Oceaneering Reports Fourth Quarter 2024 and Full Year 2024 Results

Rhea-AI Summary

Oceaneering International (NYSE:OII) reported strong Q4 2024 and full-year results, with significant year-over-year improvements. Q4 revenue reached $713 million (+9% YoY), with operating income of $77.9 million (+64% YoY) and net income of $56.1 million (+26% YoY).

Full-year 2024 performance showed revenue of $2.7 billion (+10% YoY), operating income of $246 million (+36% YoY), and net income of $147 million (+51% YoY). The company achieved its highest quarterly revenue since Q4 2015 and surpassed $100 million in adjusted EBITDA for the first time since Q2 2016.

For 2025, Oceaneering projects net income between $160-190 million, consolidated EBITDA of $380-430 million, and free cash flow of $110-130 million. The company's Q1 2025 EBITDA is expected to range between $80-90 million.

Positive

• Q4 2024 revenue increased 9% YoY to $713 million
• Q4 2024 operating income grew 64% YoY to $77.9 million
• Full-year 2024 revenue up 10% to $2.7 billion
• Net income increased 51% YoY to $147 million in 2024
• ROV average revenue per day increased 12% YoY to $10,786
• Strong 2025 guidance with projected net income of $160-190 million

Negative

• ROV fleet utilization declined from 68% to 66%
• Manufactured Products operating income margin declined to 3%
• Free cash flow decreased 12% YoY due to increased working capital
• Backlog decreased 3% compared to 2023
• Book-to-bill ratio below 1.0 at 0.97 for 2024

Insights

Financial Analyst

Oceaneering's Q4 and FY2024 results reveal a company executing exceptionally well across multiple fronts, with several notable achievements worth unpacking for investors:

The Subsea Robotics segment stands out as a particular bright spot, with its 36% EBITDA margin and 12% increase in ROV day rates to $10,786. This pricing power, achieved despite a slight utilization decline, suggests strong market demand and competition in high-specification ROV services. The segment's performance indicates Oceaneering's strong market position in the offshore energy services sector.

The company's financial health shows remarkable improvement, with operating income surging 64% year-over-year in Q4. The achievement of $102M in Q4 adjusted EBITDA - the highest since 2016 - demonstrates the success of management's operational efficiency initiatives and strategic positioning in key markets.

Looking ahead to 2025, several factors support the company's positive guidance:

• The $604M backlog, though slightly down year-over-year, provides solid revenue visibility
• The strategic acquisition of Global Design Innovation positions the company to capitalize on the growing digital transformation trend in offshore operations
• The planned $130-140M capital expenditure, including $15-20M for ERP implementation, indicates confidence in future growth opportunities

However, investors should note that increased working capital requirements from higher activity levels impacted free cash flow, which decreased 12% year-over-year. This is a typical pattern in growth phases but requires monitoring to ensure efficient capital management.

The segment-level guidance for Q1 2025 suggests particular strength in SSR and OPG segments, with both expected to show significant improvement year-over-year. This diversified growth across segments reduces reliance on any single market and provides multiple avenues for expansion.

HOUSTON--(BUSINESS WIRE)-- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported fourth quarter and full year 2024 results.

Fourth Quarter 2024 Results

• Revenue of $713 million, a 9% increase year over year
• Operating income of $77.9 million, a 64% increase year over year
• Net income of $56.1 million, a 26% increase year over year
• Adjusted EBITDA of $102 million, a 35% increase year over year
• Cash flow provided by operating activities of $128 million and free cash flow of $94.5 million, with an ending cash position of $498 million

Full Year 2024 Results

• Revenue of $2.7 billion, a 10% increase year over year
• Operating income of $246 million, a 36% increase year over year
• Net income of $147 million, a 51% increase year over year
• Adjusted EBITDA of $347 million, a 20% increase year over year
• Cash flow provided by operating activities of $203 million and free cash flow of $96.1 million
• Share repurchases of 825,427 for approximately $20.0 million, including 403,198 shares repurchased in the fourth quarter for approximately $10.1 million

Rod Larson, President and Chief Executive Officer of Oceaneering, stated, "I am proud of the Oceaneering team for delivering on an ambitious fourth quarter that slightly exceeded our implied EBITDA guidance and consensus estimates. These results reflect our highest quarterly revenue since the fourth quarter of 2015 and we surpassed $100 million in adjusted EBITDA for the first time since the second quarter of 2016.

