Oceaneering Q3 revenue beats on growth in subsea robotics performance

Oceaneering International

Wed 22:12

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: ID:nBw1ksxnYa

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.)