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what it is
Oceaneering builds underwater robots, subsea gear, and defense hardware for energy and government customers.
how it gets paid
Last year Oii made $2.6B in revenue. Subsea Robotics was the main engine at $0.80B, or 31% of sales.
why it's growing
Revenue grew 4.1% last year. For this year, we look for the unit to make up about 19% of revenues and 25% of profits.
what just happened
OII missed by 10%, and the filing still showed 21.5% gross margin.
At a glance
B+ balance sheet — decent shape, but not bulletproof
40/100 earnings predictability — expect surprises
13.8x trailing p/e — the market's not buying it — or you found a deal
11.5% return on capital — nothing to write home about
xvary composite: 50/100 — below average
What they do
Oceaneering builds underwater robots, subsea gear, and defense hardware for energy and government customers.
You are buying 5 businesses, not one offshore bet. Subsea Robotics was 31% of 2024 revenue. Aerospace & Defense was 15%, so your upside is not tied to one oil price.
How they make money
$2.6B
annual revenue · their business grew +4.1% last year
Subsea Robotics
$0.80B
Manufactured Products
$0.55B
Offshore Projects
$0.57B
Integrity Management
$0.29B
Aerospace & Defense
$0.39B
The products that matter
deepwater robotics services
Subsea Robotics
$806M · 31% of revenue
it's the biggest piece of the company at $806M, and it puts remotely operated vehicles to work on offshore projects. when deepwater activity is healthy, this segment sets the tone.
core driver
subsea hardware manufacturing
Manufactured Products
$546M · 21% of revenue
this $546M segment makes the hardware that offshore projects need. it matters because equipment demand tends to follow the same spending cycle as the field work.
equipment spend
offshore installation and field work
Offshore Projects
$572M · 22% of revenue
at $572M, this segment handles installation and decommissioning work offshore. it adds scale, but it also adds project timing risk because revenue lands when customers move.
timing-sensitive
Key numbers
$26.29
share price
That is the current fight against a $37.50 analyst mean and a $38 target.
13.8x
trailing p/e
You pay 13.8 times earnings for a company with 14.5% operating margin.
11.5%
return on capital
That says management earns $11.50 for every $100 of capital.
$486M
long-term debt
Debt equals 16% of capital, so the balance sheet is manageable, not spotless.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 15 / 100
- long-term debt $486M (16% of capital)
- net profit margin 6.9% — keeps 7 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in OII 3 years ago → it's now worth $13,740.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
OII missed by 10%, and the filing still showed 21.5% gross margin.
The EPS line conflicts: EDGAR lists $1.74 for the latest quarter, while Yahoo Finance shows $0.45 actual versus $0.50 expected. I use the consensus miss for the quarter and the filing for the 21.5% gross margin.
$2.6B
revenue
$0.45
eps
21.5%
gross margin
the number that mattered
The $0.45 EPS print mattered because it missed $0.50 by 10%, even with $2.6B of annual revenue behind it.
-
oceaneering international (oii) has been less affected than its peers by the lower oil prices and the broader geopolitical issues.at the start of 2025, crude was trading at $73/barrel, below 2024's average price of about $78, and finished the year at $57.
-
however, oii's revenues and earnings likely rose over 6% and 60%, respectively versus 2024.although this has recently been partly due to an ongoing conversion of higher-margin backlog in manufactured products, a major factor has been oii's greater focus on the growth areas of the oil sector. much of the global growth in oil output over the past decade has largely come from u.s. domestic shale-sourced production. however, this source has been topping out, while technological improvements have favored, and should continue to favor, offshore production, where oceaneering specializes. just one example is oii's $180-million late-august deal for subsea robotics work, in which oii provides remotely operated vehicle (rov) services, specialized tooling packages, and survey services on offshore projects in brazil. oii's non-oil operations will likely continue to outpace the oil sector's overall rate of revenue and earnings growth.
-
the company's aerospace & defense (a&d) unit provided almost 16% of 2024 revenues, and probably almost 17% for 2025.
-
for this year, we look for the unit to make up about 19% of revenues and 25% of profits.
-
last march, oii signed the largest initial agreement in oceaneering's history.
source: EDGAR and Yahoo Finance consensus, 2026
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What could go wrong
the #1 risk is an offshore spending slowdown that hits subsea utilization and project timing at the same time.
med
offshore budgets still run the story
Subsea Robotics, Manufactured Products, and Offshore Projects make up 74% of revenue. If operators delay deepwater work, three major segments feel it at once.
the impact is not abstract: utilization slips, equipment demand softens, and the low-teens multiple starts to make sense.
med
6.9% net margins leave little room for mistakes
OII keeps about 7 cents of every revenue dollar. That is workable, but it means project delays or cost misses flow into EPS fast.
thin-margin contractors do not need a collapse to disappoint you. They need one bad quarter.
med
the diversification case is still small
Aerospace & Defense is 15% of revenue. That helps, but it does not turn OII into a defense name when energy weakens.
if you are buying this for insulation from oil, you need that 15% to become a much larger number over time.
med
earnings and the stock both swing
Earnings predictability is 40/100 and price stability is 15/100. In human-speak: the numbers can surprise you, and the chart can overreact.
if you held through a choppy quarter, that is the business model, not bad luck.
Three offshore-facing segments make up 74% of revenue. The 15% aerospace and defense slice helps, but it does not break the link between OII and energy spending.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
the next earnings print
management usually reports in late july or early august. with predictability at 40/100, one quarter can rewrite the tone fast.
metric
whether 6.9% net margin holds
seven cents of profit on every dollar is fine until it slips. this business does not have software margins to absorb execution misses.
trend
the 2026 step-up to $3B revenue
consensus has revenue moving from $2.6B to $3B. if that ramp fades, the cheap-looking multiple loses its main support.
risk
whether diversification gets bigger than 15%
Aerospace & Defense matters because it is the clearest way to dilute the oil link. If it stays small, the stock stays cyclical.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a stock moving with the market, not breaking away from it.
risk profile
below average
stability score 4 means more volatility than most stocks. you should expect bigger swings, not complain when they show up.
chart momentum
top 20%
technical score 2 says price action has been better than average. The catch: momentum is the first thing cyclical names lose when the setup cracks.
earnings predictability
40 / 100
this is not a clean estimate story. if you own it, give yourself room for surprises.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 152 buyers vs. 132 sellers in 3q2025. total institutional holdings: 95.8M shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$20
$56
$26
current price
$38
target midpoint · +45% from current · 3-5yr high: $45 (+70% · 15% ann'l return)
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