Oceaneering International (OII) 2026年第三季度业绩电话会议：EBITDA达1.19亿美元，发布2027年业绩指引

Oceaneering International（纽约证券交易所代码：OII）公布2026年第三季度营收和调整后EBITDA均有所增长，这得益于水下机器人业务的定价提升、勘测活动增加以及有利的海上项目组合。与再融资相关的损失削减了列报净利润，而强劲的经营现金流和延期的资本支出则拉动了季度自由现金流。

核心要点

• 第三季度营收同比增长6%至7.85亿美元，营业利润增长7%至9200万美元，调整后EBITDA增长7%至1.19亿美元——创下自2015年第四季度以来的最高季度水平。
• 归属于Oceaneering的净利润下降26%至5260万美元，即每股0.52美元，主要归因于与长期债务再融资相关的单笔一次性损失。
• 水下机器人业务实现营收2.33亿美元，营业利润7540万美元。其EBITDA利润率达到39%，创下Oceaneering自2020年重新划分业务部门以来的新高。
• 经营现金流为1.63亿美元，自由现金流达到1.42亿美元。期末Oceaneering拥有7.35亿美元现金，流动性超过10亿美元，且无循环信贷额度借款。
• 管理层预计2026年第四季度综合EBITDA为8500万至9500万美元，较高的现金税和资本支出将使自由现金流有所放缓。
• 2027年初始业绩指引预计综合EBITDA为4.30亿至4.80亿美元，自由现金流高于预期的2026年水平。管理层表示，该区间主要反映了水下机器人、AdTech及海洋工程项目组活动的时间不确定性。

关键财务数据

业务与经营业绩

水下机器人部门

水下机器人（SSR）业务实现了营收和营业利润的双增长。营收为2.33亿美元，营业利润为7540万美元。已利用ROV的日均营收从11,254美元增加至11,781美元，船队利用率保持在65%。

39%的EBITDA利润率反映出欧洲、西非和挪威的ROV定价改善、勘测活动增加，以及与美国墨西哥湾业务相关的单笔一次性合同成本收回。欧洲、圭亚那和西非更高的业务活跃度抵消了美国墨西哥湾活跃度下降的影响。

Oceaneering在多个地区斩获了约1.8亿美元的ROV及勘测合同，合同期限延长至2031年。截至本季度末，在已签约的136台浮式钻井船中，公司在80台上拥有ROV合同，市场份额达59%。其船队规模维持在250套ROV系统。

制造产品部门

制造产品业务营收增长8%，而营业利润基本持平，为2510万美元。营业利润率微降至15%，主要归因于与去年同期特别强劲的基数相比，Grayloc产品的业务量和盈利能力有所下降。

季度末在手订单为4.35亿美元，受到约1.6亿美元新中标项目的支撑。过去12个月的订单出货比（book-to-bill ratio）为0.77。根据近期订单及潜在销售项目，管理层维持全年该比率在0.9至1.0之间的预期。

海洋工程项目组与IMDS

海洋工程项目组（OPG）的营收、营业利润和利润率基本持平。本季度完成的国际安装作业抵消了西非活跃度下降以及美国墨西哥湾项目组合不利带来的影响。

完整性管理与数字解决方案（IMDS）营收增长7%，营业利润和利润率基本持平。中东、欧洲和美国墨西哥湾增加的业务量被西非业务放缓、项目组合变化以及中东成本上升部分抵消。

航空航天与国防技术部门

由于此前公布的一个大型项目在当前阶段实现了全员配置，AdTech营收增长7%至1.35亿美元。营业利润下降11%至1470万美元，营业利润率降至11%，部分反映出转嫁活动（pass-through activity）的增加。

该部门获得了美国海军两个项目的后续合同。干船坞掩体（dry dock shelter）项目在五年内的潜在价值为1.54亿美元，而潜艇救援系统合同在18个月内的潜在价值为6700万美元。

