Oceaneering International Inc. reported fourth‑quarter 2025 results on February 18, 2026. Revenue fell 6% to $668.6 million, missing the consensus estimate of $711.0 million. Free cash flow rose to $191 million, a 12% increase from the prior year quarter. Earnings per share of $0.45 beat the consensus estimate of $0.44, giving the company a modest EPS beat of $0.01.
All operating divisions posted EBITDA gains, with the Aerospace & Defense Technologies (ADTech) unit delivering the largest percentage improvement. Subsea Robotics EBITDA margin climbed to 38% from 36% in the prior year, while Manufactured Products margin expanded to 15% from 13%. The mix shift toward higher‑margin ADTech contracts helped offset the revenue decline in the energy‑focused Offshore Projects Group.
Oceaneering secured $3.7 billion of orders during 2025, and its enterprise‑wide book‑to‑bill ratio for the year stood at 1.33, indicating healthy demand across its subsea, manufactured products, and defense businesses.
Management guided for first‑quarter 2026 revenue lower than the fourth‑quarter 2025 figure and EBITDA in the $80 million to $90 million range. The company expects energy‑sector softness in the early part of the year, while it remains confident that ADTech will drive growth in the second half and beyond.
Rod Larson, President and CEO, said the company concluded 2025 with strong operational execution, delivering fourth‑quarter adjusted EBITDA at the high end of its guidance range. He added that the company’s free‑cash‑flow generation was driven by the timing of customer collections and that the backlog in ADTech would support continued momentum. The market reacted positively, with the stock rising 2.69% after the announcement, largely driven by the EPS beat.
The results underscore a strategic pivot toward defense and aerospace, where demand is less cyclical than the offshore energy market. While the revenue miss reflects macro weakness and the legacy of a high‑volume OPG quarter in 2024, the company’s margin expansion, robust backlog, and free‑cash‑flow generation position it well for a shift to higher‑margin, defense‑focused growth.
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