Oceaneering Starts 2027 Ebitda Guidance at $430 Million

The Tip Desk · October 26, 2026 · 4 min read

Third-quarter revenue was $785 million and adjusted Ebitda $119 million as Subsea Robotics operating income rose 16% to $75.4 million.

Oceaneering International (OII), a global technology company serving offshore energy, defense, aerospace, and manufacturing, reported third-quarter 2026 revenue of $785 million, up 6% from a year earlier, and adjusted EBITDA of $119 million, up 7%. The year-over-year pace slowed from the second quarter, when revenue rose 10% to $768 million and adjusted EBITDA rose 11% to $115 million.

Operating income increased 7% to $92.2 million. Net income attributable to Oceaneering decreased 26% to $52.6 million, or $0.52 a share, after a 19% increase to $65.0 million in the second quarter. The quarter included a $19.0 million loss on extinguishment of debt.

Subsea Robotics was the profit engine. Segment revenue increased to $233 million, operating income rose 16% to $75.4 million, and EBITDA margin expanded to 39%, after operating income had risen only 3% to $66.3 million with EBITDA margin flat at 35% in the second quarter. The company said higher ROV revenue per day utilized, increased Survey activity, and improved margins in ROV operations and Survey contributed to the year-over-year improvements. ROV revenue per day utilized was $11,781 and fleet utilization remained at 65%. Increased ROV activity in Europe, Guyana, and West Africa largely offset lower activity in the U.S. Gulf.

Manufactured Products revenue increased 8%, while operating income was relatively flat at $25.1 million and margin decreased to 15%. The company said increased revenue was primarily attributable to the final resolution of a legacy mobility solutions contract, while lower activity and profitability in Grayloc Products affected operating results. Backlog was $435 million as of September 30, 2026, down from $445 million at June 30. The 12-month book-to-bill ratio was 0.77, down from 0.88.

Offshore Projects Group revenue, operating income, and margin remained relatively flat, after operating income had increased to $30.0 million and margin improved to 16% on a 22% revenue increase in the second quarter. Results benefited from a favorable mix of installation projects, which more than offset lower activity in West Africa and a less favorable project mix in the U.S. Gulf, the company said.

Integrity Management and Digital Solutions revenue increased 7% while operating income was relatively flat. Aerospace and Defense Technologies revenue increased 7% to $135 million, operating income decreased to $14.7 million, and margin declined to 11%, which the company attributed to increases in pass-through activities and certain program costs. Unallocated expenses increased to $50.0 million, consistent with expectations.

Cash generation improved. Free cash flow was $142 million, up from $32.0 million in the second quarter, as operating cash flow rose to $163 million from $55.2 million. President and Chief Executive Officer Rod Larson said the company generated significant free cash flow as a result of improved operational cash and lower tax payments and capital spend, and that it expects free cash flow generation to moderate in the fourth quarter but remains on track to achieve the top end of full-year guidance. Quarter-end cash and cash equivalents totaled $735 million.

During the third quarter Oceaneering issued $500 million of 6.875% senior notes due 2034 and amended its revolving credit facility, increasing commitments to $345 million and extending maturity to July 2031. The company said those actions extended its debt maturity profile and reduced refinancing risk. Together with available borrowing capacity, it had more than $1.0 billion of liquidity. Shares repurchased were 101,038 for approximately $5.0 million.

For the fourth quarter of 2026, consolidated revenue is expected to increase and EBITDA is expected to be $85 million to $95 million. SSR operating income is expected to decrease, reflecting lower ROV utilization as certain rigs transit from the U.S. Gulf to other regions, a shift in ROV geographic mix, and increased mobilization costs. Manufactured Products, Integrity Management, and Aerospace and Defense Technologies revenue and operating income are expected to increase.

The company initiated full-year 2027 EBITDA guidance of $430 million to $480 million, with free cash flow expected to exceed the level forecasted for 2026 and share repurchase activity expected to continue. Larson said third-quarter bookings included meaningful awards across SSR, Manufactured Products, and ADTech, and that the company expects improved performance in 2027, with EBITDA increasing compared with 2026.