Oceaneering's Q1 Earnings Surpass Estimates, Revenues Rise Y/Y

Oceaneering International, Inc. OII reported an adjusted profit of 43 cents per share for the first quarter of 2025, beating the Zacks Consensus Estimate of 36 cents. Moreover, the bottom line surpassed the year-ago quarter’s reported figure of 14 cents. This was due to year-over-year strong operating income from certain segments, such as Subsea Robotics and Offshore Projects Group segments. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Total revenues were $674.5 million, which beat the Zacks Consensus Estimate of $664 million and increased approximately 12.6% from the year-ago quarter’s $599.1 million, due to the strong revenue contribution from OII’s Subsea Robotics, Manufactured Products, Offshore Projects Group and Integrity Management & Digital Solutions segments.In the first quarter of 2025, Houston, TX-based oil and gas equipment and services company reported adjusted EBITDA of $96.7 million, a 57% increase year over year, not accounting for a $10.4 million inventory reserve taken in the Manufactured Products segment.The company also repurchased 479,154 shares for approximately $10 million in the first quarter of 2025.Oceaneering International, Inc. Price, Consensus and EPS Surprise Oceaneering International, Inc. price-consensus-eps-surprise-chart | Oceaneering International, Inc. QuoteSegmental Information of OceaneeringSubsea Robotics: The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.Revenues totaled $206 million compared with the year-ago quarter’s $186.9 million. However, the top line missed our estimate of $214.2 million.The segment also reported an operating income of $59.6 million compared with $44.2 million a year ago. However, the figure lagged our estimate of $64.1 million.Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.Revenues amounted to $135 million, up substantially from the prior-year figure of $129.5 million. Additionally, the top line beat our estimate of $129.6 million.The segment posted an operating profit of $8.7 million in the first quarter, down from the year-ago quarter’s $13.2 million. Moreover, the reported figure missed our estimate of $13.2 million.Additionally, the backlog totaled $543 million as of March 31, 2025, down 9% from the same time in 2024. For the 12-month period ending March 31, 2025, the book-to-bill ratio was 0.90.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 43.4% to $164.9 million from $115.1 million in the year-ago quarter. Moreover, the figure beat our estimate of $151.9 million.The unit’s operating income totaled $35.7 million compared with the prior-year quarter’s $0.8 million. The figure also beat our estimate of $8.5 million.Integrity Management & Digital Solutions: This segment covers Oceaneering’s Asset Integrity unit, along with its global data solutions business.Revenues of $71.4 million increased from the year-ago quarter’s $69.7 million. The figure also beat our estimate of $69.7 million.The segment reported an operating income of $3.5 million, down from the prior-year quarter’s $3.6 million. The figure matched our projection of $3.5 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 $97.2 million, down from $98 million recorded in the first quarter of 2024.  Additionally, the figure missed our estimate of $98.2 million.The operating income dropped to $10.7 million from $12.8 million in the year-ago quarter and missed our estimate of $12.8 million.OII’s Capital Expenditure & Balance SheetThe capital expenditure in the first quarter, including acquisitions, totaled $27.8 million.As of March 31, 2025, OII had cash and cash equivalents worth $382 million and $497.5 million, respectively, along with a long-term debt of about $483.3 million. The debt-to-total capital was 38.3%.Outlook of OceaneeringThis Zacks Rank #3 (Hold) company expects full-year 2025 EBITDA in the range of $380 million to $430 million. The company expects full-year 2025 consolidated and segment guidance to remain consistent with fourth-quarter 2024 earnings guidance. OII now expects the Manufactured Products book-to-bill ratio to be in the range of 0.9 to 1 for the full year. The company also expects its 2025 free cash flow to be in the range of $110 million to $130 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Oceaneeringexpects consolidated revenues for the second quarter of 2025 to increase compared with the second quarter of 2024, with EBITDA projected to be in the range of $95 million to $105 million. At the segment level, the company anticipates that Subsea Robotics revenues and operating profitability will increase. In contrast, Manufactured Products revenues are expected to remain relatively flat, although operating profitability is anticipated to improve.Similarly, Offshore Projects Group revenues are forecasted to stay relatively flat, while operating profitability is expected to see significant improvement. Integrity Management & Digital Solutions’ revenues are projected to be relatively flat, but operating profitability is expected to improve. Moreover, Aerospace and Defense Technologies revenues are anticipated to increase, with operating profitability projected to improve significantly. Finally, Unallocated Expenses are expected to be $45 million.Important Earnings at a GlanceWhile we have discussed OII’s first-quarter results in detail, let us take a look at three other key reports in this space.Oil and gas equipment and services provider, Liberty Energy LBRT, reported a first-quarter 2025 adjusted net income of 4 cents per share, which marginally beat the Zacks Consensus Estimate of 3 cents. Liberty's outperformance indicated operational efficiencies as well as increased utilization of frac and wireline fleets. However, the bottom line underperformed the year-ago quarter’s reported figure of 48 cents due to a decline in service activity.As of March 31, Liberty had approximately $24.1 million in cash and cash equivalents. The pressure pumper’s long-term debt of $210 million represented a debt-to-capitalization of 9.6%.Another oil and gas equipment and services provider, Halliburton Company HAL, posted first-quarter 2025 adjusted net income per share of 60 cents. The figure met with the Zacks Consensus Estimate but was down from the year-ago quarter’s profit of 76 cents (adjusted). The numbers reflect softer activity in the region of North America, partly offset by international growth. Meanwhile, Halliburton’s revenues of $5.4 billion decreased 6.7% year over year but beat the Zacks Consensus Estimate of $5.3 billion.As of March 31, 2025, Halliburton had approximately $1.8 billion in cash/cash equivalents and $7.2 billion in long-term debt, representing a debt-to-capitalization ratio of 40.8.Houston, TX-based oil and gas equipment and services provider, Baker Hughes BKR, reported first-quarter 2025 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 47 cents. The bottom line also improved from the year-ago level of 43 cents.As of March 31, 2025, Baker had cash and cash equivalents of $3,277 million. Baker had a long-term debt of $5,969 million at the end of the reported quarter, with a debt-to-capitalization of 25.9%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Halliburton Company (HAL): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report Baker Hughes Company (BKR): Free Stock Analysis Report Liberty Energy Inc. (LBRT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks