10-Q · April 23, 2026
Oceaneering reported Q1 2026 revenue of $692,429,000 (vs. $674,523,000 a year ago) while GAAP diluted EPS fell to $0.36 from $0.49. Operating income contracted to $57,788,000 (8% of revenue) as Energy operating results…
Earnings analysis · 10-Q
OII earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Oceaneering delivered solid third-quarter operating growth, with revenue up 5.6% year over year to $784.554M and operating income up 6.5% to $92.153M, led by Subsea Robotics. However, diluted EPS fell to $0.52 from…
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Oceaneering delivered solid third-quarter operating growth, with revenue up 5.6% year over year to $784.554M and operating income up 6.5% to $92.153M, led by Subsea Robotics. However, diluted EPS fell to $0.52 from $0.71 because of the $19.034M debt-extinguishment charge, while Manufactured Products backlog and IMDS profitability weakened. Liquidity improved materially, supported by $159.122M of nine-month operating cash flow, $735M of cash and $345M of unused revolver capacity, but the filing provides no explicit revenue or EPS guidance.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $0.52
What stood out
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Revenue and operating income increased
Third-quarter revenue was $784.554M, up 5.6% from $742.898M a year earlier and 2.2% from $768M in Q2 2026. Operating income rose to $92.153M from $86.508M, while operating margin was 12% versus 12% a year ago and 11.5% in Q2.
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EPS declined despite operating growth
Diluted EPS was $0.52, down from $0.71 in Q3 2025 and $0.65 in Q2 2026. The decline included a $19.034M loss on extinguishment of debt related to the repurchase of approximately $397M principal amount of 2028 Senior Notes.
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Subsea Robotics led segment growth
Subsea Robotics revenue increased to $232.995M from $218.767M and operating income rose to $75.363M from $65.142M. Management attributed the improvement to higher average ROV revenue per day from improved pricing and increased survey activity.
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Broad-based revenue growth
All five segments grew revenue year over year: Subsea Robotics increased 6.5% to $232.995M, Manufactured Products 7.5% to $168.156M, OPG 0.9% to $172.523M, IMDS 7.1% to $75.806M, and ADTech 7.3% to $135.074M.
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Cash generation improved materially
Operating cash flow rose to $159.122M for the first nine months from $97.732M a year earlier. Capital expenditures were $62M versus $81M, implying approximately $97M of nine-month cash generation after capex, although the filing does not label this amount as free cash flow.
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Liquidity and maturities strengthened
At September 30, 2026, working capital was $921M, including $735M of cash and cash equivalents, plus $345M of unused revolver commitments. The company issued $500M of 6.875% senior notes due 2034 and extended its revolver maturity to July 2031.
What to watch
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Backlog and bookings weakened
Manufactured Products backlog fell to $435M from $568M a year earlier, while trailing-twelve-month book-to-bill declined to 0.77 from 0.82. Management attributed the backlog reduction to award timing, creating risk to future revenue conversion.
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ADTech contract and cost pressure
ADTech operating income decreased to $14.749M from $16.557M despite revenue growth to $135.074M. Results were affected by contract mix, additional project-related costs, and a $6.8M accrual tied to a previously disclosed contract dispute, partially offset by a $1.3M accrual release.
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IMDS profitability deteriorated
IMDS nine-month operating income fell to $1.854M from $10.865M on revenue of $214.534M versus $217.566M. Management cited Middle East conflict, lower activity and cost absorption, project-mix changes, and higher personnel costs.
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Lower ROV utilization
ROV utilization declined to 64% for the first nine months from 66% a year earlier, and ROV days utilized fell to 43,501 from 45,344. Lower U.S. Gulf activity was only partly offset by stronger activity in Europe, Guyana and West Africa.
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Debt refinancing carried an earnings charge
The $19.034M debt-extinguishment loss reduced third-quarter earnings, comprising a $1.9M make-whole premium, $7.3M tender-offer costs and $9.8M of unamortized discount and debt issuance cost write-offs.
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Receivables consumed more cash
Nine-month accounts receivable and contract assets used $139.056M of cash versus $96.429M in the prior-year period, reflecting the timing of project milestones and customer payments and increasing working-capital sensitivity.
Management's outlook
No quantitative revenue or EPS guidance was provided in the 10-Q. Management expects 2026 organic capital expenditures of $105M-$115M and estimates 2026 income tax payments of $95M-$105M; it states liquidity is adequate and expects to continue using a mix of short-term, spot and long-term vessel charters.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.