Stonegate Capital Partners Updates Coverage on Civeo Corporation (CVEO) 2025 Q2July 29, 2025 4:31 PM EDT | Source: Reportable, Inc.Dallas, Texas--(Newsfile Corp. - July 29, 2025) - Civeo Corporation (NYSE: CVEO): Stonegate Capital Partners updates their coverage on Civeo Corporation. CVEO reported 2Q25 revenue, Adj. EBITDA, and Adj. EPS of $162.7M, $25.0M, and ($0.25), respectively. This compares to our/consensus estimates of $167.5M/$163.0M, $25.6M/$22.6M, and $0.03/$0.18, respectively. Reven ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 (Registrant's telephone number, including area code) OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________________ to _________________________ Commission file number: 001-36246 Civeo Corporation ...

Financial Data and Key Metrics Changes - Civeo reported total revenues of $162.7 million for Q2 2025, with a net loss of $3.3 million or $0.25 per diluted share [13] - Adjusted EBITDA for the quarter was $25 million, with negative operating cash flow of $2.3 million [14] - The company experienced a net debt increase of $95 million, resulting in a net leverage ratio of two times as of June 30, 2025 [19] Business Line Data and Key Metrics Changes - Australian segment revenues increased by 4% year-over-year to $112.7 million, with adjusted EBITDA rising by 10% to $23.7 million [15] - Canadian segment revenues decreased to $50 million from $79.5 million year-over-year, with adjusted EBITDA dropping to $7.5 million from $17.3 million [17] Market Data and Key Metrics Changes - In Australia, revenue growth was driven by the acquisition of four villages and strong margins in integrated services, despite a weakening Australian dollar impacting revenues [6][16] - Canadian operations faced challenges due to low oil prices and customer cost-cutting measures, leading to a decrease in billed rooms [10][18] Company Strategy and Development Direction - Civeo is focused on completing its share repurchase program, having repurchased approximately 27% of its common shares since August 2021 [5] - The company aims to achieve $500 million Australian in integrated services revenues by 2027, while managing costs and optimizing operations in Canada [22][24] Management's Comments on Operating Environment and Future Outlook - Management noted that while Australian operations are performing well, Canadian operations are facing headwinds due to macroeconomic uncertainties and low oil prices [11][24] - The company expects free cash flow to improve in the second half of 2025, driven by seasonal trends and operational efficiencies [40][42] Other Important Information - Civeo completed the acquisition of four villages in Australia, contributing positively to revenue and margins [7][12] - The company has allocated $22.5 million for share repurchases in 2025 and plans to utilize free cash flow for this purpose [20] Q&A Session Summary Question: Impact of recent trade deals on guidance - Management indicated that trade uncertainty has not significantly impacted business in Canada or Australia, though they are monitoring the situation closely [28] Question: Acquisition run rate and synergies - The expected EBITDA impact from the acquisition remains unchanged at $11 million for 2025, with no immediate changes to outlook [30] Question: Factors for improved second half performance - Management expects stability in Canadian operations and improvement in Australian performance due to the full quarter contribution from acquired villages [34] Question: Customer sentiment in Australia amid price volatility - Management highlighted strong service levels and customer relationships as key factors in securing long-term contracts, despite market uncertainties [36][37] Question: Free cash flow outlook - Free cash flow is expected to be stronger in the second half of the year, with plans to use it for share buybacks [40][42] Question: Canadian occupancy trends - Management noted that Canadian occupancy is dependent on turnaround activity, with some signs of stabilization expected in the third quarter [48] Question: Long-term opportunities in Australia - Management discussed limited current exposure to oil and gas in Australia but noted potential for growth in natural gas drilling projects [52][56]

Civeo Reports Second Quarter 2025 Results Second Quarter Highlights: HOUSTON, July 29, 2025 (BUSINESS WIRE) -- Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the second quarter ended June 30, 2025. "In the second quarter we delivered revenues and Adjusted EBITDA consistent with our expectations while accelerating the return of capital to shareholders," said Bradley J. Dodson, Civeo's President and Chief Executive Officer. "We continued to drive margin expansion in our integ ...

