8-K
OCEANEERING INTERNATIONAL INC (OII)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 18, 2026
OCEANEERING INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 1-10945 | 95-2628227 | ||||
|---|---|---|---|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) | 5875 North Sam Houston Parkway West, Suite 400 | |||
| --- | --- | --- | ||||
| Houston, | TX | 77086 | ||||
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (713) 329-4500
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, par value $0.25 per share | OII | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2):
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 18, 2026, Oceaneering International, Inc. ("Oceaneering" or "we") issued a press release announcing Oceaneering's earnings for the fourth quarter ended December 31, 2025. A copy of that press release is furnished as Exhibit 99.1 to this report and is incorporated by reference into this item 2.02.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any registration statement or other filing under the Securities Act of 1933, as amended, or the Exchange Act, unless specifically identified in such filing as being incorporated by reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | Press Release of Oceaneering International, Inc., datedFebruaryexhibit_991x8kx4qx2025.htm18, 2026. |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document.) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OCEANEERING INTERNATIONAL, INC. | |||
|---|---|---|---|
| Date: | February 18, 2026 | By: | /S/ CATHERINE E. DUNN |
| Catherine E. Dunn | |||
| Vice President and Chief Accounting Officer |
Document
Exhibit 99.1
Oceaneering Reports Fourth Quarter and Full Year 2025 Results
HOUSTON, February 18, 2026 – Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported fourth quarter and full year 2025 results.
Fourth Quarter 2025 Results
•As compared to the fourth quarter of 2024:
◦Revenue was $669 million, a decrease of 6%.
◦Operating income was $65.4 million, a decrease of 16%.
◦Net income was $178 million, an increase of 217%, which included a discrete tax benefit due to the release of valuation allowances for deferred tax assets.
◦Adjusted EBITDA was $90.5 million, a decrease of 11%.
•Cash Flow and Share Repurchases
◦Cash flow provided by operating activities was $221 million.
◦Free cash flow was $191 million.
◦Shares repurchased were 419,005 for approximately $10.1 million.
Full Year 2025 Results
•As compared to the full year 2024:
◦Revenue was $2.8 billion, an increase of 5%.
◦Operating income was $305 million, an increase of 24%.
◦Net income was $354 million, an increase of 140%.
◦Adjusted EBITDA was $401 million, an increase of 16%.
•Cash Flow and Share Repurchases
◦Cash flow provided by operating activities was $319 million.
◦Free cash flow was $208 million.
◦Year-end cash and cash equivalents totaled $689 million, compared to $498 million at the end of 2024.
◦Shares repurchased were 1,810,732 for approximately $40.3 million. Approximately 5.4 million shares remain under the current repurchase authorization.
Rod Larson, Oceaneering's President and Chief Executive Officer, commented, "Our team concluded 2025 with strong operational execution, delivering fourth quarter adjusted EBITDA at the high end of our guidance range. We generated robust free cash flow of $191 million, driven primarily by the timing of customer collections. As expected, revenue and adjusted EBITDA declined compared to the fourth quarter of 2024 due to the unusually high level of international intervention and installation projects in our Offshore Projects Group segment (OPG) in the prior year.
"For the full year, we delivered solid financial results despite a challenging environment. Consolidated revenue and adjusted EBITDA both increased, making 2025 our seventh consecutive year of adjusted EBITDA growth. All of our operating segments achieved EBITDA improvements, with Manufactured Products and Aerospace and Defense Technologies (ADTech) recording the largest percentage increases. We secured $3.7 billion of orders in 2025 and ended the year with an enterprise-wide book-to-bill ratio of 1.33. Our backlog includes multi-year contracts in several segments, highlighted by a landmark ADTech award representing the largest initial contract value in our history.
"Looking ahead to 2026, we expect ADTech to be our primary growth engine, supported by our existing backlog and increased spending across defense and government markets. We anticipate results in our energy-focused businesses to be weighted towards the second half of the year as offshore activity
improves. Based on these market dynamics and our current backlog, we are issuing our full year 2026 guidance."
Full Year 2026 Guidance
•Net income is expected to be in the range of $178 million to $203 million.
•Consolidated EBITDA is projected to be in the range of $390 million to $440 million.
