Core Insights - Steady earnings growth is attractive to executives and analysts, but earnings acceleration is more impactful in driving stock prices higher [1] - Successful stocks typically experience earnings acceleration prior to stock price increases [1] - QuantumScape Corporation, Civeo Corporation, and Entergy Corporation are currently demonstrating strong earnings acceleration [1][8] Earnings Acceleration Definition - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), specifically when quarter-over-quarter growth rates increase over time [2] Importance of Earnings Acceleration - Unlike earnings growth, which may already be priced into stocks, earnings acceleration can identify undervalued stocks that are likely to see price rallies [3] - An increasing percentage of earnings growth indicates a fundamentally sound company, while stagnant or declining growth can negatively impact stock prices [4] Screening Parameters - Stocks should be screened for the last two quarter-over-quarter EPS growth rates exceeding previous periods' growth rates [5] - Additional criteria include projected EPS growth rates for the upcoming quarter being higher than prior periods, current price being at least $5, and average 20-day volume being at least 50,000 [6][7] Highlighted Companies - QuantumScape is developing solid-state lithium-metal batteries for electric vehicles, with an expected earnings growth rate of 19.2% for the current year [9] - Civeo provides hospitality services to the global natural resource industry, projecting an earnings growth rate of 45.4% for the current year [10] - Entergy produces and distributes electricity in the U.S., with an anticipated earnings growth rate of 6.6% for the current year [11]

Core Insights - Top executives and analysts emphasize the importance of consistent earnings growth as a reflection of a company's profitability, with earnings acceleration having a more significant impact on stock prices [1][3] - Successful stocks typically experience a speed-up in earnings before their stock prices rise, indicating potential investment opportunities [1][3] Earnings Acceleration - Earnings acceleration refers to the incremental growth in a company's earnings per share (EPS), specifically when the quarter-over-quarter earnings growth rate increases over time [2] - This metric helps identify stocks that have not yet attracted investor attention, which can lead to a subsequent rally in share prices [3] Screening Parameters - The screening process involves identifying stocks where the last two quarter-over-quarter EPS growth rates exceed previous periods' growth rates, with projected EPS growth rates for the upcoming quarter expected to surpass prior periods [5][6] - Additional criteria include a current price of at least $5 and an average 20-day trading volume of 50,000 or more to ensure adequate liquidity [7] Highlighted Stocks - QuantumScape Corporation (QS) is focused on developing solid-state lithium-metal batteries for electric vehicles, with an expected earnings growth rate of 17% for the current year [9] - Civeo Corporation (CVEO) provides hospitality services for the natural resource industry, projecting an earnings growth rate of 69.8% for the current year [10] - Agenus Inc. (AGEN) is a clinical-stage biotechnology company developing cancer therapies, with a leading projected earnings growth rate of 114.7% for the current year [11]

Core Insights - Civeo Corporation reported 2Q25 revenue of $162.7 million, Adjusted EBITDA of $25.0 million, and Adjusted EPS of ($0.25), which were slightly below expectations [1] - The Australian segment contributed positively to revenue, while the Canadian business faced ongoing macro-driven challenges [1] Financial Performance - Revenue of $162.7 million compared to consensus estimates of $167.5 million and $163.0 million [1] - Adjusted EBITDA of $25.0 million was below the estimates of $25.6 million and $22.6 million [1] - Adjusted EPS of ($0.25) compared to estimates of $0.03 and $0.18 [1] Strategic Developments - Civeo repurchased approximately 7% of its outstanding shares for $19.1 million [5] - The company completed the acquisition of four villages in Australia's Bowen Basin, enhancing its regional presence [5] - Civeo was awarded multi-year contracts in the Bowen Basin with an expected revenue of A$314 million [5]

PART I -- FINANCIAL INFORMATION [ITEM 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Civeo Corporation's unaudited consolidated financial statements for Q2 and H1 2025 and 2024, with detailed notes [Unaudited Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) Consolidated Statements of Operations (Three Months Ended June 30, in thousands, except per share amounts) | Metric | 2025 | 2024 | Change | | :------------------------------------------ | :----- | :----- | :----- | | Revenue | $162,694 | $188,713 | $(26,019) | | Operating income (loss) | $2,800 | $13,112 | $(10,312) | | Net income (loss) attributable to Civeo Corp. | $(3,314) | $8,227 | $(11,541) | | Basic net income (loss) per share | $(0.25) | $0.57 | $(0.82) | | Diluted net income (loss) per share | $(0.25) | $0.56 | $(0.81) | | Dividends per common share | $0.00 | $0.25 | $(0.25) | Consolidated Statements of Operations (Six Months Ended June 30, in thousands, except per share amounts) | Metric | 2025 | 2024 | Change | | :------------------------------------------ | :----- | :----- | :----- | | Revenue | $306,738 | $354,833 | $(48,095) | | Operating income (loss) | $(2,716) | $11,331 | $(14,047) | | Net income (loss) attributable to Civeo Corp. | $(13,156) | $3,094 | $(16,250) | | Basic net income (loss) per share | $(0.98) | $0.21 | $(1.19) | | Diluted net income (loss) per share | $(0.98) | $0.21 | $(1.19) | | Dividends per common share | $0.25 | $0.50 | $(0.25) | [Unaudited Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Consolidated Statements of Comprehensive Income (Loss) (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | | :---------------------------------------------------- | :----- | :----- | :----- | | Net income (loss) | $(3,311) | $7,487 | $(10,798) | | Foreign currency translation adjustment | $10,935 | $1,621 | $9,314 | | Comprehensive income (loss) attributable to Civeo Corp. | $7,620 | $9,875 | $(2,255) | Consolidated Statements of Comprehensive Income (Loss) (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | | :---------------------------------------------------- | :----- | :----- | :----- | | Net