OII

A month has gone by since the last earnings report for Core Laboratories (CLB). Shares have added about 18.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Core Laboratories due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Core Laboratories Inc. before we dive into how investors and analysts have reacted as of late. Core Laboratories reported second-quarter 2026 adjusted earnings of 11 cents per share, which beat the Zacks Consensus Estimate of 8 cents, driven by outperformance of the Production Enhancement segment. However, the bottom line decreased from the year-ago quarter’s reported figure of 19 cents due to the underperformance of the Reservoir Description segment and increased costs and expenses. This oilfield service provider reported second-quarter operating revenues of $124.6 million, missing the Zacks Consensus Estimate of $128 million and decreasing from the earlier-year quarter’s reported figure of $130.1 million. This can be attributed to military conflicts in the Middle East and the Russia-Ukraine region, which disrupted energy infrastructure, delaying projects, disrupting crude oil trade and reducing demand for the company's international laboratory services. During the second quarter, CLB repurchased 214,712 shares of common stock for a total of $2.7 million. The company’s debt leverage ratio was at 1.30 and net debt decreased by $0.5 million. Reservoir Description: Revenues in this segment decreased 8.7% from the year-ago quarter to $78.7 million. The top line also missed our model estimation of $82 million. Operating income decreased from $12.2 million in the year-ago period to $3.7 million and missed our estimate of $6 million, caused by three primary factors: reduced client activity in the Middle East, lower global crude assay activity resulting from disruptions to hydrocarbon cargo shipments and increased military action and expanded European sanctions associated with the Russia-Ukraine conflict. Production Enhancement: This segment’s revenues increased 4.5% to $45.9 million from $43.9 million in the prior-year quarter. The top line also beat our model estimate of $45.6 million. Operating income increased from $3.1 million in the year-ago period to $5.2 million and beat our model estimate of $2 million. The outperformance in the Production Enhancement segment can be attributed to improvement in U.S. completion activity and increased product sales in both the U.S. and international markets. CLB reported total costs and expenses of $115.5 million in the second quarter, increasing by 0.5% from the year-ago quarter’s level of $114.9 million. Our estimation for the metric was $118.6 million. As of June 30, 2026, the company had cash and cash equivalents of $22.7 million and long-term debt of $113.9 million. CLB’s debt-to-capitalization was about 29%. Net cash provided by operating activities in the second quarter totaled $7.8 million, while capital expenditure amounted to $4.7 million. This led to a positive free cash flow of $3.1 million. Core Laboratories’ board of directors approved a quarterly dividend of 1 cent per share to its common shareholders of record as of Aug. 10, 2026. The payout, which remains unchanged from the previous quarter, will be made on Aug. 31. Ongoing conflicts in the Middle East and Russia-Ukraine prompted the IEA, EIA and OPEC to lower their 2026 global oil demand forecasts due to higher energy prices, supply disruptions and trade constraints. However, all three agencies expect demand growth to recover in 2027. Core Laboratories believes the long-term need for new production and enhanced recovery remains intact, supported by declining output from mature fields, energy security concerns and diversified hydrocarbon supply. The company expects third-quarter revenues to rise sequentially, aided by improving activity in the South Atlantic Margin and Asia-Pacific, despite continued geopolitical disruptions affecting project execution and logistics. Modest improvement in U.S. land completions, growing adoption of its reservoir technologies and diagnostics, and expanding international offshore and exploration projects are expected to support long-term growth. For the third quarter of 2026, CLB expects revenues to range from $128.5 million to $135.5 million. Operating income is anticipated to be between $10.5 million and $15 million, with earnings per share expected to be between 12 cents and 20 cents. Revenues for the Reservoir Description segment are anticipated to be between $81 million and $84 million, with operating income ranging from $5.5 million to $7.9 million. Revenues for the Production Enhancement segment are expected to be between $47.5 million and $51.5 million, with operating income predicted to be between $4.8 million and $6.9 million. The company anticipates an effective tax rate of 25% for the third quarter. Its guidance for the third quarter of 2026 is based on estimates for underlying operations and excludes any gains or losses from foreign exchange. During the second quarter of 2026, Core Laboratories expanded its technology-driven reservoir evaluation and completion capabilities through several projects across Asia-Pacific, Africa and the Middle East. In Australia, the company deployed its Advanced Digital Imaging System (ADIS) to analyze reservoir rock samples for an onshore gas project, integrating the results into its proprietary RAPID™ database to accelerate reservoir interpretation. Offshore Namibia, CLB applied advanced laboratory technologies to characterize geological and petrophysical properties, supporting more accurate reservoir models and reducing exploration risk. The company also launched a reservoir characterization program for Murphy Oil's offshore Côte d’Ivoire discovery using its Dual Energy CT technology. In Asia-Pacific, Core Laboratories enabled a national oil company to establish in-house Tubing Conveyed Perforating capabilities through equipment supply and technical training. Additionally, regulatory approvals in the UAE for SpectraStim proppant tracing and SpectraScan spectral gamma ray logging broadened the company's reservoir optimization offerings, strengthening its position in a key Middle Eastern energy market. Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. The consensus estimate has shifted -5.56% due to these changes. At this time, Core Laboratories has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Core Laboratories has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Core Laboratories belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Oceaneering International (OII), has gained 7.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Oceaneering International reported revenues of $768.18 million in the last reported quarter, representing a year-over-year change of +10%. EPS of $0.65 for the same period compares with $0.49 a year ago. For the current quarter, Oceaneering International is expected to post earnings of $0.58 per share, indicating a change of +5.