.76M	147.47M	97.40M	25.94M	-49.31M
Balance Sheet
Total Assets	2.67B	2.34B	2.24B	2.03B	1.96B
Cash, Cash Equivalents and Short-Term Investments	688.87M	504.52M	461.57M	575.11M	544.34M
Total Debt	487.42M	851.75M	848.66M	872.39M	879.35M
Total Liabilities	1.59B	1.62B	1.60B	1.51B	1.45B
Stockholders Equity	1.08B	714.26M	628.02M	519.74M	504.96M
Cash Flow
Free Cash Flow	207.85M	96.08M	109.23M	39.84M	175.12M
Operating Cash Flow	318.86M	203.21M	209.96M	120.88M	225.31M
Investing Cash Flow	-96.23M	-124.17M	-86.35M	-76.86M	-34.16M
Financing Cash Flow	-45.55M	-27.04M	-227.30M	-1.86M	-101.68M

Oceaneering International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 35.87 is above the 20-day moving average (MA) of 33.99, above the 50-day MA of 29.51, and above the 200-day MA of 24.48, indicating a bullish trend. The MACD of 2.13 indicates Negative momentum. The RSI at 59.01 is Neutral, neither overbought nor oversold. The STOCH value of 60.15 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OII	77 Outperform	$3.57B	10.25	39.64%	―	8.71%	72.09%
TDW	73 Outperform	$3.96B	26.93	13.43%	―	4.42%	-13.55%
HLX	67 Neutral	$1.37B	44.72	1.99%	―	-1.95%	530.91%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
NOV	62 Neutral	$7.22B	52.39	2.29%	3.24%	-1.43%	-63.13%
PUMP	61 Neutral	$1.54B	1,879.10	-2.05%	―	-11.65%	87.57%
AESI	61 Neutral	$1.24B	-24.54	-4.48%	10.12%	20.68%	-112.42%

Oceaneering International Corporate Events

Oceaneering Releases Investor Handout Following Regulation FD Update

Oceaneering International announced that an investor handout for use in institutional investor meetings would be made available for viewing and download on the Investor Relations section of its website starting February 25, 2026, after the market close. The company clarified that the furnished materials are not deemed filed under the Securities Exchange Act of 1934 or the Securities Act of 1933, limiting associated liability and regulatory incorporation unless explicitly referenced in future filings.

The most recent analyst rating on (OII) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Oceaneering International stock, see the OII Stock Forecast page.

Oceaneering International announces new CFO and director appointments

On December 22, 2025, Oceaneering International announced governance and leadership changes effective January 1, 2026, including the election of former Murphy Oil chief executive Roger Jenkins as an independent, non-executive Class III director with a term running to the 2028 annual meeting, and the appointment of Michael W. Sumruld as Senior Vice President and Chief Financial Officer following the planned year-end 2025 retirement of current CFO Alan R. Curtis. Jenkins, who has deep operational and governance experience across the energy and financial sectors through senior roles at Murphy Oil, Texaco, and board positions at Regions Financial, Noble Corporation and key industry associations, is expected to enhance the board’s strategic and risk oversight, while Sumruld, a former CFO of Parker Drilling with a broad mandate over finance, investor relations and corporate development, will take over Oceaneering’s financial leadership under a compensation and incentive structure aligned with other senior executives, signaling an emphasis on continuity and disciplined capital stewardship during a CFO transition supported by Curtis through an orderly handover period.

The most recent analyst rating on (OII) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Oceaneering International stock, see the OII Stock Forecast page.