管理层业绩指引

对于2026年第四季度，管理层预计综合营收将同比增长，调整后EBITDA将在8500万至9500万美元之间。未分配费用预计约为5000万美元。

按部门划分，管理层预计：

• SSR：受益于已利用ROV日均营收提高和勘测活动增加，营收有所增长；但由于区域组合变动、钻井船离开美国墨西哥湾重新部署产生的动员成本，以及低利润率勘测工作增加，营业利润将有所下降。
• 制造产品部门：营收与营业利润双双增长。
• OPG：因项目组合变动、去年国际干预项目的完工以及美国墨西哥湾低利润率作业的影响，营收基本持平，营业利润有所下降。
• IMDS：营收与营业利润双双增长。
• AdTech：营收与营业利润双双增长。

对于2027年，Oceaneering首次提出综合EBITDA指引为4.30亿至4.80亿美元。预计自由现金流将超过2026年的预期水平。

管理层预计，受ROV利用率提升、价格保持稳定以及勘测和工具业务表现改善支撑，SSR的营收和营业利润将双双增长，EBITDA利润率保持稳定。制造产品部门预计基本持平。OPG营收预计下滑，但营业利润保持持平，利润率有所改善。IMDS和AdTech均预计将实现更高的营收、大幅增长的营业利润以及改善的利润率。

公司还计划在2027年继续回购股票，目前在现有授权下仍有约500万股回购额度。

风险与关注领域

• 管理层表示，2027年前景的主要不确定因素在于时间安排（timing）。钻井船重新部署、客户资本预算以及OPG项目的排期可能会拖累预期的活动进度。
• 持续性决议案（continuing resolution）以及美国拨款法案的不确定性可能会推迟AdTech新项目的启动，但管理层指出现有工作普遍能得到较好保障。
• 随着现金税和资本支出的增加，预计第四季度自由现金流将有所放缓。
• 随着钻井船从美国墨西哥湾转移到其他地区，SSR短期内面临动员成本和区域组合压力。
• 管理层指出，美国墨西哥湾业务活跃度下降是需要密切关注的领域，同时也看好巴西、圭亚那、莫桑比克及非洲其他地区的增长机遇。

分析师问答要点

管理层表示，SSR的时间安排、AdTech项目启动以及OPG国际业务机遇是导致2027年EBITDA指引区间存在5000万美元跨度的主要原因。该区间的下限并不反映管理层对深水业务积极看法的改变，而主要反映了对客户支出和钻井船活动何时启动的谨慎态度。

在资本分配方面，Oceaneering计划继续投资其核心能源业务，包括远程作业、水下检验和数字孪生技术。在AdTech领域，管理层会考虑有助于补充现有国防项目的并购交易，重点关注机械加工能力、熟练劳动力、电子或传感器技术领域。管理层排除了仅为了获取市场声誉而支付过高估值倍数的可能性。

管理层将巴西、圭亚那和非洲（包括莫桑比克和西非）列为关键的潜在增长地区。公司还提到了东地中海、埃及近海和挪威的机会，特别是在水下回接（subsea tiebacks）和安装作业方面。

通胀并未被视为当前的主要制约因素。管理层表示，合同价格调整机制、价格微调、运营效率提高以及远程作业有助于缓解零部件和劳动力成本上升的压力。

业绩电话会议完整文字实录

完整财报电话会议逐字稿

管理层陈述

Operator

Welcome to Oceaneering International 2026 Results Conference Call. Today's call is being webcast, and a replay will be available on our website. With me today are Rod Larson, President and Chief Executive Officer, who will provide our prepared comments; and Mike Sumruld, Senior Vice President and Chief Financial Officer. After Rob's remarks, we will open the call up to your questions. Before we begin, please note that statements made on this call about our future financial performance, business strategy, plans for future operations and industry conditions are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Our remarks also include non-GAAP financial measures. Additional details and reconciliations to the most directly comparable GAAP financial measures are included in our third quarter press release, which is available on our website. With that, I'll turn the call over to Rod.

