Oceaneering Reports Third Quarter 2026 Results
OCEANEERING INTERNATIONAL INC (OII) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Oceaneering Reports Third Quarter 2026 Results HOUSTON, October 21, 2026 – Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported third quarter 2026 results. Third Quarter 2026 Results • As compared to the third quarter of 2025: ◦ Revenue increased
How this was made
The 30-second read
Why it matters
The filing provides quantified Q4 2026 consolidated EBITDA guidance and initial full-year 2027 EBITDA guidance, alongside liquidity actions (senior notes issuance and revolver amendment) that reduce refinancing risk.
Market read
Traders can update near-term earnings expectations from the Q4 EBITDA range and adjust longer-dated models using the initial 2027 EBITDA guidance, while monitoring cash flow moderation in Q4.
What to watch
The release notes free cash flow generation is expected to moderate in Q4 and includes pass-through/program cost dynamics in ADTech, which can dilute quality of earnings despite EBITDA strength.
Third-quarter revenue increased 6% to $785 million, operating income increased 7% to $92.2 million, and adjusted EBITDA increased 7% to $119 million, while net income attributable to Oceaneering decreased 26% to $52.6 million.
Revenue, operating income, adjusted EBITDA, operating cash flow, and free cash flow improved year over year. The quarter included a $19.0 million loss on extinguishment of debt, while SSR delivered higher operating income and ADTech and IMDS faced profitability pressure.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, three months ended September 30, 2026GAAP | $784.6M | – | 6% |
| Cost of services and products, three months ended September 30, 2026GAAP | $620.0M | – | – |
| Gross margin, three months ended September 30, 2026GAAP | $164.6M | – | – |
| Selling, general and administrative expense, three months ended September 30, 2026GAAP | $72.41M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $92.15M | – | 7% |
| Operating income margin, three months ended September 30, 2026GAAP | 12 % | – | – |
| Interest income, three months ended September 30, 2026GAAP | $5.79M | – | – |
| Interest expense, net of amounts capitalized, three months ended September 30, 2026GAAP | −$8.76M | – | – |
| Gain (loss) on extinguishment of debt, three months ended September 30, 2026GAAP | −$19.03M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $69.07M | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | $16.51M | – | – |
| Net income, three months ended September 30, 2026GAAP | $52.56M | – | – |
| Net income attributable to Oceaneering, three months ended September 30, 2026GAAP | $52.62M | – | decreased 26% |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $ 0.52 | – | – |
| Adjusted Net Income, three months ended September 30, 2026non-GAAP | $50.03M | – | – |
| Adjusted diluted EPS, three months ended September 30, 2026non-GAAP | $ 0.50 | – | – |
| EBITDA, three months ended September 30, 2026non-GAAP | $98.17M | – | – |
| EBITDA margin, three months ended September 30, 2026non-GAAP | 13 % | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $119.4M | – | 7% |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 15 % | – | – |
| Cash flow provided by operating activities, three months ended September 30, 2026GAAP | $163.0M | – | – |
| Purchases of property and equipment, three months ended September 30, 2026GAAP | −$21.11M | – | – |
| Free Cash Flow, three months ended September 30, 2026non-GAAP | $141.9M | – | – |
| Total capital expenditures, three months ended September 30, 2026other | $26.79M | – | – |
| Revenue, nine months ended September 30, 2026GAAP | $2.25B | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $238.2M | – | – |
| Net income attributable to Oceaneering, nine months ended September 30, 2026GAAP | $153.7M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 1.53 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $317.5M | – | – |
| Free Cash Flow, nine months ended September 30, 2026non-GAAP | $97.42M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Subsea RoboticsHigher ROV revenue per day utilized, increased Survey activity, and improved margins in ROV operations and Survey contributed to the year-over-year improvements. Increased ROV activity in Europe, Guyana, and West Africa largely offset lower activity in the U.S. Gulf. | $233.0M | – | – |
| Manufactured ProductsIncreased revenue was primarily attributable to the final resolution of a legacy mobility solutions contract. Umbilical manufacturing activity was relatively stable, while lower activity and profitability in Grayloc Products affected operating results. | $168.2M | – | 8% |
| Offshore Projects GroupA favorable mix of installation projects more than offset lower activity in West Africa and a less favorable project mix in the U.S. Gulf. | $172.5M | – | – |
| Integrity Management & Digital SolutionsIncreased activity in the Middle East, Europe, and the U.S. Gulf was partially offset by lower activity in West Africa, a shift in project mix, and increased costs in the Middle East. | $75.81M | – | 7% |
| Aerospace and Defense TechnologiesLower operating results reflected increases in pass-through activities and certain program costs. | $135.1M | – | 7% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth Quarter 2026 and Full-Year 2027 outlook
- RevenueConsolidated fourth quarter 2026 revenue is expected to increase as compared to the fourth quarter of 2025.