income (loss) | $(13,161) | $2,291 | $(15,452) | | Foreign currency translation adjustment | $12,028 | $(8,610) | $20,638 | | Comprehensive income (loss) attributable to Civeo Corp. | $(1,129) | $(5,420) | $4,291 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheets (As of June 30, 2025 vs December 31, 2024, in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :-------------------------------- | :------------ | :----------- | :------- | | Total current assets | $139,209 | $110,453 | $28,756 | | Property, plant and equipment, net | $265,138 | $204,897 | $60,241 | | Total assets | $508,839 | $405,072 | $103,767 | | Total current liabilities | $92,238 | $92,646 | $(408) | | Long-term debt | $168,672 | $43,299 | $125,373 | | Total liabilities | $299,401 | $168,074 | $131,327 | | Total shareholders' equity | $209,438 | $236,998 | $(27,560) | [Unaudited Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) - Total shareholders' equity **decreased from $236,998 thousand at December 31, 2024, to $209,438 thousand at June 30, 2025**, primarily due to a net loss of **$13,156 thousand**, dividends paid of **$4,058 thousand**, and common shares repurchased of **$22,474 thousand**, partially offset by a currency translation adjustment of **$12,028 thousand**[16](index=16&type=chunk) [Unaudited Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | | :------------------------------------------ | :----- | :----- | :----- | | Net cash flows provided by (used in) operating activities | $(10,758) | $38,343 | $(49,101) | | Net cash flows used in investing activities | $(74,444) | $(129) | $(74,315) | | Net cash flows provided by (used in) financing activities | $92,244 | $(34,112) | $126,356 | | Net change in cash and cash equivalents | $9,434 | $4,112 | $5,322 | | Cash and cash equivalents, end of period | $14,638 | $7,435 | $7,203 | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) - Civeo Corporation provides hospitality services to remote workforces in Australia and Canada, including catering, lodging, housekeeping, and facility management, primarily serving the metallurgical coal, oil, liquefied natural gas (LNG), and iron ore producing regions[20](index=20&type=chunk) Revenue by Reportable Segment (in thousands) | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------ | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Australia | $112,672 | $108,608 | $216,318 | $200,345 | | Canada | $50,022 | $79,527 | $90,420 | $146,687 | | Other | $0 | $578 | $0 | $7,801 | | **Total** | **$162,694** | **$188,713** | **$306,738** | **$354,833** | - No impairment expense was recorded during the first or second quarters of 2025[29](index=29&type=chunk) - In the first quarter of 2024, pre-tax impairment charges totaled **$7.8 million**, including **$5.7 million** for undeveloped land in Australia and **$2.1 million** for land in the U.S[31](index=31&type=chunk)[32](index=32&type=chunk) - On May 6, 2025, Civeo acquired Qantac Pty Ltd in Queensland, Australia, for approximately **US$68 million in cash**[43](index=43&type=chunk) - The acquisition included four villages with **1,340 rooms** and associated assets, expanding Civeo's accommodations business into the Blackwater region of the Bowen Basin[45](index=45&type=chunk) - Total long-term debt increased to **$168.7 million** at June 30, 2025, from **$43.3 million** at December 31, 2024[51](index=51&type=chunk) - The Syndicated Facility Agreement was amended on March 24, 2025, increasing Australian revolving commitments by **$20.0 million to $55.0 million**, resulting in a total revolving credit facility of **$265.0 million**[52](index=52&type=chunk)[53](index=53&type=chunk) - Income tax expense for the three months ended June 30, 2025, was **$3.6 million (1222.4% of pretax income)** compared to **$3.8 million (33.6%) in 2024**[61](index=61&type=chunk) - For the six months, income tax expense was **$6.7 million ((103.5)%)** compared to **$5.3 million (70.0%) in 2024**, significantly impacted by Canada and the U.S. being considered loss jurisdictions[62](index=62&type=chunk) - The Board authorized increases to the Share Repurchase Program in March and April 2025, allowing repurchases of up to **20% (approximately 2.7 million)** of total common shares outstanding[66](index=66&type=chunk) - Quarterly dividends were suspended in April 2025 to prioritize returning capital through ongoing share repurchases[69](index=69&type=chunk)[163](index=163&type=chunk) Common Share Repurchases (in thousands, except per share data) | Period | Dollar-value of shares repurchased | Shares repurchased | Average price paid per share | | :-------------------------- | :------------------------------- | :----------------- | :--------------------------- | | Three Months Ended June 30, 2025 | $19,140 | 883.3 | $21.64 | | Three Months Ended June 30, 2024 | $6,644 | 274.1 | $24.21 | | Six Months Ended June 30, 2025 | $22,474 | 1,036.4 | $21.65 | | Six Months Ended June 30, 2024 | $9,852 | 407.2 | $24.17 | Operating Income (Loss) by Segment (Three Months Ended June 30, in thousands) | Segment | 2025 | 2024 | Change | | :-------- | :----- | :----- | :----- | | Australia | $14,573 | $13,856 | $717 | | Canada | $(1,915) | $6,854 | $(8,769) | | Corporate, other and eliminations | $(9,858) | $(7,598) | $(2,260) | | **Total** | **$2,800** | **$13,112** | **$(10,312)** | Operating Income (Loss) by Segment (Six Months Ended June 30, in thousands) | Segment | 2025 | 2024 | Change | | :-------- | :------- | :------- | :------- | | Australia | $27,212 | $21,144 | $6,068 | | Canada | $(11,944) | $8,559 | $(20,503) | | Corporate, other and eliminations | $(17,984) | $(18,372) | $388 | | **Total** | **$(2,716)** | **$11,331** | **$(14,047)** | [Cautionary Statement Regarding Forward-Looking Statements](index=22&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section advises that forward-looking statements are subject to risks and uncertainties, not guarantees of future performance - Forward-looking statements are identified by terms such as 'may,' 'expect,' 'anticipate,' 'estimate,' 'continue,' 'believe' and are subject to important factors that could cause actual results to differ materially[90](index=90&type=chunk) - Readers should refer to 'Risk Factors' in this quarterly report and the Annual Report on Form 10-K for a discussion of