•Free cash flow generation is forecasted to be in the range of $100 million to $120 million.
•Capital expenditures are expected to be in the range of $105 million to $115 million.
•Share repurchase activity is expected to continue.
Fourth Quarter 2025 Segment Results
As compared to the fourth quarter of 2024:
•Subsea Robotics (SSR) revenue of $212 million was essentially flat while operating income improved 7% to $67.8 million, and EBITDA margin improved to 38%. Margin expansion was driven by a 7% increase in ROV revenue per day utilized to $11,550, more than offsetting a decrease in ROV fleet utilization from 66% to 62%.
•Manufactured Products operating income of $20.4 million improved significantly and operating income margin expanded to 15% on 7% less revenue. Backlog was $511 million on December 31, 2025. The book-to-bill ratio was 0.84 for the 12-month period ending on December 31, 2025.
•OPG operating income of $15.0 million represented a year-over-year decrease of 62% on a 29% decrease in revenue. Operating income margin declined to 11%. These results reflect fewer high-margin international projects that positively benefited the fourth quarter of 2024.
•Integrity Management and Digital Solutions (IMDS) revenue decreased by 11%, with operating income and operating income margin declining significantly. The revenue decline largely reflects lower activity in Europe and West Africa, while the operating income decline was due to the revenue decline plus a loss realized as the result of the resolution of a commercial dispute.
•ADTech operating income increased 43% to $14.2 million on a 29% increase in revenue. Operating income margin was relatively flat at 11%.
•At the corporate level, Unallocated Expenses increased 26% to $52.0 million, due to additional accruals for performance-based compensation.
First Quarter 2026 Guidance
As compared to the first quarter of 2025, consolidated first quarter 2026 revenue is expected to be lower and EBITDA is expected to be in the range of $80 million to $90 million. This is driven by lower activity levels in energy markets at the start of 2026, which are expected to improve as the year progresses.
At the segment level, for the first quarter of 2026, as compared to the first quarter of 2025:
•SSR revenue is expected to increase slightly while operating income is expected to decrease due to changes in geographic mix.
•Manufactured Products operating income is forecasted to increase significantly on slightly lower revenue.
•OPG revenue and operating income are projected to decrease significantly due to year-over-year changes in volume and project mix.
•IMDS revenue and operating income are expected to be relatively flat.
•ADTech revenue is forecasted to increase significantly while operating income will expand marginally on project mix.
•Unallocated Expenses are expected to be in the $50 million range, due to higher costs associated with wage inflation, increased information technology costs, and foreign exchange impacts.
Oceaneering will provide more specific guidance on its expectations for 2026 during its fourth quarter 2025 conference call.
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, First Quarter 2026 Consolidated EBITDA Estimate, 2026 Consolidated EBITDA Estimate, 2026 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, February 19, 2026 at 10:00 a.m. Central Time (11:00 a.m. Eastern Time), to discuss its results for the fourth quarter and full year of 2025, as well as its guidance for the first quarter and full year of 2026. A link to the webcast will be posted on Oceaneering's Investor Relations 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 expectations regarding: ADTech and offshore markets for 2026; first quarter 2026 guidance for consolidated revenue, consolidated EBITDA, revenue, and operating income by segment, and Unallocated Expenses; full-year 2026 guidance for net income, consolidated EBITDA, free cash flow, capital expenditures, and that share purchase activity will continue in 2026; 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; future budgetary and fiscal constraints imposed by the United States government, including the risk of government shutdowns; 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.
Contact:
investorrelations@oceaneering.com
Hilary Frisbie
Senior Director, Investor Relations
Oceaneering International, Inc.
