Oceaneering International, Inc. Q1 FY2026 earnings call

• Rod mentioned first quarter results reinforced confidence for the year ahead, consolidated revenue and adjusted EBITDA consistent with guidance, strong commercial momentum with new awards and extensions. - ADTEC posted significant year-over-year revenue growth. SSR and manufactured products had year-over-year revenue increases. - Strong first - quarter order intake of approximately $1 billion, SSR awards total approximately $300 million, AdTech added approximately $175 million in new contract awards. - Progressed on technology front, introduced Momentum, developed autonomous systems portfolio. - Delivered U.S. Navy's submarine rescue diving and recompression system, supported NASA's Artemis program. - Addressed impact of Middle East conflict, safety of employees is top priority, operational disruption had modest financial impact. - Mike summarized first quarter financial results, cash flow and liquidity, share repurchase activity. - Discussed business operations by segment, including SSR, manufactured products, OPG, IMDS, ADTEC.

Aerospace and Defense Technologies (ADTEC) posted significant year-over-year revenue growth. Subsea robotics (SSR) and manufactured products both delivered year-over-year revenue increases. SSR operating income was $55.5 million, down 7% on higher revenue. Average ROV revenue per day utilized increased. SSR EBITDA margin declined to 32%. Manufactured products revenue increased 6%, operating income was $26.1 million. OPG's results decreased. IMDS's revenue, operating income, and margin decreased. ADTEC revenue increased to $131 million.

• Expect to build on first quarter results with sequential improvement, consolidated revenue expected to increase, EBITDA in range of $100 to $110 million for second quarter. - Reaffirm consolidated guidance ranges of low to mid single - digit revenue growth and EBITDA of $390 to $440 million for full year 2026. - For SSR, forecast low to mid single - digit percentage revenue growth, average ROV revenue per day utilized expected to increase slightly, ROE fleet utilization in mid 60% range. - For manufactured products, expect higher operating income on slightly lower revenue. - For OPG, expect low revenue and significantly lower operating income. - For IMDS, continue to forecast revenue growth but operating income increase less than previously anticipated. - For ADTEC, expect significantly higher revenue and higher operating income.

• Middle East conflict led to operational disruption, although consolidated financial impact has thus far been modest. - IMDS has greatest exposure in the region. - Geopolitical environment is evolving, which may impact operations.

Q: Eddie Kim asked about SSR awards, impact of Iran conflict on orders and ROV business.

A: Rod said it's hard to see inflection point in orders, SSR awards had longer - term contracts.

Q: Eddie Kim asked about SSR full - year utilization.

A: Rod said seasonality and some contracts in fourth quarter contribute to confidence.

Q: Eddie Kim asked about ad tech contract dispute impact and Iran war impact.

A: Rod said Iran didn't directly affect results, ad tech contract dispute had net $5.5 million impact.

Q: Keith Beckman asked about ROV pricing.

A: Rod said revenue per day is a good starting point with some one - offs.

Q: Keith Beckman asked about higher vs lower profitability regions.

A: Rod said North Sea and Brazil have lower margins compared to Gulf of America and West Africa.

Q: Keith Beckman asked about capital employment.

A: Rod said considering organic growth, potential inorganic growth, and return to shareholders.

Q: Josh Jane asked about incremental spending on OPEX items and ocean intervention's simultaneous operations.

A: Rod said increased oil price leads to customers asking about vessel availability, and ocean intervention's simultaneous operations allows doing work of two boats at once with lower cost and more efficient technology, customers are excited.