Group 1: Momentum Investing Overview - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] - Investors are attracted to fast-moving stocks, but determining the right entry point can be challenging, as stocks may lose momentum if their valuations exceed future growth potential [2] Group 2: Investment Strategy and Stock Selection - Investing in bargain stocks that have recently shown price momentum can be a safer approach; the Zacks Momentum Style Score is useful for identifying such stocks [3] - Civeo (CVEO) is highlighted as a strong candidate due to its recent price momentum, with a four-week price change of 5.8% [4] - CVEO has demonstrated significant long-term performance, gaining 26.8% over the past 12 weeks, and has a beta of 1.36, indicating higher volatility compared to the market [5] Group 3: Valuation and Earnings Estimates - CVEO has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - CVEO is trading at a Price-to-Sales ratio of 0.49, indicating it is relatively undervalued, as investors pay only 49 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides CVEO, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to various investing styles, which can help identify potential winning stocks [9]

Group 1 - Civeo Corporation (NYSE: CVEO) is highlighted as a unique company in the market, particularly interesting for its focus on cash flow generation in the oil and natural gas sector [1] - The company is part of a broader investment service and community that emphasizes cash flow and the potential for value and growth in the oil and gas industry [1] Group 2 - The investment service offers subscribers access to a 50+ stock model account, detailed cash flow analyses of exploration and production (E&P) firms, and live chat discussions about the sector [2] - A promotional offer is available for a two-week free trial, encouraging new users to engage with the oil and gas investment community [3]

Group 1 - The article introduces "The Buy Side" as a new contributing analyst to Seeking Alpha, emphasizing the opportunity for individuals to share investment ideas and get published [1] - "The Buy Side" focuses on long-term value investing, utilizing a disciplined, fundamentals-driven approach to identify undervalued businesses [2] - The mission of "The Buy Side" is to build and preserve generational wealth by investing in high-quality companies at attractive prices, particularly in resilient sectors [2] Group 2 - The investment strategy involves screening around 10,000 publicly listed companies to find dominant players with strong free cash flows and shareholder-aligned management teams [2]

Core Insights - Civeo Corporation (CVEO) reported Q1 2025 financial results that fell short of expectations, with revenue of $144.0 million, adjusted EBITDA of $12.7 million, and an adjusted EPS of ($0.72) [1] - The company's consolidated revenue underperformance was attributed to weakness in pricing and billed rooms volume in the Canadian segment, despite strong performance in the Australian segment [1] Financial Performance - Civeo's reported revenue of $144.0 million was below both Stonegate's estimate of $150.7 million and consensus estimate of $148.1 million [1] - Adjusted EBITDA of $12.7 million was slightly above Stonegate's estimate of $12.0 million but below the consensus estimate of $14.8 million [1] - The adjusted EPS of ($0.72) was better than Stonegate's estimate of ($0.84) but worse than the consensus estimate of ($0.43) [1] Guidance and Strategic Moves - Following a recent acquisition, Civeo revised its 2025 guidance, projecting revenue between $640 million and $670 million and adjusted EBITDA of $86 million to $96 million [8] - The company reported a net loss of $9.8 million alongside its Q1 results [8] - Civeo announced a share repurchase authorization for 10% to 20% of shares outstanding and has suspended its quarterly cash dividend [8]

Core Insights - Civeo Corporation reported a negative free cash flow of ($13.5M) in Q1 2025, a decline from $7.2M in the same period last year, primarily due to negative operating cash flow of ($8.4M) and capital expenditures of $5.3M [1][5] - The company reaffirmed its long-term free cash flow generation confidence, supported by a capital-light model and a high mix of recurring asset-light services revenue [1] - Civeo increased its share repurchase authorization from 10% to 20% of shares outstanding and plans to use 100% of free cash flow to complete the program, having repurchased 153,000 shares for approximately $3.3M in the quarter [1][5] Financial Performance - Civeo reported revenues of $144.0M and a net loss of $9.8M, with an Adjusted EBITDA of $12.7M [5] - The company revised its 2025 guidance, projecting revenues between $620M and $650M and Adjusted EBITDA of $75M to $85M [5] - Net debt increased by $20.9M quarter-over-quarter to $59.0M, resulting in a net leverage ratio of 0.8x [1]