"For the full year 2024, we generated consolidated revenue of $2.7 billion, a 10% increase over 2023. Adjusted consolidated EBITDA increased 20% to $347 million, representing our sixth consecutive year of EBITDA growth, driven by our Subsea Robotics (SSR), Manufactured Products, and Offshore Projects Group (OPG) segments. Cash flow provided by operating activities for the year was $203 million and free cash flow was $96.1 million, a year-over-year decrease of 12%, primarily due to increased net working capital from higher activity levels and increased cash taxes.

"Looking into 2025 and beyond, I'm excited for our future. In 2025, our team will remain focused on growing the company and delivering on our plan that projects growth in revenue and operating income in each operating segment. During the year, we will continue to integrate and identify market expansion opportunities for Global Design Innovation Ltd., a U.K.-based provider of digital and software services, which we acquired in the fourth quarter. Our year-end backlog combined with our sales pipeline are foundational to driving growth in 2025, as reflected in our guidance for the year. However, due to the potential impacts of increased geopolitical uncertainties, we have adjusted the lower end of our guidance range for EBITDA."

Full Year 2025 Guidance:

• Net income is expected in the range of $160 million to $190 million
• Consolidated EBITDA is expected in the range of $380 million to $430 million
• Free cash flow is expected in the range of $110 million to $130 million
• Capital expenditures are expected in the range of $130 million to $140 million, inclusive of $15 million to $20 million related to implementation of a new ERP system

Fourth Quarter 2024 Segment Results

As compared to the fourth quarter of 2023:

• SSR operating income of $63.5 million reflected an increase of 26%. EBITDA margin was 36%, an increase of 361 basis points compared to the same period last year. Although Remotely Operated Vehicle (ROV) fleet utilization declined slightly from 68% to 66%, the impact of fewer days utilized was more than offset by a 12% year-over-year increase in ROV average revenue per day utilized to $10,786.
• Manufactured Products operating income declined $1.3 million on an 8% increase in revenue, with operating income margin declining to 3%. Backlog was $604 million on December 31, 2024, a 3% decrease compared to the same period in 2023, with declines in Mobile Robotics outpacing gains in energy products. The book-to-bill ratio was 0.97 for the 12-month period ending on December 31, 2024.
• OPG operating income of $39.3 million represented a significant year-over-year improvement, primarily due to increased activity in the Gulf of Mexico and West Africa. Revenue increased 14% and operating income margin improved to 21% from 9% in the fourth quarter of 2023.
• Integrity Management and Digital Solutions (IMDS) operating income was $1.2 million lower and operating income margin decreased to 3% from 5% on a 14% increase in revenue.
• Aerospace and Defense Technologies (ADTech) revenue increased slightly year over year to $98.8 million. Operating income decreased approximately $1.1 million and margin declined to 10% from 12% due to costs associated with an ERP implementation and changes in project mix.
• At the corporate level, Unallocated Expenses of $41.1 million were in line with guidance for the quarter.

First Quarter 2025 Guidance

As compared to the first quarter of 2024, consolidated first quarter 2025 revenue is expected to increase and EBITDA is expected to increase significantly to the range of $80 million to $90 million.

At the segment level, for the first quarter of 2025, as compared to the first quarter of 2024:

• SSR revenue is expected to increase and operating profitability is expected to significantly increase.
• Manufactured Products revenue and operating profitability are forecasted to remain flat.
• OPG revenue and operating profitability are projected to improve significantly.
• IMDS revenue and operating profitability are expected to remain flat.
• ADTech revenue and operating profitability are projected to remain flat.
• Unallocated Expenses are expected to be in the $45 million range.