known material factors affecting results[90](index=90&type=chunk) - The company disclaims responsibility for the accuracy and completeness of third-party reports on natural resources industry trends[91](index=91&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Civeo's financial condition and operations, including macroeconomic impacts, segment performance, and liquidity [Overview and Macroeconomic Environment](index=22&type=section&id=Overview%20and%20Macroeconomic%20Environment) - Demand for Civeo's hospitality services is primarily driven by ongoing operations of natural resource projects in Australia and Canada, sensitive to commodity prices (met coal, oil, iron ore, LNG) and global economic factors like inflation, supply chain disruptions, and labor shortages[93](index=93&type=chunk) Average Commodity Prices (per Quarter) | Quarter Ended | Hard Coking Coal (per tonne) | Iron Ore (per tonne) | WTI Crude (per bbl) | WCS Crude (per bbl) | | :------------ | :--------------------------- | :------------------- | :------------------ | :------------------ | | 6/30/2025 | $186.10 | $92.70 | $63.81 | $53.15 | | 3/31/2025 | $185.13 | $97.25 | $71.47 | $58.27 | | 12/31/2024 | $203.50 | $96.00 | $70.42 | $57.50 | | 9/30/2024 | $210.74 | $94.54 | $75.29 | $59.97 | | 6/30/2024 | $242.93 | $106.01 | $80.83 | $67.24 | - Met coal prices remained between **$168 and $198 per tonne** in H1 2025, impacted by subdued global steel production and trader reselling of inventories[97](index=97&type=chunk) - Iron ore prices declined to average **$92.70 per tonne** in Q2 2025, with expectations of continued subdued prices[99](index=99&type=chunk) - WTI crude prices are **down 9% year-to-date in 2025** due to OPEC+ production increases and flattening global demand[100](index=100&type=chunk) - WCS crude prices averaged **$53.15 per barrel in Q2 2025**, down from **$67.24 in Q2 2024**, with potential adverse impacts from new U.S. tariffs on Canadian energy resources[103](index=103&type=chunk) - The Qantac Acquisition on May 6, 2025, expanded Civeo's Australian accommodations with **four villages and 1,340 rooms**[104](index=104&type=chunk) - Inflationary pressures continue to impact labor and food costs, and labor shortages in Australia lead to increased staff costs[105](index=105&type=chunk)[106](index=106&type=chunk) - Sitka Lodge occupancy is expected to be lower in the near-term following the completion of Phase 1 of the Kitimat LNG facility[107](index=107&type=chunk) - Civeo expects 2025 capital expenditures to be in the range of **$20 million to $25 million**, compared to **$26.1 million in 2024**[111](index=111&type=chunk) [Results of Operations – Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024](index=26&type=section&id=Results%20of%20Operations%20%E2%80%93%20Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202024) - Consolidated revenues **decreased $26.0 million (14%) year-over-year**, primarily due to lower billed rooms at Canadian oil sands lodges and reduced occupancy at Sitka Lodge, partially offset by the Qantac Acquisition and new business in Australia[116](index=116&type=chunk) - Consolidated cost of sales and services **decreased $19.3 million (14%) year-over-year**, driven by lower costs at Canadian lodges due to reduced occupancy and mobile asset activity, partially offset by the Qantac Acquisition and new Australian business[117](index=117&type=chunk)[118](index=118&type=chunk) - Selling, general and administrative (SG&A) expenses **increased $3.0 million (17%) year-over-year**, mainly due to **$3.2 million** in shareholder activist related costs[119](index=119&type=chunk) - Consolidated operating income **decreased $10.3 million (79%) year-over-year**, primarily due to lower Canadian lodge occupancy and higher SG&A expenses, partially offset by increased activity levels in Australia[121](index=121&type=chunk) - Net interest expense **increased $0.5 million (22%) year-over-year**, related to higher average debt levels[122](index=122&type=chunk) - Other comprehensive income **increased $9.3 million**, primarily due to foreign currency translation adjustments from the Australian and Canadian dollars appreciating against the U.S. dollar[124](index=124&type=chunk) [Segment Results of Operations – Australian Segment (Three Months)](index=28&type=section&id=Segment%20Results%20of%20Operations%20%E2%80%93%20Australian%20Segment%20(Three%20Months)) - Australian segment revenues **increased $4.1 million (4%) year-over-year**, or **6.7% on a constant currency basis**, driven by the Qantac Acquisition (**$4.9 million in revenues**) and new business in integrated services villages in Western Australia[116](index=116&type=chunk)[126](index=126&type=chunk) - Total billed rooms for villages increased by **65,153 (10.4%) to 690,506**[126](index=126&type=chunk) - Average daily rate for villages **decreased by $2 to $76**[126](index=126&type=chunk) - Gross margin as a percentage of revenues **increased to 26.8% from 25.4%**, primarily due to increased relative contribution from the higher-margin accommodation business resulting from the Qantac Acquisition[128](index=128&type=chunk) [Segment Results of Operations – Canadian Segment (Three Months)](index=29&type=section&id=Segment%20Results%20of%20Operations%20%E2%80%93%20Canadian%20Segment%20(Three%20Months)) - Canadian segment revenues **decreased $29.5 million (37%) year-over-year**, driven by lower billed rooms at oil sands lodges due to producers' focus on cost reduction and reduced occupancy at Sitka Lodge following the completion of the Kitimat LNG facility[129](index=129&type=chunk) - Total billed rooms for lodges **decreased by 302,394 (40.2%) to 449,970**[129](index=129&type=chunk) - Average daily rate for lodges **decreased by $2 to $94**[129](index=129&type=chunk) - Cost of sales and services **decreased $19.8 million (34%) year-over-year**, largely due to lower costs at lodges from reduced occupancy and lower demobilization costs from pipeline projects[130](index=130&type=chunk) - Gross margin as a percentage of revenues **decreased to 22.0% from 26.0%**, primarily due to reduced efficiencies at lodges with lower occupancy levels[131](index=131&type=chunk) [Results of Operations – Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=30&type=section&id=Results%20of%20Operations%20%E2%80%93%20Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202024) - Consolidated