Part I -- FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements%3A) Civeo Corporation reported a net loss of **$9.8 million** for Q1 2025, a significant increase from the **$5.1 million** net loss in Q1 2024, driven by a **13%** year-over-year revenue decline to **$144.0 million** - The company provides hospitality services, including catering, lodging, and facility management, to remote workforces in the natural resource sectors of Australia and Canada[19](index=19&type=chunk) Consolidated Statements of Operations Highlights (Q1 2025 vs. Q1 2024) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Revenue** | $144.0 million | $166.1 million | | **Operating Loss** | ($5.5 million) | ($1.8 million) | | **Net Loss Attributable to Civeo** | ($9.8 million) | ($5.1 million) | | **Diluted Net Loss Per Share** | ($0.72) | ($0.35) | Consolidated Balance Sheet Highlights (As of March 31, 2025) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $28.4 million | $5.2 million | | **Total Assets** | $423.8 million | $405.1 million | | **Long-term debt** | $87.4 million | $43.3 million | | **Total Liabilities** | $203.0 million | $168.1 million | | **Total Shareholders' Equity** | $220.7 million | $237.0 million | Consolidated Statements of Cash Flows Highlights (Q1 2025 vs. Q1 2024) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | ($8.4 million) | $6.0 million | | **Net cash provided by (used in) investing activities** | ($5.1 million) | $1.2 million | | **Net cash provided by financing activities** | $36.6 million | $6.6 million | - In Q1 2025, the company repurchased **153,100 shares** for **$3.3 million** and paid a quarterly dividend of **$0.25 per share**[60](index=60&type=chunk)[62](index=62&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the decline in performance primarily to lower activity in its Canadian segment, partially offset by revenue growth in the Australian segment, while navigating a challenging macroeconomic environment and prioritizing share repurchases over dividends [Overview and Macroeconomic Environment](index=19&type=section&id=Overview%20and%20Macroeconomic%20Environment) The company's performance is closely tied to the natural resources sector, with demand sensitive to commodity prices, while managing inflation, labor shortages, and a pending acquisition in Australia - Demand for hospitality services is driven by operations of natural resource projects and is sensitive to commodity price expectations for met coal, oil, iron ore, and LNG[80](index=80&type=chunk) - On February 18, 2025, the company entered an agreement to acquire four villages with **1,340 rooms** in Australia's Bowen Basin for **A$105 million**, with the deal expected to close in Q2 2025[93](index=93&type=chunk) - The company is managing inflation risk through negotiated service scope changes and contractual protections, but continues to face pressure on labor, food, and fuel costs[94](index=94&type=chunk) - Expected capital expenditures for 2025 are projected to be in the range of **$20 million to $25 million**[100](index=100&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) For Q1 2025, Civeo's consolidated revenues fell **13%** to **$144.0 million**, operating loss widened to **$5.5 million**, and net loss increased to **$9.8 million**, primarily due to lower Canadian activity and non-recurring prior-year gains Consolidated Results of Operations (Q1 2025 vs. Q1 2024) | Metric (in millions) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $144.0 | $166.1 | ($22.1) | | **Operating Loss** | ($5.5) | ($1.8) | ($3.7) | | **Net Loss Attributable to Civeo** | ($9.8) | ($5.1) | ($4.7) | - The decrease in revenue was primarily driven by lower billed rooms at Canadian oil sands lodges and reduced occupancy at the Sitka Lodge as LNG facility construction nears completion[106](index=106&type=chunk) - The Q1 2024 results included a **$6.1 million** net gain from the sale of the McClelland Lake Lodge and a **$7.8 million** impairment charge, which impacted year-over-year comparisons[105](index=105&type=chunk) [Segment Results of Operations](index=25&type=section&id=Segment%20Results%20of%20Operations) The Australian segment's revenue grew **13%** to **$103.6 million** in Q1 2025, while the Canadian segment's revenue plummeted **40%** to **$40.4 million** due to significantly lower occupancy Australian Segment Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenues** | $103.6 million | $91.7 million | | **Gross Margin %** | 26.0% | 27.9% | | **Total Billed Rooms** | 625,636 | 613,936 | - Australian revenue growth was driven by new business in integrated services villages in Western Australia, despite a **4.5%** weakening