Roderick Larson

Good morning, everybody, and thanks for joining the call today. As Hilary mentioned, I'm going to be handling all of our prepared remarks today, so Mike is saving his voice for all of your math questions, so be ready. Our third quarter performance demonstrates the earnings potential of our portfolio and favorable pricing activity and project mix alone. Consolidated adjusted EBITDA was $119 million, in line with our guidance and our highest quarterly level since the fourth quarter of 2015. These results reflect solid performance in Subsea Robotics or SSR; resilience in the offshore projects group for OPG; and improvement in integrity management and digital solutions, IMDS. Highlights from the quarter include: SSR delivered increased revenue, operating income and EBITDA margin with the latter reaching its highest level since we resegmented our businesses in 2020.

We also won approximately $180 million of RM and survey contracts across multiple regions with contract terms extending into 2031. OPG saw sustained demand for its higher revenue services with a favorable mix of installation projects contributing to third quarter performance. Manufactured products secured awards of approximately $160 million during the quarter, supporting our expectation for stronger order intake in the second half of the year. And Aerospace and Defense Technologies or AdTech, secured follow-on contracts for 2 strategically important U.S. Navy programs. Drydock shelters and submarine rescue systems. The drydock shelter contract and program we have supported for over 20 years has a total potential value of $154 million over 5 years. While the summary and rescue system contract has a potential value of $67 million over 18 months.

Today, I'll focus my comments on our third quarter 2020 results, our outlook for the fourth quarter of 2026 and our initial guidance for 2027. Starting with our consolidated results for the third quarter of 2026 compared to the third quarter of 2025. We delivered revenue of $785 million, a 6% increase with growth across every operating segment, operating income of $92 million, a 7% increase and adjusted EBITDA of $119 million, also a 7% improvement. Net income attributable to Oceaneering was $52.6 million or $0.52 per share a decrease of 26%. The decrease was primarily attributable to a onetime loss related to the refinancing of our long-term debt completed during the third quarter. Adjusted EBITDA increased 7% to $119 million.

Turning to our cash flow and liquidity. We generated $163 million of cash from operating activities. Capital expenditures were $21.1 million with approximately 31% allocated to growth and 69% allocated to maintenance. This investment was less than anticipated largely due to timing with most of the deferred spending now expected in the fourth quarter. Free cash flow was $142 million, reflecting strong third quarter results as well as lower cash taxes and deferred capital expenditures. We expect both cash taxes and the capital expenditures to increase in the fourth quarter, resulting in more moderate free cash flow generation to close the year. During the quarter, we also repurchased shares of approximately $5 million with a focus on mitigating dilution associated with employee equity rates. And we ended the quarter with a cash balance of $735 million, total liquidity of more than $1 billion and no borrowings under our revolving credit facility.

Now let's look at our business operations by segment for the third quarter of 2026 also compared to the third quarter of 2025. SSR delivered revenue of $233 million and operating income of $75.4 million, both higher year-over-year. These results benefited from improved ROV pricing with average revenue per day utilized decreasing to $11,781 from $11,254 as well as higher survey activity. SSR EBITDA margin improved to 39%, primarily driven by ROV pricing improvements in Europe, West Africa and Norway. Increased survey activity and a onetime contractual cost recovery related to U.S. golf operations also contributed to higher margins. ROV fleet utilization remained stable at 65% as higher activity levels in Europe, Guyana and West Africa largely offset lower activity in the U.S. Gulf.

For the quarter, the revenue split between our ROV business and our combined tooling and survey businesses as a percentage of our total SSR revenue was 75% and 25% and compared to 77% and 23% in the third quarter of 2025. ROV days utilized grew 62%, while vessel-based services were 38% compared to 63% and 37%, respectively, in the prior year quarter. As of September 30, 2026, we had ROV contracts on 80 of the 136 floating rigs under contract or 59% market share. We maintained our fleet count of 250 ROV systems. Manufactured Products generated operating income of $25.1 million, relatively flat with the prior year quarter, while operating income margin decreased slightly to 15% on an 8% increase in revenue. These results were impacted by the final resolution of a legacy mobility solutions contract including recognition of the previously unresolved contract value.

