Oceaneering International Inc (OII) Q4 2024 Earnings Call Highlights: Record Revenue and ...
Order Intake: $2.9 billion in 2024.
Share Repurchase: Approximately $20 million in shares repurchased.
ROV Uptime Rate: 99% at year-end 2024.
EBITDA Margin (SSR): Improved by 361 basis points, exiting 2024 at 36%.
Quarterly Revenue: Highest since Q4 2015.
Adjusted EBITDA: Surpassed $100 million for the first time since Q2 2016.
Net Income (Q4 2024): $56.1 million or $0.55 per share, a 26% year-over-year increase.
Consolidated Revenue (Q4 2024): $713 million, 9% higher year-over-year.
Operating Income (Q4 2024): $77.9 million, 64% higher year-over-year.
Adjusted EBITDA (Q4 2024): $102 million, a 35% increase year-over-year.
Cash from Operating Activities (Q4 2024): $128 million.
Organic Capital Expenditures (Q4 2024): $34 million.
Free Cash Flow (Q4 2024): $94.5 million.
Cash Balance (End of 2024): $498 million.
SSR Operating Income (Q4 2024): $63.5 million, 26% higher year-over-year.
ROV Revenue Per Day Utilized: $10,786, a 12% year-over-year increase.
Manufactured Products Revenue (Q4 2024): $143 million, 8% increase year-over-year.
OPG Revenue (Q4 2024): $184 million, 14% increase year-over-year.
Consolidated Revenue (Full Year 2024): $2.7 billion, a 10% increase from 2023.
Operating Income (Full Year 2024): $246 million, a 36% increase from 2023.
Adjusted EBITDA (Full Year 2024): $347 million, a 20% increase from 2023.
Free Cash Flow (Full Year 2024): $96.1 million.
2025 Revenue Growth Projection: Mid- to high single digits.
2025 EBITDA Guidance: $380 million to $430 million.
2025 Free Cash Flow Projection: $110 million to $130 million.
Warning! GuruFocus has detected 3 Warning Sign with PRMB.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Oceaneering International Inc (NYSE:OII) recorded a notable order intake of $2.9 billion in 2024, reflecting strong customer confidence.
The company achieved its highest quarterly revenue since the fourth quarter of 2015 and surpassed $100 million in adjusted EBITDA for the first time since the second quarter of 2016.
OII reported a 26% year-over-year increase in net income for the fourth quarter of 2024, with consolidated revenue up by 9%.
The Subsea Robotics (SSR) segment saw a 361 basis point improvement in EBITDA margin year-over-year, exiting 2024 at 36%.
Oceaneering International Inc (NYSE:OII) demonstrated a strong commitment to safety, achieving a 56% reduction in high potential incidents in 2024.
The manufactured products segment experienced a decline in operating income margin to 3% due to a reserve taken on an umbilical project.
The book-to-bill ratio for the full year of 2024 was lower than expected at 0.97, compared to 1.31 in 2023.
Integrity Management and Digital Solutions (IMDS) saw a decrease in operating income margin from 5% to 3% in the fourth quarter.
Aerospace and Defense Technologies (ADTech) experienced a decline in operating income margin to 10% due to changes in project mix.
Cash flow from operations declined by $6.7 million in 2024 compared to 2023, attributed to increased net working capital and cash taxes.
