Civeo Corporation (NYSE: CVEO) reported first quarter 2025 financial results that highlighted significant regional variations, with the Australian segment demonstrating resilience while Canadian operations faced substantial challenges.
The company's consolidated revenue of $144.0 million fell short of analyst expectations, primarily driven by weakness in Canadian market pricing and billed room volumes. Despite these headwinds, Civeo executed a strategic acquisition of four villages in Australia's Bowen Basin, which is expected to immediately contribute $32.0 million in revenue and $17.0 million in EBITDA.
Canadian operations experienced a dramatic 40% year-over-year revenue decline to $40.4 million, reflecting reduced customer spending in the oil sands region and lost occupancy from the McClelland Lake Lodge sale. In response, Civeo implemented aggressive cost-cutting measures, including a 25% headcount reduction and cold-shuttering two lodges, with associated restructuring charges.
Conversely, the Australian segment demonstrated robust performance, posting 13% year-over-year revenue growth to $103.6 million and maintaining stable adjusted EBITDA of $20.5 million. This growth was primarily attributed to increased integrated services activity under a substantial six-year contract.
Following the recent acquisition, Civeo revised its 2025 full-year guidance, projecting revenue between $640 million and $670 million and adjusted EBITDA of $86 million to $96 million. The company maintained its capital expenditure guidance of $20 million to $25 million, emphasizing disciplined capital deployment.
Financial analysts at Stonegate Capital Partners conducted valuation analyses using discounted cash flow and enterprise value/EBITDA comparative methods. Their analysis suggests a potential stock valuation range between $29.03 and $37.91, with midpoint estimates of $30.53 and $34.49 respectively.
