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OII posted Q2 adjusted EPS of $0.49, beating estimates and up from $0.28 a year earlier.
Q2 revenues rose 4.4% YoY to $698.2M, led by strong performance across all business segments.
Adjusted EBITDA jumped 20.3% year over year to $103.3M, reflecting robust operational execution.
Oceaneering International, Inc. (OII - Free Report) reported an adjusted profit of 49 cents per share for the second quarter of 2025, beating the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line surpassed the year-ago quarter’s reported figure of 28 cents. This was due to year-over-year strong operating income from its segments.
Total revenues were $698.2 million, which was in line with the Zacks Consensus Estimate. The top line increased approximately 4.4% from the year-ago quarter’s $668.8 million, due to the strong revenue contribution from its segments.
In the second quarter of 2025, Houston, TX-based oil and gas equipment and services company reported adjusted EBITDA of $103.3 million, a 20.3% increase year over year.
The company also repurchased 471,759 shares for approximately $10 million in the second quarter of 2025.
Oceaneering International, Inc. Price, Consensus and EPS Surprise
Subsea Robotics: The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.
Revenues totaled $218.8 million compared with the year-ago quarter’s $215 million. However, the top line missed our estimate of $242.8 million. The segment also reported an operating income of $64.5 million compared with $61.8 million a year ago. Moreover, the figure beat our estimate of $63.1 million.
The EBITDA margin expanded slightly to 35%, reflecting improved ROV revenue per day utilized, which increased to $11,265. ROV fleet utilization was 67%, contributing positively to segment performance.
Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.
Revenues amounted to $145.1 million, up substantially from the prior-year figure of $139.3 million. Additionally, the top line beat our estimate of $139.4 million.
The segment posted an operating profit of $18.8 million in the second quarter, up from the year-ago quarter’s $14.4 million. Moreover, the reported figure beat our estimate of $15.3 million.
The backlog totaled $516 million as of June 30, 2025, down 27.6% from the same time in 2024. For the 12 months ending June 30, 2025, the book-to-bill ratio was 0.65.
Offshore Projects Group: This segment involves Oceaneering’s former Subsea Projects unit, excluding survey services and global data solutions, the service and rental business, and ROV tooling.
Revenues increased about 3.6% to $149.3 million from $144.1 million in the year-ago quarter. However, the figure missed our estimate of $144.6 million.
The unit’s operating income totaled $21.7 million compared with the prior-year quarter’s $13.2 million. The figure also beat our estimate of $21.4 million. The operating income margin improved to 15%, reflecting strong operational efficiency in this segment.
Integrity Management & Digital Solutions: This segment covers Oceaneering’s Asset Integrity unit, along with its global data solutions business.
Revenues of $75.4 million increased from the year-ago quarter’s $73.5 million. The figure also beat our estimate of $73.8 million.
The segment reported an operating income of $4.6 million, up from the prior-year quarter’s $3.5 million. The figure also beat our projection of $4.4 million.
Aerospace and Defense Technologies: The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems.
Revenues totaled $109.6 million, up from $97 million recorded in the second quarter of 2024. Additionally, the figure beat our estimate of $98 million.
The operating income increased to $16.3 million from $7.2 million in the year-ago quarter and beat our estimate of $10 million. Operating income margin improved to 15%, demonstrating robust profitability.
OII’s Capital Expenditure & Balance Sheet
The capital expenditure in the second quarter, including acquisitions, totaled $32.8 million.
As of June 30, 2025, OII had cash and cash equivalents worth $434 million and $497.5 million, respectively, along with a long-term debt of about $484.6 million. The debt-to-total capital was 36.4%.
Outlook of Oceaneering
This Zacks Rank #4 (Sell) company expects an increase in consolidated revenues for the third quarter of 2025 compared with the third quarter of 2024, with EBITDA estimated to fall within a range of $100 million to $110 million. On a segment-by-segment basis, Subsea Robotics is expected to experience growth in both revenues and operating profitability. Manufactured Products is anticipated to see a significant improvement in operating profitability, driven by higher revenues. However, the Offshore Projects Group is expected to experience a decline in operating profitability, despite revenues remaining relatively stable.
Operating profitability for Integrity Management & Digital Solutions is expected to show significant improvement, even though its revenues are projected to remain flat. Aerospace and Defense Technologies is anticipated to achieve substantial growth in both revenues and operating profitability. Unallocated Expenses are expected to be between $45 million and $50 million.
Looking ahead to full-year 2025, the company’s consolidated guidance remains largely unchanged, except for a few adjustments. Consolidated revenues are expected to grow at a mid-single-digit percentage rate and consolidated adjusted EBITDA is anticipated to be between $390 million and $420 million.
