Oceaneering Reports Second Quarter 2025 Results
Rod Larson, Oceaneering's President and Chief Executive Officer, stated, "I am pleased to report another strong quarter, in which we delivered the considerable quarterly year-over-year increases noted above. We achieved these results through commencement of recent contract awards in Aerospace and Defense Technologies (ADTech), favorable service mix and strong execution in our Offshore Projects Group (OPG), conversion of higher margin backlog in Manufactured Products, and continued progression of remotely operated vehicle (ROV) day rates. As expected, all of our operating segments produced quarterly year-over-year improvements in revenue, operating income, and operating income margin."
Second Quarter 2025 Segment Results
As compared to the second quarter of 2024:
Subsea Robotics (SSR) operating income improved 4% to $64.5 million on a 2% increase in revenue. EBITDA margin expanded slightly to 35% on improved ROV revenue per day utilized, which increased to $11,265. ROV fleet utilization was 67%.
Manufactured Products operating income of $18.8 million improved 31% on a 4% increase in revenue, with operating income margin expanding to 13%. Backlog was $516 million on June 30, 2025. The book-to-bill ratio was 0.65 for the 12-month period ending on June 30, 2025.
OPG operating income increased 64% to $21.7 million on a 4% increase in revenue. Operating income margin improved to 15%.
Integrity Management and Digital Solutions (IMDS) operating income increased 34% to $4.6 million and operating income margin improved to 6% on relatively flat revenue.
ADTech operating income of $16.3 million represented an increase of 125% on a 13% increase in revenue. Operating income margin expanded to 15%.
At the corporate level, Unallocated Expenses were $46.7 million.
Third Quarter 2025 Guidance
As compared to the third quarter of 2024, consolidated third quarter 2025 revenue is expected to increase and consolidated EBITDA is forecasted to be in the range of $100 million to $110 million.
At the segment level, for the third quarter of 2025, as compared to the third quarter of 2024:
SSR revenue and operating profitability are expected to increase.
Manufactured Products operating profitability is projected to increase significantly on increased revenue.
OPG operating profitability is expected to decrease on relatively flat revenue.
IMDS operating profitability is projected to increase significantly on relatively flat revenue.
ADTech revenue and operating profitability are forecasted to increase significantly.
Unallocated Expenses are expected to be in the $45 million to $50 million range.
Full-year 2025 consolidated and segment guidance remains the same except as follows:
Consolidated revenue is expected to grow in the mid-single digit percent range;
Consolidated adjusted EBITDA is expected to be in the range of $390 million to $420 million;
SSR revenue is expected to grow in the mid-single digit percent range due to lower than expected contributions from our Survey business;
ROV fleet utilization is expected to be in the mid- to high-60 percent range; and
IMDS operating income margin is expected to be in the mid-single digit percent range.
Non-GAAP Financial Measures
Adjusted net income (loss) and earnings (loss) per share; EBITDA and adjusted EBITDA on a consolidated and on a segment basis (as well as EBITDA and adjusted EBITDA margins); and free cash flow are non-GAAP measures that exclude the impacts of certain identified items. Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS), EBITDA and Adjusted EBITDA and Margins, Free Cash Flow, 2025 Consolidated EBITDA Estimates, 2025 Free Cash Flow Estimate, and EBITDA and Adjusted EBITDA and Margins by Segment. These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information.
Conference Call Details
Oceaneering has scheduled a conference call and webcast on Thursday, July 24, 2025 at 10:00 a.m. Central Time, to discuss its results for the second quarter of 2025 and guidance for the third quarter and full year of 2025. Interested parties may listen to the call through a webcast link posted in the Investor Relations section of Oceaneering's website. A replay of the conference call will be made available on the website approximately two hours following the conclusion of the live call.