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +9.4% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Oceaneering International. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Core Laboratories Inc. (CLB) : Free Stock Analysis Report Oceaneering International, Inc. (OII) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Oceaneering International (OII). Shares have added about 9.3% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Oceaneering International due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Oceaneering International reported second-quarter 2026 earnings of 65 cents per share, up from 54 cents in the year-ago quarter. Higher year-over-year operating income from the company's Subsea Robotics, Manufactured Products, Offshore Projects Group and Aerospace and Defense Technologies segments contributed to this improvement. Total revenues were $768.2 million, increased approximately 10% from the year-ago quarter’s $698.2 million. This increase reflected revenue growth across all segments except Integrity Management & Digital Solutions. In the second quarter of 2026, the Houston, TX-based oil and gas equipment and services company reported adjusted EBITDA of $114.5 million, up 10.9% year over year. Operating income increased 11% year over year to $88.2 million. Gross margin expanded to $157 million from $148.4 million, reflecting revenue growth and improved performance across most operating segments. Subsea Robotics (SSR): The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services. Revenues totaled $232 million compared with the year-ago quarter’s $218.8 million. The segment also reported an operating income of $66.3 million compared with $64.5 million a year ago. The company's segment delivered an EBITDA margin of 35% in the second quarter of 2026, flat compared with the year-ago quarter. Revenue per day for remotely operated vehicles (“ROV”) rose to $11,894, while ROV fleet utilization slightly decreased to 66%. Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles. Revenues totaled $149 million compared with the year-ago quarter’s $145.1 million. The segment posted an operating profit of $21.9 million in the second quarter, up from the year-ago quarter’s $18.8 million. The backlog totaled $445 million as of June 30, 2026, down 13.8% from the same time in 2025. For the 12 months ending June 30, 2026, the book-to-bill ratio was 0.88. Offshore Projects Group (OPG): This segment involves Oceaneering’s former Subsea Projects unit, excluding survey services and global data solutions, the service and rental business and ROV tooling. Revenues increased about 22.5% to $182.8 million from $149.3 million in the year-ago quarter. The unit’s operating income totaled $30 million compared with the prior-year quarter’s $21.7 million. The company’s operating income margin slightly increased to 16% from the prior-year quarter’s 15%, reflecting favorable project mix and disciplined execution. Integrity Management & Digital Solutions (IMDS): This segment covers Oceaneering’s Asset Integrity unit, along with its global data solutions business. Revenues of $70.8 million decreased from the year-ago quarter’s $75.4 million. Operating income decreased to $0.1 million from $4.6 million due to lower activity, weaker cost absorption and higher personnel-related costs in West Africa and the Middle East. Aerospace and Defense Technologies (ADTech): The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems. Revenues totaled $133.5 million, up from $109.6 million recorded in the second quarter of 2025. The operating income increased to $16.4 million from $16.3 million in the year-ago quarter. Operating income margin decreased to 12% from 15% in the year-ago quarter due to program mix and timing. The capital expenditure in the second quarter, including acquisitions, totaled $30.8 million. As of June 30, 2026, OII had cash and cash equivalents worth $629.5 million and $688.9 million, respectively, along with a long-term debt of about $490.2 million. The debt-to-capitalization was 29.6%. The company repurchased 263,335 shares for approximately $10 million. OII also issued $500 million of senior notes due 2034 and increased its revolving credit commitments to $345 million from $215 million. The company expects consolidated revenues to increase in the third quarter of 2026, with EBITDA projected in the range of $115 million to $125 million. At the segment level, SSR is expected to post growth in both revenues and operating income. Manufactured Products is projected to witness slight declines in revenues and operating income. OPG is anticipated to deliver increases in both revenues and operating income. IMDS revenues are expected to increase, while operating income is likely to remain relatively flat. Meanwhile, ADTech is forecasted to report higher revenues and operating income. Unallocated expenses are expected to be in the $50 million range. Management expressed confidence in the company's outlook for the remainder of 2026, supported by strong first-half execution, healthy demand across most of its businesses and an improved financial position. The company expects offshore activity to continue strengthening, driven by higher rig utilization, longer-duration contracts and sustained demand for subsea services. Management also expects Subsea Robotics to benefit from higher ROV utilization and continued survey vessel activity, while the Manufactured Products backlog is anticipated to improve in the second half of 2026, supported by recent contract awards and additional opportunities in the sales pipeline. Despite ongoing uncertainty in the Middle East and lower activity in West Africa affecting the IMDS business, management believes the performance of its other operating segments remains in line with or ahead of prior expectations. The company updated its full-year 2026 consolidated adjusted EBITDA outlook to a range of $400 million to $440 million. OII retained its previously issued consolidated and segment guidance, except that IMDS operating income is now expected to decline significantly, with the operating income margin projected to be in the low-single-digit percentage range. In the past month, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 9.43% due to these changes. At this time, Oceaneering International has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Oceaneering International has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Oceaneering International belongs to the Zacks Oil and Gas - Field Services industry. Another stock from the same industry, Weatherford (WFRD), has gained 6.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Weatherford reported revenues of $1.11 billion in the last reported quarter, representing a year-over-year change of -8.2%. EPS of $0.55 for the same period compares with $1.87 a year ago. For the current quarter, Weatherford is expected to post earnings of $1.20 per share, indicating a change of +7.