- Operating expensesUnallocated Expenses are expected to be in the $50 million range.
- NoteFourth quarter 2026 consolidated EBITDA is expected to be in the range of $85 million to $95 million.
- NoteFourth quarter 2026 SSR revenue is expected to increase and operating income is expected to decrease.
- NoteFourth quarter 2026 Manufactured Products revenue and operating income are expected to increase.
- NoteFourth quarter 2026 OPG revenue is expected to remain relatively flat and operating income is expected to decrease.
- NoteFourth quarter 2026 IMDS revenue and operating income are expected to increase.
- NoteFourth quarter 2026 ADTech revenue and operating income are expected to increase.
- NoteFull-year 2027 consolidated EBITDA is expected to be in the range of $430 million to $480 million.
- NoteFull-year 2027 free cash flow generation is expected to exceed the level forecasted for 2026.
- NoteShare repurchase activity is expected to continue.
Capital returns
- Shares repurchased were 101,038 for approximately $5.0 million.
- Share repurchase activity is expected to continue in 2027.
What drove it
- SSR operating income was $ 75,363, compared with $ 65,142 in the third quarter of 2025, and SSR operating income margin was 32 %, compared with 30 %.
- SSR ROV revenue per day utilized increased to $11,781, while ROV fleet utilization remained at 65%.
- Manufactured Products backlog was $ 435,000 as of September 30, 2026, and its book-to-bill ratio was 0.77 for the 12-month period ending on September 30, 2026.
- OPG benefited from a favorable mix of installation projects.
- Third-quarter bookings included awards across SSR, Manufactured Products, and ADTech.
Concerns
- Net income attributable to Oceaneering was $ 52,618, compared with $ 71,289 in the third quarter of 2025, reflecting a $ (19,034) loss on extinguishment of debt.
- ADTech operating income was $ 14,749, compared with $ 16,557, and operating income margin was 11 %, compared with 13 %.
- IMDS operating income was $ 2,752, compared with $ 2,756, amid a shift in project mix and increased costs in the Middle East.
- Manufactured Products operating income margin was 15 %, compared with 16 %, and its backlog was $ 435,000 compared with $ 568,000.
- Fourth-quarter SSR operating income is expected to decrease because of lower ROV utilization, a shift in ROV geographic mix, and increased mobilization costs.
- Fourth-quarter OPG operating income is expected to decrease on changes in project mix.
- The company expects free cash flow generation to moderate in the fourth quarter.
What to watch
- Fourth-quarter EBITDA guidance of $85 million to $95 million.
- Fourth-quarter SSR ROV utilization and mobilization costs as rigs transit from the U.S. Gulf to other regions.
- Manufactured Products backlog and book-to-bill activity.
- The pace of full-year 2027 EBITDA toward the initial $430 million to $480 million range.
- Full-year 2027 free cash flow generation, which is expected to exceed the level forecasted for 2026.
- Continuation of share repurchase activity.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026 were $734,941.
- Cash and cash equivalents at December 31, 2025 were $688,874.
- Total assets at September 30, 2026 were $ 2,775,446.
- Long-term debt at September 30, 2026 was $ 491,417.
- During the third quarter, Oceaneering issued $500 million aggregate principal amount of 6.875% Senior Notes due 2034.
- The revolving credit facility was amended and extended, with commitments increased to $345 million and maturity extended to July 2031.
- Oceaneering had more than $1.0 billion of liquidity as of September 30, 2026.
- Cash flow provided by operating activities was $ 163,034 for the three months ended September 30, 2026.
- Free Cash Flow was $ 141,922 for the three months ended September 30, 2026.
- Total capital expenditures were $ 26,788 for the three months ended September 30, 2026.
Analysis
Oceaneering reported third-quarter revenue of $ 784,554, up 6% year over year, and GAAP operating income of $ 92,153, up 7%. GAAP operating income margin was 12 %, matching the prior-year quarter and improving from 11 % in the second quarter. Adjusted EBITDA increased 7% to $ 119,362, with adjusted EBITDA margin holding at 15 %. Net income attributable to Oceaneering declined to $ 52,618 from $ 71,289, and diluted EPS was $ 0.52 versus $ 0.71. The period included a $ (19,034) loss on extinguishment of debt.