Forward-Looking Statements
This release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs, future expected business, and financial performance and prospects of Oceaneering. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering's: full-year 2025 guidance range for consolidated revenue, consolidated adjusted EBITDA, SSR revenue and expected results of the Survey business, ROV fleet utilization, and IMDS operating income margin; third quarter 2025 guidance for consolidated revenue, consolidated EBITDA, revenue and operating profitability by segment, and Unallocated Expenses; and the characterization, whether positive or otherwise, of market fundamentals, conditions, and dynamics, robotics markets, offshore energy activity levels (including by geographic location), pricing levels, day rates, ROV days utilized, average ROV revenue per day utilized, vessel utilization, growth, bidding activity, outlook, performance, opportunities, and future financials, including as increasing, favorable, positive, encouraging, improving, seasonal, strong, supportive, robust, meaningful, considerable, healthy, or significant (which is used herein to indicate a change of 20% or greater).
The forward-looking statements included in this release are based on Oceaneering's current expectations and are subject to certain risks, assumptions, trends, and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could cause actual results to differ materially include: factors affecting the level of activity in the oil and gas industry, including worldwide demand for and prices of oil and natural gas, oil and natural gas production growth, and the supply and demand of offshore drilling rigs; the indirect consequences of climate change and climate-related business trends; actions by members of OPEC and other oil exporting countries; decisions about offshore developments to be made by oil and gas exploration, development, and production companies; the use of subsea completions and our ability to capture associated market share; general economic and business conditions and industry trends and uncertainty, including those related to tariffs and retaliatory tariffs; the strength of the industry segments in which we are involved; cancellations of contracts, customer contract disputes, change orders, and other contractual modifications, force majeure declarations, and the exercise of contractual suspension rights and the resulting adjustments to our backlog; collections from our customers; our future financial performance, including as a result of the availability, terms, and deployment of capital; the consequences of significant changes in currency exchange rates; the volatility and uncertainties of credit markets; changes in data privacy and security laws, regulations, and standards; changes in tax laws, regulations, and interpretation by taxing authorities; changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment; the continued availability of qualified personnel; our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources; operating risks normally incident to offshore exploration, development, and production operations; hurricanes and other adverse weather and sea conditions; cost and time associated with drydocking of our vessels; the highly competitive nature of our businesses; adverse outcomes from legal or regulatory proceedings; the risks associated with integrating businesses we acquire; rapid technological changes; and social, political, military, and economic situations in foreign countries where we do business and the possibilities of civil disturbances, war, other armed conflicts, or terrorist attacks. For a more complete discussion of these and other risk factors, please see Oceaneering's latest annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements. Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement.
About Oceaneering
Oceaneering is a global technology company delivering engineered services and products and robotic solutions to the offshore energy, defense, aerospace, and manufacturing industries.
For more information, please visit www.oceaneering.com.
SEGMENT INFORMATION
For the Three Months Ended
For the Six Months Ended
Jun 30, 2025
Jun 30, 2024
Mar 31, 2025
Jun 30, 2025
Jun 30, 2024
($ in thousands)
Subsea Robotics
Revenue
$
218,786
$
214,985
$
205,976
$
424,762
$
401,917
Operating income (loss)
$
64,505
$
61,750
$
59,632
$
124,137
$
105,987
Operating income (loss) %
29
%
29
%
29
%
29
%
26
%
ROV days available
22,750
22,750
22,500
45,250
45,500
ROV days utilized
15,289
15,839
15,093
30,382
30,375
ROV utilization
67
%
70
%
67
%
67
%
67
%
Manufactured Products
Revenue
$
145,134
$
139,314
$
135,037
$
280,171
$
268,767
Operating income (loss)
$
18,772
$
14,369
$
8,667
$
27,439
$
27,559
Operating income (loss) %
13
%
10
%
6
%
10
%
10
%
Backlog at end of period
$
516,000
$
713,000
$
543,000
$
516,000
$
713,000
Offshore Projects Group
Operating income (loss)
$
21,663
$
13,248
$
35,666
$
57,329
$
14,092
Operating income (loss) %
15
%
9
%
22
%
18
%
5
%
Integrity Management & Digital Solutions
Revenue
$
75,367
$
73,492
$
71,418
$
146,785
$
143,182
Operating income (loss)
$
4,647
$
3,473
$
3,462
$
8,109
$
7,088
Operating income (loss) %
6
%
5
%
5
%
6
%
5
%
Aerospace and Defense Technologies
Revenue
$
109,593
$
96,959
$
97,151
$
206,744
$
194,922
Operating income (loss)
$
16,299
$
7,244
$
10,665
$
26,964
$
20,052
Operating income (loss) %
15
%
7
%
11
%
13
%
10
%
Unallocated Expenses
Operating income (loss)
$
(46,697
)
$
(39,720
)
$
(44,620
)
$
(91,317
)
$
(77,721
)
Total
Revenue
$
698,161
$
668,808
$
674,523
$
1,372,684
$
1,267,900
Operating income (loss)
$
79,189
$
60,364
$
73,472
$
152,661
$
97,057
Operating income (loss) %
11
%
9
%
11
%
11
%
8
%
The above Segment Information does not include adjustments for non-recurring transactions. See the tables below under the caption "Reconciliations of Non-GAAP to GAAP Financial Information" for financial measures that our management considers in evaluating our ongoing operations.