The decline in operating income margin was primarily due to lower gray lock products activity and profitability following a particularly profitable quarter in the prior year quarter. Our backlog as of September 30, 2026, was $435 million and was largely sustained by order intake during the quarter of $160 million. Our book-to-bill ratio was 0.77 for the trailing 12-month period. Based on these recent bookings, together with our sales funnel, we remain confident in our ability to achieve a full year book-to-bill ratio of 0.9 to 1.0.

OPG revenue, operating income and operating income margin were relatively flat. Results benefited from international installation projects they concluded during the quarter, which more than offset lower activity in West Africa and a less favorable project mix in the U.S. Gulf. IMDS revenue increased 7%, while operating income and operating income margin were relatively flat, reflecting increased activity in the Middle East, Europe and the U.S. Gulf, which was partially offset by lower activity in West Africa, the changing project mix and increased costs for the Middle East. AdTech revenue increased 7% to $135 million as our previously announced large-scale program reached its full staffing levels for its current phase. Operating income decreased by 11% to $14.7 million, and operating income margin decreased to 11% due to increases in pass-through activities during the quarter and increases in [indiscernible] Unallocated expenses of $50 million were consistent with our guidance for the quarter.

Turning to our outlook for the fourth quarter of 2026 compared to the fourth quarter of 2025. We expect consolidated revenue to increase year-over-year and consolidated EBITDA to be in the range of $85 million to $95 million. By segment, for SSR, we expect revenue to increase, supported by higher ROV revenue per day utilized and increased survey activity. Operating income is expected to decrease due to changes in ROV geographic mix, additional mobilization costs as rigs relocate from the U.S. Gulf to other regions and a greater mix of lower-margin survey activity. For Manufactured Products, we anticipate higher revenue and operating income. For OPG, we expect revenue to remain relatively flat and operating income to decrease due to changes in product mix, including the completion of an international intervention project that benefited the prior year quarter and a shift to lower margin work in the U.S. Gulf. For IMDS, we anticipate higher revenue and operating income. For AdTech, we expect both revenue and operating income to be higher. We project unallocated expenses to be in the $50 million range.

Now I'll discuss our initial outlook for 2027. Looking ahead to 2027, the outlook for global deepwater markets remains constructive, with industry forecasts pointing to higher spending and activity. Floating rate activity is expected to strengthen over the course of the year as rigs complete transit to new regions and begin drilling programs. These trends provide a favorable backdrop as we established in our initial 2027 guidance. The U.S. defense environment also remains supportive, particularly across subsea programs. However, the continuing resolution and uncertain timing of appropriations process could affect the timing of program activity within AdTech. These industry conditions support our expectations for improved performance in 2027. As we announced yesterday, we are initiating consolidated EBITDA guidance in the range of $430 million to $480 million, with free cash flow expected to exceed our anticipated 2026 level.

At the segment level compared to the full year of 2026, for SSR, we expect that higher ROV utilization levels and similar pricing levels, together with improved results in survey and tooling while generating increases in revenue and operating income and stable EBITDA margins. For Manufacturing Products, revenue, operating income and operating margin are projected to be relatively flat. For OPG, we expect revenue to decrease operating income to be flat and operating margin to improve due to changes in project mix and similar utilization levels in the U.S. Gulf. For IMDS, we expect increased revenue to significantly increase operating income and improved operating margin. For AdTech, we expect significantly higher revenue and operating income and improved operating margin. We expect a slight increase in unallocated expenses.

We also plan to continue share repurchases in 2027 with approximately 5 million shares remaining under our existing repurchase authorization. As we move through the planning cycle and our customers finalize their 2027 budgets, we expect to gain greater visibility into activity levels and the timing of opportunities across our businesses. We will provide more detailed guidance for 2027 during the year-end reporting process.

In summary, we remain focused on executing through the remainder of 2026, while positioning the business for opportunities we see developing in 2027. Our priorities remain disciplined execution, cash generation, and maintaining financial flexibility to support our longer-term objectives. Thanks for your continued interest in Oceaneering we'll now be happy to take your questions.

