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Oceaneering International (OII)
NYSE:OII
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Oceaneering International (OII) AI Stock Analysis

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OII

Oceaneering International

(NYSE:OII)

Rating:73Outperform
Price Target:
$27.00
▲(12.73%Upside)
Oceaneering International receives a strong score due to its robust financial performance and positive earnings call, highlighting significant revenue and income growth. The technical analysis points to a bullish trend, although overbought indicators suggest caution. Valuation metrics further support growth potential, despite no dividend yield. Overall, the stock is well-positioned for future growth amid market demand and strategic wins.

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

Oceaneering International Business Overview & Revenue Model

Company DescriptionOceaneering International, Inc. (OII) is a global provider of engineered services and products primarily to the offshore oil and gas industry, with a focus on deepwater applications. The company operates in various sectors including subsea robotics, offshore oilfield services, and engineering and project management. Core products and services include remotely operated vehicles (ROVs), built-to-order specialty subsea hardware, and engineering services geared towards enhancing operational efficiency and safety in challenging underwater environments.
How the Company Makes MoneyOceaneering International generates revenue through a diverse range of products and services tailored for the offshore energy industry. The company's primary revenue streams include the leasing and operation of ROVs, subsea products and services, and asset integrity services. Key partnerships with major oil and gas companies facilitate long-term contracts and consistent demand for their specialized equipment and expertise. Additionally, Oceaneering has expanded its offerings to include technology solutions for renewable energy projects and advanced marine services, further diversifying its income sources. The company's ability to innovate and adapt to the evolving needs of the energy sector plays a significant role in sustaining its revenue model.

Oceaneering International Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: 6.78%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant growth in revenue, operating income, and EBITDA. The company's segments, particularly Aerospace and Defense Technologies, showed notable success. Despite some challenges in specific areas like the Survey business and OPG, the company's outlook remains positive, supported by ongoing contract wins and future growth prospects.
Q2-2025 Updates
Positive Updates
Consistent Financial Performance
Delivered a 20% year-over-year increase in consolidated adjusted EBITDA, surpassing the projected 16% increase, marking eight straight quarters of meeting or exceeding EBITDA guidance.
Revenue and Operating Income Growth
Consolidated revenue increased by 4% to $698 million, and operating income rose by 31% to $79.2 million in the second quarter of 2025.
Aerospace and Defense Technologies Success
ADTech operating income increased by 125% to $16.3 million, with revenue up by 13%. The segment benefited from recent contract awards.
Free Cash Flow Generation
Generated $77.2 million of cash in operating activities, with a resulting free cash flow of $46.9 million after capital expenditures.
Strong ROV Revenue
Achieved an average ROV revenue per day of $11,265, indicating pricing improvements and strong demand.
Manufactured Products Performance
Operating income increased by 31%, with a 4% revenue growth and operating income margin expanding by 262 basis points.
Future Growth Prospects
Strong outlook for ROV utilization, ADTech, and Manufactured Products for the remainder of 2025 and beyond, driven by new contracts and market opportunities.
Negative Updates
Potential Survey Business Challenges
Uncertainty in the Survey Geoscience business, with potential cold stacking of a vessel if opportunities don't materialize.
OPG Operating Result Decline
Expected decline in OPG operating results for the second half of 2025 due to a shift from higher-margin intervention projects to lower-margin IMR work.
Mutated Bookings for Manufactured Products
Experience of muted bookings in the first half of 2025, although a rebound is anticipated in the latter half of the year.
Company Guidance
During Oceaneering's Second Quarter 2025 Earnings Conference Call, CEO Rod Larson provided detailed guidance and performance metrics for the company. The second quarter saw a 20% increase in consolidated adjusted EBITDA, surpassing the initial guidance of a 16% year-over-year increase. The company achieved a net income of $54.4 million, or $0.54 per share, and consolidated revenue rose by 4% to $698 million compared to the same quarter in 2024. Key operating segments, including Aerospace and Defense Technologies (ADTech) and Offshore Projects Group (OPG), contributed significantly to the strong performance, with ADTech's operating income soaring by 125% and OPG's by 31%. The average daily revenue for Remotely Operated Vehicles (ROVs) increased earlier than expected to $11,265. For the third quarter of 2025, consolidated EBITDA is projected to range between $100 million and $110 million, with expectations of improved revenue and operating results across various segments. For the full year, adjusted EBITDA guidance has been narrowed to between $390 million and $420 million, reflecting confidence in continued growth driven by strong market demand and strategic contract wins.

