We reported internet earnings of $178,000,000, or $1.76 per share, a 217% enhance 12 months over 12 months. This enchancment was largely because 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 steerage vary however, as anticipated, declined 12 months over 12 months 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 move 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% enhance in comparison with 2024. Now allow us to have a look at our section outcomes for 2025 as in comparison with 2024. SSR working earnings of $67,800,000 was 7% greater on comparatively flat income. EBITDA margins improved to 38% from 36% largely because of improved ROV pricing and elevated tooling volumes. Survey outcomes decreased on decrease exercise ranges within the Americas, as sure tasks initially deliberate for 2025 shifted to 2026.
The income break up between our ROV enterprise and our mixed tooling and survey companies as a proportion 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 fee 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 assist of our OPG vessels, as drill assist utilization was barely greater in comparison with 2024. Throughout the quarter, 67% of ROV days utilized have been for drill assist, and 33% have 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 12 months with a fleet of 250 ROV programs, together with 16 upgraded world-class ROV programs that changed 16 programs that have been retired in 2025. Turning to Manufactured Merchandise. Our fourth quarter income of $132,000,000 decreased 7% 12 months over 12 months. Working earnings of $20,400,000 and working earnings margin of 15% elevated significantly because of conversion of high-margin backlog in our umbilicals enterprise and improved ends in our non-energy tasks. Yr-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 complete 12 months of 2025 declined in comparison with 0.97 within the full 12 months of 2024, largely based mostly on the timing of orders. It’s price noting that Manufactured Merchandise’ full 12 months 2025 income of $569,000,000 and working earnings of $72,000,000 represented their highest degree since 2020 after 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 12 months, whereas working earnings decreased $15,000,000 and working earnings margin declined to 11%. This was anticipated and, as famous earlier, primarily because of massive worldwide intervention and set up tasks that OPG carried out in 2024 that didn’t repeat within the fourth quarter 2025.
For IMDS, fourth quarter income declined because of decrease exercise ranges in Europe and Western Africa. Working earnings declined by $2,000,000 because 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% enhance in income as in comparison with the identical interval final 12 months. These enhancements are the results of new contracts awarded throughout the 12 months and replicate our strategic initiative to more and more leverage our offshore data 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 normal five-year planning horizon. Fourth quarter 2025 unallocated bills of $52,000,000 elevated 26% in comparison with the identical interval final 12 months, primarily for elevated accruals for performance-based compensation. Now I’ll flip my focus to our consolidated full 12 months 2025 outcomes in comparison with 2024. In 2025, consolidated income elevated 5% to $2,800,000,000, marking our fifth consecutive 12 months of income progress. Except for 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 move from operations elevated $116,000,000 to $319,000,000, primarily because of timing of buyer collections within the fourth quarter. We invested $111,000,000 in natural capital expenditures, representing a 4% enhance over 2024 ranges. For the complete 12 months of 2025, free money move 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.
Count on AdTech to be our major progress driver in 2026 based mostly 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 important infrastructure safety, unmanned subsea programs, and submarine sustainment. Internationally, geopolitical tensions and elevated allied spending create further alternatives for our AUVs, resident programs, and subsea monitoring options. For energy-focused companies, we count on 2026 outcomes to replicate a world oil market that is still oversupplied early within the 12 months and steadily tightens because the 12 months progresses.
In keeping with that backdrop, offshore exercise ranges are anticipated to be comparatively flat in 2026 with elevated exercise within the second half of the 12 months and into 2027. In keeping with the U.S. Vitality Data Administration, Brent crude oil costs are anticipated to common within the mid-$50 to low-$60 vary in 2026, a degree we imagine 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 ultimate funding choices, or FIDs, for deepwater tasks 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, gear 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 keeping with Rystad Vitality, 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. Based mostly 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 proportion vary 12 months over 12 months. 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 properly intervention within the Caspian Sea.
For the 12 months, we anticipate producing $8,000,000 to $9,000,000 of EBITDA with year-over-year enhancements in all of our segments apart from OPG. On the midpoint of this vary, our 2026 EBITDA would characterize a modest enhance 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 constructive free money move of $100,000,000 to $120,000,000. The year-over-year discount in free money move primarily displays the early receipt of $37,000,000 in buyer funds in 2025 that have been initially scheduled for 2026. On the midpoint of our EBITDA and free money move ranges, our money conversion fee for 2025–2026 mixed will probably be nearly 40%.
