We reported web earnings of $178,000,000, or $1.76 per share, a 217% improve yr over yr. This enchancment was largely on account of a $156,000,000 discrete tax profit associated to the discharge of U.S. valuation allowances. Our consolidated adjusted EBITDA of $90,500,000 was on the excessive finish of our steering vary however, as anticipated, declined yr over yr for a similar causes that income and working earnings declined. Moreover, throughout the fourth quarter, we generated $221,000,000 of money from working actions and invested roughly $30,000,000 in natural capital expenditures, with roughly 55% allotted to progress and 45% to upkeep.
Free money movement for the quarter was $191,000,000, benefiting from the timing of buyer funds, together with early receipt of funds initially due in 2026. As of 12/31/2025, our money steadiness was $689,000,000, a 38% improve in comparison with 2024. Now allow us to take a look at our section outcomes for 2025 as in comparison with 2024. SSR working earnings of $67,800,000 was 7% larger on comparatively flat income. EBITDA margins improved to 38% from 36% largely on account of improved ROV pricing and elevated tooling volumes. Survey outcomes decreased on decrease exercise ranges within the Americas, as sure initiatives initially deliberate for 2025 shifted to 2026.
The income cut up between our ROV enterprise and our mixed tooling and survey companies as a share of our complete SSR income was comparatively flat at 78/22%, respectively. Common ROV income per day utilized elevated 7% from $10,481 in 2024 to $11,210 in 2025, with a fourth quarter exit charge of $11,550. These pricing enhancements offset the impacts of decrease ROV fleet utilization throughout the quarter, which declined to 62%. Many of the decline got here from vessel help of our OPG vessels, as drill help utilization was barely larger in comparison with 2024. In the course of the quarter, 67% of ROV days utilized had been for drill help, and 33% had been for vessel providers.
As of 12/31/2025, we had 60% of the contracted floating rig market with ROV contracts on 81 of the 136 floating rigs underneath contract. We ended the quarter and the yr with a fleet of 250 ROV techniques, together with 16 upgraded world-class ROV techniques that changed 16 techniques that had been retired in 2025. Turning to Manufactured Merchandise. Our fourth quarter income of $132,000,000 decreased 7% yr over yr. Working earnings of $20,400,000 and working earnings margin of 15% elevated significantly on account of conversion of high-margin backlog in our umbilicals enterprise and improved leads to our non-energy initiatives. 12 months-end 2025 backlog was $511,000,000, a lower of 15% in comparison with 12/31/2024.
The book-to-bill ratio of 0.84 for the total yr of 2025 declined in comparison with 0.97 within the full yr of 2024, largely primarily based on the timing of orders. It’s price noting that Manufactured Merchandise’ full yr 2025 income of $569,000,000 and working earnings of $72,000,000 represented their highest degree since 2020 once we mixed our power and non-energy merchandise into the identical section. OPG income of $131,000,000 decreased 29% in comparison with the identical quarter final yr, whereas working earnings decreased $15,000,000 and working earnings margin declined to 11%. This was anticipated and, as famous earlier, primarily on account of giant worldwide intervention and set up initiatives that OPG carried out in 2024 that didn’t repeat within the fourth quarter 2025.
For IMDS, fourth quarter income declined on account of decrease exercise ranges in Europe and Western Africa. Working earnings declined by $2,000,000 on account of a mixture of decrease income and a loss related to the decision of a industrial dispute. Our AdTech fourth quarter 2025 working earnings elevated 43% and working earnings margin improved to 11% on a 29% improve in income as in comparison with the identical interval final yr. These enhancements are the results of new contracts awarded throughout the yr and replicate our strategic initiative to more and more leverage our offshore information and capabilities to develop this section.
Along with beforehand introduced contract awards, AdTech accomplished 2025 with two fourth-quarter awards on unexercised choices which can be anticipated to generate significant income in 2026. AdTech’s present backlog establishes a powerful multiyear basis for income progress, extending past the standard five-year planning horizon. Fourth quarter 2025 unallocated bills of $52,000,000 elevated 26% in comparison with the identical interval final yr, primarily for elevated accruals for performance-based compensation. Now I’ll flip my focus to our consolidated full yr 2025 outcomes in comparison with 2024. In 2025, consolidated income elevated 5% to $2,800,000,000, marking our fifth consecutive yr of income progress. Aside from IMDS, every of our working segments achieved income will increase.