revenues **decreased $48.1 million (14%) year-over-year**, primarily due to lower billed rooms at Canadian oil sands lodges, reduced Sitka Lodge occupancy, decreased mobile asset activity, and weaker Australian and Canadian dollars[134](index=134&type=chunk) - Consolidated cost of sales and services **decreased $35.1 million (13%) year-over-year**, driven by lower costs at Canadian lodges due to reduced occupancy and mobile asset activity, partially offset by the Qantac Acquisition and new Australian business[135](index=135&type=chunk)[136](index=136&type=chunk) - SG&A expenses **increased $2.6 million (7%) year-over-year**, mainly due to **$3.2 million** in shareholder activist related costs and higher share-based compensation[137](index=137&type=chunk) - Consolidated operating loss **increased $14.0 million (124%) year-over-year**, primarily due to lower Canadian lodge occupancy, higher SG&A, and the absence of a **$6.0 million net gain on asset sale from 2024**, partially offset by higher Australian activity and no impairment expenses in 2025[141](index=141&type=chunk) - Net interest expense **decreased $0.2 million (6%) year-over-year**, primarily due to lower interest rates, partially offset by higher average debt levels[142](index=142&type=chunk) - Other comprehensive income **increased $20.6 million**, driven by foreign currency translation adjustments from the Australian and Canadian dollars appreciating against the U.S. dollar[144](index=144&type=chunk) [Segment Results of Operations – Australian Segment (Six Months)](index=32&type=section&id=Segment%20Results%20of%20Operations%20%E2%80%93%20Australian%20Segment%20(Six%20Months)) - Australian segment revenues **increased $16.0 million (8%) year-over-year**, or **12% on a constant currency basis**, driven by the Qantac Acquisition (**$4.9 million in revenues**) and new business in integrated services villages in Western Australia[145](index=145&type=chunk) - Total billed rooms for villages increased by **76,853 (6.2%) to 1,316,142**[145](index=145&type=chunk) - Average daily rate for villages **decreased by $1 to $76**[145](index=145&type=chunk) - Gross margin as a percentage of revenues **decreased slightly to 26.4% from 26.6%**, primarily due to an increased relative revenue contribution from the lower-margin integrated services business[147](index=147&type=chunk) [Segment Results of Operations – Canadian Segment (Six Months)](index=33&type=section&id=Segment%20Results%20of%20Operations%20%E2%80%93%20Canadian%20Segment%20(Six%20Months)) - Canadian segment revenues **decreased $56.3 million (38%) year-over-year**, or **36.2% on a constant currency basis**, due to lower billed rooms at oil sands lodges, reduced Sitka Lodge occupancy, and decreased mobile asset activity from completed pipeline projects[149](index=149&type=chunk) - Total billed rooms for lodges **decreased by 553,729 (40.6%) to 808,667**[149](index=149&type=chunk) - Average daily rate for lodges **decreased by $3 to $94**[149](index=149&type=chunk) - Cost of sales and services **decreased $39.4 million (34%) year-over-year**, largely due to lower costs at lodges from reduced occupancy and lower mobile asset activity[150](index=150&type=chunk) - Gross margin as a percentage of revenues **decreased to 15.2% from 20.8%**, primarily due to reduced efficiencies at lodges with lower occupancy levels[151](index=151&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Consolidated Liquidity Position (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | Change | | :-------------------------------- | :------------ | :----------- | :------- | | Lender commitments | $265,000 | $245,000 | $20,000 | | Reduction in availability | $(37,291) | $(3,635) | $(33,656) | | Borrowings against revolving credit capacity | $(168,672) | $(43,299) | $(125,373) | | Outstanding letters of credit | $(870) | $(1,100) | $230 | | Unused availability | $58,167 | $196,966 | $(138,799) | | Cash and cash equivalents | $14,638 | $5,204 | $9,434 | | **Total available liquidity** | **$72,805** | **$202,170** | **$(129,365)** | - Net cash used in operating activities was **$10.8 million** for the six months ended June 30, 2025, compared to **$38.3 million provided in 2024**, largely due to increased cash taxes paid in Australia and non-repeating holdback collections in Canada[153](index=153&type=chunk) - Net cash used in investing activities increased significantly to **$74.4 million in 2025 from $0.1 million in 2024**, primarily due to the Qantac Acquisition (**$64.9 million**) and lower proceeds from asset sales[154](index=154&type=chunk) - Net cash provided by financing activities was **$92.2 million in 2025**, mainly from **$119.2 million** in net revolving credit borrowings used to fund the Qantac Acquisition and share repurchases[156](index=156&type=chunk) - Expected capital expenditures for 2025 are in the range of **$20 million to $25 million**, to be funded by available cash, cash flow from operations, and revolving credit borrowings[155](index=155&type=chunk) - The Board suspended quarterly dividends in April 2025 to prioritize share repurchases[163](index=163&type=chunk) [Critical Accounting Policies](index=36&type=section&id=Critical%20Accounting%20Policies) - A discussion of critical accounting policies and estimates is provided in the Annual Report on Form 10-K for the year ended December 31, 2024[164](index=164&type=chunk) - There have been no material changes to the judgments, assumptions, and estimates underlying these critical accounting policies[164](index=164&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines Civeo's exposure to market risks, focusing on interest rate and foreign currency exchange rate impacts - Civeo had **$168.7 million** in floating-rate debt as of June 30, 2025[166](index=166&type=chunk) - A hypothetical **100 basis point increase** in floating interest rates would increase consolidated interest expense by approximately **$1.7 million annually**[166](index=166&type=chunk) - A hypothetical **10% adverse change** in the value of the Australian dollar and Canadian dollar relative to the U.S. dollar would result in translation adjustments of approximately **$23 million and $7 million**, respectively, recorded in other comprehensive loss[167](index=167&type=chunk) [ITEM 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures as of June 30, 