Non-GAAP Financial Measures

Adjusted net income (loss) and earnings (loss) per share; EBITDA and adjusted EBITDA on a consolidated and on a segment basis (as well as EBITDA and adjusted EBITDA margins); and free cash flow are non-GAAP measures that exclude the impacts of certain identified items. Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS), EBITDA and Adjusted EBITDA and Margins, Free Cash Flow, 2025 Consolidated EBITDA and Free Cash Flow Estimates, and EBITDA and Adjusted EBITDA and Margins by Segment. These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information.

Conference Call Details

Oceaneering has scheduled a conference call and webcast on Thursday, February 20, 2025 at 10:00 a.m Central Time, to discuss its results for the fourth quarter of 2024, as well as its outlook for 2025. Interested parties may listen to the call through a webcast link posted in the Investor Relations section of Oceaneering's website. A replay of the conference call will be made available on the website approximately two hours following the conclusion of the live call.

Forward-Looking Statements

This release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs, future expected business, and financial performance and prospects of Oceaneering. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering’s: full-year 2025 guidance range for net income, consolidated EBITDA, free cash flow generation, and capital expenditures; first quarter 2025 guidance for consolidated revenue, consolidated EBITDA, revenue and profitability by operating segment, and Unallocated Expenses; expectations for improved financial performance and condition in the first quarter of 2025, led by gains in SSR and OPG; and the characterization, whether positive or otherwise, of market fundamentals, conditions, and dynamics, robotics markets, offshore energy activity levels (including by geographic location), pricing levels, day rates, ROV days utilized, average ROV revenue per day utilized, vessel utilization, growth, bidding activity, outlook, performance, opportunities, and future financials, including as increasing, favorable, positive, encouraging, improving, seasonal, strong, supportive, robust, meaningful, healthy, or significant (which is used herein to indicate a change of 20% or greater).

The forward-looking statements included in this release are based on Oceaneering's current expectations and are subject to certain risks, assumptions, trends, and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could cause actual results to differ materially include: factors affecting the level of activity in the oil and gas industry, including worldwide demand for and prices of oil and natural gas, oil and natural gas production growth, and the supply and demand of offshore drilling rigs; the indirect consequences of climate change and climate-related business trends; actions by members of OPEC and other oil exporting countries; decisions about offshore developments to be made by oil and gas exploration, development, and production companies; the use of subsea completions and our ability to capture associated market share; general economic and business conditions and industry trends; the strength of the industry segments in which we are involved; cancellations of contracts, change orders, and other contractual modifications, force majeure declarations and the exercise of contractual suspension rights and the resulting adjustments to our backlog; collections from our customers; our future financial performance, including as a result of the availability, terms, and deployment of capital; the consequences of significant changes in currency exchange rates; the volatility and uncertainties of credit markets; changes in data privacy and security laws, regulations, and standards; changes in tax laws, regulations, and interpretation by taxing authorities; changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment; the continued availability of qualified personnel; our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources; operating risks normally incident to offshore exploration, development, and production operations; hurricanes and other adverse weather and sea conditions; cost and time associated with drydocking of our vessels; the highly competitive nature of our businesses; adverse outcomes from legal or regulatory proceedings; the risks associated with integrating businesses we acquire; rapid technological changes; and social, political, military, and economic situations in foreign countries where we do business and the possibilities of civil disturbances, war, other armed conflicts, or terrorist attacks. For a more complete discussion of these and other risk factors, please see Oceaneering’s latest annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements. Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement.

About Oceaneering

Oceaneering is a global technology company delivering engineered services and products and robotic solutions to the offshore energy, defense, aerospace, and manufacturing industries.

For more information, please visit www.oceaneering.com.

OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
																					Dec 31, 2024				Dec 31, 2023
																					(in thousands)
ASSETS
	Current assets (including cash and cash equivalents of $497,516 and $461,566)																				$	1,387,896			$	1,305,659
	Net property and equipment																					420,098				424,293
	Other assets																					528,353				509,054
			Total Assets																		$	2,336,347			$	2,239,006
LIABILITIES AND EQUITY
	Current liabilities																				$	796,938			$	732,476
	Long-term debt																					482,009				477,058
	Other long-term liabilities																					337,078				395,389
	Equity																					720,322				634,083
			Total Liabilities and Equity																		$	2,336,347			$	2,239,006
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
									For the Three Months Ended												For the Year Ended
									Dec 31, 2024				Dec 31, 2023				Sep 30, 2024				Dec 31, 2024				Dec 31, 2023
									(in thousands, except per share amounts)
	Revenue								$	713,450			$	654,629			$	679,811			$	2,661,161			$	2,424,706
	Cost of services and products									571,513				549,000				548,849				2,175,667				2,025,735
		Gross margin								141,937				105,629				130,962				485,494				398,971
	Selling, general and administrative expense									64,057				58,179				59,629				239,224				217,643
		Operating income (loss)								77,880				47,450				71,333				246,270				181,328
	Interest income									3,407				3,081				3,275				12,124				15,425
	Interest expense									(9,741	)			(7,921	)			(9,456	)			(37,917	)			(36,523	)
	Equity in income (losses) of unconsolidated affiliates									142				445				323				929				2,061
	Other income (expense), net									(2,862	)			3,564				3,133				3,510				(1,236	)
		Income (loss) before income taxes								68,826				46,619				68,608				224,916				161,055
	Provision (benefit) for income taxes									12,727				2,090				27,371				77,448				63,652
		Net Income (Loss)							$	56,099			$	44,529			$	41,237			$	147,468			$	97,403
Weighted average diluted shares outstanding										102,140				102,366				102,613				102,369				102,156
Diluted earnings (loss) per share									$	0.55			$	0.43			$	0.40			$	1.44			$	0.95
The above Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations should be read in conjunction with the Company's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

SEGMENT INFORMATION
						For the Three Months Ended												For the Year Ended
						Dec 31, 2024				Dec 31, 2023				Sep 30, 2024				Dec 31, 2024				Dec 31, 2023
					($ in thousands)
Subsea Robotics
			Revenue			$	212,190			$	199,505			$	215,715			$	829,822			$	752,521
Operating income (loss)						$	63,526			$	50,594			$	65,698			$	235,211			$	174,293
Operating income (loss) %							30	%			25	%			30	%			28	%			23	%
	ROV days available						23,000				23,000				23,000				91,500				91,250
	ROV days utilized						15,211				15,682				15,796				61,382				61,874
	ROV utilization						66	%			68	%			69	%			67	%			68	%
Manufactured Products
			Revenue			$	142,999			$	132,994			$	143,734			$	555,500			$	493,692
Operating income (loss)						$	4,163			$	5,435			$	11,278			$	43,000			$	35,551
Operating income (loss) %							3	%			4	%			8	%			8	%			7	%
Backlog at end of period						$	604,000			$	622,000			$	671,000			$	604,000			$	622,000
Offshore Projects Group
			Revenue			$	184,386			$	161,239			$	147,539			$	591,037			$	546,366
Operating income (loss)						$	39,313			$	15,155			$	20,294			$	73,699			$	64,546
Operating income (loss) %							21	%			9	%			14	%			12	%			12	%
Integrity Management & Digital Solutions
			Revenue			$	75,062			$	65,977			$	73,622			$	291,866			$	255,282
Operating income (loss)						$	2,025			$	3,205			$	714			$	9,827			$	13,373
Operating income (loss) %							3	%			5	%			1	%			3	%			5	%
Aerospace and Defense Technologies
			Revenue			$	98,813			$	94,914			$	99,201			$	392,936			$	376,845
Operating income (loss)						$	9,930			$	11,010			$	12,219			$	42,201			$	45,003
Operating income (loss) %							10	%			12	%			12	%			11	%			12	%
Unallocated Expenses
Operating income (loss)						$	(41,077	)		$	(37,949	)		$	(38,870	)		$	(157,668	)		$	(151,438	)
Total
			Revenue			$	713,450			$	654,629			$	679,811			$	2,661,161			$	2,424,706
Operating income (loss)						$	77,880			$	47,450			$	71,333			$	246,270			$	181,328
Operating income (loss) %							11	%			7	%			10	%			9	%			7	%
The above Segment Information does not include adjustments for non-recurring transactions. See the tables below under the caption "Reconciliations of Non-GAAP to GAAP Financial Information" for financial measures that our management considers in evaluating our ongoing operations.

