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Sep 30, 2024
Oceaneering Q3 2024 Earnings Report
Oceaneering's financial performance improved, driven by consistent activity levels and notable operating performance improvements in Subsea Robotics and Manufactured Products segments.
Key Takeaways
Oceaneering reported net income of $41.2 million, or $0.40 per share, on revenue of $680 million for Q3 2024. The company saw consistent activity levels in its energy-focused businesses, with notable operating performance improvements year-over-year in its Subsea Robotics (SSR) and Manufactured Products segments. Consolidated third quarter operating income was 23% higher on a 7% increase in revenue compared to the same quarter last year. The company repurchased shares during the quarter for the first time since 2015.
Net income was $41.2 million and adjusted EBITDA was $98.1 million.
Consolidated operating income was $71.3 million.
Cash flow provided by operating activities was $91.9 million and free cash flow was $67.0 million, with an ending cash position of $452 million.
The company repurchased 422,229 shares for approximately $10 million.
Oceaneering
Oceaneering
Oceaneering Revenue by Segment
Revenue by Segment
Subsea Robotics Revenue
CapyFin.comManufactured Products Revenue
CapyFin.comOffshore Projects Group Revenue
CapyFin.comIMDS Revenue
CapyFin.comAerospace & Defense Tech Revenue
CapyFin.com Forward Guidance
Oceaneering anticipates increased revenue and improved operating performance across all segments for 2025, led by gains from SSR, Manufactured Products, and ADTech. Consolidated EBITDA for 2025 is forecasted to be in the range of $400 million to $430 million. Oceaneering currently expects to generate positive free cash flow in excess of that forecasted for 2024.
Positive Outlook
- Fourth quarter 2024 revenue is expected to increase slightly as compared to the third quarter of 2024.
- Fourth quarter 2024 adjusted EBITDA is expected to be in line with third quarter 2024 results.
- OPG revenue is projected to increase and generate significantly higher operating profitability in Q4 2024.
- IMDS operating profitability is expected to improve on a decline in revenue in Q4 2024.
- Oceaneering anticipates increased revenue and improved operating performance across all segments for 2025.
Challenges Ahead
- SSR revenue and operating profitability are forecasted to decrease slightly due to normal seasonality in Q4 2024.
- Manufactured Products operating profitability is expected to be significantly lower on higher revenue in Q4 2024.
- ADTech revenue and operating profitability are expected to decrease in Q4 2024.
- Unallocated Expenses are expected to be in the $40 million range in Q4 2024.
- IMDS operating income and operating income margin decreased on a 11% increase in revenue due to the one-time, non-cash charge associated with the divestiture of the Maritime Intelligence division in September 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income