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -11.6% over the last 30 days. Weatherford has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oceaneering International, Inc. (OII) : Free Stock Analysis Report Weatherford International PLC (WFRD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Recently, analysts raised their full-year earnings estimates for Oceaneering International and maintained a favorable Zacks Rank #2 (Buy), reflecting stronger confidence in the company’s profit outlook. This wave of upward revisions, alongside Oceaneering’s outperformance versus other Oils-Energy names, suggests analysts see the company executing well across its core businesses. Now we’ll examine how this improved earnings outlook and analyst sentiment could influence Oceaneering International’s existing investment narrative. Find 50 companies with promising cash flow potential yet trading below their fair value. To own Oceaneering International, you need to believe its mix of subsea energy, robotics, and aerospace and defense can keep generating healthy profits despite cyclicality in offshore spending. The most important near term catalyst remains execution across these core businesses, while a key risk is any reversal in earnings momentum after a very strong run. The recent wave of upward estimate revisions and price gains reinforces the bullish side of that story, but does not remove the execution risk. The Q2 2026 results and updated full year earnings estimates are especially relevant here. Oceaneering reported higher year on year sales and net income in the quarter, and analysts have lifted the full year consensus by about 11 percent. That earnings upgrade cycle sits alongside strong recent share performance and appears to be one reason Oceaneering now screens well on momentum metrics, which can amplify both upside and downside if sentiment shifts. Yet, even with the upgraded earnings outlook, one risk investors should be aware of is how quickly sentiment could turn if... Read the full narrative on Oceaneering International (it's free!) Oceaneering International's narrative projects $3.4 billion revenue and $103.3 million earnings by 2029. This requires 6.0% yearly revenue growth and a $246.8 million earnings decrease from $350.1 million today. Uncover how Oceaneering International's forecasts yield a $40.25 fair value, a 24% downside to its current price. Some of the lowest ranked analysts were assuming revenue growth of only about 3.9 percent and earnings falling to around US$79.9 million, so their far more pessimistic view on Oceaneering’s future profitability could shift meaningfully as the new estimate upgrades and strong recent results are factored in. Explore 5 other fair value estimates on Oceaneering International - why the stock might be worth as much as $52.24! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Oceaneering International research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Our free Oceaneering International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Oceaneering International's overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: Capitalize on the AI infrastructure supercycle with our selection of the 56 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. We've uncovered the 11 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. The future of work is here. Discover the 37 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OII. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Investors might want to bet on Oceaneering International (OII), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook. Analysts' growing optimism on the earnings prospects of this oilfield services company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. For Oceaneering International, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $0.58 per share for the current quarter, which represents a year-over-year change of +5.5%. Over the last 30 days, one estimate has moved higher for Oceaneering International compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 9.43%. For the full year, the company is expected to earn $2.10 per share, representing a year-over-year change of +8.8%. In terms of estimate revisions, the trend for the current year also appears quite encouraging for Oceaneering International. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 11.11%. Thanks to promising estimate revisions, Oceaneering International currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Investors have been betting on Oceaneering International because of its solid estimate revisions, as evident from the stock's 23.5% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oceaneering International, Inc. (OII) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Solaris Energy Infrastructure, Inc. SEI reported second-quarter 2026 adjusted earnings of 39 cents per share, up 14.7% year over year, and beat the Zacks Consensus Estimate of 31 cents by 25.81%. The outperformance was driven by the exceptional results of the Power Solutions segment. Revenues of $219 million increased 47% year over year and topped the consensus estimate of $198 million by 10.78%, driven by higher leasing and service revenues. The company’s leasing and service revenues increased 70.8% and 30% year over year, respectively. Solaris Energy Infrastructure, Inc. price-consensus-eps-surprise-chart | Solaris Energy Infrastructure, Inc. Quote Net income reported by SEI was $25.2 million in the quarter. On a non-GAAP basis, adjusted EBITDA was $108.3 million, up from $60.6 million in the year-ago period, driven primarily by higher Power Solutions activity levels and a lift in Logistics profitability. On Aug. 4, 2026, the company’s board of directors approved a third-quarter 2026 dividend of 12 cents per share, payable on Sept. 25 to its shareholders of record as of Sept. 15. Solaris Power Solutions:Power Solutions revenues increased to $158.3 million compared with $75.6 million in the year-ago period. Capacity earning revenues in the segment averaged 950 MW during the quarter. Adjusted EBITDA from the segment increased to $96.4 million, driven by increased ancillary service revenues. Solaris Logistics Solutions: Logistics Solutions delivered revenues of $61 million, decreasing 17.2% from the year-ago period. Adjusted EBITDA from the segment increased year over year to $24.7 million, driven by increased system activity and a more favorable project mix. Solaris Energy expanded three long-term contracts that are expected to add more than $100 million of annual adjusted EBITDA. The expanded Hatchbo agreement now covers a turnkey, roughly 660-MW power plant, including balance-of-plant equipment, batteries and operating