SELECTED CASH FLOW INFORMATION
						For the Three Months Ended									For the Year Ended
						Dec 31, 2024			Dec 31, 2023			Sep 30, 2024			Dec 31, 2024			Dec 31, 2023
						(in thousands)
Capital Expenditures, including Acquisitions						$	61,023		$	34,045		$	24,886		$	134,285		$	100,726
Depreciation and Amortization:
Energy Services and Products
	Subsea Robotics					$	12,049		$	13,264		$	12,076		$	48,916		$	54,365
	Manufactured Products						2,979			3,096			3,061			12,452			12,220
	Offshore Projects Group						5,033			6,921			5,399			22,451			27,956
	Integrity Management & Digital Solutions						1,615			902			1,348			6,025			3,608
Total Energy Services and Products							21,676			24,183			21,884			89,844			98,149
Aerospace and Defense Technologies							705			619			696			2,620			2,504
Unallocated Expenses							2,761			695			2,683			10,979			4,307
	Total Depreciation and Amortization					$	25,142		$	25,497		$	25,263		$	103,443		$	104,960

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this Press Release also includes non-GAAP financial measures (as defined under certain rules and regulations promulgated by the Securities and Exchange Commission). We have included Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share, each of which excludes the effects of certain specified items, as set forth in the tables that follow. As a result, these amounts are non-GAAP financial measures. We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business. Furthermore, our management uses these measures as measures of the performance of our operations. We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins, 2024 Consolidated Adjusted EBITDA and Free Cash Flow, and 2025 Consolidated EBITDA and Free Cash Flow Estimates, as well as the following by segment: EBITDA, EBITDA Margins, Adjusted EBITDA, and Adjusted EBITDA Margins. We define EBITDA Margin as EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margins and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow. Due to the forward-looking nature of EBITDA for the first quarter of 2025 and for the full year of 2025, we cannot reliably predict certain of the necessary line-items for the reconciliations to net income and, accordingly, have excluded them. EBITDA and EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins, and related information by segment are each non-GAAP financial measures. We define Free Cash Flow as cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions). We have included these disclosures in this press release because EBITDA, EBITDA Margins, and Free Cash Flow are widely used by investors for valuation purposes and for comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof provide more consistent measures than the unadjusted amounts. Furthermore, our management uses these measures for purposes of evaluating our financial performance. Our presentation of EBITDA, EBITDA Margins, and Free Cash Flow (and the Adjusted amounts thereof) may not be comparable to similarly titled measures other companies report. Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows, or any other measure prepared and reported in accordance with GAAP. The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)
					For the Three Months Ended
					Dec 31, 2024							Dec 31, 2023							Sep 30, 2024
					Net Income (Loss)				Diluted EPS			Net Income (Loss)				Diluted EPS			Net Income (Loss)				Diluted EPS
					(in thousands, except per share amounts)
Net income (loss) and diluted EPS as reported in accordance with GAAP					$	56,099			$	0.55		$	44,529			$	0.43		$	41,237			$	0.40
Pre-tax adjustments for the effects of:
	Foreign currency (gains) losses					2,789							(2,275	)						(424	)
Total pre-tax adjustments						2,789							(2,275	)						(424	)
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods						77							851							603
Discrete tax items:
Share-based compensation						(9	)						(58	)						(2	)
Uncertain tax positions						2,744							(2,036	)						(1,178	)
Valuation allowances						(24,058	)						(20,350	)						(1,759	)
Other						(182	)						(1,230	)						(1,247	)
	Total discrete tax adjustments					(21,505	)						(23,674	)						(4,186	)
	Total of adjustments					(18,639	)						(25,098	)						(4,007	)
Adjusted Net Income (Loss)					$	37,460			$	0.37		$	19,431			$	0.19		$	37,230			$	0.36
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)										102,140							102,366							102,613
Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)
												For the Year Ended
												Dec 31, 2024							Dec 31, 2023
												Net Income (Loss)				Diluted EPS			Net Income (Loss)				Diluted EPS
												(in thousands, except per share amounts)
Net income (loss) and diluted EPS as reported in accordance with GAAP												$	147,468			$	1.44		$	97,403			$	0.95
Pre-tax adjustments for the effects of:
	Foreign currency (gains) losses												(866	)						1,359
Total pre-tax adjustments													(866	)						1,359
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods													1,540							(837	)
Discrete tax items:
Share-based compensation													(1,985	)						(1,428	)
Uncertain tax positions													3,123							15,441
Valuation allowances													(20,726	)						(16,099	)
Other													(11,410	)						(13,890	)
	Total discrete tax adjustments												(30,998	)						(15,976	)
	Total of adjustments												(30,324	)						(15,454	)
Adjusted Net Income (Loss)												$	117,144			$	1.14		$	81,949			$	0.80
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)																	102,369							102,156