Expand
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release also includes non-GAAP financial measures (as defined under certain rules and regulations promulgated by the Securities and Exchange Commission). We have included adjusted net income (loss) and diluted earnings (loss) per Share (EPS), each of which excludes the effects of certain specified items, as set forth in the tables that follow. As a result, these amounts are non-GAAP financial measures. We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business. Furthermore, our management uses these measures as measures of the performance of our operations. We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins, 2024 consolidated adjusted EBITDA and free cash flow, and 2025 consolidated EBITDA and free cash flow estimates, as well as the following by segment: EBITDA, EBITDA margins, adjusted EBITDA, and adjusted EBITDA margins. We define EBITDA margin as EBITDA divided by revenue. Adjusted EBITDA and adjusted EBITDA margins and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow. Due to the forward-looking nature of EBITDA for the third quarter of 2025 and for the full year of 2025, we cannot reliably predict certain of the necessary line items for the reconciliations to net income and, accordingly, have excluded such line items in the reconciliation. EBITDA and EBITDA margins, adjusted EBITDA and adjusted EBITDA margins, and related information by segment are each non-GAAP financial measures. We define free cash flow as cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions). We have included these disclosures in this press release because EBITDA, EBITDA margins, and free cash flow are widely used by investors for valuation purposes and for comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof provide more consistent measures than the unadjusted amounts. Furthermore, our management uses these measures for purposes of evaluating our financial performance. Our presentation of EBITDA, EBITDA margins, and free cash flow (and the adjusted amounts thereof) may not be comparable to similarly titled measures that other companies report. Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows, or any other measure prepared and reported in accordance with GAAP. The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.
For the Three Months Ended June 30, 2025
SSR
MP
OPG
IMDS
ADTech
Unallocated
Expenses
and other
Total
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP
$
64,505
$
18,772
$
21,663
$
4,647
$
16,299
$
(46,697
)
$
79,189
Adjustments for the effects of:
Depreciation and amortization
12,385
2,741
4,663
1,839
900
2,872
25,400
Other pre-tax
—
—
—
—
—
4,092
4,092
EBITDA
76,890
21,513
26,326
6,486
17,199
(39,733
)
108,681
Adjustments for the effects of:
Foreign currency (gains) losses
—
—
—
—
—
(5,430
)
(5,430
)
Total of adjustments
—
—
—
—
—
(5,430
)
(5,430
)
Adjusted EBITDA
$
76,890
$
21,513
$
26,326
$
6,486
$
17,199
$
(45,163
)
$
103,251
Revenue
$
218,786
$
145,134
$
149,281
$
75,367
$
109,593
$
698,161
Operating income (loss) % as reported in accordance with GAAP
29
%
13
%
15
%
6
%
15
%
11
%
EBITDA Margin
35
%
15
%
18
%
9
%
16
%
16
%
Adjusted EBITDA Margin
35
%
15
%
18
%
9
%
16
%
15
%
For the Three Months Ended June 30, 2024
SSR
MP
OPG
IMDS
ADTech
Unallocated
Expenses
and other
Total
($ in thousands)
Adjustments for the effects of:
Depreciation and amortization
11,981
3,237
5,584
1,803
616
2,759
25,980
Other pre-tax
—
—
—
—
—
550
550
EBITDA
73,731
17,606
18,832
5,276
7,860
(36,411
)
86,894
Adjustments for the effects of:
Foreign currency (gains) losses
—
—