of the AUD against the USD[117](index=117&type=chunk) Canadian Segment Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenues** | $40.4 million | $67.2 million | | **Gross Margin %** | 6.8% | 14.7% | | **Total Billed Rooms** | 358,697 | 610,032 | - The Canadian revenue decline was caused by lower billed rooms at oil sands lodges and reduced occupancy at Sitka Lodge as the Kitimat LNG facility nears completion[120](index=120&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, Civeo had total available liquidity of **$162.2 million**, used **$8.4 million** in cash from operations, amended its credit agreement, and suspended quarterly dividends to prioritize share repurchases Liquidity Position | Metric (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unused Availability | $133.8 | $197.0 | | Cash and cash equivalents | $28.4 | $5.2 | | **Total available liquidity** | **$162.2** | **$202.2** | - In March 2025, the Board increased the common share repurchase program authorization to **10%** of outstanding shares, which was further increased to **20%** in April 2025[131](index=131&type=chunk) - In April 2025, the Board suspended quarterly dividends to prioritize returning capital to shareholders through ongoing share repurchases[136](index=136&type=chunk) - The company amended its Syndicated Facility Agreement on March 24, 2025, to increase the Australian revolving commitments by **$20.0 million** to an aggregate of **$55.0 million**[132](index=132&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are exposure to changes in interest rates on its floating-rate debt and foreign currency exchange rate fluctuations - A **100 basis point** increase in floating interest rates would increase annual consolidated interest expense by approximately **$0.9 million**, based on debt levels at March 31, 2025[139](index=139&type=chunk) - A hypothetical **10%** adverse change in the value of the Canadian and Australian dollar relative to the U.S. dollar would result in translation adjustments of approximately **$11 million** and **$23 million**, respectively, recorded in other comprehensive loss[140](index=140&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's management concluded that its disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 2025 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[141](index=141&type=chunk) - There were no changes in internal control over financial reporting during Q1 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[142](index=142&type=chunk) Part II -- OTHER INFORMATION [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various pending claims and lawsuits, but management believes the ultimate liability will not materially adversely affect its financial position or results - Civeo is a party to various pending or threatened claims and lawsuits concerning its commercial operations, products, and employees[144](index=144&type=chunk) - Management believes that any ultimate liability from these proceedings, not covered by indemnity or insurance, will not have a material adverse effect on the company's financial condition[144](index=144&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) Changes in U.S. or foreign trade policies, including tariffs and protectionist measures, could adversely impact the company's future net income, cash flows, and financial condition - Changes in U.S. or foreign trade policies, such as tariffs and other restrictive measures, pose a risk to the company's future net income and cash flows[146](index=146&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, Civeo repurchased a total of **177,013 common shares**, including **153,092 shares** under its publicly announced program at an average price of **$21.75 per share** Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | Jan 2025 | — | $ — | — | | Feb 2025 | 23,921 | $26.96 | — | | Mar 2025 | 153,092 | $21.75 | 153,092 | | **Total** | **177,013** | **$21.75** | **153,092** | - The Share Repurchase Program was increased in March and April 2025, authorizing the repurchase of up to **20%** of total common shares outstanding (approx. **2,690,000 shares**)[150](index=150&type=chunk) [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) There was no information to report under this item for the period - None[149](index=149&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including an Asset Sale and Purchase Agreement, an amendment to the Syndicated Facility Agreement, and required certifications - Filed exhibits include the Asset Sale and Purchase Agreement dated Feb 18, 2025, and the Third Amendment to Syndicated Facility Agreement dated March 24, 2025[151](index=151&type=chunk)