NEW YORK, Feb 20, 2026, 09:51 EST — Regular session
- OII slid about 4% in morning trade, after briefly touching $36.84
- Company flagged a slower first quarter and guided 2026 free cash flow at $100 million to $120 million
- Focus shifts to defense-led growth and whether offshore activity firms later in 2026
Shares of Oceaneering International (NYSE:OII) fell about 4% on Friday, giving back part of a post-earnings jump, as traders leaned on the company’s 2026 cash-flow outlook. The stock was down at $34.74 after touching $36.84 earlier in the session.
The Houston-based subsea services and engineering firm this week laid out a cautious start to 2026, even as it talked up growth in its aerospace and defense unit. It reported fourth-quarter revenue of $669 million, down 6%, and adjusted EBITDA of $90.5 million, down 11%. Oceaneering said first-quarter EBITDA — earnings before interest, taxes, depreciation and amortization — should be $80 million to $90 million as energy activity stays soft early. (Business Wire)
The cash picture is what some investors are trading. In its latest release, Oceaneering said fourth-quarter free cash flow — operating cash after capital spending — reached $191 million mainly on the timing of customer collections, and it forecast $100 million to $120 million for 2026. It also repurchased about $10.1 million of stock in the quarter. (SEC)
On an adjusted basis, the company earned 45 cents per share in the fourth quarter, beating a 29-cent estimate tracked by Investing.com, while revenue of $669 million missed the site’s $674 million view. Shares surged in the prior session, then ran into sellers on Friday. (Investing)
Management said 2025 order intake reached $3.7 billion, taking its book-to-bill ratio to 1.33; a number above 1 means orders outpaced revenue. CEO Rod Larson told analysts the company closed out 2025 with “strong execution across the business.” (The Motley Fool)
On Thursday’s call, the company projected 2026 revenue growth in the low- to mid-single digits and warned of a first-quarter cash draw as collections normalize and incentive pay goes out. It pegged 2026 capital spending at $105 million to $115 million, with about 40% earmarked for growth. (Investing)
Oceaneering’s story is split: defense work is growing, but offshore energy and project work still swings on timing and mix. Friday’s pullback suggests investors want proof that the second-half pickup in energy activity shows up in day rates and utilization, not just slides.
But the setup is messy. If offshore awards slip or margins in the Offshore Projects unit stay thin, the company could miss its full-year targets even with a bigger defense backlog.
Traders will also watch how aggressively Oceaneering keeps buying back stock as it heads into a seasonally softer first quarter. The next marker is the quarter ending March 31, when the market will start checking progress against management’s first-quarter outlook. (Marketscreener)