Q: The upward progression of your ROV average revenue per day has been impressive. Has the increase in pricing been driven more by drilling support or vessel-based work? Do you expect a flattish trajectory or surpassing $11,000 a day as we move through the year? A: The pricing improvements are coming from both drilling support and vessel-based work. We expect activity to be flattish, but we anticipate further price realization through 2025, despite flat days. We continue to demonstrate value with 99% uptime, which supports price improvements over time. - Roderick Larson, President, CEO
Q: Your book-to-bill ratio for manufactured products was about 1 times for 2024, a decrease from 1.3 times in 2023. Is there any guidance for orders or book-to-bill for this year? A: We haven't provided specific guidance for book-to-bill, but our sales pipeline remains healthy, indicating our belief in future orders this year. - Roderick Larson, President, CEO; Alan Curtis, CFO
Q: How do you factor potential downtime or white space on rigs into your ROV utilization assumptions for 2025? A: Our plan assumes flattish rig activity. We've grown our market share in Brazil, which provides some protection against white space. The Petrobras contracts have become more favorable, allowing us to gain better pricing and market share. - Roderick Larson, President, CEO
Q: Can you update us on the progress of outsourcing manufacturing for mobile robotics forklifts and discussions on incremental orders? A: The outsourced manufacturing is progressing well, and we are satisfied with the quality. We are monitoring the pipeline and customer schedules, aiming to convert trial-level buyers into larger volume buyers. - Roderick Larson, President, CEO
Q: What are the drivers for margin improvement in the manufacturing products segment? A: Margin improvement is driven by better price backlog, efficient operations, and continuous throughput in factories. Improved margins are expected as long lead materials are received, and daily throughput helps absorb overhead costs. - Roderick Larson, President, CEO; Alan Curtis, CFO
Q: Could you elaborate on the strength in the OPG segment for Q4 and expectations for 2025? A: The OPG segment benefits from light well intervention work, which is cost-effective for customers and offers high margins for us. We see growth opportunities in reworking infrastructure in the Gulf of Mexico and West Africa, which stabilizes the OPG business. - Roderick Larson, President, CEO
Q: Can you discuss the vessel class ROV market supply/demand and multiyear opportunities? A: Utilization in the vessel class where we are mostly deployed has been strong. We see opportunities in multipurpose service vessels and ROV support vessels, with good utilization levels. - Roderick Larson, President, CEO
Q: Have you seen more M&A opportunities in the last six to nine months, and what are you looking for in potential acquisitions? A: We are seeing more M&A opportunities and are looking for disruptive technologies where we can be the best owner. The acquisition of GDi is an example, as it complements our ROV business and offers significant value. - Roderick Larson, President, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
14 minutes ago
- Yahoo
Herbalife's Aloin Identification Method for Aloe Vera Officially Recognized by AOAC INTERNATIONAL
Certified Method Enhances Global Botanical Quality and Safety LOS ANGELES, June 11, 2025--(BUSINESS WIRE)--Herbalife Ltd. (NYSE: HLF), a premier health and wellness company, community and platform, today announced the Association of Official Analytical Collaboration (AOAC INTERNATIONAL)—a global authority in analytical science—has formally certified its proprietary method for identifying and measuring anthraquinones, also known as aloins, in aloe vera. Aloe regulatory groups require producers of ingestible aloe vera products to monitor naturally occurring compounds such as aloin A, aloin B, and aloe-emodin to meet safety guidelines. This certification officially recognizes Herbalife's longstanding method as the world's first AOAC-approved approach for detecting aloins—reinforcing safety and quality benchmarks across botanical and dietary supplement industries. Developed by Herbalife scientists and validated by independent laboratories worldwide, this AOAC-certified method is used to test every batch of Herbalife's aloe-based products, ensuring safety, while preserving aloe vera's natural benefits. Aloe vera is a key ingredient in many of Herbalife's top products, which are sold in more than 90 markets. "This AOAC validation is an important milestone for Herbalife and the industry as a whole," said Gary Swanson, SVP of Global Quality at Herbalife and lead author of the study. "We are proud to lead scientific innovation that enhances botanical ingredient safety, benefitting not only Herbalife products and our customers, but also advancing standards across the industry." Herbalife's method was validated through a global multi-laboratory study involving eight independent laboratories. Each lab tested the same set of six aloe vera samples, including both raw materials and finished products, using HPLC (High-Performance Liquid Chromatography) to measure aloin A, aloin B, and aloe-emodin. The study ensured the method's accuracy and reliability across various labs and product types, with results confirming that it met all performance criteria, including precision and system suitability. "This multi-laboratory validation study supported approval of an analytical method developed by Herbalife scientists as the AOAC 2016.09 Official Final Action Method," said Dr. Katerina Mastovska, deputy executive director and chief science officer, AOAC INTERNATIONAL. "AOAC official methods undergo rigorous scientific evaluation and are highly credible and globally accepted. As such, this method will help strengthen botanical quality and safety standards worldwide." Herbalife has a long-standing commitment to aloe vera research and quality assurance. This dedication has resulted in five patents and three published studies focused on developing safe extraction methods that preserve the plant's natural benefits. While many companies rely solely on supplier certifications to confirm the authenticity of their aloe vera, Herbalife goes further. The company is one of the few in the world using advanced proton nuclear magnetic resonance (NMR) spectrometry—an analytical technique that uses magnetic fields and radio waves to identify the molecular structure of raw materials. This allows Herbalife to independently verify the identity and purity of its aloe vera at the molecular level, ensuring the highest standards of quality, consistency and traceability across its global supply chain. For 45 years, Herbalife has upheld a global commitment to quality through its rigorous Seed to Feed process. This comprehensive system ensures that every ingredient—from responsibly sourced crops cultivated by dedicated farmers to the finished product—meets stringent standards for identity, potency, safety, and purity. Herbalife performs internal testing in ISO 17025-accredited laboratories, verifying that ingredients comply with both company standards and government regulations. The company's science-backed approach, grounded in Good Manufacturing Practices (GMPs) and NSF International standards, delivers consistent, transparent products in more than 90 markets. Supported by a global team of scientists and quality experts, this process strengthens consumer trust and continues to advance industry standards worldwide. Herbalife's aloe vera testing method has been published in Journal of AOAC INTERNATIONAL (Volume 108, Issue 3, Pages 449-471). About Herbalife Ltd. Herbalife (NYSE: HLF) is a premier health and wellness company, community and platform that has been changing people's lives with great nutrition products and a business opportunity for its independent distributors since 1980. The Company offers science-backed products to consumers in more than 90 markets through entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle to live their best life. For more information, visit View source version on Contacts Media Contact: media@
Yahoo
15 minutes ago
- Yahoo
COR Q1 Earnings Call: Specialty Expansion, RCA Impact, and International Softness Highlight Results
Healthcare distributor Cencora (NYSE:COR) met Wall Street's revenue expectations in Q1 CY2025, with sales up 10.3% year on year to $75.45 billion. Its non-GAAP profit of $4.42 per share was 7.9% above analysts' consensus estimates. Is now the time to buy COR? Find out in our full research report (it's free). Revenue: $75.45 billion vs analyst estimates of $75.7 billion (10.3% year-on-year growth, in line) Adjusted EPS: $4.42 vs analyst estimates of $4.10 (7.9% beat) Adjusted EBITDA: $1.32 billion vs analyst estimates of $1.22 billion (1.7% margin, 7.6% beat) Operating Margin: 1.4%, in line with the same quarter last year Market Capitalization: $55.09 billion Cencora's first quarter results were shaped by broad-based strength in its U.S. Healthcare Solutions segment, with management attributing growth to rising demand for specialty medications and higher utilization across health systems and specialty physician practices. CEO Bob Mauch highlighted the company's investments in end-to-end pharmaceutical services and deepening partnerships with providers as pivotal to this performance. The recent integration of Retina Consultants of America (RCA) was cited as a key contributor to gross profit margin expansion, with CFO Jim Cleary noting, 'RCA does add meaningfully to gross profit margin and operating margin… it is a higher-margin business than our core distribution business.' Management also pointed to ongoing productivity initiatives and a smaller-than-expected COVID-19 headwind as supporting factors. Looking ahead, Cencora's outlook is informed by its positioning in specialty pharmaceuticals, expectations for continued growth in the U.S. market, and ongoing integration of recent acquisitions. Management anticipates slower revenue growth in the second half of the year, citing tougher comparisons for GLP-1 products and biosimilar competition in mail-order channels. CFO Jim Cleary explained, 'We anticipate our growth will be at the bottom end of the respective ranges,' reflecting these headwinds but also suggesting potential margin benefits from product mix shifts. The company remains focused on expanding value-added services, strengthening specialty offerings across sites of care, and leveraging its data-driven insights to support both biopharma partners and healthcare providers. Management cited several operational and strategic developments as primary drivers of both quarterly results and the company's evolving competitive positioning. Specialty segment momentum: The company's specialty business, including physician practices and health systems, drove broad-based growth, supported by continued investments in services and wraparound offerings such as group purchasing organizations (GPOs) and management service organizations (MSOs). RCA integration impact: The acquisition of Retina Consultants of America contributed to margin expansion due to its higher profitability profile compared to Cencora's core distribution operations. The accounting treatment of RCA's minority interest also resulted in a higher-than-expected EPS contribution. GLP-1 product dynamics: GLP-1 (glucagon-like peptide-1) medications remained a significant revenue driver, though management noted a sequential decline from the prior