- Oceaneering International, Inc. (OII, Financial) reports a robust 13% increase in revenue for Q1 2025, amounting to $675 million.
- Operating income surged 100% year-over-year to $73.5 million, while net income rose dramatically by 233% to $50.4 million.
- The company reiterates its full-year 2025 EBITDA guidance range of $380 million to $430 million, reflecting confidence despite market uncertainties.
Oceaneering International, Inc. (OII), based in Houston, announced its financial results for the first quarter of 2025, demonstrating significant growth across key financial metrics. The company reported a 13% increase in revenue, reaching $675 million compared to the same period last year. Operating income doubled, climbing 100% to $73.5 million, while net income experienced a remarkable rise of 233% to $50.4 million.
Adjusted EBITDA for the quarter was $96.7 million, marking a 57% increase year-over-year, even after accounting for a $10.4 million inventory reserve adjustment in the Manufactured Products segment. The company's cash flow used in operating activities stood at $(80.7) million, with a free cash flow of $(107) million and an ending cash balance of $382 million.
Rod Larson, President and CEO of Oceaneering, attributed the strong performance to the effective use of remotely operated vehicles (ROVs) and robust vessel activity in key regions such as the Gulf of Mexico and West Africa. The Subsea Robotics (SSR) and Offshore Projects Group (OPG) segments showed notable strength, with SSR operating income improving by 35% to $59.6 million due to a 10% rise in revenue and a utilization rate of 67% for its ROV fleet.
Meanwhile, the Aerospace and Defense Technologies (ADTech) segment secured a significant contract, boosting future growth projections. Despite challenges in the Manufactured Products segment, affected by a significant inventory reserve, the backlog stood at $543 million as of March 31, 2025, though this represents a 9% decrease from the previous year.
Looking ahead, Oceaneering reconfirmed its full-year 2025 guidance, anticipating EBITDA within the $380 million to $430 million range. The company remains optimistic about its performance trajectory in 2025, expecting continued improvement across several segments, notwithstanding current market conditions.