Civeo's Q2 2025 Earnings Call: Key Contradictions in Canadian Operations and Capital Strategy

Canadian occupancy and turnaround activity, capital allocation strategy, Australian integrated services business growth strategy, integrated services growth in Australia are the key contradictions discussed in Civeo Corporation's latest 2025Q2 earnings call.



Share Repurchase Authorization Progress:
- Civeo Corporation completed 883,000 share repurchases in Q2, equivalent to 7% of its common shares outstanding, constituting 30% of its new buyback authorization.
- This progress was driven by capitalizing on equity market softness and the company's commitment to completing the 20% share repurchase authorization as soon as practicable.

Australian Business Expansion:
- Civeo's Australian segment reported revenue of $112.7 million, up 4% year-over-year or 7% on a constant currency basis, with adjusted EBITDA growing by 10% or 12% on a constant currency basis.
- The growth was driven by the acquisition of 4 villages in the Bowen Basin and increased demand for integrated services.

Canadian Market Challenges:
- Canadian segment revenues decreased to $50 million compared to $79.5 million in Q2 2024, with adjusted EBITDA falling to $7.5 million from $17.3 million.
- This decline was attributed to lower billed rooms due to cost reductions and a loss of Fort Hills-related occupancy.

Financial Leverage and Capital Allocation:
- Civeo's net debt increased by $95 million, reaching $154 million, and net leverage ratio reached 2x.
- The increase was primarily due to $65 million spent on the Australian acquisition and $19 million allocated to share buybacks, reflecting the company's focus on capital allocation and financial management.

Regional Outlook and Strategic Focus:
- In Australia, Civeo expects continued strength in owned villages and focused on expanding integrated services, while in Canada, it anticipates a stable occupancy level with continued cost-cutting efforts.
- The company remains committed to long-term resilience and cash generation, aligning its resources with regional market demands and strategic priorities.