Consolidated 2025 working earnings of $305,000,000 improved by $58,000,000, or 24%. And adjusted EBITDA of $401,000,000 improved by $54,000,000, or 16% in comparison with 2024. EBITDA progress was realized for all of our working segments. Money movement from operations elevated $116,000,000 to $319,000,000, primarily on account of timing of buyer collections within the fourth quarter. We invested $111,000,000 in natural capital expenditures, representing a 4% improve over 2024 ranges. For the total yr of 2025, free money movement was $208,000,000 in comparison with $96,100,000 in 2024. At year-end, we had complete liquidity of $904,000,000 comprised of $689,000,000 in money and money equivalents, and $215,000,000 from our undrawn revolving credit score facility. Now turning to our 2026 market outlook.
Anticipate AdTech to be our main progress driver in 2026 primarily based on our present backlog and expectations for elevated spending throughout protection and authorities markets. Within the U.S., we anticipate a well-funded protection surroundings with regular exercise in subsea crucial infrastructure safety, unmanned subsea techniques, and submarine sustainment. Internationally, geopolitical tensions and elevated allied spending create extra alternatives for our AUVs, resident techniques, and subsea monitoring options. For energy-focused companies, we anticipate 2026 outcomes to replicate a world oil market that continues to be oversupplied early within the yr and step by step tightens because the yr progresses.
Per that backdrop, offshore exercise ranges are anticipated to be comparatively flat in 2026 with elevated exercise within the second half of the yr and into 2027. In accordance with the U.S. Power Data Administration, Brent crude oil costs are anticipated to common within the mid-$50 to low-$60 vary in 2026, a degree we consider supportive of deepwater exercise broadly. With 2025 Spinergy forecasts that deepwater rig demand, which is indicative of ROV exercise, will stay comparatively flat in 2026. Impartial analysis signifies that remaining funding selections, or FIDs, for deepwater initiatives are anticipated to extend in 2026.
FIDs and subsea tree awards are key main indicators for offshore exercise over a two- to five-year horizon together with installations, tools orders, and total offshore spending. These indicators assist inform the anticipated timing of demand for umbilical subsea {hardware} and different subsea merchandise equivalent to our rotator valves, all of that are usually ordered three to 6 months following tree awards. In accordance with Rystad Power, 42 deepwater FIDs are anticipated in 2026 in comparison with 37 in 2025 and growing to roughly 75 in 2027. Subsea tree awards are forecasted to extend to roughly 300 awards in 2026 in comparison with 190 in 2025. Pre-installations are anticipated to extend modestly to 370 installations in 2026 in comparison with 343 in 2025.
Now I’ll flip to our consolidated 2026 outlook. Primarily based on our present backlog, anticipated order consumption, and market fundamentals, we venture consolidated income in 2026 to develop within the low- to mid-single-digit share vary yr over yr. AdTech income will enhance considerably. SSR and IMDS income enchancment will largely offset anticipated declines in OPG and Manufactured Merchandise. Our present energy-related backlog contains a mixture of multiyear contracts, together with awards introduced throughout a number of geographies and enterprise segments, equivalent to multiyear SSR contracts for ROV providers in Angola, and ROV and survey providers in Brazil, and multiyear OPG contracts for inspection, upkeep, restore, or IMR, in Mauritania and for rigless mild effectively intervention within the Caspian Sea.
For the yr, we anticipate producing $8,000,000 to $9,000,000 of EBITDA with year-over-year enhancements in all of our segments aside from OPG. On the midpoint of this vary, our 2026 EBITDA would signify a modest improve over our 2025 adjusted EBITDA. EBITDA margins are anticipated to enhance in Manufactured Merchandise and IMDS, stay steady in SSR and AdTech, and reduce in OPG. We anticipate producing optimistic free money movement of $100,000,000 to $120,000,000. The year-over-year discount in free money movement primarily displays the early receipt of $37,000,000 in buyer funds in 2025 that had been initially scheduled for 2026. On the midpoint of our EBITDA and free money movement ranges, our money conversion charge for 2025–2026 mixed will likely be nearly 40%.
As has been the case over the past a number of years, we anticipate a considerable money draw throughout the first quarter associated to working capital
Operator: adjustments
Roderick A. Larson: related to decrease buyer receipts, related to early collections in 2025 that had been scheduled for 2026, and the cost of performance-based incentive compensation. For 2026, we forecast our natural capital expenditures to complete between $105,000,000 and $115,000,000, with roughly 40% allotted to progress and 60% to upkeep. In comparison with 2025, our energy-focused capital expenditures are projected to be down 12% whereas AdTech spending is as much as help latest contract awards. We forecast our 2026 curiosity expense, web of curiosity earnings, to be within the vary of $21,000,000 to $26,000,000. We anticipate our money 2026 tax funds to be within the vary of $95,000,000 to $105,000,000.
