Why Is Oceaneering International (OII) Up 9.3% Since Last Earnings Report?

It has been about a month since the last earnings report for Oceaneering International (OII). Shares have added about 9.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Oceaneering International due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Oceaneering Q2 Earnings & Revenues Rise Y/Y, Adjusted EBITDA Up

Oceaneering International reported second-quarter 2026 earnings of 65 cents per share, up from 54 cents in the year-ago quarter. Higher year-over-year operating income from the company's Subsea Robotics, Manufactured Products, Offshore Projects Group and Aerospace and Defense Technologies segments contributed to this improvement.

Total revenues were $768.2 million, increased approximately 10% from the year-ago quarter’s $698.2 million. This increase reflected revenue growth across all segments except Integrity Management & Digital Solutions.

In the second quarter of 2026, the Houston, TX-based oil and gas equipment and services company reported adjusted EBITDA of $114.5 million, up 10.9% year over year.

Operating income increased 11% year over year to $88.2 million. Gross margin expanded to $157 million from $148.4 million, reflecting revenue growth and improved performance across most operating segments.

Q2 Segmental Information

Subsea Robotics (SSR): The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services.

Revenues totaled $232 million compared with the year-ago quarter’s $218.8 million.

The segment also reported an operating income of $66.3 million compared with $64.5 million a year ago.

The company's segment delivered an EBITDA margin of 35% in the second quarter of 2026, flat compared with the year-ago quarter. Revenue per day for remotely operated vehicles (“ROV”) rose to $11,894, while ROV fleet utilization slightly decreased to 66%.

Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles.

Revenues totaled $149 million compared with the year-ago quarter’s $145.1 million.

The segment posted an operating profit of $21.9 million in the second quarter, up from the year-ago quarter’s $18.8 million.

The backlog totaled $445 million as of June 30, 2026, down 13.8% from the same time in 2025. For the 12 months ending June 30, 2026, the book-to-bill ratio was 0.88.

Offshore Projects Group (OPG): This segment involves Oceaneering’s former Subsea Projects unit, excluding survey services and global data solutions, the service and rental business and ROV tooling.

Revenues increased about 22.5% to $182.8 million from $149.3 million in the year-ago quarter.

The unit’s operating income totaled $30 million compared with the prior-year quarter’s $21.7 million. The company’s operating income margin slightly increased to 16% from the prior-year quarter’s 15%, reflecting favorable project mix and disciplined execution.

Integrity Management & Digital Solutions (IMDS): This segment covers Oceaneering’s Asset Integrity unit, along with its global data solutions business.

Revenues of $70.8 million decreased from the year-ago quarter’s $75.4 million.

Operating income decreased to $0.1 million from $4.6 million due to lower activity, weaker cost absorption and higher personnel-related costs in West Africa and the Middle East.

Aerospace and Defense Technologies (ADTech): The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems.

Revenues totaled $133.5 million, up from $109.6 million recorded in the second quarter of 2025.

The operating income increased to $16.4 million from $16.3 million in the year-ago quarter. Operating income margin decreased to 12% from 15% in the year-ago quarter due to program mix and timing.

Capital Expenditure & Balance Sheet

The capital expenditure in the second quarter, including acquisitions, totaled $30.8 million.

As of June 30, 2026, OII had cash and cash equivalents worth $629.5 million and $688.9 million, respectively, along with a long-term debt of about $490.2 million. The debt-to-capitalization was 29.6%.

The company repurchased 263,335 shares for approximately $10 million. OII also issued $500 million of senior notes due 2034 and increased its revolving credit commitments to $345 million from $215 million.

Q3 and 2026 Outlook by Oceaneering

The company expects consolidated revenues to increase in the third quarter of 2026, with EBITDA projected in the range of $115 million to $125 million. At the segment level, SSR is expected to post growth in both revenues and operating income. Manufactured Products is projected to witness slight declines in revenues and operating income. OPG is anticipated to deliver increases in both revenues and operating income.

IMDS revenues are expected to increase, while operating income is likely to remain relatively flat. Meanwhile, ADTech is forecasted to report higher revenues and operating income. Unallocated expenses are expected to be in the $50 million range. 

Management expressed confidence in the company's outlook for the remainder of 2026, supported by strong first-half execution, healthy demand across most of its businesses and an improved financial position. The company expects offshore activity to continue strengthening, driven by higher rig utilization, longer-duration contracts and sustained demand for subsea services.

Management also expects Subsea Robotics to benefit from higher ROV utilization and continued survey vessel activity, while the Manufactured Products backlog is anticipated to improve in the second half of 2026, supported by recent contract awards and additional opportunities in the sales pipeline. Despite ongoing uncertainty in the Middle East and lower activity in West Africa affecting the IMDS business, management believes the performance of its other operating segments remains in line with or ahead of prior expectations.

The company updated its full-year 2026 consolidated adjusted EBITDA outlook to a range of $400 million to $440 million. OII retained its previously issued consolidated and segment guidance, except that IMDS operating income is now expected to decline significantly, with the operating income margin projected to be in the low-single-digit percentage range.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 9.43% due to these changes.

VGM Scores

At this time, Oceaneering International has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Oceaneering International has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Oceaneering International belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Weatherford (WFRD), has gained 6.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Weatherford reported revenues of $1.11 billion in the last reported quarter, representing a year-over-year change of -8.2%. EPS of $0.55 for the same period compares with $1.87 a year ago.

For the current quarter, Weatherford is expected to post earnings of $1.20 per share, indicating a change of +7.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -11.6% over the last 30 days.

Weatherford has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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