EBITDA and Adjusted EBITDA and Margins
					For the Three Months Ended												For the Year Ended
					Dec 31, 2024				Dec 31, 2023				Sep 30, 2024				Dec 31, 2024				Dec 31, 2023
					($ in thousands)
Net income (loss)					$	56,099			$	44,529			$	41,237			$	147,468			$	97,403
Depreciation and amortization						25,142				25,497				25,263				103,443				104,960
	Subtotal					81,241				70,026				66,500				250,911				202,363
Interest expense, net of interest income						6,334				4,840				6,181				25,793				21,098
Amortization included in interest expense						(1,555	)			460				(1,537	)			(6,075	)			574
Provision (benefit) for income taxes						12,727				2,090				27,371				77,448				63,652
	EBITDA					98,747				77,416				98,515				348,077				287,687
Adjustments for the effects of:
	Foreign currency (gains) losses					2,789				(2,275	)			(424	)			(866	)			1,359
		Total of adjustments				2,789				(2,275	)			(424	)			(866	)			1,359
	Adjusted EBITDA				$	101,536			$	75,141			$	98,091			$	347,211			$	289,046
Revenue					$	713,450			$	654,629			$	679,811			$	2,661,161			$	2,424,706
EBITDA margin %						14	%			12	%			14	%			13	%			12	%
Adjusted EBITDA margin %						14	%			11	%			14	%			13	%			12	%

Free Cash Flow
			For the Three Months Ended												For the Year Ended
			Dec 31, 2024				Dec 31, 2023				Sep 30, 2024				Dec 31, 2024				Dec 31, 2023
			(in thousands)
Net Income (loss)			$	56,099			$	44,529			$	41,237			$	147,468			$	97,403
Non-cash adjustments:
	Depreciation and amortization			25,142				25,497				25,263				103,443				104,960
	Other non-cash			(8,575	)			(22,486	)			7,440				3,291				(13,370	)
Other increases (decreases) in cash from operating activities				55,711				105,275				17,991				(50,988	)			20,962
Cash flow provided by (used in) operating activities				128,377				152,815				91,931				203,214				209,955
Purchases of property and equipment				(33,874	)			(34,045	)			(24,886	)			(107,136	)			(100,726	)
Free Cash Flow			$	94,503			$	118,770			$	67,045			$	96,078			$	109,229
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
2025 Consolidated EBITDA Estimate
															For the Three Months Ending
															March 31, 2025
															Low				High
															(in thousands)
Income (loss) before income taxes															$	49,000			$	57,000
Depreciation and amortization																25,000				26,000
	Subtotal															74,000				83,000
Interest expense, net of interest income																6,000				7,000
	Consolidated EBITDA														$	80,000			$	90,000
															For the Year Ending
															December 31, 2025
															Low				High
															(in thousands)
Income (loss) before income taxes															$	254,000			$	295,000
Depreciation and amortization																100,000				105,000
	Subtotal															354,000				400,000
Interest expense, net of interest income																26,000				30,000
	Consolidated EBITDA														$	380,000			$	430,000
2025 Free Cash Flow Estimate
															For the Year Ending
															December 31, 2025
															Low				High
															(in thousands)
Net income (loss)															$	160,000			$	190,000
Depreciation and amortization																100,000				105,000
Other increases (decreases) in cash from operating activities																(20,000	)			(25,000	)
Cash flow provided by (used in) operating activities																240,000				270,000
Purchases of property and equipment																(130,000	)			(140,000	)
Free Cash Flow															$	110,000			$	130,000