—
—
—
(1,034
)
(1,034
)
Total of adjustments
—
—
—
—
—
(1,034
)
(1,034
)
Adjusted EBITDA
$
73,731
$
17,606
$
18,832
$
5,276
$
7,860
$
(37,445
)
$
85,860
Revenue
$
214,985
$
139,314
$
144,058
$
73,492
$
96,959
$
668,808
Operating income (loss) % as reported in accordance with GAAP
29
%
10
%
9
%
5
%
7
%
9
%
EBITDA Margin
34
%
13
%
13
%
7
%
8
%
13
%
Adjusted EBITDA Margin
34
%
13
%
13
%
7
%
8
%
13
%
Expand
For the Three Months Ended March 31, 2025
SSR
MP
OPG
IMDS
ADTech
Unallocated
Expenses
and other
Total
($ in thousands)
Adjustments for the effects of:
Depreciation and amortization
11,736
2,650
4,689
1,730
833
2,810
24,448
Other pre-tax
—
—
—
—
—
(219
)
(219
)
EBITDA
71,368
11,317
40,355
5,192
11,498
(42,029
)
97,701
Adjustments for the effects of:
Foreign currency (gains) losses
—
—
—
—
—
(1,050
)
(1,050
)
Total of adjustments
—
—
—
—
—
(1,050
)
(1,050
)
Adjusted EBITDA
$
71,368
$
11,317
$
40,355
$
5,192
$
11,498
$
(43,079
)
$
96,651
Revenue
$
205,976
$
135,037
$
164,941
$
71,418
$
97,151
$
674,523
Operating income (loss) % as reported in accordance with GAAP
29
%
6
%
22
%
5
%
11
%
11
%
EBITDA Margin
35
%
8
%
24
%
7
%
12
%
14
%
Adjusted EBITDA Margin
35
%
8
%
24
%
7
%
12
%
14
%
Expand
EBITDA and Adjusted EBITDA and Margins by Segment
For the Six Months Ended June 30, 2025
SSR
MP
OPG
IMDS
ADTech
Unallocated
Expenses
and other
Total
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP
$
124,137
$
27,439
$
57,329
$
8,109
$
26,964
$
(91,317
)
$
152,661
Adjustments for the effects of:
Depreciation and amortization
24,121
5,391
9,352
3,569
1,733
5,682
49,848
Other pre-tax
—
—
—
—
—
3,873
3,873
EBITDA
148,258
32,830
66,681
11,678
28,697
(81,762
)
206,382
Adjustments for the effects of:
Foreign currency (gains) losses
—
—
—
—
—
(6,480
)
(6,480
)
Total of adjustments
—
—
—
—
—
(6,480
)
(6,480
)
Adjusted EBITDA
$
148,258
$
32,830
$
66,681
$
11,678
$
28,697
$
(88,242
)
$
199,902
Revenue
$
424,762
$
280,171
$
314,222
$
146,785
$
206,744
$
1,372,684
Operating income (loss) % as reported in accordance with GAAP
29
%
10
%
18
%
6
%
13
%
11
%
EBITDA Margin
35
%
12
%
21
%
8
%
14
%
15
%
Adjusted EBITDA Margin
35
%
12
%
21
%
8
%
14
%
15
%
For the Six Months Ended June 30, 2024
SSR
MP
OPG
IMDS
ADTech
Unallocated
Expenses
and other
Total
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP
$
105,987
$
27,559
$
14,092
$
7,088
$
20,052
$
(77,721
)
$
97,057
Adjustments for the effects of:
Depreciation and amortization
24,791
6,412
12,019
3,062
1,219
5,535
53,038
Other pre-tax
—
—
—
—
—
720
720
EBITDA
130,778
33,971
26,111
10,150
21,271
(71,466
)
150,815
Adjustments for the effects of:
Foreign currency (gains) losses
—
—
—
—
—
(3,231
)
(3,231
)
Total of adjustments
—
—
—
—
—
(3,231
)
(3,231
)
Adjusted EBITDA
$
130,778
$
33,971
$
26,111
$
10,150
$
21,271
$
(74,697
)
$
147,584
Revenue
$
401,917
$
268,767
$
259,112
$
143,182
$
194,922
$
1,267,900
Operating income (loss) % as reported in accordance with GAAP
26
%
10
%
5
%
5
%
10
%
8
%
EBITDA Margin
33
%
13
%
10
%
7
%
11
%
12
%
Adjusted EBITDA Margin
33
%
13
%
10
%
7
%
11
%
12
%
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Outside of competition, macroeconomic pressure like an interest rate hike or even a full-blown recession could cause public-sector clients to cut their enterprise AI budgets with Palantir. As a public company and a volatile growth stock, the firm's price could also swing from inflation or a downturn, affecting investors in Palantir. Likewise, a pullback in tech spending could also cause a depression in stock price. Investor Sentiment Investor enthusiasm for Palantir is high especially