713-329-4755
- Tables follow on next page -
| OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | |||||||||||
| (in thousands) | ||||||||||||
| ASSETS | ||||||||||||
| Current assets (including cash and cash equivalents of 688,874 and 497,516) | $ | 1,512,400 | $ | 1,387,896 | ||||||||
| Net property and equipment | 451,693 | 420,098 | ||||||||||
| Other assets | 703,161 | 528,353 | ||||||||||
| Total Assets | $ | 2,667,254 | $ | 2,336,347 | ||||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Current liabilities | $ | 761,726 | $ | 796,938 | ||||||||
| Long-term debt | 487,417 | 482,009 | ||||||||||
| Other long-term liabilities | 341,448 | 337,078 | ||||||||||
| Equity | 1,076,663 | 720,322 | ||||||||||
| Total Liabilities and Equity | $ | 2,667,254 | $ | 2,336,347 | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Sep 30, 2025 | Dec 31, 2025 | Dec 31, 2024 | ||||||||
| (in thousands, except per share amounts) | ||||||||||||
| Revenue | $ | 668,574 | $ | 713,450 | $ | 742,898 | $ | 2,784,156 | $ | 2,661,161 | ||
| Cost of services and products | 536,302 | 571,513 | 590,166 | 2,215,714 | 2,175,667 | |||||||
| 132,272 | 141,937 | 152,732 | 568,442 | 485,494 | ||||||||
| Selling, general and administrative expense | 66,889 | 64,057 | 66,224 | 263,890 | 239,224 | |||||||
| 65,383 | 77,880 | 86,508 | 304,552 | 246,270 | ||||||||
| Interest income | 4,118 | 3,407 | 3,704 | 14,483 | 12,124 | |||||||
| Interest expense, net of amounts capitalized | (9,049) | (9,741) | (9,381) | (36,977) | (37,917) | |||||||
| Equity in income (losses) of unconsolidated affiliates | 276 | 142 | 97 | 1,046 | 929 | |||||||
| Other income (expense), net | (2,529) | (2,862) | (1,021) | 2,796 | 3,510 | |||||||
| 58,199 | 68,826 | 79,907 | 285,900 | 224,916 | ||||||||
| Provision (benefit) for income taxes | (119,454) | 12,727 | 8,618 | (67,861) | 77,448 | |||||||
| $ | 177,653 | $ | 56,099 | $ | 71,289 | $ | 353,761 | $ | 147,468 | |||
| Weighted average diluted shares outstanding | 100,760 | 102,140 | 101,057 | 101,262 | 102,369 | |||||||
| Diluted earnings (loss) per share | $ | 1.76 | $ | 0.55 | $ | 0.71 | $ | 3.49 | $ | 1.44 | ||
| The above Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations should be read in conjunction with the Company's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q. |
All values are in US Dollars.
| SEGMENT INFORMATION | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Year Ended | |||||||||||||||||
| Dec 31, 2024 | Sep 30, 2025 | Dec 31, 2025 | Dec 31, 2024 | ||||||||||||||
| ( in thousands) | |||||||||||||||||
| Subsea Robotics | |||||||||||||||||
| Revenue | 211,687 | $ | 212,190 | $ | 218,767 | $ | 855,216 | $ | 829,822 | ||||||||
| Operating income (loss) | 67,828 | $ | 63,526 | $ | 65,142 | $ | 257,107 | $ | 235,211 | ||||||||
| Operating income (loss) % | % | 30 | % | 30 | % | 30 | % | 28 | % | ||||||||
| ROV days available | 23,000 | 23,000 | 91,250 | 91,500 | |||||||||||||
| ROV days utilized | 15,211 | 14,962 | 59,629 | 61,382 | |||||||||||||
| ROV utilization | % | 66 | % | 65 | % | 65 | % | 67 | % | ||||||||
| Manufactured Products | |||||||||||||||||
| Revenue | 132,405 | $ | 142,999 | $ | 156,395 | $ | 568,971 | $ | 555,500 | ||||||||
| Operating income (loss) | 20,370 | $ | 4,163 | $ | 24,651 | $ | 72,460 | $ | 43,000 | ||||||||