2025, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that Civeo's disclosure controls and procedures were effective as of June 30, 2025, providing reasonable assurance for timely and accurate financial reporting[168](index=168&type=chunk) - No changes in internal control over financial reporting materially affected, or are reasonably likely to materially affect, internal control over financial reporting during the three months ended June 30, 2025[169](index=169&type=chunk) PART II -- OTHER INFORMATION [ITEM 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) Civeo is involved in various legal proceedings, but management believes any ultimate liability will not materially affect financial position or operations - Civeo is a party to various pending or threatened claims, lawsuits, and administrative proceedings concerning its commercial operations, products, and employees[171](index=171&type=chunk) - Management believes that any ultimate liability from these proceedings will not have a material adverse effect on the company's consolidated financial position, results of operations, or liquidity, to the extent not otherwise provided for or covered by indemnity or insurance[171](index=171&type=chunk) [ITEM 1A. Risk Factors](index=38&type=page&id=Item%201A.%20Risk%20Factors) This section directs readers to review 'Risk Factors' and 'MD&A' in prior reports for factors that could materially affect future operating results - Readers should carefully read and consider 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' in the Annual Report on Form 10-K for December 31, 2024, and the Quarterly Report on Form 10-Q for March 31, 2025[172](index=172&type=chunk) - These documents contain descriptions of significant factors that may cause future operating results to differ materially from current expectations[172](index=172&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details common share repurchases during Q2 2025, where Civeo repurchased 883,333 shares for $19.1 million Common Share Repurchases (Three Months Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number of shares that may be purchased under the plans or programs | | :----------------------------- | :----------------------------- | :--------------------------- | :---------------------------------------------------------------- | :------------------------------------------------------------------------ | | April 1, 2025 - April 30, 2025 | 88,169 | $22.65 | 88,169 | 2,690,651 | | May 1, 2025 - May 31, 2025 | 409,200 | $20.60 | 409,200 | 2,281,451 | | June 1, 2025 - June 30, 2025 | 385,964 | $22.50 | 385,964 | 1,895,487 | | **Total** | **883,333** | **$21.64** | **883,333** | **1,895,487** | - The 2025 Share Repurchase Program was authorized to repurchase up to **20% (approximately 2.7 million)** of total common shares outstanding and does not have an expiration date[174](index=174&type=chunk) [ITEM 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) This section indicates no other information is reported for the period - No other information is reported in this section[175](index=175&type=chunk) [ITEM 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the Form 10-Q, including agreements and certifications, with a cautionary note - The index lists various exhibits, including Form of Phantom Unit Agreements, CEO/CFO certifications (Rules 13a-14(a)/15d-14(a) and 13a-14(b)/15d-14(b)), and Inline XBRL documents[176](index=176&type=chunk) - Agreements filed as exhibits are intended to provide information regarding their terms and are not necessarily factual representations of Civeo's business or operations, as they may be qualified by confidential disclosure schedules[176](index=176&type=chunk) [Signature Page](index=40&type=section&id=Signature%20Page) This page formally concludes the Form 10-Q filing, signed by E. Collin Gerry, CFO and Treasurer, on July 29, 2025 - The report is signed by E. Collin Gerry, Senior Vice President, Chief Financial Officer and Treasurer, on July 29, 2025[181](index=181&type=chunk)

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]

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Civeo shares have added about 8.1% since the beginning of the year versus the S&P 500's gain of 8.6%. What's Next for Civeo? While Civeo has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? Civeo (CVEO) came out with a quarterly loss of $0.25 ...

Second Quarter Highlights Civeo's Q2 2025 highlights encompass financial performance, strategic actions, and capital return to shareholders [Overall Financial Performance (Q2 2025 vs Q2 2024)](index=1&type=section&id=Overall%20Financial%20Performance) Civeo reported a decrease in revenues and a net loss in Q2 2025 compared to Q2 2024, alongside negative operating cash flow, primarily due to reduced customer spending in Canada and specific one-time financial impacts Q2 2025 vs Q2 2024 Financial Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (YoY) | | :----------------------- | :--------------------- | :--------------------- | :----------- | | Revenues | $162.7 | $188.7 | -13.7% | | Net Income (Loss) | ($3.3) | $8.2 | -140.2% | | Diluted EPS | ($0.25) | $0.56 | -144.6% | | Operating Cash Flow | ($2.3) | $32.4 | -107.1% | | Adjusted EBITDA | $25.0 | $31.9 | -21.6% | - The year-over-year decrease in **Adjusted EBITDA** was mainly due to decreased billed rooms at **Canadian lodges** from ongoing customer spending reductions and lower turnaround activity[5](index=5&type=chunk) - **Operating cash flow decrease** was exacerbated by a **$9.4 million** one-time collection of holdbacks in Q2 2024 and approximately **$15.8 million** in Australian cash taxes in Q2 2025 (including a **$9.4 million** payment for the 2024 tax year) not incurred in Q2 2024[6](index=6&type=chunk) [CEO Commentary & Strategic Actions](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Actions) The CEO highlighted Q2 2025 revenues and Adjusted EBITDA met expectations, with accelerated capital return to shareholders. Strategic actions included margin expansion in Australian integrated services, key contract awards, and an accretive acquisition in Australia, while continuing to right-size the Canadian business amidst macroeconomic headwinds - Civeo delivered revenues and **Adjusted EBITDA** consistent with expectations while accelerating capital return to shareholders[3](index=3&type=chunk) - The company drove **margin expansion** in