Oceaneering Q3 revenue beats on growth in subsea robotics performance

By Reuters News


Overview

  • Global robotics solutions provider's Q3 revenue grew 6% yr/yr, beating analyst expectations

  • Adjusted EPS for Q3 missed analyst expectations

  • Q3 net income fell 26% yr/yr


Outlook

  • Company expects Q4 2026 EBITDA between $85 mln and $95 mln

  • Oceaneering sees 2027 EBITDA in the range of $430 mln to $480 mln

  • Company expects 2027 free cash flow to exceed 2026 forecast


Result Drivers

  • SSR PERFORMANCE - Higher ROV revenue per day, increased Survey activity, and improved margins in Subsea Robotics drove year-over-year improvements

  • MANUFACTURED PRODUCTS - Revenue growth driven by resolution of a legacy mobility solutions contract, but lower activity and profitability in Grayloc Products weighed on results

  • CASH GENERATION - Improved operational cash flow and lower tax payments and capital spending supported free cash flow


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$785 mln

$773.23 mln (3 Analysts)

Q3 Adjusted EPS

Miss

$0.50

$0.58 (4 Analysts)

Q3 Net Income

$52.60 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the oil related services and equipment peer group is "buy."

  • Wall Street's median 12-month price target for Oceaneering International Inc is $47.00, about 6.6% above its October 21 closing price of $44.09

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago


Reuters Recommended Reads

  • Oct 20 - Weatherford Q3 revenue falls due to disruptions in Middle East

  • Oct 20 - Halliburton Q3 revenue, profit beat estimates on higher drilling services

  • Oct 21 - Woodside Energy trims output forecast, to pull back from US ammonia project


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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