OII · Oceaneering International, Inc.

Oceaneering's Q1 2026 results showed revenue growth to $692 million, up 3% from Q1 2025, primarily driven by a 35% increase in Aerospace and Defense Technologies (ADTech) revenue to $131 million from a large 2025 contract and higher submarine activity, alongside 6% growth in Manufactured Products to $143.6 million on higher-margin backlog execution. Subsea Robotics (SSR) revenue rose to $214 million but operating income fell 7% to $55.5 million due to ROV utilization dropping to 61% from 67%, geographic mix shifts, and costs for Freedom™ vehicle development and Ocean Intervention II deployment. Offshore Projects Group (OPG) saw revenue decline 18% to $135 million with operating income down sharply to $18.3 million amid typical U.S. Gulf seasonality and lower international activity versus an unusually strong prior year. Integrity Management & Digital Solutions (IMDS) revenue dropped 5% with operating income turning negative at $(1.0) million, hit by lower West Africa/Australia volumes and flat Middle East activity from conflict. ADTech operating income decreased 24% to $8.1 million due to a contract dispute accrual, though excluding it, segment and consolidated adjusted EBITDA of $83.7 million (down 13% YoY) would have hit the upper end of guidance. Unallocated expenses rose 10% to $49.3 million as expected. CEO Rod Larson noted strong ADTech activity and $1 billion in orders, including $300 million SSR awards to 2031 and $175 million ADTech, bolstering backlog confidence. Cash used in operations was $59.1 million, but quarter-end cash swelled to $607 million from $382 million YoY. Guidance holds full-year adjusted EBITDA at $390-$440 million, with IMDS operating income growing YoY but below prior expectations and Manufactured Products book-to-bill at 0.9-1.0. Q2 projects revenue growth and EBITDA of $100-$110 million, led by ADTech and SSR, though IMDS faces headwinds.