A month has gone by since the last earnings report for Oceaneering International (OII Quick QuoteOII - Free Report) . Shares have lost about 3.1% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Oceaneering International due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Oceaneering International, Inc. before we dive into how investors and analysts have reacted as of late.

Oceaneering Q4 Earnings Surpass Estimates, Revenues Miss

Oceaneering International reported an adjusted profit of 45 cents per share for the fourth quarter of 2025, beating the Zacks Consensus Estimate of 44 cents. Moreover, the bottom line surpassed the year-ago quarter’s reported figure of 37 cents. This was driven by strong year-over-year operating income from its Subsea Robotics, Manufactured Products and Aerospace and Defense Technologies segments.

Total revenues were $668.6 million, which missed the Zacks Consensus Estimate of $711 million and decreased approximately 6.3% from the year-ago quarter’s $713.5 million due to lower revenues in the company’s energy-focused businesses. The revenue decrease in the energy business was primarily due to the unusually high number of international intervention and installation projects that OII’s Offshore Projects Group segment performed in the prior-year quarter, but that did not repeat in the fourth quarter of 2025. In the fourth quarter of 2025, the Houston, TX-based oil and gas equipment and services company reported adjusted EBITDA of $90.5 million, a 10.9% decrease year over year.

The company also repurchased 419,005 shares for approximately $10.1 million in the fourth quarter of 2025.

Segmental Information

Subsea Robotics (SSR): The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.

Revenues totaled $211.7 million compared with the year-ago quarter’s $212.2 million. However, the top line missed our estimate of $225 million.

The segment also reported an operating income of $67.8 million compared with $63.5 million a year ago. The figure beat our estimate of $65 million.

The company’s segment delivered an EBITDA margin of 38% in the fourth quarter of 2025, improving from the prior-year period’s 36%. Revenue per day for remotely operated vehicles (“ROVs”) rose 7% to $11,550, while ROV fleet utilization declined to 62%.

Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.

Revenues totaled $132.4 million compared with the year-ago quarter’s $143 million. Additionally, the top line missed our estimate of $140 million.

The segment posted an operating profit of $20.4 million in the fourth quarter, up from the year-ago quarter’s $4.2 million. The reported figure beat our estimate of $9.4 million.

The backlog totaled $511 million as of Dec. 31, 2025, down 15.4% from the same time in 2024. For the 12 months ending Dec. 31, 2025, the book-to-bill ratio was 0.84.

Offshore Projects Group (OPG): 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 decreased about 29.1% to $130.8 million from $184.4 million in the year-ago quarter. Moreover, the figure missed our estimate of $161 million.

The unit’s operating income totaled $15 million compared with the prior-year quarter’s $39.3 million. The figure also missed our estimate of $28.7 million. The company’s operating income margin decreased to 11% from the prior-year quarter’s 21%.

Integrity Management & Digital Solutions (IMDS): This segment covers Oceaneering’s Asset Integrity unit, along with its global data solutions business.

Revenues of $66.5 million decreased from the year-ago quarter’s $75.1 million. The figure also missed our estimate of $72 million.

The segment reported an operating loss of $0.12 million, reversing the prior-year quarter’s operating profit of $2 million. Moreover, the figure missed our projection of a profit of $0.65 million.

Aerospace and Defense Technologies (ADTech): The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems.

Revenues totaled $127.3 million, up from $98.8 million recorded in the fourth quarter of 2024. The figure beat our estimate of $113 million.

The operating income increased to $14.2 million from $9.9 million in the year-ago quarter. However, it missed our estimate of $16.6 million. Operating income margin improved to 11%.

Capital Expenditure & Balance Sheet

The capital expenditure in the fourth quarter, including acquisitions, totaled $36 million.

As of Dec. 31, 2025, OII had cash and cash equivalents worth $688.9 million and $497.5 million, respectively, along with a long-term debt of about $487.4 million. The debt-to-capitalization was 31.2%.

Outlook

The company anticipates lower revenues in the first quarter of 2026 compared with the same period in 2025. This is because of lower activity levels in energy markets at the start of 2026. The company anticipates consolidated EBITDA will be between $80 million and $90 million.

For SSR, the company expects a modest year-over-year uptick in revenues, while operating income is likely to decline due to shifts in geographic mix.

For Manufactured products, OII expects significantly higher operating income despite lower revenues.

For OPG, the company anticipates a significant decrease in revenues and operating income due to year-over-year changes in volume and project mix.

For IMDS, it expects both revenues and operating income to be relatively flat year over year

For ADTech, OII anticipates revenues to grow strongly, while operating income is projected to rise slightly due to changes in project mix.

During the first quarter of 2026, Oceaneering’s unallocated expenses are projected to be around the $50 million mark, driven by wage inflation, higher IT spending, and foreign exchange fluctuations.

For the full-year 2026, Oceaneering expects consolidated revenues to grow in the low to mid-single-digit percentage range. The company projects EBITDA of $390 million to $440 million, representing a modest increase at the midpoint versus 2025. Free cash flow is forecast at $100 million to $120 million, with the year-over-year decline reflecting the early receipt of approximately $37 million in customer payments in the fourth quarter of 2025. Combined 2025-2026 cash conversion is expected to be nearly 40%. Organic capital expenditures are projected at $105 million to $115 million, with 40% allocated to growth and 60% to maintenance. Energy-focused capex is expected to decline 12%, while ADTech spending increases. Net interest expense is forecast at $21 million to $26 million, and cash tax payments are expected at $95 million to $105 million.

Segmentally, SSR revenues are expected to grow in the low to mid-single digits, with EBITDA margins in the mid-30% range. ROV fleet utilization is projected in the mid-60% range, drill-support mix at 65%, and market share at 55% to 60%. Manufactured Products and OPG operating income margins are expected in the mid-teens, IMDS margins in the mid-single digits, and ADTech margins in the low teens. Unallocated expenses are anticipated at approximately $50 million per quarter.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

The consensus estimate has shifted -6.25% due to these changes.

VGM Scores

Currently, Oceaneering International has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Oceaneering International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.