its integrated services business and positioned the Australian segment for success through multiple key contract awards and the acquisition of **four new owned-villages** in the Bowen Basin[3](index=3&type=chunk) - Civeo repurchased **883,000 common shares** for **$19.1 million** (approximately **7% of outstanding shares** as of March 31, 2025) and intends to continue opportunistically executing its share repurchase authorization[3](index=3&type=chunk) - The Canadian business continues to face macroeconomic headwinds and typical seasonality effects, leading to cash consumption driven by working capital; Civeo is right-sizing the Canadian business and pursuing diversification opportunities[3](index=3&type=chunk) Business Segment Results This section details the financial performance of Civeo's Australian and Canadian business segments for Q2 2025 [Australia Segment](index=1&type=section&id=Australia%20Segment) The Australian segment showed strong growth in Q2 2025, with increased revenues and Adjusted EBITDA, primarily driven by the acquisition of four owned-villages and margin improvements in integrated services, despite a negative impact from a weakened Australian dollar Australia Segment Financial Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (YoY) | | :---------------- | :--------------------- | :--------------------- | :----------- | | Revenues | $112.7 | $108.6 | +3.8% | | Operating Income | $14.6 | $13.9 | +5.0% | | Adjusted EBITDA | $23.7 | $21.6 | +9.7% | - The year-over-year increase was primarily driven by the recently completed acquisition of **four owned-villages**, which contributed **$4.9 million** in revenues in the last two months of Q2 2025, and **margin improvement** in the integrated services business[8](index=8&type=chunk)[9](index=9&type=chunk) - A weakened Australian dollar relative to the U.S. dollar negatively impacted revenues by **$3.2 million** and **Adjusted EBITDA** by **$0.7 million**[7](index=7&type=chunk) - Key contract awards in the Bowen Basin include a **four-year contract** with expected revenues of **A$250 million** and a **three-year integrated services contract** with expected revenues of **A$64 million**[8](index=8&type=chunk) [Canada Segment](index=2&type=section&id=Canada%20Segment) The Canadian segment experienced a significant decline in Q2 2025 revenues and shifted to an operating loss, primarily due to reduced lodge occupancy and customer spending in the oil sands region, leading the company to pursue cost-saving actions Canada Segment Financial Performance | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (YoY) | | :---------------- | :--------------------- | :--------------------- | :----------- | | Revenues | $50.0 | $79.5 | -37.1% | | Operating Income | ($1.9) | $6.9 | -127.5% | | Adjusted EBITDA | $7.5 | $17.3 | -56.6% | - Lodge occupancy in the Canadian oil sands region remains challenged due to ongoing customer capital and operational spending reductions, including lower turnaround activity[11](index=11&type=chunk) - The Canadian segment incurred approximately **$0.5 million** in implementation costs related to the cold-closure of two lodges, which are excluded from **Adjusted EBITDA**[12](index=12&type=chunk) - Civeo is evaluating additional cost-saving actions to right-size its North American cost structure in light of macroeconomic factors influencing the global oil market[12](index=12&type=chunk) Financial Condition & Capital Allocation This section reviews Civeo's liquidity, debt, leverage, share repurchase activities, and capital expenditures [Liquidity, Debt & Leverage](index=2&type=section&id=Liquidity%2C%20Debt%20%26%20Leverage) Civeo's total debt and net debt significantly increased as of June 30, 2025, primarily due to the recent acquisition and share repurchases, resulting in a net leverage ratio of 2.0x Liquidity, Debt, and Leverage Overview | Metric | As of June 30, 2025 (Millions USD) | As of March 31, 2025 (Millions USD) | Change (Millions USD) | | :---------------- | :--------------------------------- | :---------------------------------- | :-------------------- | | Total Liquidity | $72.8 | N/A | N/A | | Total Debt | $168.7 | $87.4 | +$81.3 | | Net Debt | $154.0 | $59.0 | +$95.0 | | Net Leverage Ratio| 2.0x | N/A | N/A | - The increase in **net debt** is attributable to the recent acquisition and share repurchases[13](index=13&type=chunk) [Share Repurchase Program](index=2&type=section&id=Share%20Repurchase%20Program) Civeo continued its share repurchase program in Q2 2025, buying back 883,000 shares for $19.1 million, and plans to utilize at least 100% of its annual free cash flow to complete the program - In Q2 2025, Civeo repurchased approximately **883,000 shares** for **$19.1 million** at an average price of **$21.64 per share**[14](index=14&type=chunk) - The company intends to use no less than **100% of its annual free cash flow** to complete the authorized share repurchase program as market conditions allow[14](index=14&type=chunk) [Capital Expenditures](index=2&type=section&id=Capital%20Expenditures) Capital expenditures in Q2 2025 decreased slightly year-over-year, primarily focused on maintenance spending for the company's lodges and villages Capital Expenditures Overview | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (YoY) | | :------------------ | :--------------------- | :--------------------- | :----------- | | Capital Expenditures| $4.5 | $5.3 | -15.1% | - Capital expenditures in both periods were primarily related to maintenance spending on the Company's lodges and villages[15](index=15&type=chunk) Full Year 2025 Guidance Civeo is maintaining its full-year 2025 guidance for revenue, Adjusted EBITDA, and capital expenditures Full Year 2025 Financial Guidance | Metric | Full Year 2025 Guidance Range (Millions USD) | | :---------------- | :------------------------------------------- | | Revenues | $640 - $670 | | Adjusted EBITDA | $86 - $96 | | Capital Expenditures| $20 - $25 | Conference Call Civeo hosted a conference call on July 29, 2025, to discuss its second quarter 2025 financial results, with webcast and dial-in options available - Civeo hosted a conference call on **July 29, 2025**, at **8:30 a.m. Eastern time** to discuss Q2 2025 financial results[17](index=17&type=chunk) - The call was webcast on Civeo's website (www.civeo.com) and accessible via dial-in, with a replay available