| Operating income (loss) % | % | 3 | % | 16 | % | 13 | % | 8 | % | ||||||||
| Backlog at end of period | 511,000 | $ | 604,000 | $ | 568,000 | $ | 511,000 | $ | 604,000 | ||||||||
| Offshore Projects Group | |||||||||||||||||
| Revenue | 130,777 | $ | 184,386 | $ | 171,046 | $ | 616,045 | $ | 591,037 | ||||||||
| Operating income (loss) | 15,037 | $ | 39,313 | $ | 23,692 | $ | 96,058 | $ | 73,699 | ||||||||
| Operating income (loss) % | % | 21 | % | 14 | % | 16 | % | 12 | % | ||||||||
| Integrity Management & Digital Solutions | |||||||||||||||||
| Revenue | 66,454 | $ | 75,062 | $ | 70,781 | $ | 284,020 | $ | 291,866 | ||||||||
| Operating income (loss) | (124) | $ | 2,025 | $ | 2,756 | $ | 10,741 | $ | 9,827 | ||||||||
| Operating income (loss) % | % | 3 | % | 4 | % | 4 | % | 3 | % | ||||||||
| Aerospace and Defense Technologies | |||||||||||||||||
| Revenue | 127,251 | $ | 98,813 | $ | 125,909 | $ | 459,904 | $ | 392,936 | ||||||||
| Operating income (loss) | 14,223 | $ | 9,930 | $ | 16,557 | $ | 57,744 | $ | 42,201 | ||||||||
| Operating income (loss) % | % | 10 | % | 13 | % | 13 | % | 11 | % | ||||||||
| Unallocated Expenses | |||||||||||||||||
| Operating income (loss) | (51,951) | $ | (41,077) | $ | (46,290) | $ | (189,558) | $ | (157,668) | ||||||||
| Total | |||||||||||||||||
| Revenue | 668,574 | $ | 713,450 | $ | 742,898 | $ | 2,784,156 | $ | 2,661,161 | ||||||||
| Operating income (loss) | 65,383 | $ | 77,880 | $ | 86,508 | $ | 304,552 | $ | 246,270 | ||||||||
| Operating income (loss) % | % | 11 | % | 12 | % | 11 | % | 9 | % | ||||||||
| 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. |
All values are in US Dollars.
| SELECTED CASH FLOW INFORMATION | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year Ended | ||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Sep 30, 2025 | Dec 31, 2025 | Dec 31, 2024 | |||||||
| (in thousands) | |||||||||||
| Capital expenditures, including acquisitions | $ | 30,440 | $ | 61,023 | $ | 24,215 | $ | 111,015 | $ | 134,285 | |
| Capitalized cloud-based service contract costs | 5,588 | — | 7,161 | 17,012 | — | ||||||
| Total Capital Expenditures | $ | 36,028 | $ | 61,023 | $ | 31,376 | $ | 128,027 | $ | 134,285 | |
| Depreciation and Amortization: | |||||||||||
| Energy Services and Products | |||||||||||
| Subsea Robotics | $ | 13,388 | $ | 12,049 | $ | 13,283 | $ | 50,792 | $ | 48,916 | |
| Manufactured Products | 2,765 | 2,979 | 2,768 | 10,924 | 12,452 | ||||||
| Offshore Projects Group | 4,389 | 5,033 | 4,290 | 18,031 | 22,451 | ||||||
| Integrity Management & Digital Solutions | 1,887 | 1,615 | 1,830 | 7,286 | 6,025 | ||||||
| Total Energy Services and Products | 22,429 | 21,676 | 22,171 | 87,033 | 89,844 | ||||||
| Aerospace and Defense Technologies | 904 | 705 | 1,082 | 3,719 | 2,620 | ||||||
| Unallocated Expenses | 2,951 | 2,761 | 2,870 | 11,503 | 10,979 | ||||||
| Total Depreciation and Amortization | $ | 26,284 | $ | 25,142 | $ | 26,123 | $ | 102,255 | $ | 103,443 |
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, 2025 consolidated adjusted EBITDA, consolidated adjusted EBITDA margins, and free cash flow, and 2026 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 first quarter of 2026, and for the full year of 2026, 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.