Operator

[Operator Instructions] Your first question comes from the line of Eddie Kim with Barclays.

分析师问答

Eddie Kim

Just wanted to touch on the preliminary 2027 EBITDA guidance of $430 million to $480 million, which spans a fairly wide range there. Just curious which 2 or 3 of the -- are the largest operational assumptions separating the low end from the high end there? And which segments account for most of that $50 million spread?

Roderick Larson

I think it's the normal. The normal character, Eddie. I mean, we've got as always, SSR has got some of that based on like we've got the rate moves this year and we've got some of those things that are a little bit timing based. I think that's a part of it. Some of them will be AdTech, like we said, because we talked about some of these programs, when do the programs kick off, how does appropriations work out in some of the continuing resolutions, so if it gets resolved sooner, that brings things forward in the area, and it gives us more opportunity in the area, could push us back a little bit. It brings us to the lower end of the range. And then finally, OPG. OPG has got room to pick up more international opportunities. And I think actually, probably, if I think about OPG, it drives us to the higher end of the range. If we can put more things in that bucket, which we don't resolve some of that between now and when we report next month. I think OPG could bring more goodness to the mix as well. So I think those are the typical ones. I don't expect a big change in manufactured products because that's long lead-time stuff. And I wouldn't expect a whole lot of change in IMDS just because of the relative scale.

Edward Kim

Got it. Understood. I just wanted to touch on -- I mean, the low end of that range, $430 million doesn't represent that big of an increase over 2026, which is surprising just in light of the strong growth you're expecting to see in ad tech next year, it almost implies sort of a flattish trajectory in the energy segment, which is almost counter to kind of the constructive outlook in the offshore inflection that's expected next year. So just -- I mean does the low end of that guidance imply spending slowing down? Is that based on customer conversations you're having? Or an assumption that oil prices are going to be substantially less next year than they are now. Just any more color on kind of that low end of the guidance would be great.

Roderick Larson

I think it's mostly timing, Eddie. I mean, I think everybody thinks that things are constructive, they expect some of these pickups throughout the year next year. We just have to -- we have to make sure that we're not overstating when it starts. I think that's always the trick here is a lot of times we get the story right, but we get the timing wrong. And so we're a little bit cautious on how fast some of these things will come to fruition when they start spending. It's more about that. I think we really we truly believe that the thesis is right. The expectation for the macros is right. We're just being a little bit cautious because like I said, rigs will be moving. Some of the other projects for OPG are being contemplated, but they haven't been hard scheduled, so some of that stuff. Some of that stuff is what we're -- I think it's more of the timing.

Mike, would you add anything?

Michael Sumruld

Yes, I think it's early days, too, right? I mean this is only October. I think as we start to wrap up the year or talk to our customers, they solidify their CapEx budgets, and we start to see what's happening with the rate movement, that could change. It's just -- it's a little early.

Operator

Your next question comes from the line of Keith Beckmann with Pickering Energy Partners.

Keith Beckmann

Obviously, we had -- with the refinancing that's completed kind of during the summer and maybe the significant net cash position you guys have here, right? I mean how are you guys thinking about capital deployment heading into 2027? And maybe more specifically within ad tech, I mean, what are what's maybe an example of kind of a business that could make sense from an M&A perspective versus something that doesn't if you guys went that route? And then maybe how are you weighing that against buybacks.

Roderick Larson

Sure. Keith, I appreciate that question. I mean, you led into that. I think capital deployment. We expect to continue to make investments in our core energy businesses. There may be even some opportunity to bolt on some technology some things that we can be a little disruptive with in the energy side on that side of the business. But on the AdTech side, it is a lot of focus around, are there some inorganic Opportunities, some acquisitions that make sense. I would say the things that make sense are things that are normally valued, right? Things like machining capacity or workforce capacity that we can bring to bear on the sub safe programs we work on, the new submarine build, things like that, that we could say we can use our certifications to bring them up to government specs faster.