afterward[17](index=17&type=chunk) Company Information This section provides an overview of Civeo Corporation, its forward-looking statements, and definitions of non-GAAP financial measures [About Civeo](index=3&type=section&id=About%20Civeo) Civeo Corporation is a leading provider of hospitality services in Australian natural resource regions and Canadian oil sands, offering comprehensive lodging and support services for workers across 28 owned and 24 customer-owned locations - Civeo Corporation is a leading provider of hospitality services in Australian natural resource regions and the Canadian oil sands[18](index=18&type=chunk) - Services include long-term and temporary accommodations, food services, housekeeping, facility management, laundry, water/wastewater treatment, power generation, communications, security, and logistics[18](index=18&type=chunk) - Civeo owns and operates **28 lodges/villages** with approximately **27,500 rooms** and provides services at **24 customer-owned locations** with approximately **19,500 rooms**[18](index=18&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains standard disclosures regarding forward-looking statements, emphasizing that they are subject to various risks and uncertainties that could cause actual results to differ materially from expectations, and Civeo disclaims any obligation to update them - The news release contains forward-looking statements inherently subject to risks and uncertainties, including those related to future plans, outlook, guidance, and strategic priorities[19](index=19&type=chunk) - Risks include general industry conditions, supply/demand for natural resources, commodity price fluctuations, contract terminations, currency exchange rates, inflation, acquisitions, labor shortages, and regulatory changes[19](index=19&type=chunk) - Civeo expressly disclaims any intention or obligation to revise or update any forward-looking statements, except as required by law[19](index=19&type=chunk) [Non-GAAP Financial Information](index=3&type=section&id=Non-GAAP%20Financial%20Information) This section defines non-GAAP financial measures such as EBITDA, Adjusted EBITDA, free cash flow, net debt, bank-adjusted EBITDA, and net leverage ratio, clarifying that they supplement GAAP results and may not be comparable across companies - **EBITDA**, **Adjusted EBITDA**, **free cash flow**, **net debt**, **bank-adjusted EBITDA**, and **net leverage ratio** are non-GAAP financial measures[20](index=20&type=chunk) - These measures supplement and should be read together with GAAP financial results, not as an alternative or substitute[20](index=20&type=chunk) - Non-GAAP financial information may not be comparable to similarly titled measures of other companies due to lack of standardization[20](index=20&type=chunk) Consolidated Financial Statements This section presents Civeo's unaudited consolidated statements of operations, balance sheets, and cash flows [Unaudited Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) Civeo's unaudited consolidated statements of operations show a net loss for both the three and six months ended June 30, 2025, compared to net income in the prior year periods, driven by decreased revenues and increased expenses Unaudited Consolidated Statements of Operations | Metric (in thousands USD) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $162,694 | $188,713 | $306,738 | $354,833 | | Operating income (loss) | $2,800 | $13,112 | ($2,716) | $11,331 | | Net income (loss) attributable to Civeo Corporation | ($3,314) | $8,227 | ($13,156) | $3,094 | | Diluted EPS | ($0.25) | $0.56 | ($0.98) | $0.21 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Civeo's total assets increased significantly, primarily due to an increase in property, plant and equipment, and other intangible assets, while total liabilities also rose substantially, mainly from long-term debt Condensed Consolidated Balance Sheets | Metric (in thousands USD) | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total current assets | $139,209 | $110,453 | | Property, plant and equipment, net | $265,138 | $204,897 | | Total assets | $508,839 | $405,072 | | Total current liabilities | $92,238 | $92,646 | | Long-term debt | $168,672 | $43,299 | | Total liabilities | $299,401 | $168,074 | | Total shareholders' equity | $209,438 | $236,998 | - **Cash and cash equivalents** increased from **$5,204 thousand** at December 31, 2024, to **$14,638 thousand** at June 30, 2025[24](index=24&type=chunk) [Unaudited Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, Civeo reported negative cash flow from operating activities, significant cash used in investing activities primarily due to acquisitions, and substantial cash provided by financing activities from revolving credit borrowings Unaudited Consolidated Statements of Cash Flows | Cash Flow Activity (in thousands USD) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash flows provided by (used in) operating activities | ($10,758) | $38,343 | | Net cash flows used in investing activities | ($74,444) | ($129) | | Net cash flows provided by (used in) financing activities | $92,244 | ($34,112) | | Net change in cash and cash equivalents | $9,434 | $4,112 | | Cash and cash equivalents, end of period | $14,638 | $7,435 | - Acquisitions and related payments accounted for **$64,948 thousand** in cash used in investing activities for the six months ended June 30, 2025[26](index=26&type=chunk) - Revolving credit borrowings (net) provided **$119,223 thousand** in cash for financing activities during the six months ended June 30, 2025[26](index=26&type=chunk) Segment and Operating Data This section provides detailed financial and operational data for Civeo's Australian and Canadian segments, including revenue disaggregation by service type [Segment Financial Performance](index=7&type=section&id=Segment%20Financial%20Performance) Civeo's segment data for Q2 2025 shows revenue growth and increased Adjusted EBITDA in Australia, while Canada experienced significant declines in both revenues and profitability, shifting to an operating loss Segment Financial Performance by Region | Metric (in thousands USD) | Australia Q2 2025 | Australia Q2 2024 | Canada Q2 2025 | Canada Q2 2024 | | :-------------------- | :---------------- | :---------------- | :------------- | :------------- | | Revenues | $112,672 | $108,608 | $50,022 | $79,527 | | EBITDA | $23,612 | $21,551 | $6,963 | $17,154 | | Adjusted EBITDA | $23,663 | $21,605 | $7,452 | $17,337 | | Operating income (loss)| $14,573 | $13,856 | ($1,915) | $6,854 | - Australia's revenues increased by **3.7% YoY**, and **Adjusted EBITDA** increased by **9.5% YoY** in Q2 2025[28](index=28&type=chunk) - Canada's revenues decreased by **37.1% YoY**, and **Adjusted EBITDA** decreased by **57.0% YoY** in Q2 2025[28](index=28&type=chunk) [Supplemental Quarterly Operating Data](index=8&type=section&id=Supplemental%20Quarterly%20Operating%20Data) Supplemental operating data highlights increased billed rooms and accommodation revenue in Australia, while Canada saw substantial decreases in billed rooms and accommodation revenue, reflecting ongoing challenges in the Canadian oil sands region Supplemental Quarterly Operating Data by Region | Metric | Australia Q2 2025 | Australia Q2 2024 | Canada Q2 2025 | Canada Q2 2024 | | :-------------------------------------- | :---------------- | :---------------- | :------------- | :------------- | | Accommodation revenue (thousands USD) | $52,682 | $48,914 | $42,590 | $72,259 | | Food and other services revenue (thousands USD) | $59,990 | $59,694 | $6,998 | $6,912 | | Billed rooms | 690,506 | 625,353 | 449,970 | 752,364 | | Average daily rates (USD) | $76 | $78 | $94 | $96 | - Australian billed rooms increased by **10.4% YoY**, while Canadian billed rooms decreased by **40.2% YoY** in Q2 2025[29](index=29&type=chunk) - The Australian dollar weakened against the U.S. dollar (**0.641** in Q2 2025 vs **0.659** in Q2 2024), while the Canadian dollar also slightly weakened (**0.723** in Q2 2025 vs **0.731** in Q2 2024)[29](index=29&type=chunk) [Supplemental Operations by Service Type by Region](index=10&type=section&id=Supplemental%20Operations%20by%20Service%20Type%20by%20Region) Civeo provides a supplemental view of revenues disaggregated by service type, showing a year-over-year increase in asset-light (Catering and Facility Management) revenues for Australia and a decrease for Canada, while asset-intensive (Accommodations and Infrastructure) revenues increased in Australia and decreased in Canada - The disclosure disaggregates embedded Catering and Facility Management revenues from Accommodation and other services revenues for owned villages and lodges[33](index=33&type=chunk) Supplemental Operations by Service Type and Region | Revenue Type (in thousands USD) | Australia Q2 2025 | Australia Q2 2024 | Canada Q2 2025 | Canada Q2 2024 | | :-------------------------- | :---------------- | :---------------- | :------------- | :------------- | | Asset Light: Catering and Facility management | $82,633 | $80,697 | $29,952 | $44,732 | | Asset Intensive: Accommodations and Infrastructure | $30,039 | $27,911 | $20,070 | $34,795 | | Total revenues | $112,672 | $108,608 | $50,022 | $79,527 | Non-GAAP Reconciliations This section provides reconciliations for non-GAAP financial measures including EBITDA, Adjusted EBITDA, net debt, and net leverage ratio, along with guidance reconciliations [EBITDA and Adjusted EBITDA Reconciliation](index=12&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) This section provides a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) attributable to Civeo Corporation, highlighting adjustments for impairment, asset dispositions, cost-saving initiatives, share-based compensation, and shareholder activist costs - **EBITDA** is defined as net income (loss) attributable to Civeo Corporation plus interest, taxes, depreciation, and amortization[36](index=36&type=chunk) - **Adjusted EBITDA** further excludes certain unusual or non-operating items such as impairment of long-lived assets, net gain/loss on asset disposition, cost saving initiatives, share-based compensation, and shareholder activist costs[36](index=36&type=chunk) EBITDA and Adjusted EBITDA Reconciliation | Metric (in thousands USD) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to Civeo Corporation | ($3,314) | $8,227 | ($13,156) | $3,094 | | EBITDA | $20,743 | $31,221 | $31,835 | $46,726 | | Adjusted EBITDA | $25,008 | $31,917 | $37,663 | $49,719 | [Net Debt and Net Leverage Ratio Reconciliation](index=13&type=section&id=Net%20Debt%20and%20Net%20Leverage%20Ratio%20Reconciliation) This section reconciles net debt, bank-adjusted EBITDA, and net leverage ratio, providing insight into the company's indebtedness and compliance with credit agreement covenants - **Net debt** is calculated as total debt less cash and cash equivalents[37](index=37&type=chunk) - **Bank-adjusted EBITDA** includes adjustments to Adjusted EBITDA for acquisition pro-forma EBITDA, interest income, and certain cost-saving and shareholder activist costs not allowed by the credit facility[37](index=37&type=chunk) Net Debt and Net Leverage Ratio Reconciliation | Metric | As of June 30, 2025 | | :-------------------------------------------------------- | :------------------ | | Total debt (thousands USD) | $168,672 | | Less: Cash and cash equivalents (thousands USD) | $14,638 | | Net debt (thousands USD) | $154,034 | | Adjusted EBITDA for the twelve months ended June 30, 2025 (thousands USD) | $67,881 | | Bank-adjusted EBITDA (thousands USD) | $75,904 | | Net leverage ratio | 2.0x | - Civeo is required to maintain a **net leverage ratio below 3.0x** quarterly to remain in compliance with its credit agreement[38](index=38&type=chunk) [Guidance Reconciliation](index=14&type=section&id=Guidance%20Reconciliation) This section provides a reconciliation of estimated EBITDA and Adjusted EBITDA to estimated net loss for the full year ending December 31, 2025, supporting the company's financial guidance Full Year 2025 Guidance Reconciliation | Metric (in millions USD) | Year Ending December 31, 2025 (estimated) | | :-------------------- | :---------------------------------------- | | Net loss | ($19.2) - ($11.2) | | EBITDA Range | $78.3 - $88.3 | | Adjusted EBITDA Range | $86.0 - $96.0 | - Adjustments to **EBITDA** for guidance include shareholder activist costs, cost-saving initiatives, and share-based compensation[39](index=39&type=chunk) Contact Information This section provides contact details for investor relations inquiries - For investor relations, contact **Regan Nielsen, Vice President, Corporate Development & Investor Relations**, at **713-510-2400**[40](index=40&type=chunk)

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]