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (continued) | ||||||||||||||||
| Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS) | ||||||||||||||||
| For the Three Months Ended | ||||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Sep 30, 2025 | ||||||||||||||
| Net Income (Loss) | Diluted EPS | Net Income (Loss) | Diluted EPS | Net Income (Loss) | Diluted EPS | |||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| Net income (loss) and diluted EPS as reported in accordance with GAAP | $ | 177,653 | $ | 1.76 | $ | 56,099 | $ | 0.55 | $ | 71,289 | $ | 0.71 | ||||
| Pre-tax adjustments for the effects of: | ||||||||||||||||
| Foreign currency (gains) losses | 2,721 | 2,789 | 999 | |||||||||||||
| Total pre-tax adjustments | 2,721 | 2,789 | 999 | |||||||||||||
| Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods | (1,389) | 77 | (902) | |||||||||||||
| Discrete tax items: | ||||||||||||||||
| Share-based compensation | — | (9) | (4) | |||||||||||||
| Uncertain tax positions | 1,044 | 2,744 | (1,106) | |||||||||||||
| Valuation allowances | (155,503) | (24,058) | (6,279) | |||||||||||||
| Other | 21,091 | (182) | (8,236) | |||||||||||||
| Total discrete tax adjustments | (133,368) | (21,505) | (15,625) | |||||||||||||
| Total of adjustments | (132,036) | (18,639) | (15,528) | |||||||||||||
| Adjusted Net Income (Loss) | $ | 45,617 | $ | 0.45 | $ | 37,460 | $ | 0.37 | $ | 55,761 | $ | 0.55 | ||||
| Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss) | 100,760 | 102,140 | 101,057 | |||||||||||||
| For the Year Ended | ||||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | |||||||||||||||
| Net Income (Loss) | Diluted EPS | Net Income (Loss) | Diluted EPS | |||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| Net income (loss) and diluted EPS as reported in accordance with GAAP | $ | 353,761 | $ | 3.49 | $ | 147,468 | $ | 1.44 | ||||||||
| Pre-tax adjustments for the effects of: | ||||||||||||||||
| Foreign currency (gains) losses | (2,760) | (866) | ||||||||||||||
| Total pre-tax adjustments | (2,760) | (866) | ||||||||||||||
| Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods | 3,846 | 1,540 | ||||||||||||||
| Discrete tax items: | ||||||||||||||||
| Share-based compensation | (1,109) | (1,985) | ||||||||||||||
| Uncertain tax positions | (2,482) | 3,123 | ||||||||||||||
| Valuation allowances | (167,496) | (20,726) | ||||||||||||||
| Other | 11,426 | (11,410) | ||||||||||||||
| Total discrete tax adjustments | (159,661) | (30,998) | ||||||||||||||
| Total of adjustments | (158,575) | (30,324) | ||||||||||||||
| Adjusted Net Income (Loss) | $ | 195,186 | $ | 1.93 | $ | 117,144 | $ | 1.14 | ||||||||
| Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss) | 101,262 | 102,369 | ||||||||||||||
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (continued) | ||||||||||||||||
| EBITDA and Adjusted EBITDA and Margins | ||||||||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Sep 30, 2025 | Dec 31, 2025 | Dec 31, 2024 | ||||||||||||
| ( in thousands) | ||||||||||||||||
| Net income (loss) | $ | 56,099 | $ | 71,289 | $ | 353,761 | $ | 147,468 | ||||||||
| Depreciation and amortization | 26,284 | 25,142 | 26,123 | 102,255 | 103,443 | |||||||||||
| Subtotal | 203,937 | 81,241 | 97,412 | 456,016 | 250,911 | |||||||||||
| Interest expense, net of interest income | 4,931 | 6,334 | 5,677 | 22,494 | 25,793 | |||||||||||
| Amortization included in interest expense | (1,648) | (1,555) | (1,627) | (6,421) | (6,075) | |||||||||||
| Provision (benefit) for income taxes | (119,454) | 12,727 | 8,618 | (67,861) | 77,448 | |||||||||||
| EBITDA | 87,766 | 98,747 | 110,080 | 404,228 | 348,077 | |||||||||||
| Adjustments for the effects of: | ||||||||||||||||
| Foreign currency (gains) losses | 2,721 | 2,789 | 999 | (2,760) | (866) | |||||||||||
| Total of adjustments | 2,721 | 2,789 | 999 | (2,760) | (866) | |||||||||||
| Adjusted EBITDA | $ | 101,536 | $ | 111,079 | $ | 401,468 | $ | 347,211 | ||||||||
| Revenue | $ | 713,450 | $ | 742,898 | $ | 2,784,156 | $ | 2,661,161 | ||||||||
| EBITDA margin % | 13 | % | 14 | % | 15 | % | 15 | % | 13 | % | ||||||
| Adjusted EBITDA margin % | 14 | % | 14 | % | 15 | % | 14 | % | 13 | % |
All values are in US Dollars.