As has been the case during the last a number of years, we anticipate a considerable money draw throughout the first quarter associated to working capital
Operator: modifications
Roderick A. Larson: related to decrease buyer receipts, related to early collections in 2025 that have been scheduled for 2026, and the fee 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 assist current contract awards. We forecast our 2026 curiosity expense, internet of curiosity earnings, to be within the vary of $21,000,000 to $26,000,000. We count on 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 count on continued enhancements in SSR based mostly 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 proportion vary. EBITDA margins are anticipated to common within the mid-30% vary for the complete 12 months. For ROVs, we venture a service combine of roughly 65% drill assist and 35% vessel providers, according to 2025. Our total ROV fleet utilization is forecast to be within the mid-60% vary with greater exercise ranges throughout the second and third quarters for drill assist providers.
Common ROV income per day utilized in 2026 is predicted to be flat in comparison with our 2025 exit fee. 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. We’ve additionally deployed our Freedom Autonomous Underwater Automobile, or AUV, on industrial operations in West Africa. We count on 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 assist operations within the U.S. Gulf later this 12 months.
For Manufactured Merchandise, we count on 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 value reductions in our non-energy product strains. Working earnings margin is predicted to common within the mid-teens for the 12 months. For OPG, income is predicted to lower and working earnings is predicted to lower considerably as tasks 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 greater 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 12 months. 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 12 months. AdTech working earnings is predicted to enhance on considerably greater 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 12 months.
Our progress expectations are underpinned by 2025 contract awards that span product growth, upkeep, inspection, specialised technical providers, and ongoing operations in advanced maritime, house, and safety environments, supporting mission-critical protection and house 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 overseas change impacts. Now I’ll talk about our outlook for 2026 as in comparison with 2025. On a consolidated foundation, we count on our consolidated income to lower, EBITDA to be within the vary of $80,000,000 to $90,000,000. This steerage vary is pushed by our expectation for decrease exercise ranges in power markets in the beginning of 2026, which we count on to enhance because the 12 months 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 12 months. In Manufactured Merchandise, we forecast working earnings to extend considerably on barely decrease income because of continued backlog conversion and the absence of the stock launch that impacted our theme park trip enterprise in 2025. We count on OPG income and working earnings to lower considerably on decrease vessel utilization and modifications 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 count on considerably greater income and elevated working earnings on modifications in venture combine. We forecast unallocated bills to be within the vary of $50,000,000. In closing, I need to thank our workers for his or her dedication all through 2025. Via their efforts, we noticed momentum in every of our segments that offers us elevated visibility into the long run, together with strengthening contributions from AdTech, rising alternatives in digital and software program providers, and increasing alternatives in worldwide tasks. As we transfer into 2026, we stay centered on working safely and reliably, supporting our clients, and creating worth for our shareholders.
We admire everybody’s continued curiosity in Oceaneering Worldwide, Inc., and we’ll now be blissful 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 make sure that your cellphone just isn’t on mute when referred to as upon. Thanks. Your first query comes from Keith Beckman with Pickering Vitality Companions. Your line is open.
Roderick A. Larson: Hey, good morning, Keith. Good morning. Wished to ask form of round—I seen you will have talked about elevated protection and authorities spending. Does AdTech look to be stronger all year long with some awards? What’s the—what’s form of the standard lead time and course of of presidency providers kind of tasks from the time that they’re awarded to form of at any time when they might present up usually? Is there a tough timeline on that or lead time? It’s actually arduous. 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.
Among the issues we’re engaged on, you realize, new issues, that begins with, you realize, like each different venture begins with engineering research and you then go to prototyping and all these sorts of issues. So it truly is—it’s arduous to name. And I’d simply—simply to provide you an concept, it’s a combine proper now. We’ve had the issues now we have been speaking about are a mixture of the 2. No. It is extremely useful. Is smart. After which the opposite query that I had was round AdTech as properly once more.
At any time when you concentrate on form of the opposite segments in your small business, how does this actually assist complement what AdTech does and form of the expansion now we have seen in that section? I believe it’s form of like your data round ROVs and perhaps how that helps. However any colour on that? No. I imply, I believe you might be proper on. And so we, you realize, we work in other places. Proper? So certainly one of them is extra about simply type of that offshore operations—ROVs, autos, that form of stuff. That is among the teams that we discuss. You already know, the opposite one is simply, you realize, our expertise in maritime and dealing on issues.