Subsea Robotics revenues are expected to grow at a mid-single-digit rate, with lower-than-expected contributions from the Survey business. The ROV fleet utilization is expected to fall in the mid to high-60% range, while the operating income margin for Integrity Management & Digital Solutions is predicted to be in the mid-single-digit percentage range.
While we have discussed OII’s second-quarter results in detail, let us take a look at three other key reports in this space.
San Antonio, TX-based oil and gas refining and marketing service provider, Valero Energy Corporation (VLO - Free Report) , reported second-quarter 2025 adjusted earnings of $2.28 per share, which beat the Zacks Consensus Estimate of $1.73. However, the bottom line declined from the year-ago quarter’s level of $2.71. The better-than-expected quarterly results can be attributed to an increase in refining margins per barrel of throughput and lower total cost of sales. The positives were partially offset by a decline in refining throughput volumes and renewable diesel sales volumes.
The company had cash and cash equivalents of $4.5 billion at the end of the second quarter. As of June 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.3 billion.
Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , reported second-quarter 2025 adjusted net income of 55 cents per share, which was in line with the Zacks Consensus Estimate but below the year-ago quarter’s profit of 80 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth.
As of June 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. Halliburton reported second-quarter capital expenditure of $354 million, up from our projection of $338.2 million.
Norway-based integrated oil and gas operator, Equinor ASA (EQNR - Free Report) , reported second-quarter 2025 adjusted earnings per share of 64 cents, which missed the Zacks Consensus Estimate of 66 cents. The bottom line declined 25% from the year-ago quarter’s level of 84 cents. Weak quarterly results can be attributed to lower liquids production across major segments and reduced liquids prices. Natural declines and portfolio divestments in Nigeria and Azerbaijan also contributed to the decrease in overall production.
As of June 30, 2025, the company reported $9,472 million in cash and cash equivalents. Its long-term debt was $24,505 million. During the same time, Equinor generated a negative net cash flow of $2,579 million compared with $4,022 million in the year-ago period. Equinor’s capital expenditures amounted to $3.4 billion in the second quarter.
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Oceaneering Q2 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
Oceaneering International, Inc. (OII - Free Report) reported an adjusted profit of 49 cents per share for the second quarter of 2025, beating the Zacks Consensus Estimate of 42 cents. Moreover, the bottom line surpassed the year-ago quarter’s reported figure of 28 cents. This was due to year-over-year strong operating income from its segments.
Total revenues were $698.2 million, which was in line with the Zacks Consensus Estimate. The top line increased approximately 4.4% from the year-ago quarter’s $668.8 million, due to the strong revenue contribution from its segments.
In the second quarter of 2025, Houston, TX-based oil and gas equipment and services company reported adjusted EBITDA of $103.3 million, a 20.3% increase year over year.
The company also repurchased 471,759 shares for approximately $10 million in the second quarter of 2025.
Oceaneering International, Inc. Price, Consensus and EPS Surprise
Oceaneering International, Inc. price-consensus-eps-surprise-chart | Oceaneering International, Inc. Quote
Segmental Information of Oceaneering
Subsea Robotics: The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.
Revenues totaled $218.8 million compared with the year-ago quarter’s $215 million. However, the top line missed our estimate of $242.8 million. The segment also reported an operating income of $64.5 million compared with $61.8 million a year ago. Moreover, the figure beat our estimate of $63.1 million.
The EBITDA margin expanded slightly to 35%, reflecting improved ROV revenue per day utilized, which increased to $11,265. ROV fleet utilization was 67%, contributing positively to segment performance.
Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.
Revenues amounted to $145.1 million, up substantially from the prior-year figure of $139.3 million. Additionally, the top line beat our estimate of $139.4 million.
The segment posted an operating profit of $18.8 million in the second quarter, up from the year-ago quarter’s $14.4 million. Moreover, the reported figure beat our estimate of $15.3 million.
The backlog totaled $516 million as of June 30, 2025, down 27.6% from the same time in 2024. For the 12 months ending June 30, 2025, the book-to-bill ratio was 0.65.
Offshore Projects Group: This segment involves Oceaneering’s former Subsea Projects unit, excluding survey services and global data solutions, the service and rental business, and ROV tooling.
Revenues increased about 3.6% to $149.3 million from $144.1 million in the year-ago quarter. However, the figure missed our estimate of $144.6 million.
The unit’s operating income totaled $21.7 million compared with the prior-year quarter’s $13.2 million. The figure also beat our estimate of $21.4 million. The operating income margin improved to 15%, reflecting strong operational efficiency in this segment.