And so that these are things that you would pay sort of normal amounts for and then be able to add value through our competencies. So I think those things make sense. I think when we're working on some of the more highly technical vehicle tank programs, we could be looking at some of our partners, some of the people that work as subcontractors for us or bring a unique piece of technology to the mix, whether that's more electronics or a different type of sensor technology or something like that. I think those are things that are kind of nichey maybe or a little bit bigger than nichey that make sense. What doesn't make sense is us -- I mean we've got an established brand. I don't think we need to go buy one of the big super -- what I consider overvalued flashy names just to try to buy credibility with the customer.

I don't think we need to go into that ridiculous multiple range to try to get a foot in the door. We're already there. We've got one of the strongest operational reputations in the business. They know we've been here. I mean some people forget that we've been in that government business. We're a 60-year-old company. We've been on the government side more than 40 years, so it's not like we're new to the game. We don't need to buy presence.

Keith Beckmann

Okay. Perfect. And then my second question is maybe any more color we can get around kind of the ongoing continuing resolution going on, right, with the government spending. So I'm just trying to get a sense on the potential range of outcomes for 2027, like what could be more of the low end versus the high end? And I guess, more specifically, like those awards would still be there, it's more of a function of timing rather than actually things going away. Is that the right way to think about it, right? Just kind of when things start -- sorry, I'll turn it over.

Roderick Larson

Yes, that's exactly -- and it's really the sensitivity is more on new project starts, right, continuing resolution means if you you're doing, you get to continue doing it. So I think a lot of those things, we've got a pretty good support from nearly all the awards we're doing. Some of the newer things we've won could get slowed down. On the other hand, I will say, while there's always this risk. I mean right now, I feel better about what we're hearing coming off the hill and what we're hearing about a potential resolution for a defense spending bill, for example, it seems like even for an election year, people aren't really keen to get a defense bill in place, probably not surprising given the geopolitical climate, but I'm not as worried about the defense portion of that. I think there really is a lot of cooperation going on, so I remain quite optimistic that while it's an unknown out there, and we do think it's appropriate to call caution to it or call attention to it, I do feel like we've probably got better information coming back to us than we have in past years.

Operator

Your next question comes from the line of Colby Sasso with Daniel Energy Partners.

Colby Sasso

Just on thinking about '27. Could you talk about where you see the most growth from a geographical standpoint next year?

Roderick Larson

Sure. I think it's -- a lot of it is Brazil. Of course, we still see growing we see Guyana growing to Africa. I mean, we see opportunities in the rest of Africa. I think those are good. One of the things we call out is the Gulf of Mexico. It's just -- the Gulf of Mexico already is going down. We got to see how much resilience the Gulf of Mexico has -- and that's why that we'd be keeping around. Mike, what else would you call on? .

Michael Sumruld

I think what rest of Africa is a good one, Mozambique seeing a lot of activity, working back in, again, all across West Africa. It's a challenging base to learn, but we've done work there for years and years and got some more mind of there as well.

Roderick Larson

Yes. I mean, I don't know that everybody realizes, but could have as much drilling activity as Guyana within a year or 2, so.

Colby Sasso

And just another follow-up. How are you thinking about inflation across your supply chain? And this is dragging on margins at all today? And if so, how long will this take to ultimately push through your customer base? And could it potentially be a tailwind for margins in '27?

Roderick Larson

I don't -- I can't call that out as a huge factor. Colby. I mean, most of it -- where we see the biggest part of it, it's been manufactured products, obviously, and especially with some of the bigger components that go into an umbilical. Those things are almost always price adjusted or cost adjusted into the price. Those we are covered on the same product, I mean, same -- in the same bid. So that's not such a big one. It would be the biggest impact of it, if it weren't. And then the rest of it is within -- it's got within our reach. I mean we're able to mitigate a lot of it. For example, what shows up in R&M in the ROV business. We can mitigate that just by being more efficient, being more careful about where we're buying things, how we're sending them around the world. I think that's -- the mitigations have been pretty effective.

Labor rates are always probably the thing that we're most sensitive to, and so I would say that the customers are pretty good about recovering labor rates because they value their crews. If they like the people who work for them, they are very well -- I think there they're very well aware of what's going on in the labor market because they have to deal with it to some degree as well. And so getting adjustments for labor rates has been pretty effective so far. So I can't hang a lot of things off on that, although the more efficient we get, the smarter we get operating the business, all of those things can help us get the cost reductions to make us more competitive.

Michael Sumruld

Yes, the escalation cost is under contracts really help on the labor side plus the more we do from a remote operating perspective, I think, also reduces our footprint and our cost. I think we just haven't had a major issue that I can tell from inflation right now so I don't not overly concerned about it.

Operator

[Operator Instructions] Your next question comes from the line of James West with Melius Research.

Unknown Analyst

Rod, you talked about Ghana growing other Africa growing was highlighted as well. What are you seeing outside of Brazil, Africa, maybe a little bit of Gulf of Mexico. What about Mediterranean offshore North Africa, what are you guys seeing in those regions of the world? Just this gas, heavy areas where gas is just becoming a much more important product these days. Just curious your thoughts there.

Roderick Larson

I think the Eastern man definitely is still a lot of opportunity kind of tempered a little bit by activity or by that geopolitical situation over there. But there's still a lot of a lot of interest. I mean you've got E&I working over there on the Chevron projects others. So I think that's one that's got a lot of upside potential to your point. One of our really good products was offshore Egypt. So we had a great installation project there this year, and I think we see opportunity for more of that kind of work. So yes, the Med's an interesting one. We don't call it out because it's a little more -- I would call it a little more sporadic, but it could be meaningful, for sure.

Yes. And then Norway is always an interesting one. Norway is persistent. And so as Equinor starts to find things, we see -- the other thing we see from Norway is the potential for a lot of subsea tiebacks. They've talked about improving seismic resolution through AI, and that can light up some spots and existing fields that make really good opportunities for subsea tiebacks. We love those because we can do a full installation project there and provide the umbilical and a lot of engineering. So I think the more we see tiebacks in the near future, which again, if we have a continued strong commodity price, tieback are one of those things that's easiest to get on the budget. So that could affect Norway for sure. But if that becomes sort of a greater interest, it definitely could affect the independence of the Gulf of American.

Unknown Analyst

Okay. Okay. Got it. Very helpful. And then maybe follow-up question, not necessarily related to that. But how are you thinking about capital allocation on your oil and gas business versus your military business, which has been growing because there's kind of capital cycles -- upside capital cycle was happening in both areas right now. And so you've got a, I would think kind of balance where you see the best returns, but I'm kind of curious how you're thinking about that.

Roderick Larson

I think there's still opportunities. When we talk about -- Mike mentioned earlier in one of the questions about more remote work, being able to do more remote work being able to do work differently, actually things that we could do that improve the efficiency of both the work we do and the customers' work. I mean there's a chance to be a little disruptive with technology. And so I think investments in the energy side are going to make sense. We're going to find things that make a lot of economic sense, both from their value stand-alone but also from the value they bring to protecting our core, right, things that we enhance RV operations with that make us even stronger within those pieces of the business are really makes sense.

Subsea inspection -- let me use that one as an example. Doing more and more digital twin modeling and building a digital twin from ROV video and then using that to devise a risk-based inspection program for subsea assets as we try to keep subsea assets going longer, tying back more things to existing infrastructure, stuff like that, keeping TMPs running longer. I mean all of these things require more inspection while in service. And the more of that we can do with technology. And of course, there's a lot of really cool technology out there that can be levered here. I think that's the kind of stuff that really does warrant continued investment inside the energy business.

Operator

There are no further questions at this time. I will now turn the call back to Rod Larson for closing remarks.

Roderick Larson

Well, since there are no more questions, I'll just wrap up by thanking everybody for joining the call. This concludes our third quarter 2026 conference call.

Operator

Thank you for attending. You may now disconnect.