You already know, it began with a number of our welder experience and the issues we have 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 a number 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 a number 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 may be a SubSafe certification they name it, which is fairly distinctive. After which the third half is, in fact, Oceaneering and house programs. Within the house programs stuff, we do every little thing from, you realize, the issues that astronauts have to do in house. 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 form of interprets into that enterprise.
After which the opposite half that got here with that’s fits after which lastly thermal safety programs, which is type of—if you concentrate on this, that is the shrouding that goes across the rockets. A cloth shrouding that’s sacrificial. It burns up principally when the rocket launches and, in fact, that enterprise is fairly sizzling proper now with each the return to house, but additionally with the Golden Dome.
Unknown Speaker: Superior. That was
Roderick A. Larson: that was very useful, and I admire 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 Vitality 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 can doubtlessly develop them type of exterior what you might be doing inside power?
Roderick A. Larson: Yeah. And people are form of linked on the hip. It’s, for us, thrilling as a result of it is among the first instances we see type of machine imaginative and prescient, machine studying, and AI coming to play. So we’re going out to a rig and as a substitute of simply having folks crawl throughout and do spot checks with hammers and cameras and chip and paint and issues taking a look at stress vessels and first containment on the floor facet of the offshore platform, we really are doing laser scanning. We will 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 may be capable of do a way more complete scan of the
Joshua W. Jayne: facility.
Roderick A. Larson: However you may also quantify the corrosion after which begin to predict, you realize, how lengthy until failure, what are the elements we have to test extra often. So it’s a enormous benefit to catching issues early, to being much more—I’d 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 clients, now we have had some actually profitable exams about taking that underwater.
And so if we will examine subsea infrastructure the identical approach with the laser scanning and the 3D mannequin, we will be deploying that off an OPG vessel with an ROV, and so we count on that may clear up the client’s downside, however it’ll 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&A bit 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, you realize, now we have seen some on the rig facet, just lately introduced some bigger offers. And I’d say the present administration fairly favorable in the direction of shifting offers.
So has any of this modified your ideas shifting ahead on M&A, or ought to we count on Oceaneering Worldwide, Inc. simply to type of, you realize, function how they’ve been during the last couple of years and type of sticking to your knitting and with the give attention to free money move era and returning it to shareholders together with your capital allocation. Thanks.
Roderick A. Larson: I don’t suppose it’ll change my thoughts on large trade consolidation, proper, to attempt to go and put issues collectively that, when you squint actually arduous, appear like they could go collectively simply to create a much bigger firm. But it surely does—I imply, it does give us a little bit 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 have a look at how will we transfer to what the oilfield wants subsequent or what the protection facet wants subsequent, selecting up new applied sciences which can be nice bolt-ons that, you realize, both give us broader participation out there or up our know-how sport, I believe these are actually enticing. And, hey, in the event that they—you realize, whether it is simpler to do, it’ll additionally, you realize, together with the monetary wherewithal we’re constructing with a powerful steadiness sheet, you realize, might encourage us to maneuver into barely greater issues. Yeah. I used to be going so as to add the identical factor.
I believe for positive the steadiness sheet power and the expansion in money during the last a number of years, given the superb 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, if 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 buddy. Hey. Thanks. So curious when you—curious you might be seeing any traction on the
Unknown Speaker: autonomous forklift facet after form of, like, the large supply I believe you had form of exiting final 12 months.
Roderick A. Larson: There’s—I’d say there’s a number of curiosity. And completely different persons are taking a look at, you realize, 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 isn’t as conducive to have a driver on the forklift,
Brandon Carnevale: So
Roderick A. Larson: it’s a number of curiosity. Would say, it’s unfold out over a number of—what was it—get-to-know-you form of exercise. So, you realize, any person who desires to select up two or three, do a check. 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? You already know, if it’s a brownfield software, are the folks prepared for it? Is the situation prepared for it to guarantee that these adoptions are clean? However the curiosity is excessive. I believe we simply—we simply obtained to see how briskly this stuff decide up.
So we’re nonetheless inspired, and the record is lengthy. So we’ll preserve knocking on the doorways and preserve 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: Nicely, since there aren’t any extra questions, I’ll simply wrap up by thanking all people for becoming a member of the decision. This concludes our fourth quarter and full 12 months 2025 convention name. Have an amazing day.
Operator: This concludes immediately’s convention name. Thanks for becoming a member of. Chances are you’ll now disconnect.
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