Oceaneering secures major defense contract for maritime system

Published 12/03/2025, 23:10
Oceaneering secures major defense contract for maritime system

HOUSTON - Oceaneering International, Inc. (NYSE:OII), a global provider of engineered services and products with a market capitalization of $1.96 billion and annual revenue of $2.66 billion, has been selected by the U.S. Department of Defense to design, build, test, and deliver a maritime mobility system. The contract, awarded to the company’s Aerospace and Defense Technologies (ADTech) segment, marks the largest initial contract value in Oceaneering’s history. According to InvestingPro analysis, the company’s stock currently trades below its Fair Value.

The company’s President and Chief Executive Officer, Rod Larson, expressed pride in securing the contract, emphasizing the trust and partnership established between Oceaneering’s ADTech segment and U.S. government customers. The company’s strong financial position is evidenced by its $349.71 million in EBITDA and P/E ratio of 13.38, though it operates with relatively modest gross margins of 18.24%. Larson highlighted the company’s ability to apply its maritime technology across various industries and its commitment to delivering safe and reliable services for the program.

Oceaneering’s announcement includes forward-looking statements, which are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. The company, which also operates in offshore energy, defense, aerospace, and manufacturing industries, cautions against placing undue reliance on these statements and notes that it is not obligated to update them as per the Private Securities Litigation Reform Act of 1995.

This news is based on a press release statement from Oceaneering International, Inc. The company’s latest annual report on Form 10-K and other periodic filings with the Securities and Exchange Commission provide further details and discussions of risk factors.

In other recent news, Oceaneering International Inc. reported strong financial results for the fourth quarter of 2024. The company achieved earnings per share of $0.43, surpassing analyst expectations of $0.41, and generated revenue of $713 million, exceeding the forecast of $686.53 million. This performance represents a 26% year-over-year increase in net income and a 10% growth in full-year consolidated revenue, reaching $2.7 billion. The company also announced the strategic acquisition of Global Design Innovation Limited, aimed at enhancing its digital solutions offerings. Analysts noted that Oceaneering International has historically exceeded market expectations, reinforcing its competitive position. Despite these positive developments, the stock experienced a post-market decline, which might be attributed to broader market conditions. Looking ahead, Oceaneering forecasts mid to high single-digit revenue growth for 2025, with an EBITDA range of $380 million to $430 million, and plans to focus on new market expansions and strategic initiatives.

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