EBITDA and Adjusted EBITDA and Margins by Segment
				For the Three Months Ended December 31, 2024
				SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
				($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP				$	63,526			$	4,163			$	39,313			$	2,025			$	9,930			$	(41,077	)		$	77,880
Adjustments for the effects of:
	Depreciation and amortization				12,049				2,979				5,033				1,615				705				2,761				25,142
	Other pre-tax				—				—				—				—				—				(4,275	)			(4,275	)
	EBITDA				75,575				7,142				44,346				3,640				10,635				(42,591	)			98,747
Adjustments for the effects of:
	Foreign currency (gains) losses				—				—				—				—				—				2,789				2,789
		Total of adjustments			—				—				—				—				—				2,789				2,789
Adjusted EBITDA				$	75,575			$	7,142			$	44,346			$	3,640			$	10,635			$	(39,802	)		$	101,536
Revenue				$	212,190			$	142,999			$	184,386			$	75,062			$	98,813							$	713,450
Operating income (loss) % as reported in accordance with GAAP					30	%			3	%			21	%			3	%			10	%							11	%
EBITDA Margin					36	%			5	%			24	%			5	%			11	%							14	%
Adjusted EBITDA Margin					36	%			5	%			24	%			5	%			11	%							14	%
				For the Three Months Ended December 31, 2023
				SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
				($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP				$	50,594			$	5,435			$	15,155			$	3,205			$	11,010			$	(37,949	)		$	47,450
Adjustments for the effects of:
	Depreciation and amortization				13,264				3,096				6,921				902				619				695				25,497
	Other pre-tax				—				—				—				—				—				4,469				4,469
	EBITDA				63,858				8,531				22,076				4,107				11,629				(32,785	)			77,416
Adjustments for the effects of:
	Foreign currency (gains) losses				—				—				—				—				—				(2,275	)			(2,275	)
		Total of adjustments			—				—				—				—				—				(2,275	)			(2,275	)
Adjusted EBITDA				$	63,858			$	8,531			$	22,076			$	4,107			$	11,629			$	(35,060	)		$	75,141
Revenue				$	199,505			$	132,994			$	161,239			$	65,977			$	94,914							$	654,629
Operating income (loss) % as reported in accordance with GAAP					25	%			4	%			9	%			5	%			12	%							7	%
EBITDA Margin					32	%			6	%			14	%			6	%			12	%							12	%
Adjusted EBITDA Margin					32	%			6	%			14	%			6	%			12	%							11	%

				For the Three Months Ended September 30, 2024
				SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
				($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP				$	65,698			$	11,278			$	20,294			$	714			$	12,219			$	(38,870	)		$	71,333
Adjustments for the effects of:
	Depreciation and amortization				12,076				3,061				5,399				1,348				696				2,683				25,263
	Other pre-tax				—				—				—				—				—				1,919				1,919
	EBITDA				77,774				14,339				25,693				2,062				12,915				(34,268	)			98,515
Adjustments for the effects of:
	Foreign currency (gains) losses				—				—				—				—				—				(424	)			(424	)
		Total of adjustments			—				—				—				—				—				(424	)			(424	)
Adjusted EBITDA				$	77,774			$	14,339			$	25,693			$	2,062			$	12,915			$	(34,692	)		$	98,091
Revenue				$	215,715			$	143,734			$	147,539			$	73,622			$	99,201							$	679,811
Operating income (loss) % as reported in accordance with GAAP					30	%			8	%			14	%			1	%			12	%							10	%
EBITDA Margin					36	%			10	%			17	%			3	%			13	%							14	%
Adjusted EBITDA Margin					36	%			10	%			17	%			3	%			13	%							14	%

