FAQ: Stonegate Capital Partners' Q3 2025 Coverage Update on Civeo Corporation (CVEO)

What are Civeo Corporation’s key financial results for Q3 2025?

Civeo reported revenue of $170.5M and adjusted EBITDA of $28.8M for Q3 2025, with operating cash flow of $13.8M and capital expenditures of $5.6M primarily for lodge and village maintenance.

How did Civeo’s Canadian operations perform compared to the previous year?

Canadian operations generated $46.0M in revenue and $8.0M in adjusted EBITDA, improving from $57.7M and $3.4M in Q3 2024 despite a 20% decline in billed rooms, driven by successful cost rationalization measures.

What drove the strong performance in Civeo’s Australian segment?

Australian revenues increased 7% year-over-year to $124.5M and adjusted EBITDA grew 19% to $26.7M, primarily due to a full quarter contribution from four Bowen Basin villages acquired in May 2025, which added approximately $8.4M in incremental revenue.

What is Civeo’s capital allocation strategy and share repurchase progress?

Civeo repurchased 1.05M common shares during Q3 and has returned approximately $52M year-to-date, completing about 69% of its authorization to repurchase 20% of total shares outstanding, with plans to use at least 100% of annual free cash flow to complete the current authorization.

What is Civeo’s updated financial guidance for full-year 2025?

Civeo tightened its full-year 2025 guidance to revenue of $640–$655M and adjusted EBITDA of $86–$91M, maintaining capital expenditures at $20–$25M.

What are Stonegate Capital Partners’ valuation estimates for Civeo?

Stonegate’s DCF analysis values Civeo between $26.73 and $31.19 with a midpoint of $28.79, while their EV/EBITDA valuation ranges from $27.82 to $31.58 with a midpoint of $29.70.

What cost-cutting measures improved Civeo’s Canadian operations?

Canadian operations improved through headcount reductions, closure of underutilized lodges, and streamlining of field operations, which collectively drove a 35% increase in gross margin to 22.5% despite lower billed rooms.

What is Civeo’s outlook for 2026 performance?

Management anticipates relatively flat-to-up consolidated performance in 2026, supported by a full-year contribution from the Bowen Basin acquisition, further integrated services growth, and initial redeployment of mobile camp assets in North America as new infrastructure projects advance.

What is Civeo’s current financial position and leverage?

The company ended Q3 with net debt of $176M, a net leverage ratio of 2.1x, and liquidity of approximately $70M.

What is Stonegate Capital Partners’ role in this coverage?

Stonegate Capital Partners is a capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies, and they have updated their coverage analysis on Civeo Corporation.