Oceaneering International Inc. outperformed expectations for the first quarter, reporting a 13 percent increase in revenue to $675 million and a 233 percent increase in net income to $50.4 million year-on-year.
“Oceaneering outperformed expectations this quarter due to resilient utilization of remotely operated vehicles (ROVs), and strong vessel activity, predominately in the Gulf of Mexico and West Africa. We generated adjusted EBITDA of $96.7 million, exceeding both our guidance range and consensus estimates for the quarter”, Rod Larson, President and Chief Executive Officer of Oceaneering, stated. He added that the jump in revenue was driven by strong performances from the company’s Subsea Robotics (SSR) and Offshore Projects Group (OPG).
“In addition, our Aerospace and Defense Technologies (ADTech) segment was awarded the largest initial contract in Oceaneering’s history, which is foundational to our 2025 guidance for significant growth in this segment”, Larson said.
The company reaffirmed its full-year 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance in the range of $380 million to $430 million, with the bottom end lowered in the fourth quarter of 2024 to acknowledge potential market uncertainties.
Oceaneering said its SSR operating income improved 35 percent to $59.6 million on a 10 percent increase in revenue. ROV fleet utilization was 67 percent and ROV revenue per day utilized was $10,788, reflecting year-over-year improvements, the company said.
Operating income for its Manufactured Products division slipped 34 percent to $8.7 million. The division was impacted by a $10.4 million adjustment related to an inventory reserve associated with its theme park ride business. Backlog was $543 million on March 31, 2025, a 9 percent decrease compared with the same period in 2024, Oceaneering said.
OPG results improved significantly year over year, driven by ongoing international projects from the fourth quarter of 2024, better vessel utilization in the Gulf of Mexico, and reduced drydock costs affecting the first quarter of 2024. Operating income grew to $35.7 million, revenue rose to $165 million, and operating income margin expanded to 22 percent.
IMDS reported an operating income of $3.5 million and revenue of $71.4 million, both relatively flat according to Oceaneering. ADTech revenue was $97.2 million, with operating income decreasing by $2.1 million to $10.7 million and operating income margin landing at 11 percent, impacted by costs related to a new large contract. Unallocated corporate expenses were $44.6 million, consistent with quarterly guidance.
Oceaneering said it expects Q2 consolidated revenue to increase compared to the second quarter of 2024.
To contact the author, email andreson.n.paul@gmail.com
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