Oceaneering International, Inc. (OII, Financial) has reported its first-quarter revenue for 2025, coming in at $675 million, surpassing the market consensus of $651.3 million. The company's success has been attributed to robust utilization of its remotely operated vehicles (ROVs) and active operations primarily in the Gulf of Mexico and West Africa.
The company’s adjusted EBITDA reached $96.7 million, exceeding both internal guidance and external projections for the quarter. Compared to the same period last year, Oceaneering's operating income saw a significant increase, doubling on the back of a 13% rise in revenue. This growth was largely driven by the strong performance of its Subsea Robotics (SSR) and Offshore Projects Group (OPG) divisions.
Furthermore, Oceaneering's Aerospace and Defense Technologies (ADTech) segment secured the largest initial contract in the company's history. This development is expected to play a crucial role in the firm's predictions for substantial growth in this segment throughout 2025.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Oceaneering International Inc (OII, Financial) is $21.75 with a high estimate of $24.00 and a low estimate of $19.00. The average target implies an upside of 25.94% from the current price of $17.27. More detailed estimate data can be found on the Oceaneering International Inc (OII) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Oceaneering International Inc's (OII, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Oceaneering International Inc (OII, Financial) in one year is $25.34, suggesting a upside of 46.73% from the current price of $17.27. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Oceaneering International Inc (OII) Summary page.
OII Key Business Developments
Release Date: February 20, 2025
- Order Intake: $2.9 billion in 2024.
- Share Repurchase: Approximately $20 million in shares repurchased.
- ROV Uptime Rate: 99% at year-end 2024.
- EBITDA Margin (SSR): Improved by 361 basis points, exiting 2024 at 36%.
- Quarterly Revenue: Highest since Q4 2015.
- Adjusted EBITDA: Surpassed $100 million for the first time since Q2 2016.
- Net Income (Q4 2024): $56.1 million or $0.55 per share, a 26% year-over-year increase.
- Consolidated Revenue (Q4 2024): $713 million, 9% higher year-over-year.
- Operating Income (Q4 2024): $77.9 million, 64% higher year-over-year.
- Adjusted EBITDA (Q4 2024): $102 million, a 35% increase year-over-year.
- Cash from Operating Activities (Q4 2024): $128 million.
- Organic Capital Expenditures (Q4 2024): $34 million.
- Free Cash Flow (Q4 2024): $94.5 million.
- Cash Balance (End of 2024): $498 million.
- SSR Operating Income (Q4 2024): $63.5 million, 26% higher year-over-year.
- ROV Revenue Per Day Utilized: $10,786, a 12% year-over-year increase.
- Manufactured Products Revenue (Q4 2024): $143 million, 8% increase year-over-year.
- OPG Revenue (Q4 2024): $184 million, 14% increase year-over-year.
- Consolidated Revenue (Full Year 2024): $2.7 billion, a 10% increase from 2023.
- Operating Income (Full Year 2024): $246 million, a 36% increase from 2023.
- Adjusted EBITDA (Full Year 2024): $347 million, a 20% increase from 2023.
- Free Cash Flow (Full Year 2024): $96.1 million.
- 2025 Revenue Growth Projection: Mid- to high single digits.
- 2025 EBITDA Guidance: $380 million to $430 million.
- 2025 Free Cash Flow Projection: $110 million to $130 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Oceaneering International Inc (OII, Financial) recorded a notable order intake of $2.9 billion in 2024, reflecting strong customer confidence.
- The company achieved its highest quarterly revenue since the fourth quarter of 2015 and surpassed $100 million in adjusted EBITDA for the first time since the second quarter of 2016.
- OII reported a 26% year-over-year increase in net income for the fourth quarter of 2024, with consolidated revenue up by 9%.
- The Subsea Robotics (SSR) segment saw a 361 basis point improvement in EBITDA margin year-over-year, exiting 2024 at 36%.
- Oceaneering International Inc (OII) demonstrated a strong commitment to safety, achieving a 56% reduction in high potential incidents in 2024.
Negative Points
- The manufactured products segment experienced a decline in operating income margin to 3% due to a reserve taken on an umbilical project.
- The book-to-bill ratio for the full year of 2024 was lower than expected at 0.97, compared to 1.31 in 2023.
- Integrity Management and Digital Solutions (IMDS) saw a decrease in operating income margin from 5% to 3% in the fourth quarter.
- Aerospace and Defense Technologies (ADTech) experienced a decline in operating income margin to 10% due to changes in project mix.
- Cash flow from operations declined by $6.7 million in 2024 compared to 2023, attributed to increased net working capital and cash taxes.
