Thu, Apr 24, 8:34 PM (21 days ago)
**Oceaneering International, Inc. (OII) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $674.5 million (up 13% from $599.1 million in Q1 2024). - **Net Income:** $50.4 million (up from $15.1 million in Q1 2024). - **Earnings per Share (EPS):** $0.50 (up from $0.15 in Q1 2024). - **Gross Margin:** 20% (up from 15.4% in Q1 2024). - **Operating Income:** $73.5 million (up from $36.7 million in Q1 2024). - **Cash Flow from Operations:** Negative $80.7 million (compared to negative $69.7 million in Q1 2024). **Segment Performance:** - **Subsea Robotics:** Revenue up 10% to $206.0 million, operating income up 35% to $59.6 million. - **Manufactured Products:** Revenue up 4% to $135.0 million, operating income down 34% to $8.7 million (due to a $10 million inventory write-down). - **Offshore Projects Group (OPG):** Revenue up 43% to $164.9 million, operating income up significantly to $35.7 million. - **Integrity Management & Digital Solutions (IMDS):** Revenue up 2% to $71.4 million, operating income relatively flat at $3.5 million. - **Aerospace and Defense Technologies (ADTech):** Revenue down slightly to $97.2 million, operating income down 17% to $10.7 million. **Cash Flow and Liquidity:** - **Cash and Cash Equivalents:** $382.0 million (down from $497.5 million in Q4 2024). - **Capital Expenditures:** $26.1 million (flat compared to Q1 2024). - **Share Repurchase:** $10.0 million spent on repurchasing 0.5 million shares. **Outlook and Uncertainties:** - **Tariffs and Trading Relationships:** Uncertainty due to U.S. tariffs and potential retaliatory measures. - **Seasonality:** OPG segment typically more active in Q2 and Q3. - **Subsea Robotics:** Seasonal variations in demand, with Q1 usually the lowest quarter. - **Debt Management:** Potential transactions to manage outstanding debt prior to maturity. **Future Operations Impact:** - **Capital Expenditures:** Expected to be between $115 million and $120 million for 2025. - **Income Tax Payments:** Estimated to be between $110 million and $120 million for 2025. - **Share Repurchase:** Continued discretionary repurchases under the existing plan. **Trends:** - **Strong Performance in Subsea Robotics and OPG:** Driven by increased utilization and vessel activity. - **Inventory Write-Down in Manufactured Products:** Impacted operating income but expected to be a one-time event. - **Flat Performance in IMDS and ADTech:** Relatively stable revenue and operating income. **Conclusion:** Oceaneering International, Inc. (OII) showed strong quarterly performance in Q1 2025, driven by significant improvements in the Subsea Robotics and OPG segments. However, the company faces uncertainties related to tariffs and seasonal variations. The outlook remains positive with planned capital expenditures and share repurchases, but careful management of debt and liquidity will be crucial.