Oceaneering Delivers Strong Second-Quarter 2026 Performance and Raises Full-Year EBITDA Outlook
Oceaneering reported a strong second quarter for 2026, driven by solid execution across most of its business segments and particularly strong performance from its Offshore Projects Group (OPG). The company exceeded expectations for the quarter, generating consolidated adjusted EBITDA of $115 million, surpassing the high end of its previously issued guidance range.
Commenting on the results, President and Chief Executive Officer Rod Larson said the quarter reflected both operational excellence and the strength of Oceaneering’s diversified business portfolio.
“Our second-quarter results demonstrate the resilience and performance of our business,” Larson said. “Adjusted EBITDA exceeded the top end of our guidance range, primarily due to stronger-than-expected results within Offshore Projects Group, where favorable project execution and a strong project mix drove higher revenue and profitability. More broadly, we saw growth in revenue and operating income across nearly all business segments, reinforcing the benefits of our diversified portfolio and disciplined operational approach.”
The only segment that did not experience year-over-year growth was Integrity Management and Digital Solutions (IMDS), which faced challenges related to reduced activity levels stemming in part from the ongoing conflict in the Middle East.
Strengthening the Balance Sheet
In addition to delivering strong operating results, Oceaneering took significant steps during the quarter to improve its financial flexibility and strengthen its capital structure.
The company initiated a series of refinancing transactions designed to extend debt maturities, increase liquidity, and create additional capacity to support future growth initiatives. These transactions, which are expected to be finalized during the third quarter, include refinancing existing debt obligations and expanding the company’s revolving credit facility.
Larson noted that these actions position Oceaneering to continue investing in strategic opportunities while maintaining a disciplined approach to capital allocation.
“By extending our debt maturity profile and increasing available liquidity, we are creating greater financial flexibility for the future,” Larson said. “These actions strengthen our balance sheet and support our ability to pursue long-term growth opportunities while remaining committed to prudent capital management.”
Positive Outlook for the Second Half of 2026
Looking ahead, Oceaneering remains optimistic about market conditions across several key business areas.
The company continues to see favorable demand trends within its Aerospace and Defense Technologies (ADTech) segment, while offshore energy markets remain supportive. Combined with a strong backlog and a differentiated portfolio of products and services, management believes the company is well-positioned for continued success throughout the remainder of the year.
As a result of its strong first-half performance and confidence in future market conditions, Oceaneering has increased its full-year adjusted EBITDA guidance.
The company now expects 2026 consolidated adjusted EBITDA to range between $400 million and $440 million, representing an upward revision from prior expectations.
However, management also noted that IMDS is expected to remain under pressure during the second half of the year. Full-year operating income for the segment is now expected to decline significantly, with operating margins projected to remain in the low single-digit percentage range.
Segment Performance Highlights
Subsea Robotics (SSR)
The Subsea Robotics segment delivered another solid quarter, benefiting from strong activity levels in international markets and increased survey work.
Revenue increased to $232 million, while operating income rose 3% year over year to $66.3 million. EBITDA margin remained stable at 35%.
Performance was supported by higher remotely operated vehicle (ROV) revenue per utilized day and increased survey activity following the commencement of operations by the Ocean Intervention II vessel.
Average ROV revenue per day utilized increased to $11,894, while fleet utilization remained strong at 66%, only slightly below the 67% level recorded during the same period last year. Strong activity in Europe and Africa largely offset softer conditions in the U.S. Gulf of Mexico.
Manufactured Products
Manufactured Products also delivered improved results during the quarter.
Revenue increased 3% year over year, while operating income rose to $21.9 million. Operating margins expanded to 15%, reflecting stronger profitability across several product lines.
The improvements were primarily driven by enhanced performance in the company’s umbilicals business and better results within mobility solutions.
As of June 30, 2026, Manufactured Products backlog stood at $445 million. Management expects additional order activity during the second half of the year to further strengthen backlog levels. The segment reported a book-to-bill ratio of 0.88 for the trailing 12-month period.
Offshore Projects Group (OPG)
Offshore Projects Group delivered the strongest performance among Oceaneering’s business segments and was the primary contributor to the company’s earnings outperformance.
Revenue increased 22% year over year, while operating income rose to $30 million. Operating margin improved significantly to 16%.
Results benefited from a highly favorable project mix, including increased international installation and intervention activity. Strong project execution and improved operational efficiency also contributed to the segment’s performance.
Management highlighted OPG as a key driver of second-quarter profitability and expects momentum to continue through the remainder of the year.
Integrity Management and Digital Solutions (IMDS)
IMDS was the only segment to experience a year-over-year decline during the quarter.
Revenue decreased 6%, primarily due to lower activity levels in West Africa. Operating income declined by approximately $4.5 million, reflecting reduced project volume, lower cost absorption, and higher personnel-related expenses.
Operations in both West Africa and the Middle East were impacted by geopolitical challenges and softer market conditions.
Despite these headwinds, management expects revenue to improve modestly during the third quarter, although operating income is projected to remain relatively flat.
Aerospace and Defense Technologies (ADTech)
ADTech continued to benefit from favorable market demand and expanding opportunities within defense and aerospace programs.
Revenue increased 22% year over year to $133 million, while operating income improved slightly to $16.4 million.
Although profitability increased, operating margins declined to 12%, primarily due to changes in program mix and project timing. Despite the margin pressure, management remains optimistic about long-term growth opportunities in the segment and continues to see strong market fundamentals.
Third-Quarter 2026 Guidance
For the third quarter of 2026, Oceaneering expects continued momentum across most areas of the business.
Consolidated revenue is projected to increase compared with the third quarter of 2025, while adjusted EBITDA is expected to range between $115 million and $125 million.
At the segment level:
- Subsea Robotics revenue and operating income are expected to increase.
- Manufactured Products revenue and operating income are expected to decline slightly.
- Offshore Projects Group revenue and operating income are expected to increase.
- IMDS revenue is expected to improve, while operating income is anticipated to remain relatively unchanged.
- ADTech revenue and operating income are expected to increase.
- Corporate Unallocated Expenses are expected to be approximately $50 million.
Enhanced Liquidity and Financial Flexibility
A major focus during the quarter was strengthening Oceaneering’s financial position through refinancing initiatives.
The company announced plans to issue $500 million of 6.875% senior notes due 2034, while also launching a tender offer for its outstanding 2028 senior notes.
In addition, Oceaneering amended its senior secured revolving credit facility, increasing total commitments from $215 million to $345 million and extending the facility’s maturity through July 2031.
Together, these transactions significantly improve the company’s debt maturity profile while preserving substantial liquidity and flexibility for future investments.
Looking Ahead
With strong first-half results, improving offshore market conditions, growing defense and aerospace opportunities, and a strengthened balance sheet, Oceaneering enters the second half of 2026 with considerable momentum.
Management believes the company’s diversified portfolio, operational execution, and financial discipline position it well to capitalize on opportunities across offshore energy, robotics, aerospace, defense, and advanced technology markets.
As demand for engineered services, robotics solutions, and technology-driven infrastructure continues to grow, Oceaneering remains focused on delivering long-term value for customers, shareholders, and stakeholders while maintaining its commitment to operational excellence and strategic growth.
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