Directionally, in 2026, for our operations by section, we anticipate continued enhancements in SSR primarily based on elevated tooling quantity, improved outcomes from our survey enterprise, and the full-year good thing about pricing enhancements achieved all through 2025. Income progress is predicted to be within the low- to mid-single-digit share vary. EBITDA margins are anticipated to common within the mid-30% vary for the total yr. For ROVs, we venture a service combine of roughly 65% drill help and 35% vessel providers, per 2025. Our total ROV fleet utilization is forecast to be within the mid-60% vary with larger exercise ranges throughout the second and third quarters for drill help providers.
Common ROV income per day utilized in 2026 is predicted to be flat in comparison with our 2025 exit charge. Survey outcomes are anticipated to enhance in 2026, supported by elevated utilization of our Ocean Intervention II vessel, which we upgraded in 2025 to allow simultaneous autonomous survey operations. Now we have additionally deployed our Freedom Autonomous Underwater Automobile, or AUV, on industrial operations in West Africa. We anticipate to ship a second Freedom automobile to the Protection Innovation Unit in 2026. Lastly, as a part of our fleet transition plan, we’re happy to announce that our latest electrical world-class ROV, Momentum, is predicted to be deployed on vessel help operations within the U.S. Gulf later this yr.
For Manufactured Merchandise, we anticipate significant enhancements in working earnings on barely decrease income, pushed by continued conversion of our present umbilicals backlog, excessive absorption ranges throughout our three umbilical crops, elevated order exercise in Rotator, and price reductions in our non-energy product strains. Working earnings margin is predicted to common within the mid-teens for the yr. For OPG, income is predicted to lower and working earnings is predicted to lower considerably as initiatives shift towards conventional IMR work from set up and intervention work. We additionally venture decrease exercise ranges within the U.S. Gulf and West Africa, partially offset by larger exercise ranges in Brazil, the Caspian, and the Center East.
Total, for 2026, OPG working earnings margins are anticipated to common within the mid-teens vary for the yr. IMDS working earnings is forecasted to enhance considerably on elevated income with progress alternatives in digital and engineering providers. Working earnings margin is predicted to enhance to be within the mid-single-digit vary for the yr. AdTech working earnings is predicted to enhance on considerably larger income, with income and working earnings progress in all three of our government-focused companies. Working earnings margins are anticipated to common within the low teenagers for the yr.
Our progress expectations are underpinned by 2025 contract awards that span product improvement, upkeep, inspection, specialised technical providers, and ongoing operations in complicated maritime, area, and safety environments, supporting mission-critical protection and area operations. For 2026, we anticipate unallocated bills to common roughly $50,000,000 per quarter with will increase related to wage inflation, IT prices, and international trade impacts. Now I’ll focus on our outlook for 2026 as in comparison with 2025. On a consolidated foundation, we anticipate our consolidated income to lower, EBITDA to be within the vary of $80,000,000 to $90,000,000. This steering vary is pushed by our expectation for decrease exercise ranges in power markets at the beginning of 2026, which we anticipate to enhance because the yr progresses.
For SSR, we venture income to extend barely and working earnings to lower given the geographic mixture of ROV exercise. We anticipate the combination to be extra favorable as we progress by way of the yr. In Manufactured Merchandise, we forecast working earnings to extend considerably on barely decrease income on account of continued backlog conversion and the absence of the stock launch that impacted our theme park journey enterprise in 2025. We anticipate OPG income and working earnings to lower considerably on decrease vessel utilization and adjustments in venture combine within the U.S. Gulf and decrease worldwide exercise. We venture IMDS income and working earnings to be comparatively flat.
For AdTech, we anticipate considerably larger income and elevated working earnings on adjustments in venture combine. We forecast unallocated bills to be within the vary of $50,000,000. In closing, I need to thank our staff for his or her dedication all through 2025. By way of their efforts, we noticed momentum in every of our segments that offers us elevated visibility into the longer term, together with strengthening contributions from AdTech, rising alternatives in digital and software program providers, and increasing alternatives in worldwide initiatives. As we transfer into 2026, we stay centered on working safely and reliably, supporting our prospects, and creating worth for our shareholders.