Oceaneering International Financial Statement Overview

Summary
Oceaneering International exhibits a solid financial performance overall, marked by strong revenue growth and improved profitability margins. The balance sheet indicates stability with moderate leverage and strong equity utilization. While cash flow remains stable, there is room for improvement in free cash flow growth. The company should continue to enhance its profitability and cash flow generation to maintain its financial health amidst industry fluctuations.
Income Statement
75
Positive
Oceaneering International shows robust growth in its income statement. The company achieved a remarkable revenue growth rate of 15.1% from 2022 to 2023 and 9.8% from 2023 to 2024, indicating a strong upward trajectory. Gross profit margin for TTM is 19.3%, and the net profit margin improved significantly to 6.7% for the TTM, reflecting enhanced profitability. EBIT and EBITDA margins also exhibit positive trends, with EBIT margin at 10.3% and EBITDA margin at 13.4% for the TTM. This demonstrates effective cost management and operational efficiency. However, the volatility in net income over the years suggests potential concerns in consistent profitability.
Balance Sheet
70
Positive
The balance sheet of Oceaneering International portrays a stable financial position with a debt-to-equity ratio of 0.9, indicating moderate leverage. The company has successfully maintained a healthy equity ratio of 34.2% for the TTM, highlighting financial stability. Return on Equity (ROE) stands at 23.4% for the TTM, reflecting effective use of equity to generate profits. The decrease in total debt from 2023 to 2025 suggests prudent debt management. Nonetheless, the company should be cautious of its liabilities, which remain significant relative to equity.
Cash Flow
68
Positive
The cash flow statement reflects a stable cash flow position. Operating cash flow to net income ratio for TTM is 1.1, indicating healthy cash generation relative to net income. Free cash flow to net income ratio is 0.5 for TTM, suggesting reasonable liquidity. However, free cash flow showed a decline from 2023 to 2024 but rebounded slightly in TTM. The company should focus on improving its free cash flow growth to ensure adequate liquidity for future investments and obligations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.66B2.42B2.07B1.87B1.83B
Gross Profit485.49M398.97M307.38M264.06M163.94M
EBITDA366.28M302.54M231.83M179.52M-269.98M
Net Income147.47M97.40M25.94M-49.31M-496.75M
Balance Sheet
Total Assets2.34B2.24B2.03B1.96B2.05B
Cash, Cash Equivalents and Short-Term Investments504.52M461.57M575.11M544.53M462.19M
Total Debt851.75M848.66M872.39M879.35M980.12M
Total Liabilities1.62B1.60B1.51B1.45B1.49B
Stockholders Equity714.26M628.02M519.74M504.96M552.09M
Cash Flow
Free Cash Flow96.08M109.23M39.84M175.12M75.96M
Operating Cash Flow203.21M209.96M120.88M225.31M136.65M
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 Price23.95
Price Trends
50DMA
20.67
Positive
100DMA
19.96
Positive
200DMA
22.97
Negative
Market Momentum
MACD
0.45
Negative
RSI
59.96
Neutral
STOCH
82.94
Negative
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 23.95 is above the 20-day moving average (MA) of 21.38, above the 50-day MA of 20.67, and above the 200-day MA of 22.97, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 59.96 is Neutral, neither overbought nor oversold. The STOCH value of 82.94 is Negative, 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$1.62B20.697.22%4.74%-65.65%
76
Outperform
$2.56B15.5116.24%19.34%31.76%
74
Outperform
$2.10B8.7810.92%2.39%-7.45%-44.88%
73
Outperform
$2.41B12.0827.08%8.14%
72
Outperform
$1.06B20.234.92%3.33%-2.74%-54.83%
67
Neutral
$15.28B9.736.25%5.18%4.49%-71.88%
59
Neutral
$907.67M18.523.27%-8.19%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OII
Oceaneering International
23.95
-5.80
-19.50%
HLX
Helix Energy
6.17
-6.27
-50.40%
RES
RPC
4.80
-1.97
-29.10%
TDW
Tidewater
51.89
-46.42
-47.22%
DNOW
Now
15.45
0.34
2.25%
LBRT
Liberty Oilfield Services
13.14
-9.38
-41.65%

Oceaneering International Corporate Events

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.

The most recent analyst rating on (OII) stock is a Hold with a $24.00 price target. To see the full list of analyst forecasts on Oceaneering International stock, see the OII Stock Forecast page.

Business Operations and Strategy
Oceaneering International Releases Investor Handout May 2025
Neutral
May 19, 2025

Oceaneering International announced that an investor handout will be available on their website starting May 19, 2025, after market close. This move is part of their efforts to engage with institutional investors, potentially impacting their investor relations and market perception.

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.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Oceaneering International Holds Annual Shareholders Meeting
Neutral
May 9, 2025

On May 9, 2025, Oceaneering International held its annual shareholders meeting where several key resolutions were passed. The company elected three Class III directors for a term ending in 2028, approved executive compensation, ratified the appointment of Ernst & Young LLP as auditors for 2025, and approved an amended incentive plan. These decisions reflect Oceaneering’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

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: Jul 25, 2025