
Oceaneering International Inc (OII) Q2 2025 Earnings Call Highlights: Strong Financial …
How did your country report this? Share your view in the comments.
Diverging Reports Breakdown
Oceaneering International Inc (OII) Q2 2025 Earnings Call Highlights: Strong Financial …
We expect orders to be flat from 2024 to 2025, with a back-half loaded order intake. The survey business might not expand as anticipated, but overall, ROVs are performing as expected. Free cash flow was modest in the first half of the year, requiring significant improvement in the second half to meet full-year guidance. The space program, particularly human spaceflight, is seeing renewed interest, and submarine maintenance and repair are expected to receive significant funding. For the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on GuruFocus. Back to Mail Online home. back to the page you came from. The original version of this article stated that the Offshore Projects Group anticipates a decline in operating results in the third quarter due to changes in geographic and service mix. We are happy to clarify that this is not the case.
Free cash flow was modest in the first half of the year, requiring significant improvement in the second half to meet full-year guidance.
The Offshore Projects Group anticipates a decline in operating results in the third quarter due to changes in geographic and service mix.
The survey business within the Subsea Robotics segment may not achieve expected growth, potentially leading to cold stacking of a survey vessel.
There is a potential risk of lower ROV utilization due to shifts in geographic and service mix, particularly moving away from higher-margin projects.
All operating segments contributed to exceeding the midpoint of guidance with improvements in revenue, operating income, and operating income margin.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Story Continues
Q: Could you provide insights on the umbilicals business and its trajectory for this year and next? A: We expect orders to be flat from 2024 to 2025, with a back-half loaded order intake. The first few weeks of the second half have been promising, with $100 million in orders already. Looking ahead to 2026, we anticipate positive developments in the subsea business, including umbilicals, driven by favorable FIDs and subsea tree orders. – Roderick Larson, CEO
Q: Is the slightly lower ROV utilization outlook related to vessel support or rig support, and does it reflect a change in visibility for underlying activity? A: The lower utilization outlook affects both vessel and rig support. It reflects increased clarity on plans, especially for the fourth quarter, and we are being conservative in our estimates to avoid overestimating potential activity. – Roderick Larson, CEO
Q: What is driving the ROV pricing uplift, and are there any benefits from performance-based deals? A: The pricing uplift is primarily due to contract rollovers. There is no significant impact from FX or performance-based pricing yet, as these elements are still developing. – Roderick Larson, CEO
Q: Can you explain the expected step-up in free cash flow for the second half of the year? A: Historically, Q1 is a cash draw, with positive cash generation in Q2, and stronger cash flows in Q3 and Q4. We have visibility into this improvement as it involves collecting receivables for work already performed, which will bring in cash during the latter half of the year. – Alan Curtis, CFO
Q: Is there more visibility in the OPG business, and how does this affect future bookings? A: Yes, there is increased visibility, especially with larger international contracts like BP Mauritania, which provide a stable base. While the Gulf of Mexico still involves call-out work, we are securing more guaranteed days, enhancing our future outlook. – Roderick Larson, CEO
Q: How is the company positioning itself for growth opportunities from the “Big Beautiful Bill”? A: The bill positively impacts our OTECH vehicle business and other areas like space and MSD. The space program, particularly human spaceflight, is seeing renewed interest, and submarine maintenance and repair are expected to receive significant funding, prompting us to consider expanding our capacity to meet demand. – Roderick Larson, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Source: https://finance.yahoo.com/news/oceaneering-international-inc-oii-q2-071739412.html