We recognize everybody’s continued curiosity in Oceaneering Worldwide, Inc., and we are going to now be completely happy to take any questions you could have.
Operator: Thanks. If you need to ask a query, please press 1 in your phone keypad. If you need to withdraw your query, merely press 1 once more. Please be sure that your telephone will not be on mute when referred to as upon. Thanks. Your first query comes from Keith Beckman with Pickering Power Companions. Your line is open.
Roderick A. Larson: Hey, good morning, Keith. Good morning. Wished to ask type of round—I observed you’ve talked about elevated protection and authorities spending. Does AdTech look to be stronger all year long with some awards? What’s the—what’s type of the everyday lead time and course of of presidency providers kind of initiatives from the time that they’re awarded to type of every time they’d present up usually? Is there a tough timeline on that or lead time? It’s actually exhausting. It varies fairly a bit. I imply, some issues relying on—like, if there are providers for present merchandise, they ramp up. They ramp up rapidly.
A number of the issues we’re engaged on, , new issues, that begins with, , like each different venture begins with engineering research and then you definately go to prototyping and all these sorts of issues. So it truly is—it’s exhausting to name. And I might simply—simply to present you an thought, it’s a combine proper now. Now we have had the issues now we have been speaking about are a mixture of the 2. No. It is rather useful. Is smart. After which the opposite query that I had was round AdTech as effectively once more.
At any time when you concentrate on type of the opposite segments in your online business, how does this actually assist complement what AdTech does and type of the expansion now we have seen in that section? I believe it’s type of like your information round ROVs and perhaps how that helps. However any coloration on that? No. I imply, I believe you’re proper on. And so we, , we work elsewhere. Proper? So one in all them is extra about simply form of that offshore operations—ROVs, autos, that type of stuff. That is among the teams that we discuss. , the opposite one is simply, , our expertise in maritime and dealing on issues.
, it began with plenty of our welder experience and the issues we had been doing offshore. So in that case, we do SubSafe work. So we’re doing what we name—hear us discuss submarine sustainment, and that’s as a result of we’re doing plenty of the mechanical hull restore, sail restore, issues like that when a submarine is available in to dry dock for nuclear
Unknown Speaker: refueling.
Roderick A. Larson: So we do plenty of that stress vessel upkeep, if you’ll. And we are literally one of many solely ones that’s actively doing that apart from the submarine builders. So that could be a SubSafe certification they name it, which is fairly distinctive. After which the third half is, after all, Oceaneering and area techniques. Within the area techniques stuff, we do every part from, , the issues that astronauts have to do in area. So creating instruments, habitats, human interface, and never surprisingly, that’s about working in low gravity environments, proper, like a diver does. So our experience with divers and tooling type of interprets into that enterprise.
After which the opposite half that got here with that’s fits after which lastly thermal safety techniques, which is form of—if you concentrate on this, that is the shrouding that goes across the rockets. A material shrouding that’s sacrificial. It burns up principally when the rocket launches and, after all, that enterprise is fairly scorching proper now with each the return to area, but in addition with the Golden Dome.
Unknown Speaker: Superior. That was
Roderick A. Larson: that was very useful, and I recognize you taking my questions. I’ll flip it again.
Unknown Speaker: Thanks. No. Thanks, Keith.
Operator: Your subsequent query comes from Joshua W. Jayne with Daniel Power Companions. Your line is open.
Roderick A. Larson: Good morning, Josh.
Joshua W. Jayne: Good morning. Thanks for taking my questions. First one, I used to be simply curious, might you discuss the way forward for IMDS after which additionally your digital software program choices and the way you might probably increase them form of outdoors what you’re doing inside power?
Roderick A. Larson: Yeah. And people are type of linked on the hip. It’s, for us, thrilling as a result of it is among the first occasions we see form of machine imaginative and prescient, machine studying, and AI coming to play. So we’re going out to a rig and as an alternative of simply having folks crawl throughout and do spot checks with hammers and cameras and chip and paint and issues stress vessels and first containment on the floor aspect of the offshore platform, we truly are doing laser scanning. We can take that laser scanning and construct a 3D mannequin of the rig and detect corrosion at a really exact degree.
So that you detect that corrosion so you’ll be able to be capable to do a way more complete scan of the
Joshua W. Jayne: facility.