| Free Cash Flow | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year Ended | ||||||||||||||||||||
| Dec 31, 2025 | Dec 31, 2024 | Sep 30, 2025 | Dec 31, 2025 | Dec 31, 2024 | |||||||||||||||||
| (in thousands) | |||||||||||||||||||||
| Net Income (loss) | $ | 177,653 | $ | 56,099 | $ | 71,289 | $ | 353,761 | $ | 147,468 | |||||||||||
| Non-cash adjustments: | |||||||||||||||||||||
| Depreciation and amortization | 26,284 | 25,142 | 26,123 | 102,255 | 103,443 | ||||||||||||||||
| Other non-cash | (133,269) | (8,575) | (204) | (113,373) | 3,291 | ||||||||||||||||
| Other increases (decreases) in cash from operating activities | 150,461 | 55,711 | 4,055 | (23,782) | (50,988) | ||||||||||||||||
| Cash flow provided by (used in) operating activities | 221,129 | 128,377 | 101,263 | 318,861 | 203,214 | ||||||||||||||||
| Purchases of property and equipment | (30,440) | (33,874) | (24,215) | (111,015) | (107,136) | ||||||||||||||||
| Free Cash Flow | $ | 190,689 | $ | 94,503 | $ | 77,048 | $ | 207,846 | $ | 96,078 | |||||||||||
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | ||||||||||||||||
| (continued) | |||||||||||||||||||||
| First Quarter 2026 Consolidated EBITDA Estimate | |||||||||||||||||||||
| For the Three Months Ending | |||||||||||||||||||||
| March 31, 2026 | |||||||||||||||||||||
| Low | High | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||
| Income (loss) before income taxes | $ | 51,000 | $ | 57,000 | |||||||||||||||||
| Depreciation and amortization | 26,000 | 29,000 | |||||||||||||||||||
| Subtotal | 77,000 | 86,000 | |||||||||||||||||||
| Interest expense, net of interest income | 5,000 | 6,000 | |||||||||||||||||||
| Amortization included in interest expense | (2,000) | (2,000) | |||||||||||||||||||
| Consolidated EBITDA | $ | 80,000 | $ | 90,000 | |||||||||||||||||
| 2026 Consolidated EBITDA Estimate | |||||||||||||||||||||
| For the Year Ending | |||||||||||||||||||||
| December 31, 2026 | |||||||||||||||||||||
| Low | High | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||
| Income (loss) before income taxes | $ | 270,000 | $ | 307,000 | |||||||||||||||||
| Depreciation and amortization | 105,000 | 114,000 | |||||||||||||||||||
| Subtotal | 375,000 | 421,000 | |||||||||||||||||||
| Interest expense, net of interest income | 21,000 | 26,000 | |||||||||||||||||||
| Amortization included in interest expense | (6,000) | (7,000) | |||||||||||||||||||
| Consolidated EBITDA | $ | 390,000 | $ | 440,000 | |||||||||||||||||
| 2026 Free Cash Flow Estimate | |||||||||||||||||||||
| For the Year Ending | |||||||||||||||||||||
| December 31, 2026 | |||||||||||||||||||||
| Low | High | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||
| Net income (loss) | $ | 178,000 | $ | 203,000 | |||||||||||||||||
| Depreciation and amortization | 105,000 | 114,000 | |||||||||||||||||||
| Other increases (decreases) in cash from operating activities | (78,000) | (82,000) | |||||||||||||||||||
| Cash flow provided by (used in) operating activities | 205,000 | 235,000 | |||||||||||||||||||
| Purchases of property and equipment | (105,000) | (115,000) | |||||||||||||||||||
| Free Cash Flow | $ | 100,000 | $ | 120,000 | |||||||||||||||||
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (continued) | |||||||||||||||||||||
| EBITDA and Adjusted EBITDA and Margins by Segment | |||||||||||||||||||||
| For the Three Months Ended December 31, 2025 | |||||||||||||||||||||
| SSR | MP | OPG | IMDS | ADTech | Unallocated Expenses and other | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | 20,370 | $ | 15,037 | $ | (124) | $ | 14,223 | $ | (51,951) | $ | 65,383 | |||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Depreciation and amortization | 13,388 | 2,765 | 4,389 | 1,887 | 904 | 2,951 | 26,284 | ||||||||||||||