services. The contract term was extended to as long as 18 years, and revenues are expected to begin in January 2027. SEI also broadened the scope of its April 2026 agreement with a global technology customer to include balance of plant, energy storage and natural gas procurement and management. Separately, a large energy customer increased contracted microgrid capacity to about 80 MW from 60 MW and extended the agreement to six years from four years. The acquisition of Global Energy Services Alliance, or GESA, expands SEI’s installation, commissioning, operations, maintenance and aftermarket capabilities. GESA added more than 600 skilled employees and brings project experience spanning more than 30 countries. Management sees the acquisition as a way to improve project execution while expanding third-party service opportunities. Solaris Energy also has approximately 800 MW of open capacity with relatively near-term delivery timelines and said it is in advanced discussions with multiple customers regarding long-term deployments. For the third quarter of 2026, the Zacks Rank #5 (Strong Sell) company raised adjusted EBITDA guidance to $90-$105 million from $80-$95 million previously, and established fourth-quarter adjusted EBITDA guidance of $100-$120 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. At quarter-end, Cash and cash equivalents attributable to Solaris Energy were $888.5 million, while long-term debt attributable to SEI (net of current portion) was $1.6 billion, with a debt-to-capitalization of 58%. During the quarter, the company completed an inaugural $1.3 billion senior, unsecured notes offering and secured a new, undrawn $650 million credit facility. While we have discussed SEI’s second-quarter results in detail, let’s see how some other oilfield service companies have fared this earnings season. NOV Inc. NOV reported second-quarter 2026 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 16 cents. The bottom line also increased 6.9% from the year-ago quarter’s 29 cents, driven by outperformance of the Energy Equipment segment. The oil and gas equipment and services company’s total revenues of $2.1 billion beat the Zacks Consensus Estimate by $39 million. However, NOV’s revenues fell 2.5% from the year-ago quarter’s figure of $2.2 billion due to lower year-over-year revenues from the Energy Products and Services segment. As of June 30, 2026, the backlog for Energy Equipment capital orders was $4.1 billion, reflecting a $220 million decrease from the prior year. Liberty Energy Inc. LBRT reported a second-quarter 2026 adjusted net profit of 9 cents per share, beating the Zacks Consensus Estimate of 7 cents. The outperformance was driven by the company’s focus on AI-driven technology advancements and strong operational execution. However, the bottom line decreased from the year-ago quarter’s profit of 12 cents due to increased year-over-year costs and expenses. LBRT's revenues totaled $1.2 billion, which beat the Zacks Consensus Estimate of $1.1 billion. The top line also increased from the prior-year quarter’s $1 billion by 14%, supported by record utilization and a modest pricing uplift along with higher product sales. As of June 30, Liberty Energy had approximately $555.4 million in cash and cash equivalents. The pressure pumper’s long-term debt of $1.3 billion represented a debt-to-capitalization of 39.5%. Further, the company’s total liquidity, including availability under the credit facility, amounted to $1 billion. Oceaneering International, Inc. OII reported second-quarter 2026 earnings of 65 cents per share, up from 54 cents in the year-ago quarter. Higher year-over-year operating income from the company's Subsea Robotics, Manufactured Products, Offshore Projects Group and Aerospace and Defense Technologies segments contributed to this improvement. Total revenues of $768.2 million increased approximately 10% from the year-ago quarter’s $698.2 million. This increase reflected revenue growth across all segments except Integrity Management & Digital Solutions. As of June 30, 2026, OII had cash and cash equivalents worth $629.5 million and $688.9 million, respectively, along with a long-term debt of about $490.2 million. The debt-to-capitalization was 29.6%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Solaris Energy Infrastructure, Inc. (SEI) : Free Stock Analysis Report NOV Inc. (NOV) : Free Stock Analysis Report Oceaneering International, Inc. (OII) : Free Stock Analysis Report Liberty Energy Inc. (LBRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Oceaneering International stock has logged a very strong five year return, yet the current valuation checks and intrinsic value estimate both point to the shares trading at a premium rather than as an obvious bargain. Over the past 5 years, Oceaneering International has returned about 298%, which puts extra focus on whether the current price still leaves room for an attractive risk adjusted outcome. New contract wins in energy and defense, including work on extra large uncrewed undersea vehicles, can support expectations for future cash flows. However, execution risks in weaker segments may weigh on how much investors are willing to pay for that growth. The company scores 2 of 6 on Simply Wall St's broader valuation checks. This means it leans expensive rather than standing out as a clear bargain overall, as shown in 2 of 6 valuation checks. The issue now is whether Oceaneering International's recent gains leave investors paying too much compared with its intrinsic value and earnings based valuation markers. Oceaneering International delivered 132.6% returns over the last year. See how this stacks up to the rest of the Energy Services industry. The Discounted Cash Flow (DCF) model here links Oceaneering International’s value to the cash it is expected to generate for shareholders. On this view, the company’s latest twelve month free cash flow sits at about $231.7 million, with the projection set assuming cash flows trend down modestly from current levels rather than rising sharply. Putting those cash flows into a 2 Stage Free Cash Flow to Equity model gives an estimated intrinsic value of about $39 per share, which sits below the current market price and implies the stock is overvalued by roughly 35%. The recent Q2 2026 earnings beat and new contract wins in energy and defense, including work on extra large uncrewed undersea vehicles, help explain why investors appear willing to pay above what this cash flow model suggests. On this DCF view, Oceaneering International stock currently screens as overvalued relative to its modeled cash flows. Our Discounted Cash Flow (DCF) analysis suggests Oceaneering International may be overvalued by 35.1%. Discover 49 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Oceaneering International. The P/E ratio is a useful way to think about what you are paying today for each dollar of Oceaneering International’s earnings. For this stock, that lens helps you compare the recent share price move with how the market values other energy services companies. Oceaneering International currently trades on a P/E of about 15.0x, which sits well below the Energy Services industry average of roughly 28.3x and a peer average of around 29.8x. However, a more tailored fair P/E ratio for the company, which factors in its risk profile, margins, size and sector, is estimated at only about 5.2x. In other words, the current earnings multiple is close to three times higher than this fair benchmark, so investors are paying a rich price for each dollar of earnings even though the company’s valuation checks already lean expensive. On this P/E yardstick, Oceaneering International stock appears overvalued relative to the earnings multiple the model suggests is reasonable. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Oceaneering International pick up where this valuation puzzle leaves off by spelling out which combinations of future growth, margins and earnings would make the stock look meaningfully cheaper or more expensive than it does today, based on different fair value frameworks. Rather than relying on a single multiple or model output, each Narrative lays out the assumptions behind its fair value so you can compare them with Oceaneering International's actual results as they are reported, and they are available on Simply Wall St's Community page. One of the top community narratives on Oceaneering International: 32% overvalued Read one of the top narratives on Oceaneering International Do you think there's more to the story for Oceaneering International? Head over to our Community to see what others are saying! For Oceaneering International, both the Discounted Cash Flow (DCF) intrinsic value estimate and the earnings multiple framework point to the stock trading as overvalued, rather than as a clear opportunity for value focused investors. The broader valuation checks are also weak, which reinforces that message instead of offsetting it. From here, the key question is whether Oceaneering International can deliver cash flows and earnings that catch up to the current price, or whether expectations need to cool and the valuation multiple settle closer to its fair benchmark. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OII. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Oceaneering International (OII) is back in focus after reporting second quarter 2026 earnings, with sales of $768.18 million and net income of $65.02 million, alongside updated guidance and segment level commentary. See our latest analysis for Oceaneering International. At a share price of $52.73, Oceaneering International has seen strong momentum, with a 45.30% 1 month share price return and a 112.19% year to date share price return. The 5 year total shareholder return of 297.66% points to meaningful long term gains. If this kind of move has you looking beyond a single stock, it could be a good moment to see what else is happening in subsea and automation by checking out 34 robotics and automation stocks After Oceaneering International’s rapid rerating and a share price well above the latest analyst target, the tug of war is clear: is the real opportunity still ahead, or has most of the upside already been pulled forward into today’s valuation? At a last close of $52.73 versus a narrative fair value of $35.25, Oceaneering International is framed as richly valued, with that gap hinging on how future offshore demand and diversification play out. Read the complete narrative. Curious how this fair value is built? The narrative leans on modest revenue growth, sharply lower margins, and a future earnings multiple more typical of high growth sectors. Result: Fair Value of $35.25 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Oceaneering International could still surprise this narrative if Aerospace and Defense Technologies scales into a steadier earnings anchor, or if high margin subsea robotics continues to gain traction. Find out about the key risks to this Oceaneering International narrative. The narrative fair value paints Oceaneering International as 49.6% overvalued, yet the current P/E of 15x looks lower than both the US Energy Services industry at 28x and peer average at 29.8x, while the fair ratio points to 5.2x. Is the market underestimating risk or instead paying up for recent earnings strength? See what the numbers say about this price — find out in our valuation breakdown. With mixed signals around Oceaneering International’s value, consider checking the underlying data, weighing both the concerns and the potential upside, and then reviewing the 2 key rewards and 2 important warning signs. If Oceaneering International has sharpened your focus, do not stop with one stock. Use a broad screener to spot other opportunities that fit your approach. Target higher quality at reasonable prices by scanning for companies that look attractively priced on fundamentals using the 49 high quality undervalued stocks. Prioritize stability and capital preservation by filtering for companies with sturdier finances through the solid balance sheet and fundamentals stocks screener (49 results). Hunt for overlooked opportunities with strong underlying metrics by checking the screener containing 20 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OII. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Oceaneering International, Inc.? Here are five stocks we like better. Oceaneering beat Q2 expectations, with adjusted EBITDA of $115 million, its highest quarterly level since 2015. Revenue rose 10% year over year to $768 million, and net income increased 19% to $65 million. Offshore Projects and Subsea Robotics drove the quarter, as OPG revenue jumped 22% and SSR revenue rose 6% on stronger pricing and improved offshore activity. Management said vessel utilization and project momentum should improve in the third quarter. Guidance was lifted, but IMDS weakened: the company raised full-year 2026 adjusted EBITDA guidance to $400 million-$440 million, while trimming its outlook for Integrity Management & Digital Solutions due to uncertainty in the Middle East and softer West Africa activity. 3 Swing Trades for Q3 Earnings Season Oceaneering International (NYSE:OII) reported second-quarter 2026 results that topped the high end of its adjusted EBITDA guidance range, with management citing strong execution across its portfolio and notable gains in offshore project activity. President and Chief Executive Officer Rod Larson said the company’s adjusted EBITDA of $115 million was its highest quarterly level since the third quarter of 2015. He said the Offshore Projects Group, or OPG, was the largest contributor to the company’s EBITDA outperformance, driven by a favorable mix of international intervention and installation work, including light well intervention services in the Caspian Sea and an installation project offshore Egypt. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Senior Vice President and Chief Financial Officer Mike Summerall said consolidated revenue rose 10% year over year to $768 million, with growth in every segment except Integrity Management & Digital Solutions, or IMDS. Operating income increased 11% to $88.2 million, while net income attributable to Oceaneering rose 19% to $65 million, or $0.65 per share. Adjusted EBITDA increased 11% to $115 million. OPG revenue increased 22% from the prior-year quarter to $183 million, while operating income rose 39% to $30 million. Summerall said the segment generated a 16% operating income margin, supported by disciplined execution on international intervention and installation projects that are expected to continue into the third quarter. Vessel utilization declined year over year, but management expects it to improve in the third quarter as the company supports customers under several frame agreements. → 3 Photonics Companies Making Quantum Tech Possible Subsea Robotics, or SSR, also improved year over year, with revenue increasing 6% to $232 million and operating income rising 3% to $66.3 million. Average ROV revenue per day utilized increased to $11,894 from $11,265, reflecting improved contract pricing. ROV utilization was 66%, slightly below 67% in the prior-year quarter, as activity in Europe and West Africa largely offset lower activity in the U.S. Gulf. Summerall said SSR’s EBITDA margin remained flat at 35%, as higher ROV pricing was offset by geographic and service mix, including a larger contribution from survey work, which carries lower margins than the company’s core ROV business. Larson said the Ocean Intervention II entered service after significant upgrades in 2025 and is now performing survey projects expected to keep the vessel utilized through most of the remainder of 2026. He also said the company expects to conduct a simultaneous operations, or SIMOPS, project from the vessel later this year. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Manufactured Products revenue increased 3% to $149 million, while operating income rose 17% to $21.9 million. The segment’s operating income margin improved to 15%, up 178 basis points year over year. Summerall attributed the improvement to conversion of higher-margin backlog, increased volume in the Rotator valves business and improved results in the Mobility Solutions product line. The segment’s backlog declined to $445 million as of June 30, reflecting execution of previously awarded work. Summerall said the trailing 12-month book-to-bill ratio was 0.88, compared with 0.65 a year earlier. He said the company won multiple awards early in the third quarter and expects additional awards in the third and fourth quarters, supporting management’s expectation that backlog will improve in the second half and meet full-year book-to-bill guidance of 0.9 to 1.0. In Aerospace and Defense Technologies, or ADTech, revenue increased 22% to $133 million, while operating income was up slightly to $16.4 million. Operating income margin declined to 12%, reflecting program mix and timing in the Oceaneering Technologies, or OTech, business line. Larson highlighted new contract awards across defense and subsea applications, including subsea robotics, subsea systems, submarine rescue and submarine maintenance, construction and installation services. He pointed to a joint contract from the Defense Innovation Unit to support development of an Extra-Large Unmanned Underwater Vehicle as an example of the company’s strategy to deploy dual-use technologies for both energy and government customers. He also noted that the Space Systems team was recognized by Lockheed Martin as a best-in-class supplier for work on the Artemis program. Oceaneering generated $55.2 million of cash from operating activities in the quarter. Summerall said the year-over-year decrease reflected the timing of project milestones, customer receipts and vendor payments. The company invested $23.2 million in organic capital expenditures, with 34% allocated to growth and 66% to maintenance, and generated free cash flow of $32 million. The company resumed share repurchases during the quarter, buying back $10 million of common stock. It ended the period with $629 million in cash, total liquidity of $844 million and no borrowings under its revolving credit facility. Summerall said Oceaneering placed $500 million of senior notes due in 2034 and used the proceeds, together with cash on hand, to retire $500 million of senior notes due in 2028. The company also amended its secured revolving credit facility, increasing commitments to $345 million from $215 million and extending the maturity to July 2031. He said those transactions would be completed in July. Asked about capital allocation, Larson said the company’s priorities remain organic investment first, inorganic growth second and returning capital to shareholders, primarily through buybacks. He said Oceaneering intends to invest around its core energy business, particularly SSR, and also sees opportunities to expand in defense, including through partnerships and potential acquisitions. For the third quarter, Oceaneering expects revenue to increase and adjusted EBITDA to range from $115 million to $125 million. Larson said SSR revenue and operating income are expected to rise as ROV utilization improves and survey activity continues. OPG revenue and operating income are also expected to increase on higher vessel utilization in the U.S. Gulf and West Africa, as well as continuing international projects. For the full year, management raised the low end of adjusted EBITDA guidance and now expects consolidated adjusted EBITDA of $400 million to $440 million in 2026. Larson said first-half performance increased confidence in the company’s outlook. However, Oceaneering lowered its outlook for IMDS, citing ongoing uncertainty in the Middle East and reduced activity in West Africa. Management now expects IMDS operating income to decrease significantly compared with full-year 2025, with operating income margin in the low single-digit percentage range. Summerall said second-quarter IMDS revenue, operating income and margin declined due to lower activity, related cost absorption and increased personnel costs in West Africa and the Middle East. During the question-and-answer portion of the call, Larson said offshore activity appears to be rising, though he does not expect a sharply defined inflection point. He cited longer contracts for rigs and ROVs, greater rig utilization and higher levels of contracted rigs as indicators of improving demand. Larson said SSR should benefit from increased rig utilization and strong tree orders and installations, while OPG should benefit from longer-term