SSR was the principal operating contributor. Segment revenue was $ 232,995 and operating income was $ 75,363, versus $ 65,142 a year earlier, while operating income margin reached 32 % from 30 %. Management cited higher ROV revenue per day utilized, greater Survey activity, and improved ROV and Survey margins. Manufactured Products revenue rose 8% to $ 168,156, but operating income was broadly unchanged at $ 25,066 and its operating margin declined to 15 % from 16 %. ADTech revenue increased 7% to $ 135,074, while operating income declined to $ 14,749 and margin declined to 11 % from 13 % because of increased pass-through activities and certain program costs.
Cash generation strengthened materially. Cash flow provided by operating activities was $ 163,034, compared with $ 101,263 in the prior-year quarter, and free cash flow was $ 141,922, compared with $ 77,048. Management attributed the result to improved operational cash, lower tax payments, and capital spend. The company repurchased 101,038 shares for approximately $5.0 million. It also completed financing actions including $500 million of 6.875% Senior Notes due 2034 and an amended revolving credit facility with $345 million of commitments and maturity in July 2031. Cash and cash equivalents were $734,941 at September 30, 2026, and the company reported more than $1.0 billion of liquidity.
For the fourth quarter, Oceaneering expects revenue to increase year over year and consolidated EBITDA of $85 million to $95 million. The outlook calls for lower SSR operating income and lower OPG operating income, while Manufactured Products, IMDS, and ADTech revenue and operating income are expected to increase. Management expects typical seasonality, geographic and project-mix changes, and moderating free cash flow in the fourth quarter. The company initiated full-year 2027 consolidated EBITDA guidance of $430 million to $480 million, expects 2027 free cash flow to exceed the level forecasted for 2026, and expects repurchase activity to continue.
Management, verbatim
Our third-quarter results were in line with our guidance and consensus estimates. Subsea Robotics (SSR) delivered improved year-over-year results, while Offshore Projects Group (OPG) continued to perform well. We generated significant free cash flow during the quarter as a result of improved operational cash and lower tax payments and capital spend. We expect free cash flow generation to moderate in the fourth quarter, but we remain on track to achieve the top end of our full-year guidance.
Rod Larson, President and Chief Executive Officer
As we look ahead, we expect to see typical seasonality and changes in geographic and project mix in the fourth quarter. Beyond the fourth quarter, we expect improved performance in 2027, with EBITDA increasing compared to 2026.
Rod Larson, President and Chief Executive Officer
Third-quarter bookings included meaningful awards across SSR, Manufactured Products, and Aerospace and Defense Technologies (ADTech). Together with our existing backlog and sales opportunities across our businesses, this provides a solid foundation as we enter 2027. Based on our current expectations, we are initiating full-year 2027 EBITDA guidance in the range of $430 million to $480 million.
Rod Larson, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no reported results can be compared with prior guidance.
- GAAP gross margin percentage for the third quarter of 2026 was not reported.
- Adjusted gross margin was not reported.
- A numerical fourth-quarter 2026 consolidated revenue guidance range was not reported.
- Fourth-quarter 2026 segment revenue and operating-income guidance ranges were not reported.
- Full-year 2026 consolidated EBITDA guidance was not reported.
- A dividend amount or dividend declaration was not reported.
- A third-quarter 2026 effective tax rate was not reported.
- ROV revenue per day utilized comparative values were not reported in the segment table.
- Manufactured Products book-to-bill comparative values were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
SEC Form 8-K furnished with Exhibit 99.1 reporting Oceaneering’s third quarter 2026 results, segment performance, and forward guidance.
Ticker impact
Oceaneering reported Q3 2026 results and initiated 2027 EBITDA guidance of $430 million to $480 million, plus Q4 EBITDA guidance of $85 million to $95 million.
Likely upward bias as the market digests strong cash generation and a quantified 2027 EBITDA outlook, partially offset by Q4 margin pressure from lower ROV utilization.
The filing provides multiple decision-grade datapoints: Q3 operating metrics, free cash flow, liquidity, and explicit Q4 and initial 2027 EBITDA ranges, which typically move earnings expectations and valuation.
Market effects
Subsea/energy services names may see read-across from Oceaneering’s segment mix commentary (SSR, OPG, IMDS, ADTech) and bookings/backlog signals.
No explicit regional macro catalyst, but the company highlights activity shifts across Europe, Guyana, West Africa, and the U.S. Gulf that could influence sentiment toward offshore operators’ service demand.
Limited broader-market linkage; primarily sector-specific sentiment around offshore energy services cash generation and backlog conversion.
Counterpoint
Q4 guidance implies operating income pressure in SSR and OPG from utilization and project mix, so the market may focus more on margin trajectory than on headline EBITDA.
Key entities
- companyOceaneering International, Inc.
Reported Q3 2026 results, provided Q4 2026 guidance, and initiated 2027 EBITDA guidance; also completed financing transactions to extend debt maturities.