| Other pre-tax | — | — | — | — | — | (3,901) | (3,901) | ||||||||||||||
| EBITDA | 81,216 | 23,135 | 19,426 | 1,763 | 15,127 | (52,901) | 87,766 | ||||||||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Foreign currency (gains) losses | — | — | — | — | — | 2,721 | 2,721 | ||||||||||||||
| Total of adjustments | — | — | — | — | — | 2,721 | 2,721 | ||||||||||||||
| Adjusted EBITDA | $ | 23,135 | $ | 19,426 | $ | 1,763 | $ | 15,127 | $ | (50,180) | $ | 90,487 | |||||||||
| Revenue | $ | 132,405 | $ | 130,777 | $ | 66,454 | $ | 127,251 | $ | 668,574 | |||||||||||
| Operating income (loss) % as reported in accordance with GAAP | 32 | % | 15 | % | 11 | % | — | % | 11 | % | 10 | % | |||||||||
| EBITDA Margin | 38 | % | 17 | % | 15 | % | 3 | % | 12 | % | 13 | % | |||||||||
| Adjusted EBITDA Margin | 38 | % | 17 | % | 15 | % | 3 | % | 12 | % | 14 | % | |||||||||
| For the Three Months Ended December 31, 2024 | |||||||||||||||||||||
| SSR | MP | OPG | IMDS | ADTech | Unallocated Expenses and other | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | 4,163 | $ | 39,313 | $ | 2,025 | $ | 9,930 | $ | (41,077) | $ | 77,880 | |||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Depreciation and amortization | 12,049 | 2,979 | 5,033 | 1,615 | 705 | 2,761 | 25,142 | ||||||||||||||
| Other pre-tax | — | — | — | — | — | (4,275) | (4,275) | ||||||||||||||
| EBITDA | 75,575 | 7,142 | 44,346 | 3,640 | 10,635 | (42,591) | 98,747 | ||||||||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Foreign currency (gains) losses | — | — | — | — | — | 2,789 | 2,789 | ||||||||||||||
| Total of adjustments | — | — | — | — | — | 2,789 | 2,789 | ||||||||||||||
| Adjusted EBITDA | $ | 7,142 | $ | 44,346 | $ | 3,640 | $ | 10,635 | $ | (39,802) | $ | 101,536 | |||||||||
| Revenue | $ | 142,999 | $ | 184,386 | $ | 75,062 | $ | 98,813 | $ | 713,450 | |||||||||||
| Operating income (loss) % as reported in accordance with GAAP | 30 | % | 3 | % | 21 | % | 3 | % | 10 | % | 11 | % | |||||||||
| EBITDA Margin | 36 | % | 5 | % | 24 | % | 5 | % | 11 | % | 14 | % | |||||||||
| Adjusted EBITDA Margin | 36 | % | 5 | % | 24 | % | 5 | % | 11 | % | 14 | % |
All values are in US Dollars.
`
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (continued) | |||||||||||||||||||||
| EBITDA and Adjusted EBITDA and Margins by Segment | |||||||||||||||||||||
| For the Three Months Ended September 30, 2025 | |||||||||||||||||||||
| SSR | MP | OPG | IMDS | ADTech | Unallocated Expenses and other | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | 24,651 | $ | 23,692 | $ | 2,756 | $ | 16,557 | $ | (46,290) | $ | 86,508 | |||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Depreciation and amortization | 13,283 | 2,768 | 4,290 | 1,830 | 1,082 | 2,870 | 26,123 | ||||||||||||||
| Other pre-tax | — | — | — | — | — | (2,551) | (2,551) | ||||||||||||||
| EBITDA | 78,425 | 27,419 | 27,982 | 4,586 | 17,639 | (45,971) | 110,080 | ||||||||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Foreign currency (gains) losses | — | — | — | — | — | 999 | 999 | ||||||||||||||
| Total of adjustments | — | — | — | — | — | 999 | 999 | ||||||||||||||
| Adjusted EBITDA | $ | 27,419 | $ | 27,982 | $ | 4,586 | $ | 17,639 | $ | (44,972) | $ | 111,079 | |||||||||
| Revenue | $ | 156,395 | $ | 171,046 | $ | 70,781 | $ | 125,909 | $ | 742,898 | |||||||||||
| Operating income (loss) % as reported in accordance with GAAP | 30 | % | 16 | % | 14 | % | 4 | % | 13 | % | 12 | % | |||||||||
| EBITDA Margin | 36 | % | 18 | % | 16 | % | 6 | % | 14 | % | 15 | % | |||||||||
| Adjusted EBITDA Margin | 36 | % | 18 | % | 16 | % | 6 | % | 14 | % | 15 | % |
All values are in US Dollars.
