Civeo Corp Reports Mixed Q2 2025 Earnings, Secures Key Contracts Amidst Volatility

Civeo Corp repurchased 883,000 common shares, a 7% stake, and secured two significant contracts in Australia. However, the company reported a net loss of $3.3 million and negative operating cash flow. Canadian operations faced challenges with decreased revenue and EBITDA due to lower occupancy. Civeo maintained its full-year guidance despite the mixed financial results.

Civeo Corporation (NYSE:CVEO) reported its second quarter 2025 financial results, highlighting a net loss of $3.3 million and negative operating cash flow of $2.3 million. Despite these challenges, the company repurchased 883,000 common shares, representing approximately 7% of its outstanding shares, at an average price of $21.64 per share. Additionally, Civeo secured two significant contracts in Australia, expected to generate revenues of A$250 million and A$64 million over the next three to four years.

The company's Australian segment generated revenues of $112.7 million and Adjusted EBITDA of $23.7 million, up 4% and 10% year-over-year, respectively. The increase was primarily driven by the acquisition of four owned-villages in the Bowen Basin, which contributed $4.9 million in revenues in the last two months of the quarter. However, the Australian dollar's weakness against the U.S. dollar negatively impacted revenues and Adjusted EBITDA by $3.2 million and $0.7 million, respectively.

In contrast, the Canadian segment faced decreased revenue and EBITDA due to lower occupancy and customer spending reductions. Revenues declined 37% period-over-period to $50.0 million, with an operating loss of $1.9 million and Adjusted EBITDA of $7.5 million. The company is continuing to evaluate additional cost-saving actions to right-size its North American cost structure.

Civeo maintained its full-year 2025 guidance, with revenue and Adjusted EBITDA ranges of $640 million to $670 million and $86 million to $96 million, respectively. The company's capital expenditure guidance for 2025 remains at $20 million to $25 million.

References:

[1] https://ir.civeo.com/news-releases/news-release-details/civeo-reports-second-quarter-2025-results