NEW YORK, Feb 20, 2026, 09:51 EST — Regular session
- OII dropped roughly 4% in the morning session, after a momentary move to $36.84.
- The company pointed to a softer first quarter and projected free cash flow for 2026 in the $100 million to $120 million range.
- Attention turns to defense-driven expansion, with questions swirling about a possible uptick in offshore activity further out in 2026.
Oceaneering International (NYSE:OII) shares dropped roughly 4% on Friday, paring gains from their earnings rally. Traders zeroed in on the company’s 2026 cash-flow guidance, sending the stock to $34.74 after it had climbed as high as $36.84 earlier.
This week, the Houston subsea services and engineering company flagged a careful approach going into 2026, despite highlighting gains in its aerospace and defense division. Fourth-quarter revenue came in at $669 million, off 6%, with adjusted EBITDA at $90.5 million, also down 11%. Looking to the first quarter, Oceaneering expects EBITDA between $80 million and $90 million, citing sluggish energy activity to start the year.
Some investors are zeroing in on cash flow. Oceaneering reported fourth-quarter free cash flow at $191 million, citing the timing of customer payments as the main driver, and put its 2026 forecast between $100 million and $120 million. The company also bought back around $10.1 million of its own shares during the quarter.
The company posted adjusted earnings of 45 cents a share for the fourth quarter, topping the 29-cent estimate from Investing.com. Revenue came in lighter, at $669 million versus the $674 million forecast on the site. After a sharp rally in the previous session, shares hit selling pressure Friday.
Management reported $3.7 billion in 2025 order intake, pushing the book-to-bill ratio to 1.33—so, orders topped revenue. CEO Rod Larson described 2025 as a year of “strong execution across the business,” speaking to analysts. The Motley Fool
The company told analysts Thursday it expects revenue to rise in the low- to mid-single digits for 2026, while flagging a cash draw in the first quarter as collections return to normal and incentive payments are made. Capital spending guidance for 2026 came in between $105 million and $115 million, with roughly 40% of that marked for growth.
Oceaneering’s got a tale of two businesses—defense is on the upswing, but offshore energy and project lines are still hostage to timing and job mix. Investors hit the brakes Friday, signaling they’re waiting for evidence that energy demand in the back half actually moves the needle on day rates and utilization, not just PowerPoint decks.
The setup isn’t clean. Offshore awards could lag, or margins in the Offshore Projects arm might stay squeezed — and if so, those full-year targets are at risk, no matter how much the defense backlog grows.
Next up, traders are eyeing how hard Oceaneering pushes on buybacks, especially with a typically slower first quarter ahead. All attention turns to the March 31 quarter close, the point when investors will measure actual results against what management projected for Q1.
