Oceaneering International (OII)
NYSE:OII
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Oceaneering International
(NYSE:OII)
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Rating:77Outperform
Price Target:
$44.00
▲(17.55% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Oceaneering International (OII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.60B
Dividend YieldN/A
Average Volume (3M)1.15M
Price to Earnings (P/E)6.9
Beta (1Y)1.18
Revenue Growth8.71%
EPS Growth72.09%
CountryUS
Employees10,400
SectorEnergy
Sector Strength52
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)0.45
Shares Outstanding99,393,745
10 Day Avg. Volume915,106
30 Day Avg. Volume1,151,119
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)2.26
Price to Sales (P/S)0.87
P/FCF Ratio11.71
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue1.21
Enterprise Value/Gross Profit5.95
Enterprise Value/Ebitda7.96
Forecast
1Y Price Target
$33.67Price Target Upside-10.05% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)1.81
Revenue Forecast (FY)$2.83B
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 remotel...
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 co...
Oceaneering International Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales figures by business unit, showing which areas contribute most to the top line and where there might be potential for expansion or risk.
Breaks down sales figures by business unit, showing which areas contribute most to the top line and where there might be potential for expansion or risk.
Data provided by:
The Fly
The FlyOceaneering International Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive picture driven by full-year revenue and profitability gains, significant cash generation, improved adjusted EBITDA, strong order intake and notable ADTech momentum (including the largest initial contract award in company history). Operational strengths included SSR margin improvements, higher ROV pricing and uptime, and a record low TRIR. Offsetting these positives were near-term softness in energy-related businesses (notably OPG), lower Q4 utilization, a commercial dispute impacting IMDS results, a reduced Manufactured Products backlog, higher corporate expenses, and guidance indicating lower free cash flow in 2026 due to timing effects and a Q1 cash draw. Overall, the positives — particularly full-year financial improvements, balance sheet strength and ADTech growth — outweigh the near-term challenges.Positive Updates
Full-Year Revenue Growth and Operating Performance
Consolidated full-year 2025 revenue of $2.8 billion, up 5% year-over-year (fifth consecutive year of revenue growth). Consolidated operating income increased to $305 million, up $58 million or 24% year-over-year. Full-year adjusted EBITDA was $401 million, up $54 million or 16% versus 2024.
Negative Updates
Q4 Energy Segment Weakness and Consolidated Q4 Decline
Consolidated Q4 2025 revenue of $669 million declined 6% year-over-year, driven by lower revenue in energy-focused businesses (notably OPG and some IMDS activity) as unusually large international intervention and installation projects that occurred in Q4 2024 did not repeat.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue Growth and Operating Performance
Consolidated full-year 2025 revenue of $2.8 billion, up 5% year-over-year (fifth consecutive year of revenue growth). Consolidated operating income increased to $305 million, up $58 million or 24% year-over-year. Full-year adjusted EBITDA was $401 million, up $54 million or 16% versus 2024.
Read all positive updates
Company Guidance
Oceaneering's 2026 guidance calls for consolidated revenue to grow in the low- to mid-single-digit range with ADTech as the primary growth driver, full‑year adjusted EBITDA of $390–$440 million (midpoint modestly above 2025) and free cash flow of $100–$120 million (partly reflecting ~ $37 million of early 4Q25 collections), implying a combined 2025–26 cash conversion rate of almost 40% at the midpoint; organic capex is forecast at $105–$115 million (~40% growth / 60% maintenance, energy capex down ~12% while ADTech spending increases), net interest expense of $21–$26 million, cash tax payments of $95–$105 million, and unallocated expenses of ~ $50 million per quarter. Segment outlooks: SSR revenue up low‑ to mid‑single digits with mid‑30% EBITDA margins, ROV utilization mid‑60% (service mix ~65% drill / 35% vessel), average ROV revenue/day flat to the 2025 exit rate (~$11,550) and drill‑support market share 55–60%; Manufactured Products operating margin mid‑teens; OPG revenue and operating income down with mid‑teens margins; IMDS margin mid‑single digits; ADTech margin low‑teens. Q1 2026: consolidated revenue expected to decrease and EBITDA $80–$90 million, with a substantial cash draw anticipated in Q1 related to working capital timing and incentive payments.Oceaneering International Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
80
Positive
| 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
Positive
37.43
Price Trends
34.78
Positive
30.35
Positive
26.70
Positive
Market Momentum
0.63
Negative
58.10
Neutral
73.93
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 37.43 is above the 20-day moving average (MA) of 35.75, above the 50-day MA of 34.78, and above the 200-day MA of 26.70, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 58.10 is Neutral, neither overbought nor oversold. The STOCH value of 73.93 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.60B | 6.88 | 39.31% | ― | 8.71% | 72.09% | |
73 Outperform | $4.27B | 7.55 | 28.11% | ― | 4.42% | -13.55% | |
67 Neutral | $1.41B | 30.17 | 1.97% | ― | -1.95% | 530.91% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $1.69B | 1,198.42 | 0.10% | ― | -11.65% | 87.57% | |
60 Neutral | $1.42B | -22.93 | -4.02% | 10.12% | 20.68% | -112.42% | |
58 Neutral | $7.02B | 40.10 | 2.26% | 3.24% | -1.43% | -63.13% |
* Energy Sector Average
OII
Oceaneering International
35.93
18.98
111.98%
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-6.77%
Oceaneering International Corporate Events
Regulatory Filings and Compliance
Oceaneering Releases Investor Handout Following Regulation FD Update
Neutral
Feb 25, 2026
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 ...
Executive/Board Changes
Oceaneering International announces new CFO and director appointments
Positive
Dec 22, 2025
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 wi...
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.