FAQ on Stonegate Capital Partners' Coverage Update on Civeo Corporation (NYSE: CVEO) for 2025 Q2

What were Civeo Corporation’s 2Q25 financial results?

Civeo Corporation reported 2Q25 revenue of $162.7M, Adj. EBITDA of $25.0M, and Adj. EPS of ($0.25), slightly below estimates but with upside from the Australian segment.

Why did Civeo Corporation’s Adjusted EBITDA decline year-over-year?

The decline in Adjusted EBITDA was primarily due to continued challenges in the Canadian business, including weaker oil sands activity and customer focus on cost.

What recent acquisition did Civeo Corporation close?

On May 7, 2025, Civeo closed its acquisition of four villages in Australia’s Bowen Basin, contributing approximately $4.9M in revenue and $3.5M in EBITDA over the final two months of the quarter.

How did the Canadian segment perform in 2Q25?

The Canadian segment saw a 37% y/y decline in revenues to $50.0M and a decrease in Adj. EBITDA to $7.5M from $17.3M y/y, due to weaker oil sands activity and FX pressure.

What was the performance of the Australian segment in 2Q25?

The Australian segment revenue rose 4% y/y to $112.7M, with Adj. EBITDA growing 10% y/y to $23.7M, driven by higher billed rooms and robust performance from owned villages and integrated services.

What are Civeo Corporation’s capital allocation strategies?

Civeo Corporation increased net debt to $154M in 2Q25, reflecting $65M for the Australian acquisition and $19M for share repurchases, with plans to use no less than 100% of annual FCF toward completing a 20% buyback plan.

What guidance did Civeo Corporation reiterate for FY25?

Civeo reiterated FY25 guidance for revenue of $640M–$670M and Adj. EBITDA of $86M–96M, expecting modest improvement in 2H25 results due to acquired assets and cost initiatives.

What valuation range does Stonegate Capital Partners provide for Civeo Corporation?

Stonegate’s DCF analysis values Civeo between $26.13 to $30.24, and EV/EBITDA valuation results in a range of $25.97 to $33.17, with mid-points of $28.03 and $29.57 respectively.

Who is Stonegate Capital Partners?

Stonegate Capital Partners is a capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies.