HOUSTON--(BUSINESS WIRE)--Civeo Corporation (NYSE: CVEO) ("Civeo†or "the Company†) today appointed Jeffrey B. Scofield and Daniel B. Silvers to its Board of Directors (the "Board†), effective immediately. Mr. Silvers' and Mr. Scofield's appointments are made in conjunction with a cooperation agreement that the Company has reached with Engine Capital LP ("Engine Capital†) and certain of its affiliates. Mr. Scofield will serve on the Audit and Finance and Investment Committees of the Board and M. ...

Core Insights - Civeo Corporation (CVEO) reported revenue of $170.5 million and adjusted EBITDA of $28.8 million for Q3 2025, which was slightly below consensus estimates [1][5] - The year-over-year EBITDA increase was driven by strong performance in Australia and cost-cutting measures in Canada [1][5] - The company ended the quarter with net debt of $176 million and a net leverage ratio of 2.1x, with liquidity of approximately $70 million [1] Financial Performance - Revenue of $170.5 million and adjusted EBITDA of $28.8 million were reported, compared to estimates of $175.9 million and $27.7 million respectively [1][5] - Operating cash flow was $13.8 million, while capital expenditures totaled $5.6 million, mainly for maintenance of lodges and villages [1] - The gross margin expanded to 22.5% due to cost actions in Canada, despite lower occupancy rates [5] Strategic Actions - Civeo repurchased approximately 8% of its shares in Q3 2025, equating to around 1.05 million shares [5] - The company tightened its full-year 2025 guidance to a revenue range of $640 million to $655 million and adjusted EBITDA of $86 million to $91 million [5]

Core Insights - Civeo Corporation reported an impressive earnings per share (EPS) of $1.61, significantly exceeding the estimated EPS of $0.20, indicating strong operational and strategic progress [2][6] - The company's revenue of $170.5 million fell slightly short of the forecasted $173.5 million, reflecting a minor setback despite overall growth [2][6] Financial Performance - The Australian operations have shown both year-over-year and sequential growth, contributing positively to the company's overall performance [3] - Civeo's valuation metrics include a price-to-sales ratio of 0.43, an enterprise value to sales ratio of 0.72, and an enterprise value to operating cash flow ratio of 36.18, suggesting a high valuation relative to cash flow generated [4] - The debt-to-equity ratio stands at 1.08, indicating more debt than equity, while the current ratio of 1.64 suggests good liquidity to cover short-term liabilities [5]

Financial Performance - Revenue for Q3 2025 was $170,491,000, a decrease of 3.8% compared to $176,338,000 in Q3 2024[9] - Net loss attributable to Civeo Corporation for Q3 2025 was $455,000, compared to a net loss of $5,091,000 in Q3 2024[9] - Operating income for Q3 2025 was $6,966,000, significantly higher than the operating income of $44,000 in Q3 2024[9] - Comprehensive loss attributable to Civeo Corporation for Q3 2025 was $1,219,000, compared to a comprehensive income of $2,121,000 in Q3 2024[11] - Basic net loss per share for Q3 2025 was $(0.04), compared to $(0.36) in Q3 2024[9] - Net loss for the nine months ended September 30, 2025, was $13,617,000, compared to a net loss of $2,998,000 for the same period in 2024[18] - Total revenues for the nine months ended September 30, 2025, were $477,229, down 10.2% from $531,000 in the same period of 2024[27] - For the three months ended September 30, 2025, total revenues were $170.491 million, compared to $176.338 million for the same period in 2024, representing a decrease of approximately 3.8%[85] - Total revenues decreased by $53.9 million, or 10%, to $477.2 million for the nine months ended September 30, 2025, compared to $531.2 million in 2024[137] - Net loss attributable to Civeo Corporation was $13.6 million, or $1.04 per diluted share, for the nine months ended September 30, 2025, compared to a net loss of $2.0 million, or $0.14 per diluted share, in 2024[135] Assets and Liabilities - Total current assets increased to $140,130,000 as of September 30, 2025, from $110,453,000 at the end of 2024[14] - Long-term debt rose to $187,937,000 as of September 30, 2025, compared to $43,299,000 at the end of 2024[14] - Total assets increased to $491,067,000 as of September 30, 2025, from $405,072,000 at the end of 2024[14] - Accumulated deficit increased to $(1,047,425,000) as of September 30, 2025, from $(980,720,000) at the end of 2024[14] - Total debt as of September 30, 2025, amounted to $187,937,000, a significant increase from $43,299,000 as of December 31, 2024[52] Cash Flow and Expenditures - Cash and cash equivalents increased to $12,003,000 in Q3 2025, up from $5,204,000 at the end of 2024[14] - Cash flows provided by operating activities for the nine months ended September 30, 2025, were $3,072,000, significantly lower than $74,014,000 in 2024[18] - Capital expenditures for the nine months ended September 30, 2025, totaled $15,380,000, compared to $18,405,000 in 2024[18] - Cash used in investing activities increased significantly to $85.9 million in 2025 from $7.5 million in 2024, mainly due to the Qantac Acquisition[156] - Capital expenditures for 2025 are expected to be in the range of $20 million to $25 million, compared to $26.1 million in 2024[112] Share Repurchase and Dividends - Total common shares repurchased in the nine months ended September 30, 2025, amounted to 48,684,000 shares, compared to 24,060,000 shares in 2024[18] - Civeo's share repurchase program was increased to allow for the repurchase of up to 20% of total common shares, approximately 2.7 million shares, as of April 2025[67] - The company repurchased shares worth $26,210,000 in the three months ended September 30, 2025, at an average price of $24.93 per share[69] - The company suspended quarterly dividends in April 2025 to prioritize share repurchases, with future dividends dependent on various financial factors[165] Segment Performance - Accommodation revenues in Australia increased to $58,405 for Q3 2025, up 13.5% from $51,370 in Q3 2024[27] - Total Canada revenues decreased to $46,031 for Q3 2025, down 20.2% from $57,736 in Q3 2024[27] - The Australian segment reported revenues of $124.5 million in Q3 2025, an increase of $7.8 million, or 7%, compared to Q3 2024, with a gross margin of 26.9%[127][129] - The Canadian segment experienced a revenue decline of $11.7 million, or 20%, in Q3 2025, primarily due to a 20% decrease in billed rooms at oil sands lodges[130] - The Australian segment reported revenues of $340.8 million for the nine months ended September 30, 2025, an increase of $23.8 million, or 8%, compared to 2024[148] - The Canadian segment reported revenues of $136.5 million for the nine months ended September 30, 2025, a decrease of $68.0 million or 33% compared to $204.4 million in the same period of 2024[151] Costs and Expenses - Consolidated cost of sales and services decreased by $11.8 million, or 9%, in Q3 2025 compared to Q3 2024, attributed to reduced occupancy levels and cost reduction measures[118] - Selling, general and administrative expenses decreased by $1.5 million, or 8%, in Q3 2025, mainly due to lower incentive compensation and office expenses[120] - Operating income decreased by $7.1 million, or 63%, to $4.3 million for the nine months ended September 30, 2025, primarily due to lower lodge occupancy in Canada and higher SG&A expenses[144] - SG&A expenses increased by $1.1 million, or 2%, to $56.8 million for the nine months ended September 30, 2025, driven by higher professional fees related to shareholder activist costs[140] Legal and Compliance - The company is involved in various pending legal proceedings, but believes that any ultimate liability will not have a material adverse effect on its consolidated financial position[173] - There were no changes in internal control over financial reporting that materially affected the company during the three months ended September 30, 2025[171] - The company's disclosure controls and procedures were deemed effective as of September 30, 2025, providing reasonable assurance regarding the accuracy of disclosed information[170] Market Conditions - The average price of met coal was $189.51 per tonne for the quarter ended October 24, 2025, with prices fluctuating between $168 and $198 per tonne for the nine months through September 2025[98][100] - Iron ore prices averaged $96.97 per tonne during the third quarter of 2025, driven by demand from steel producer restocking activity[102] - WTI crude prices decreased approximately 13% year-to-date through the end of the third quarter of 2025, with forecasts predicting an average of $60.00 per barrel in the fourth quarter[103] - WCS crude prices averaged $52.48 per barrel in the third quarter of 2025, down from $59.97 in the same quarter of 2024[105] - Labor costs are under pressure due to a tight labor market in Australia, with unemployment around 4% and increased staffing costs impacting the hospitality sector[108]

Financial Data and Key Metrics Changes - Civeo reported total revenues of $170.5 million for Q3 2025, with a net loss of $0.5 million or $0.04 per share [10] - Adjusted EBITDA for the quarter was $28.8 million, reflecting a year-over-year increase primarily driven by cost-cutting measures in Canada and contributions from Australian acquisitions [10][11] - The net leverage ratio as of September 30, 2025, was 2.1 times, with total liquidity of approximately $70 million [12][20] Business Line Data and Key Metrics Changes - Australian segment revenues increased by 7% year-over-year to $124.5 million, with adjusted EBITDA growing by 19% to $26.7 million [10][11] - Canadian segment revenues decreased to $46 million from $57.7 million in Q3 2024, but adjusted EBITDA improved to $8 million from $3.4 million due to cost-reduction measures [10][11] Market Data and Key Metrics Changes - In Australia, billed rooms increased by 18% year-over-year to 763,000, while the daily room rate in U.S. dollars decreased from $79 to $77 due to a weakened Australian dollar [11] - Canadian billed rooms totaled 383,000, down from 484,000 in Q3 2024, with a stable daily room rate of $100 [11] Company Strategy and Development Direction - The company is focused on growing its integrated services business in Australia, aiming for AUD 500 million in revenue by 2027 [5][16] - In Canada, the strategy includes leveraging mobile camp assets for infrastructure projects, with a focus on cost-cutting and operational efficiency [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Australian business despite expected modest occupancy softness due to seasonal factors and market conditions [5][16] - In Canada, management noted that the operating environment remains challenging but highlighted the success of cost-cutting initiatives [7][19] Other Important Information - Civeo repurchased approximately 1 million shares during the quarter, bringing the year-to-date return of capital to shareholders to $52 million [4][12] - The company plans to use no less than 100% of annual free cash flow for share repurchases and maintain a net leverage ratio in the two-times range [20] Q&A Session Summary Question: Guidance for 2026 and year-over-year expectations - Management expects 2026 to show year-over-year growth, with Australian-owned villages' occupancy remaining stable and integrated services showing top-line growth [23] Question: Opportunities for mobile camp assets - Management confirmed active bidding for mobile camp projects in both Canada and the U.S., with a focus on LNG and infrastructure-related opportunities [25] Question: Capital allocation preferences - The company is committed to completing its share repurchase authorization while remaining open to attractive acquisition opportunities [26] Question: Growth opportunities in Australia - Management remains optimistic about reaching the AUD 500 million target by 2027, emphasizing organic growth and potential acquisitions [30] Question: Staffing challenges in Australia - Staffing remains a challenge, particularly for chefs, but management is making progress in recruitment [42] Question: Future cost-cutting initiatives in Canada - Management indicated that while initial cost-cutting measures have been successful, ongoing efforts will continue to adapt to the new operating reality [46][48]

分组1 - Civeo reported a quarterly loss of $0.04 per share, missing the Zacks Consensus Estimate of $0.20, representing an earnings surprise of -120.00% [1] - The company posted revenues of $170.49 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.43% and down from $176.34 million a year ago [2] - Civeo has not surpassed consensus revenue estimates over the last four quarters, and has only beaten EPS estimates once during the same period [2] 分组2 - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - Civeo shares have increased by about 0.2% since the beginning of the year, underperforming compared to the S&P 500's gain of 16% [3] - The current consensus EPS estimate for the coming quarter is -$0.07 on revenues of $164.77 million, and -$0.71 on revenues of $646.25 million for the current fiscal year [7] 分组3 - The Hotels and Motels industry, to which Civeo belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5] - The current Zacks Rank for Civeo is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Financial Performance - Civeo generated revenues of $170.5 million in Q3 2025, with a net loss of $0.5 million, or $0.04 per diluted share[5]. - Adjusted EBITDA for Q3 2025 was $28.8 million, up 53% from $18.8 million in Q3 2024, driven by cost-cutting measures and contributions from the Australian acquisition[6][7]. - Total revenues for Q3 2025 were $170.491 million, a decrease of 3.8% from $176.338 million in Q3 2024[27]. - Operating income for Q3 2025 was $6.966 million, compared to $44 thousand in Q3 2024, indicating a significant decline[32]. - Net loss attributable to Civeo Corporation for Q3 2025 was $455 thousand, an improvement from a net loss of $5.091 million in Q3 2024[27]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $66.499 million, slightly down from $68.497 million in the same period of 2024[32]. - Total revenues for the nine months ended September 30, 2025, were $477.23 million, compared to $531.17 million for the same period in 2024, reflecting a decrease of 10.2%[39]. Segment Performance - The Australian segment reported revenues of $124.5 million and Adjusted EBITDA of $26.7 million, reflecting a 7% increase in revenues and a 19% increase in Adjusted EBITDA year-over-year[10][9]. - The Canadian segment generated revenues of $46.0 million, with an Adjusted EBITDA of $8.0 million, despite a 20% decline in billed rooms and revenues year-over-year[11][13]. - Total Australian revenues for Q3 2025 reached $124.46 million, a 6.4% increase from $116.62 million in Q3 2024[33]. - Total Canadian revenues for Q3 2025 were $46.03 million, down 20.2% from $57.74 million in Q3 2024[33]. - Civeo's asset-light segment, Catering and Facility Management, generated $90.12 million in Q3 2025, up from $87.09 million in Q3 2024[39]. Cost Management and Expenditures - Capital expenditures for Q3 2025 were $5.6 million, down from $7.5 million in Q3 2024, primarily for maintenance spending[17]. - The company implemented cost reduction strategies, including a 25% reduction in overhead headcount and a 29% decline in direct field-level costs year-over-year[19]. - Capital expenditures for the nine months ended September 30, 2025, were $15.380 million, compared to $18.405 million in the same period of 2024[30]. - The company incurred implementation costs related to cost savings initiatives, primarily severance and real estate expense rationalization[44]. - The company is actively pursuing cost-saving initiatives to improve financial performance and reduce expenses[45]. Shareholder Actions - Civeo repurchased approximately 1.05 million shares for about $26.2 million, completing 69% of its current share buyback authorization[16]. Liquidity and Debt - The company has total liquidity of approximately $70.2 million and total debt of $187.9 million as of September 30, 2025, resulting in a net leverage ratio of 2.1x[15]. - Total debt as of September 30, 2025, was $187.94 million, with net debt at $175.93 million after accounting for cash and cash equivalents[43]. - The net leverage ratio as of September 30, 2025, was 2.1x, indicating the company's debt levels relative to its adjusted EBITDA[43]. - Civeo is required to maintain a net leverage ratio below 3.0x each quarter as per its credit agreement, indicating a focus on managing indebtedness[44]. Guidance and Projections - Civeo is tightening its full-year 2025 revenue guidance to a range of $640 million to $655 million and Adjusted EBITDA guidance to $86 million to $91 million[18]. - For the year ending December 31, 2025, estimated net loss ranges from $21.3 million to $18.3 million, with an estimated EBITDA range of $75.7 million to $80.7 million[45]. - Adjusted EBITDA for 2025 is projected to be between $86.0 million and $91.0 million, after accounting for adjustments including shareholder activist costs, cost-saving initiatives, and share-based compensation[45]. Asset and Liability Overview - Cash and cash equivalents increased to $12.003 million as of September 30, 2025, up from $5.204 million at the end of 2024[28]. - Total assets rose to $491.067 million as of September 30, 2025, compared to $405.072 million at the end of 2024[28]. - Total liabilities increased to $308.521 million as of September 30, 2025, up from $168.074 million at the end of 2024[28]. - Civeo Corporation's total current assets increased to $140.130 million as of September 30, 2025, from $110.453 million at the end of 2024[28]. Strategic Initiatives - The company continues to focus on strategic initiatives, including market expansion and potential acquisitions, to enhance growth prospects[44]. - Civeo's management believes that net debt, bank-adjusted EBITDA, and net leverage ratio provide useful insights into the company's ability to service debt[44]. - Share-based compensation expenses associated with performance share awards and other awards were recorded, reflecting the company's commitment to incentivizing performance[44].

Core Insights - Civeo is tightening its revenue guidance for the full year of 2025 to a range of $640 million to $655 million [1] - The Adjusted EBITDA guidance for 2025 is also being narrowed to a range of $86 million to $91 million [1] - The company is maintaining its capital expenditure guidance for 2025 at a range of $20 million to $25 million [1]

Core Insights - Civeo Corporation reported financial and operational results for Q3 2025, highlighting continued growth in Australia and an improved cost structure in Canada [1] Financial Performance - The Australian business of Civeo demonstrated year-over-year and sequential growth in the third quarter [1]

Core Insights - The article discusses potential investment opportunities in CVEO, indicating a possible long position in the stock within the next 72 hours [1]. Group 1 - The analyst has no current stock or derivative positions in the companies mentioned but may initiate a beneficial long position in CVEO [1]. - The article expresses the author's personal opinions and is not influenced by external compensation [1]. - There is no business relationship with any company whose stock is mentioned in the article [1].