Civeo Reports Mixed Q1 2025 Results with Canadian Weakness Offset by Australian Strength

Civeo Corporation reported mixed financial results for the first quarter of 2025, with notable challenges in its Canadian operations and continued strength in its Australian segment. The company's consolidated revenue fell short of expectations, landing at $144.0 million, driven primarily by weakness in pricing and billed rooms volume in Canada. The Canadian segment experienced substantial revenue decline, with earnings dropping 40.0% year-over-year to $40.4 million. Reduced customer spending in the oil sands region and the loss of Fort Hills-related occupancy contributed to this downturn.

In response to the Canadian challenges, Civeo implemented aggressive cost-cutting measures, including a 25% reduction in Canadian headcount and the cold-shuttering of two lodges. These actions reflect the company's strategic response to market conditions in the Canadian resource sector. Conversely, the Australian segment demonstrated resilience, posting a 13% year-over-year revenue growth to $103.6 million. This performance was driven by increased integrated services activity under a six-year, A$1.4 billion contract and strategic expansion in the Bowen Basin.

Civeo has revised its 2025 guidance, projecting revenue between $620 million and $650 million, with adjusted EBITDA expected to range from $75 million to $85 million. The company has also lowered its capital expenditure guidance to $20-$25 million, emphasizing disciplined capital deployment. As part of its updated capital allocation strategy detailed in their corporate communications at https://www.civeo.com, Civeo increased its share repurchase authorization from 10% to 20% of shares outstanding.

The company repurchased 153,000 shares for approximately $3.3 million and suspended its quarterly dividend to prioritize buybacks and enhance financial flexibility. Civeo's net debt rose $20.9 million quarter-over-quarter to $59.0 million, resulting in a net leverage ratio of 0.8x. Despite these challenges, Civeo remains confident in its long-term free cash flow generation, supported by a capital-light model and a high mix of recurring asset-light services revenue as outlined in their investor materials available at https://www.civeo.com/investors.