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (continued) | |||||||||||||||||||||
| EBITDA and Adjusted EBITDA and Margins by Segment | |||||||||||||||||||||
| For the Year Ended December 31, 2025 | |||||||||||||||||||||
| SSR | MP | OPG | IMDS | ADTech | Unallocated Expenses and other | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | 72,460 | $ | 96,058 | $ | 10,741 | $ | 57,744 | $ | (189,558) | $ | 304,552 | |||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Depreciation and amortization | 50,792 | 10,924 | 18,031 | 7,286 | 3,719 | 11,503 | 102,255 | ||||||||||||||
| Other pre-tax | — | — | — | — | — | (2,579) | (2,579) | ||||||||||||||
| EBITDA | 307,899 | 83,384 | 114,089 | 18,027 | 61,463 | (180,634) | 404,228 | ||||||||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Foreign currency (gains) losses | — | — | — | — | — | (2,760) | (2,760) | ||||||||||||||
| Total of adjustments | — | — | — | — | — | (2,760) | (2,760) | ||||||||||||||
| Adjusted EBITDA | $ | 83,384 | $ | 114,089 | $ | 18,027 | $ | 61,463 | $ | (183,394) | $ | 401,468 | |||||||||
| Revenue | $ | 568,971 | $ | 616,045 | $ | 284,020 | $ | 459,904 | $ | 2,784,156 | |||||||||||
| Operating income (loss) % as reported in accordance with GAAP | 30 | % | 13 | % | 16 | % | 4 | % | 13 | % | 11 | % | |||||||||
| EBITDA Margin | 36 | % | 15 | % | 19 | % | 6 | % | 13 | % | 15 | % | |||||||||
| Adjusted EBITDA Margin | 36 | % | 15 | % | 19 | % | 6 | % | 13 | % | 14 | % | |||||||||
| For the Year Ended December 31, 2024 | |||||||||||||||||||||
| SSR | MP | OPG | IMDS | ADTech | Unallocated Expenses and other | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | 43,000 | $ | 73,699 | $ | 9,827 | $ | 42,201 | $ | (157,668) | $ | 246,270 | |||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Depreciation and amortization | 48,916 | 12,452 | 22,451 | 6,025 | 2,620 | 10,979 | 103,443 | ||||||||||||||
| Other pre-tax | — | — | — | — | — | (1,636) | (1,636) | ||||||||||||||
| EBITDA | 284,127 | 55,452 | 96,150 | 15,852 | 44,821 | (148,325) | 348,077 | ||||||||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Foreign currency (gains) losses | — | — | — | — | — | (866) | (866) | ||||||||||||||
| Total of adjustments | — | — | — | — | — | (866) | (866) | ||||||||||||||
| Adjusted EBITDA | $ | 55,452 | $ | 96,150 | $ | 15,852 | $ | 44,821 | $ | (149,191) | $ | 347,211 | |||||||||
| Revenue | $ | 555,500 | $ | 591,037 | $ | 291,866 | $ | 392,936 | $ | 2,661,161 | |||||||||||
| Operating income (loss) % as reported in accordance with GAAP | 28 | % | 8 | % | 12 | % | 3 | % | 11 | % | 9 | % | |||||||||
| EBITDA Margin | 34 | % | 10 | % | 16 | % | 5 | % | 11 | % | 13 | % | |||||||||
| Adjusted EBITDA Margin | 34 | % | 10 | % | 16 | % | 5 | % | 11 | % | 13 | % |
All values are in US Dollars.
14