Oceaneering (OII) Q2 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 22, 2026 astatine 11:39 AM CDT 20 min read

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Thursday, July 24, 2025 astatine 11 a.m. ET

• President and Chief Executive Officer — Roderick A. Larson

• Senior Vice President and Chief Financial Officer — Alan R. Curtis

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Roderick A. Larson: Hey, bully morning, everybody, and acknowledgment for joining the telephone today. I proceed to beryllium incredibly arrogant of our team's accordant transportation against our guidance. When we provided our adjusted EBITDA guidance during the archetypal 4th net call, we projected a quarterly year-over-year summation of 16%. We delivered a 20% summation successful consolidated adjusted EBITDA. This marks 8 consecutive quarters of gathering oregon exceeding our adjusted EBITDA guidance scope and 12 quarters retired of the past 13. This benignant of consistency speaks volumes astir the spot of our execution and the resilience of our business.

In the 2nd 4th of 2025, each of our operating segments contributed to beating the midpoint of our guidance by delivering quarterly year-over-year improvements successful revenue, operating income and operating income margin. In particular, Aerospace and Defense Technologies oregon ADTech, improved its results arsenic enactment commenced connected respective caller declaration awards. Our Offshore Projects Group, oregon OPG, successfully completed higher-margin good involution and good stimulation products successful planetary locations, which drove a important summation successful their operating income and an enlargement of their operating income margin. Manufactured Products results improved arsenic we progressed higher-margin backlog done our manufacturing plants and not to beryllium missed, our mean Remotely Operated Vehicles oregon ROV gross per time inflected earlier than expected to $11,265.

Today, I'll absorption my comments connected our 2nd 4th results and overviews of our conception show and our consolidated and concern conception outlook for the 3rd 4th and afloat twelvemonth of 2025. I'll commencement with our consolidated results from the 2nd 4th of 2025. As we reported yesterday, we generated nett income of $54.4 cardinal oregon $0.54 per share. Consolidated gross accrued to $698 million, a 4% summation implicit the 2nd 4th of 2024. We besides achieved notable maturation successful operating income and EBITDA. For the 2nd 4th of 2025, consolidated operating income roseate by 31% to $79.2 million. Consolidated adjusted EBITDA grew 20% to $103 million.

We generated $77.2 cardinal of currency successful operating activities and utilized $30.3 cardinal successful superior expenditures, resulting successful escaped currency travel of $46.9 million. For the 4th consecutive quarter, we repurchased astir $10 cardinal worthy of shares of our communal stock. Our ending currency presumption was $434 cardinal with nary borrowings nether our secured revolving recognition facility. Now let's look astatine our results by concern conception for the 2nd 4th of 2025 arsenic compared to the 2nd 4th of 2024. Subsea Robotics oregon SSR net improved contempt concerns implicit offshore enactment levels successful achromatic abstraction connected an summation successful mean ROV gross per time utilized to $11,265, demonstrating our quality to recognize pricing improvements successful caller contracts.