quarter and minimal profit contribution. The company expects GLP-1 growth rates to moderate in upcoming quarters. International market softness: The International Healthcare Solutions segment experienced subdued demand, particularly in global specialty logistics and consulting related to clinical trials. Management described this as a market-wide issue and adjusted guidance downward to reflect slow recovery in these areas. Broad-based provider growth: Cencora reported growth across its specialty provider verticals, including oncology and retina, with management emphasizing robust positioning across community practices and health systems rather than concentration in any single sub-segment. Cencora's forward outlook is shaped by shifting specialty drug dynamics, international market uncertainty, and continued strategic investments in higher-margin services. Specialty and biosimilar expansion: Management expects specialty pharmaceuticals and biosimilars to remain key growth drivers, with continued investment in value-added services for both biopharma manufacturers and provider partners. The company's MSO and GPO offerings are designed to deepen relationships and capture a greater share of specialty market growth. International segment headwinds: The company anticipates ongoing weakness in its International Healthcare Solutions segment due to soft clinical trial activity and slower-than-expected recovery in global specialty logistics. Management revised down operating income expectations for this segment, citing industry-wide delays in clinical trial starts and subdued demand for consulting services. Product mix and margin effects: Shifts toward higher-margin specialty products and reduced contribution from lower-margin high-priced mail-order products are expected to benefit consolidated operating margins, partially offsetting slower top-line growth. Management noted that these mix effects will likely drive operating income growth above revenue growth, especially in the U.S. segment. Looking forward, the StockStory team will monitor (1) U.S. specialty drug utilization trends and the pace of biosimilar adoption, (2) the trajectory of international clinical trial activity and any signs of a rebound in specialty logistics, and (3) further integration milestones for RCA and the expansion of high-margin MSO services. The evolution of tariff policy and its potential effects on pharmaceutical supply chains will also be an important area for scrutiny. Cencora currently trades at a forward P/E ratio of 17.6×. At this valuation, is it a buy or sell post earnings? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. 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
Yahoo
15 minutes ago
- Yahoo
Chewy (NYSE:CHWY) Surprises With Q1 Sales But Stock Drops
E-commerce pet food and supplies retailer Chewy (NYSE:CHWY) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 8.3% year on year to $3.12 billion. Its non-GAAP profit of $0.35 per share was 3.2% above analysts' consensus estimates. Is now the time to buy Chewy? Find out in our full research report. Revenue: $3.12 billion vs analyst estimates of $3.08 billion (8.3% year-on-year growth, 1.1% beat) Adjusted EPS: $0.35 vs analyst estimates of $0.34 (3.2% beat) Adjusted EBITDA: $192.7 million vs analyst estimates of $190.7 million (6.2% margin, 1.1% beat) Operating Margin: 2.5%, in line with the same quarter last year Free Cash Flow Margin: 1.6%, down from 4.8% in the previous quarter Market Capitalization: $19 billion Founded by Ryan Cohen, who later became known for his involvement in GameStop, Chewy (NYSE:CHWY) is an online retailer specializing in pet food, supplies, and healthcare services. A company's long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Chewy's 9.3% annualized revenue growth over the last three years was mediocre. This was below our standard for the consumer internet sector and is a rough starting point for our analysis. This quarter, Chewy reported year-on-year revenue growth of 8.3%, and its $3.12 billion of revenue exceeded Wall Street's estimates by 1.1%. Looking ahead, sell-side analysts expect revenue to grow 4.7% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and implies its products and services will face some demand challenges. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Although EBITDA is undoubtedly valuable for assessing company performance, we believe cash is king because you can't use accounting profits to pay the bills. Chewy has shown mediocre cash profitability over the last two years, giving the company limited opportunities to return capital to shareholders. Its free cash flow margin averaged 3.1%, subpar for a consumer internet business. Taking a step back, an encouraging sign is that Chewy's margin expanded by 4.2 percentage points over the last few years. We have no doubt shareholders would like to continue seeing its cash conversion rise as it gives the company more optionality. Chewy's free cash flow clocked in at $48.7 million in Q1, equivalent to a 1.6% margin. This cash profitability was in line with the comparable period last year but below its two-year average. In a silo, this isn't a big deal because investment needs can be seasonal, but we'll be watching to see if the trend extrapolates into future quarters. It was good to see Chewy narrowly top analysts' revenue and EBITDA expectations this quarter. We were also happy its EPS outperformed Wall Street's estimates. Overall, this print had some key positives, but given the valuation going into the quarter, investors were likely hoping for more. Shares traded down 5.4% to $43.30 immediately following the results. Should you buy the stock or not? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. 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