EBITDA and Adjusted EBITDA and Margins by Segment
				For the Year Ended December 31, 2024
				SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
				($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP				$	235,211			$	43,000			$	73,699			$	9,827			$	42,201			$	(157,668	)		$	246,270
Adjustments for the effects of:
	Depreciation and amortization				48,916				12,452				22,451				6,025				2,620				10,979				103,443
	Other pre-tax				—				—				—				—				—				(1,636	)			(1,636	)
	EBITDA				284,127				55,452				96,150				15,852				44,821				(148,325	)			348,077
Adjustments for the effects of:
	Foreign currency (gains) losses				—				—				—				—				—				(866	)			(866	)
		Total of adjustments			—				—				—				—				—				(866	)			(866	)
Adjusted EBITDA				$	284,127			$	55,452			$	96,150			$	15,852			$	44,821			$	(149,191	)		$	347,211
Revenue				$	829,822			$	555,500			$	591,037			$	291,866			$	392,936							$	2,661,161
Operating income (loss) % as reported in accordance with GAAP					28	%			8	%			12	%			3	%			11	%							9	%
EBITDA Margin					34	%			10	%			16	%			5	%			11	%							13	%
Adjusted EBITDA Margin					34	%			10	%			16	%			5	%			11	%							13	%
				For the Year Ended December 31, 2023
				SSR				MP				OPG				IMDS				ADTech				Unallocated Expenses and other				Total
				($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP				$	174,293			$	35,551			$	64,546			$	13,373			$	45,003			$	(151,438	)		$	181,328
Adjustments for the effects of:
	Depreciation and amortization				54,365				12,220				27,956				3,608				2,504				4,307				104,960
	Other pre-tax				—				—				—				—				—				1,399				1,399
	EBITDA				228,658				47,771				92,502				16,981				47,507				(145,732	)			287,687
Adjustments for the effects of:
	Foreign currency (gains) losses				—				—				—				—				—				1,359				1,359
		Total of adjustments			—				—				—				—				—				1,359				1,359
Adjusted EBITDA				$	228,658			$	47,771			$	92,502			$	16,981			$	47,507			$	(144,373	)		$	289,046
Revenue				$	752,521			$	493,692			$	546,366			$	255,282			$	376,845							$	2,424,706
Operating income (loss) % as reported in accordance with GAAP					23	%			7	%			12	%			5	%			12	%							7	%
EBITDA Margin					30	%			10	%			17	%			7	%			13	%							12	%
Adjusted EBITDA Margin					30	%			10	%			17	%			7	%			13	%							12	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250219694673/en/

investorrelations@oceaneering.com

Hilary Frisbie

Senior Director, Investor Relations

Oceaneering International, Inc.

713-329-4755

Source: Oceaneering International, Inc.

FAQ

What was Oceaneering's (OII) revenue growth in Q4 2024?

Oceaneering's revenue grew 9% year-over-year to $713 million in Q4 2024.

How much did Oceaneering (OII) spend on share repurchases in 2024?

Oceaneering repurchased 825,427 shares for approximately $20.0 million in 2024, including 403,198 shares for $10.1 million in Q4.

What is Oceaneering's (OII) EBITDA guidance for 2025?

Oceaneering expects consolidated EBITDA to be between $380 million and $430 million for 2025.

What was Oceaneering's (OII) ROV fleet utilization rate in Q4 2024?

Oceaneering's ROV fleet utilization rate was 66% in Q4 2024, down from 68% in Q4 2023.

What is Oceaneering's (OII) backlog value as of December 31, 2024?

Oceaneering's backlog was $604 million as of December 31, 2024, representing a 3% decrease compared to 2023.