confidence in offshore projects. Summerall added that longer-term rig contracts are a positive macro indicator. Discussing regional opportunities, Larson identified Brazil as a key growth market, pointing to Petrobras activity and the company’s recently announced ROV contract in the country. He also cited Africa, including activity around Namibia and Senegal, as well as Australia and the Far East. Summerall also pointed to Norway and activity tied to Equinor as relevant to European energy security. On defense spending, Larson said the company is seeing more inbound interest than it did three or four years ago, particularly from partners seeking Oceaneering’s offshore operating experience. Summerall said the company participates in both submarine repair and construction and autonomy-related defense work, including lower-cost uncrewed technologies. Oceaneering International, Inc is a global provider of engineered services and products primarily to the offshore oil and gas industry, as well as to aerospace, defense, and commercial diving markets. The company specializes in remotely operated vehicles (ROVs), subsea intervention, and inspection services designed to support exploration, production and maintenance activities in challenging underwater environments. In addition to ROV operations, Oceaneering offers asset integrity solutions, specialized tooling, and intervention equipment for pipelines, risers, and flowlines. Founded in 1964 and headquartered in Houston, Texas, Oceaneering has grown through both organic expansion and strategic acquisitions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Oceaneering International Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Oceaneering International, Inc. OII reported second-quarter 2026 earnings of 65 cents per share, up from 54 cents in the year-ago quarter. Higher year-over-year operating income from the company's Subsea Robotics, Manufactured Products, Offshore Projects Group and Aerospace and Defense Technologies segments contributed to this improvement. Total revenues were $768.2 million, increased approximately 10% from the year-ago quarter’s $698.2 million. This increase reflected revenue growth across all segments except Integrity Management & Digital Solutions. Oceaneering International, Inc. price-consensus-eps-surprise-chart | Oceaneering International, Inc. Quote In the second quarter of 2026, the Houston, TX-based oil and gas equipment and services company reported adjusted EBITDA of $114.5 million, up 10.9% year over year. Operating income increased 11% year over year to $88.2 million. Gross margin expanded to $157 million from $148.4 million, reflecting revenue growth and improved performance across most operating segments. Subsea Robotics (SSR): The unit provides remotely operated submersible vehicles for drill support, vessel-based inspection, subsea hardware installation, pipeline surveys and maintenance services. Revenues totaled $232 million compared with the year-ago quarter’s $218.8 million. The segment also reported an operating income of $66.3 million compared with $64.5 million a year ago. The company's segment delivered an EBITDA margin of 35% in the second quarter of 2026, flat compared with the year-ago quarter. Revenue per day for remotely operated vehicles (“ROV”) rose to $11,894, while ROV fleet utilization slightly decreased to 66%. Manufactured Products: The segment focuses on the manufactured products business, theme park entertainment systems and automated guided vehicles. Revenues totaled $149 million compared with the year-ago quarter’s $145.1 million. The segment posted an operating profit of $21.9 million in the second quarter, up from the year-ago quarter’s $18.8 million. The backlog totaled $445 million as of June 30, 2026, down 13.8% from the same time in 2025. For the 12 months ending June 30, 2026, the book-to-bill ratio was 0.88. Offshore Projects Group (OPG): This segment involves Oceaneering’s former Subsea Projects unit, excluding survey services and global data solutions, the service and rental business and ROV tooling. Revenues increased about 22.5% to $182.8 million from $149.3 million in the year-ago quarter. The unit’s operating income totaled $30 million compared with the prior-year quarter’s $21.7 million. The company’s operating income margin slightly increased to 16% from the prior-year quarter’s 15%, reflecting favorable project mix and disciplined execution. Integrity Management & Digital Solutions (IMDS): This segment covers Oceaneering’s Asset Integrity unit, along with its global data solutions business. Revenues of $70.8 million decreased from the year-ago quarter’s $75.4 million. Operating income decreased to $0.1 million from $4.6 million due to lower activity, weaker cost absorption and higher personnel-related costs in West Africa and the Middle East. Aerospace and Defense Technologies (ADTech): The segment is engaged in Oceaneering’s government business, which focuses on defense subsea technologies, marine services and space systems. Revenues totaled $133.5 million, up from $109.6 million recorded in the second quarter of 2025. The operating income increased to $16.4 million from $16.3 million in the year-ago quarter. Operating income margin decreased to 12% from 15% in the year-ago quarter due to program mix and timing. The capital expenditure in the second quarter, including acquisitions, totaled $30.8 million. As of June 30, 2026, OII had cash and cash equivalents worth $629.5 million and $688.9 million, respectively, along with a long-term debt of about $490.2 million. The debt-to-capitalization was 29.6%. The company repurchased 263,335 shares for approximately $10 million. OII also issued $500 million of senior notes due 2034 and increased its revolving credit commitments to $345 million from $215 million. This Zacks Rank #3 (Hold) company expects consolidated revenues to increase in the third quarter of 2026, with EBITDA projected in the range of $115 million to $125 million. At the segment level, SSR is expected to post growth in both revenues and operating income. Manufactured Products is projected to witness slight declines in revenues and operating income. OPG is anticipated to deliver increases in both revenues and operating income. IMDS revenues are expected to increase, while operating income is likely to remain relatively flat. Meanwhile, ADTech is forecasted to report higher revenues and operating income. Unallocated expenses are expected to be in the $50 million range. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Management expressed confidence in the company's outlook for the remainder of 2026, supported by strong first-half execution, healthy demand across most of its businesses and an improved financial position. The company expects offshore activity to continue strengthening, driven by higher rig utilization, longer-duration contracts and sustained demand for subsea services. Management also expects Subsea Robotics to benefit from higher ROV utilization and continued survey vessel activity, while the Manufactured Products backlog is anticipated to improve in the second half of 2026, supported by recent contract awards and additional opportunities in the sales pipeline. Despite ongoing uncertainty in the Middle East and lower activity in West Africa affecting the IMDS business, management believes the performance of its other operating segments remains in line with or ahead of prior expectations. The company updated its full-year 2026 consolidated adjusted EBITDA outlook to a range of $400 million to $440 million. OII retained its previously issued consolidated and segment guidance, except that IMDS operating income is now expected to decline significantly, with the operating income margin projected to be in the low-single-digit percentage range. While we have discussed OII’s second-quarter results in detail, let us take a look at three other key reports in the energy space. Houston, TX-based oil and gas equipment and services provider Halliburton HAL posted second-quarter 2026 adjusted net income per share of 55 cents, marginally beating the Zacks Consensus Estimate of 54 cents. The outperformance was backed by year-over-year revenue growth. However, the bottom line was flat compared with the prior-year level. As of June 30, 2026, Halliburton had approximately $2 billion in cash and cash equivalents and $7.1 billion in long-term debt, representing a debt-to-capitalization of 39%. Fort Worth, TX-based oil and gas exploration and production company Range Resources Corporation RRC reported second-quarter 2026 adjusted earnings of 79 cents per share, up 19.7% from 66 cents a year ago. Range Resources’ bottom line topped the Zacks Consensus Estimate of 56 cents by 41.1%. Strong quarterly results are driven by higher production and improved price realization. Range Resources’ net debt was $880.8 million at June 30, 2026, down 28% from $1.22 billion at year-end 2025. It repurchased $78 million of shares and paid $24 million in dividends during the quarter. Houston, TX-based oil and gas storage and transportation company Kinder Morgan, Inc. KMI reported second-quarter 2026 adjusted earnings of 37 cents per share, beating the Zacks Consensus Estimate of 31 cents by 19.35%. Earnings increased 32.1% from 28 cents per share in the year-ago quarter. Strong quarterly results benefited from broad-based segment growth, led by higher natural gas transportation and gathering volumes. Natural gas transport volumes rose 7%, while gathering volumes increased 26%. As of June 30, 2026, Kinder Morgan reported $89 million in cash and cash equivalents. Kinder Morgan’s net debt stood at $32.03 billion at quarter-end. The net debt-to-adjusted EBITDA ratio improved to 3.6X from 3.8X at the end of 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Oceaneering International, Inc. (OII) : Free Stock Analysis Report Halliburton Company (HAL) : Free Stock Analysis Report Range Resources Corporation (RRC) : Free Stock Analysis Report Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Oceaneering International Inc (NYSE:OII) exceeded the high end of their EBITDA guidance range, achieving their highest quarterly adjusted EBITDA since Q3 2015. The Offshore Projects Group (OPG) led year-over-year improvements, contributing significantly to the second-quarter EBITDA outperformance. Subsea Robotics (SSR) saw improved results with increased survey activity and higher average ROV revenue per day. The company secured new contract awards across various segments, including a significant award for ROV services in Brazil, enhancing future demand visibility. Oceaneering International Inc (NYSE:OII) strengthened its capital structure by extending debt maturities and increasing the size of its credit facility, providing additional financial flexibility. Integrity Management and Digital Solutions (IMDS) experienced a decrease in revenue and operating income due to lower activity levels and increased personnel-related costs. Free cash flow decreased year-over-year, primarily due to the timing of project milestones, customer receipts, and vendor payments. ROV utilization slightly decreased to 66% from 67% in the same period last year, with lower activity in the U.S. Gulf. The backlog for manufactured products decreased to $445 million, reflecting the execution of previously awarded work. AdTech's operating income margin declined to 12%, reflecting changes in program mix and timing in the Oceaneering Technologies (OTECH) business line. Warning! GuruFocus has detected 7 Warning Sign with ACU. Is OII fairly valued? Test your thesis with our free DCF calculator. Q: With the recent refinancing and a strong net cash position, what are your thoughts on capital allocation and potential opportunities? A: Rod Larson, President and CEO, stated that the focus remains on organic growth first, followed by inorganic growth, and then returning capital to shareholders through share buybacks. The company plans to invest in its energy business, particularly in high-performing areas, and explore opportunities in the defense sector. Share buybacks will continue opportunistically. Q: Looking ahead to Q4 and next year, how do you expect ROV utilization and OPG's growth trajectory to evolve? A: Rod Larson noted that increased rig utilization and strong tree installations bode well for ROVs. OPG's growth is expected to be sustainable, with longer-term confidence in projects and increased activity, particularly in the U.S. Gulf and West Africa. Q: Can you provide insights into discussions with NOCs regarding energy security and potential growth areas? A: Rod Larson highlighted Brazil as a key area of activity, with strong interest from Petrobras. Africa, particularly Namibia and Senegal, and Australia are also promising regions. The company sees long-term opportunities in these areas, driven by geopolitical factors and energy security concerns. Q: Regarding defense contracts, how do you view the partnership with Kongsberg and the potential for growth in defense spending? A: Rod Larson explained that while defense contracts are currently lumpy, the business is expected to stabilize as it grows. The company is involved in multi-year projects and sees opportunities in both traditional defense areas and emerging technologies, such as autonomy. Q: What are your expectations for offshore activity and ROV utilization in the coming years? A: Rod Larson anticipates a gradual increase in offshore activity, with ROV utilization potentially moving into the 70s over the next few years. The company expects continued growth in rig utilization and longer-term contracts, supporting a positive outlook for ROVs. For the complete transcript of the earnings call, please refer to the full earnings call transcript.