among younger investors and those who see its long-term potential from an AI implementation perspective. Palantir boasts a visionary CEO, exciting contracts with the federal government and advanced technology that the public sector is implementing. Despite this public market bullishness, critics highlight that Palantir's high valuation is driven by excitement over AI potential and that investor sentiment could reverse if earnings fail to keep pace. Analyst Forecasts And Price Targets Analysts are split on the future price of Palantir, with a majority of 25 analysts proposing a 'hold' rating on Palantir, according to Yahoo Finance. Price targets from analysts range from $100.39 to $178, highlighting a split in expectations from professionals. Depending on factors like leadership in AI, high growth and seizing of new market opportunities, Palantir could soar or fall from its current high. The Bull Case For Palantir Stock In The Next 5 Years The bull case for Palantir follows that the firm's platforms like Gotham and Founder become leaders in their respective industries capturing key contracts from both the public and private sector. With new contracts and reliance by leading firms and agencies, Palantir's revenue would continue to rise leading to a capturing of new highs at $178. Palantir also continues to capture new markets in areas like security and data analytics with industries as broad as intelligence to healthcare. With continued expansion, the bull case for Palantir seems more likely. The Bear Case For Palantir Stock In The Next 5 Years In a bear case scenario, Palantir's growth could slow due to both competition and the rise of regulatory pressure leading to a fall to $100 per share. A risk area could include competitors like AWS and Google capturing more market share or the loss of government contracts, especially with a change in presidential administration or congress. Another risk is slowing growth in the economy which would negatively affect revenue and cause a drop in share price. Another key factor is execution and sentiment risk. If the team can't follow through on their ambitious plans, the firm may not be able to scale effectively and collapse on its promises. If AI implementation doesn't follow through as expected or enthusiasm wanes, Palantir's share price could also be affected. Bottom Line Palantir is riding a wave as one of the best stocks of 2025, specifically from a growth perspective, with its stock price doubling in 2025. While the firm originated as a defense-oriented firm servicing the U.S. government's many agencies, the firm has diversified tremendously as a commercial powerhouse providing AI services as well as data analysis features. Based on previous performance and the savviness of its leadership team, it's more than likely that the stock will continue to rise in value, depending on key factors as discussed. Frequently Asked Questions (FAQs) Is Palantir Stock A Good Investment For The Next 5 Years? Palantir has the potential to be a good investment over the next five years depending on whether it can execute on its aggressive plans to be implemented broadly in the private and public sector. What Are Analysts Stating About Palantir's Long-term Outlook? Analyst opinions range for Palantir's stock from more bullish analysts estimating $300 in the next five years to more bearish analysts estimating only up to $100. How Much Will Palantir Stock Be In 5 Years? Estimates for Palantir's stock in five years range from a decrease to $75 in a bear case to $500 in a bull case but most estimates range from $100 to $300.