Roderick A. Larson: However you can even quantify the corrosion after which begin to predict, , how lengthy until failure, what are the components we have to test extra commonly. So it’s a enormous benefit to catching issues early, to being much more—I might say—exact with the way you need to exit and do your inspections thereafter. The cool half and the factor we’re actually enthusiastic about is whereas that actually improves the topside inspection for our prospects, now we have had some actually profitable exams about taking that underwater.
And so if we will examine subsea infrastructure the identical manner with the laser scanning and the 3D mannequin, we could be deploying that off an OPG vessel with an ROV, and so we anticipate that may remedy the shopper’s drawback, however it should additionally create demand for ROVs and vessels.
Joshua W. Jayne: That’s useful. Thanks. After which only one extra that I wished to ask. I need to dig into M&Slightly bit. I do know it clearly has not been as a lot of a spotlight for you within the final couple of years, however simply on condition that now we have seen, , now we have seen some on the rig aspect, lately introduced some bigger offers. And I might say the present administration fairly favorable in the direction of transferring offers.
So has any of this modified your ideas transferring ahead on M&A, or ought to we anticipate Oceaneering Worldwide, Inc. simply to form of, , function how they’ve been over the past couple of years and form of sticking to your knitting and with the give attention to free money movement technology and returning it to shareholders along with your capital allocation. Thanks.
Roderick A. Larson: I don’t assume it’s going to change my thoughts on large trade consolidation, proper, to attempt to go and put issues collectively that, in the event you squint actually exhausting, appear like they may go collectively simply to create an even bigger firm. But it surely does—I imply, it does give us slightly little bit of confidence as we go ahead. The GDI acquisition was one thing we love, a bolt-on of know-how that gave us this laser scanning factor I simply talked about.
I believe the extra we will take a look at how will we transfer to what the oilfield wants subsequent or what the protection aspect wants subsequent, selecting up new applied sciences which can be nice bolt-ons that, , both give us broader participation available in the market or up our know-how sport, I believe these are actually enticing. And, hey, in the event that they—, whether it is simpler to do, it should additionally, , together with the monetary wherewithal we’re constructing with a powerful steadiness sheet, , could encourage us to maneuver into barely larger issues. Yeah. I used to be going so as to add the identical factor.
I believe for positive the steadiness sheet energy and the expansion in money over the past a number of years, given the wonderful work that has occurred right here, simply offers us alternative, extra flexibility and alternative to do extra when the time is true.
Joshua W. Jayne: Yep. Understood. Thanks for taking my questions. I’ll flip it again.
Roderick A. Larson: Hey. Thanks, Josh.
Operator: Once more, in case you have a query, it’s star one in your phone keypad. Your subsequent query comes from Brandon Carnevale with Half Moon Capital. Your line is open.
Brandon Carnevale: Hey, guys. Congrats on my nice pal. Hey. Thanks. So curious in the event you—curious you’re seeing any traction on the
Unknown Speaker: autonomous forklift aspect after type of, like, the large supply I believe you had type of exiting final yr.
Roderick A. Larson: There’s—I might say there may be plenty of curiosity. And totally different persons are , , whether or not they need to use it truck loading and unloading, which is a large alternative for us. And now we have been engaged on enhancing the capabilities for doing that. But additionally wherever it’s simply working in locations the place it’s not as conducive to have a driver on the forklift,
Brandon Carnevale: So
Roderick A. Larson: it’s plenty of curiosity. Would say, it’s unfold out over plenty of—what was it—get-to-know-you type of exercise. So, , any person who needs to select up two or three, do a take a look at. I believe one of many issues we realized is that the adoption we’re going to be actually—we’re going to be actually eager on, are you able to undertake? , if it’s a brownfield utility, are the folks prepared for it? Is the situation prepared for it to ensure that these adoptions are clean? However the curiosity is excessive. I believe we simply—we simply acquired to see how briskly these items choose up.
So we’re nonetheless inspired, and the record is lengthy. So we are going to hold knocking on the doorways and hold answering these calls.
Brandon Carnevale: Thanks, guys. Nice work.
Roderick A. Larson: Yeah. Thanks.
Operator: This concludes the query and reply session. I’ll flip the decision to Roderick A. Larson for closing remarks.
Roderick A. Larson: Effectively, since there aren’t any extra questions, I’ll simply wrap up by thanking everyone for becoming a member of the decision. This concludes our fourth quarter and full yr 2025 convention name. Have an important day.
Operator: This concludes at present’s convention name. Thanks for becoming a member of. You could now disconnect.
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