Integrity Management & Digital Solutions: This segment covers Oceaneering’s Asset Integrity unit, along with its global data solutions business.
Revenues of $75.4 million increased from the year-ago quarter’s $73.5 million. The figure also beat our estimate of $73.8 million.
The segment reported an operating income of $4.6 million, up from the prior-year quarter’s $3.5 million. The figure also beat our projection of $4.4 million.
Aerospace and Defense Technologies: The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems.
Revenues totaled $109.6 million, up from $97 million recorded in the second quarter of 2024. Additionally, the figure beat our estimate of $98 million.
The operating income increased to $16.3 million from $7.2 million in the year-ago quarter and beat our estimate of $10 million. Operating income margin improved to 15%, demonstrating robust profitability.
OII’s Capital Expenditure & Balance Sheet
The capital expenditure in the second quarter, including acquisitions, totaled $32.8 million.
As of June 30, 2025, OII had cash and cash equivalents worth $434 million and $497.5 million, respectively, along with a long-term debt of about $484.6 million. The debt-to-total capital was 36.4%.
Outlook of Oceaneering
This Zacks Rank #4 (Sell) company expects an increase in consolidated revenues for the third quarter of 2025 compared with the third quarter of 2024, with EBITDA estimated to fall within a range of $100 million to $110 million. On a segment-by-segment basis, Subsea Robotics is expected to experience growth in both revenues and operating profitability. Manufactured Products is anticipated to see a significant improvement in operating profitability, driven by higher revenues. However, the Offshore Projects Group is expected to experience a decline in operating profitability, despite revenues remaining relatively stable.
Operating profitability for Integrity Management & Digital Solutions is expected to show significant improvement, even though its revenues are projected to remain flat. Aerospace and Defense Technologies is anticipated to achieve substantial growth in both revenues and operating profitability. Unallocated Expenses are expected to be between $45 million and $50 million.
Looking ahead to full-year 2025, the company’s consolidated guidance remains largely unchanged, except for a few adjustments. Consolidated revenues are expected to grow at a mid-single-digit percentage rate and consolidated adjusted EBITDA is anticipated to be between $390 million and $420 million.
Subsea Robotics revenues are expected to grow at a mid-single-digit rate, with lower-than-expected contributions from the Survey business. The ROV fleet utilization is expected to fall in the mid to high-60% range, while the operating income margin for Integrity Management & Digital Solutions is predicted to be in the mid-single-digit percentage range.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Earnings at a Glance
While we have discussed OII’s second-quarter results in detail, let us take a look at three other key reports in this space.
San Antonio, TX-based oil and gas refining and marketing service provider, Valero Energy Corporation (VLO - Free Report) , reported second-quarter 2025 adjusted earnings of $2.28 per share, which beat the Zacks Consensus Estimate of $1.73. However, the bottom line declined from the year-ago quarter’s level of $2.71. The better-than-expected quarterly results can be attributed to an increase in refining margins per barrel of throughput and lower total cost of sales. The positives were partially offset by a decline in refining throughput volumes and renewable diesel sales volumes.
The company had cash and cash equivalents of $4.5 billion at the end of the second quarter. As of June 30, 2025, it had a total debt of $8.4 billion and finance-lease obligations of $2.3 billion.
Houston, TX-based oil and gas equipment and services provider, Halliburton Company (HAL - Free Report) , reported second-quarter 2025 adjusted net income of 55 cents per share, which was in line with the Zacks Consensus Estimate but below the year-ago quarter’s profit of 80 cents (adjusted). The numbers reflect softer activity in the North American region, partly offset by international growth.
As of June 30, 2025, the company had approximately $2 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.4. Halliburton reported second-quarter capital expenditure of $354 million, up from our projection of $338.2 million.
Norway-based integrated oil and gas operator, Equinor ASA (EQNR - Free Report) , reported second-quarter 2025 adjusted earnings per share of 64 cents, which missed the Zacks Consensus Estimate of 66 cents. The bottom line declined 25% from the year-ago quarter’s level of 84 cents. Weak quarterly results can be attributed to lower liquids production across major segments and reduced liquids prices. Natural declines and portfolio divestments in Nigeria and Azerbaijan also contributed to the decrease in overall production.
As of June 30, 2025, the company reported $9,472 million in cash and cash equivalents. Its long-term debt was $24,505 million. During the same time, Equinor generated a negative net cash flow of $2,579 million compared with $4,022 million in the year-ago period. Equinor’s capital expenditures amounted to $3.4 billion in the second quarter.