Yahoo
2 hours ago
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A 12-Stock Sane Portfolio for Crazy Times
August 4, 2025 -- (Maple Hill Syndicate) In today's higher-tariff world, where political and geopolitical clashes are harsh, you might want to take your stock portfolio's risk level down a notch. Perhaps the Sane Portfolio can be of some help. This is a theoretical portfolio, intended to be slightly on the low-risk side of the risk spectrum. It contains a dozen stocks, and I refresh the list once a year. To get in, a stock must meet seven criteria, described below. Once I choose a stock, it stays in unless it flunks one of the seven criteria. Warning! GuruFocus has detected 4 Warning Signs with BCC. Over 23 years, the Sane Portfolio has averaged an 11.2% annual return. That slightly beats the Standard & Poor's 500 Total Return Index, with an average return of 10.8%. My column results are hypothetical and shouldn't be confused with results I obtain for clients. Past performance doesn't predict the future. My list from a year ago trailed far behind the S&P. It posted a 6.9% return while the index returned 21.9%. My worst performer was Boise Cascade Co. (NYSE:BCC), down 30%. My best was Monarch Casino & Resort Inc. (NASDAQ:MCRI), up 45%. Seven Boxes To be eligible for the Sane Portfolio, a stock must satisfy seven criteria. No single criterion is especially hard, but few companies can check all seven boxes. Market value of at least $1 billion. Debt less than stockholders' equity. Return on stockholders' equity of 10% or better. Stock price less than 18 times per-share earnings. Stock price less than 3 times per-share sales. Stock price less than 3 times book value (corporate net worth per share). Five-year earnings growth averaging 5% per year or better. This year, seven Sane Portfolio companies stay on from previous years. Winning Streaks D.R. Horton Inc. (NYSE:DHI), the nation's largest homebuilder, is back for a sixth consecutive year. Many buyers can't afford a home at today's mortgage rates. So, Horton's latest year was soggy, but it has grown revenue at a 17% clip for the past decade. Back for a fifth year is Paccar Inc. (NASDAQ:PCAR), which builds heavy trucks (Kenworth and Peterbilt). The latest year has been rough. Companies have been reluctant to spend on trucks, amid tariff uncertainty. But Paccar has achieved 11% annual earnings growth in the past decade. Boise Cascade Co. (NYSE:BCC) of Boise, Idaho, which makes engineered-wood products and plywood, hangs in there for a fourth year. As noted above, this stock was a dog in the past twelve months. However, the stock looks cheap to me at about 10 times earnings. After a gain of around 30% in the past 12 months, W.R. Berkley Corp. (NYSE:WRB) returns for a third engagement. It's a commercial casualty insurance company based in Greenwich, Connecticut. Second-Timers Three companies are in the Sane Portfolio as sophomores. One is EOG Resources Inc. (NYSE:EOG), a big Houston-based oil and gas producer that emerged from the remnants of the Enron empire. Its profitability is impressive, with a 21% return on stockholders' equity. Another sophomore is Academy Sports & Outdoors Inc. (NASDAQ:ASO), a chain of sporting goods stores headquartered in Katy, Texas. I'm concerned that it gets a lot of its merchandise from China, so it may be hard-hit by tariffs. If it can stay on this roster another year, I'll be impressed. Returning, too, is Photronics Inc. (NASDAQ:PLAB), which makes photomasks using in manufacturing semiconductor chips. Profits vary from year to year, but the company, based in Brookfield, Connecticut, has shown positive earnings ten years in a row. Newbies Five companies dropped out of the Sane Portfolio, giving me five slots to fill. I'll start with Axcelis Technologies Inc. (NASDAQ:ACLS), based in Beverly, Massachusetts. Like Photronics, it makes equipment for manufacturing semiconductor chips. Its specialty is ion implantation. Block Inc. (NYSE:XYZ) operates the Square payments system. Small businesses like its hardware and software, and it's been growing nicely. Profits have shot up at a 30% annual rate the past five years. Cactus Inc. (NYSE:WHD), which makes oil-drilling equipment, is based in (where else?) Houston, Texas. I particularly like its balance sheet, with debt only 4 percent of stockholders' equity. Cigna Group (NYSE:CI), one of the largest U.S. health insurers, has been a stodgy stock. But I think it would hold up well if the market turns rocky. Analysts expect earnings to rise. Crocs Inc. (NASDAQ:CROX) makes casual shoes with holes for ventilation or decoration. It was a fad stock several years ago, rising 104% from mid-2006 to the end of 2007. Now it seems attractively cheap to me at six times earnings. Disclosure: I own D.R. Horton for one client. John Dorfman is chairman of Dorfman Value Investments LLC in Boston, Massachusetts, and a syndicated columnist. His firm or clients may own or trade securities discussed in this column. He can be reached at jdorfman@ This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
