Civeo Q4 Earnings Call Highlights

Civeo (NYSE:CVEO) executives highlighted share repurchases, improved profitability in Canada, and continued growth in Australia during the company’s fourth-quarter and full-year 2025 earnings call, while providing initial guidance for 2026 that reflects stable conditions in Canada and continued strength in Australia.

Share repurchases and capital allocation updates

President and CEO Bradley Dodson said the company made “significant progress” on its share repurchase authorization during 2025, repurchasing 2.3 million common shares for approximately $54 million. Management said those purchases reduced the share count by about 17% during the year and represented substantial progress toward completing an authorization to repurchase 20% of outstanding shares.

Dodson added that after year-end the company repurchased an additional roughly 500,000 shares, bringing completion of the current authorization to about 95%.

Alongside that update, Civeo announced a new authorization to purchase up to 10% of its outstanding shares, which will become effective once the existing authorization is completed. Dodson said the company remains committed to completing the current buyback “as soon as practical.”

In response to analyst questions about priorities once the 20% program is complete, management said there has been “no change” to the capital allocation framework announced last April. Dodson said phase two is to use “no less than 75% of annual free cash flow to continue to buy back stock,” and management indicated that approach would keep leverage at about two times or less.

Fourth-quarter results: revenue growth and higher adjusted EBITDA

Chief Financial Officer E. Collin Gerry reported fourth-quarter 2025 revenue of $161.6 million, up from $151.0 million in the fourth quarter of 2024. Gerry attributed the year-over-year increase primarily to higher activity in Australia, including contributions from Civeo’s May 2025 acquisition and growth in its integrated services business.

The company posted a net loss of $6.5 million, or $0.56 per diluted share, compared with a net loss of $15.1 million, or $1.10 per diluted share, in the prior-year quarter.

Adjusted EBITDA for the fourth quarter increased to $21.7 million from $11.4 million, a 90% increase. Management tied the improvement to “significant margin improvement in Canada” from structural cost actions implemented earlier in 2025, plus contributions from the Australian acquisition and ongoing integrated services growth. Operating cash flow was $19.3 million, up from $9.5 million a year earlier.

Full-year 2025: higher adjusted EBITDA despite lower revenue

For the full year, Civeo reported revenue of $638.8 million and adjusted EBITDA of $88.2 million, compared with $682.1 million of revenue and $79.9 million of adjusted EBITDA in 2024. Gerry said the revenue decline was primarily driven by lower activity levels in Canada, partially offset by growth in Australia, including the Bowen Basin acquisition. Despite the revenue decline, adjusted EBITDA increased 10%, which management attributed primarily to Canada cost-reduction initiatives.

Gerry also noted a reporting change beginning with the fourth quarter of 2025: corporate IT expenses previously included in corporate SG&A are now allocated to the Australia and Canada segments, which management said better aligns segment results with how profitability is measured internally.

Regional performance: Australia growth and Canada margin recovery

Australia: Dodson said Civeo delivered record annual revenues in Australia in 2025 of AUD 460 million, driven by growth in integrated services and the May 2025 village acquisition. Gerry reported fourth-quarter Australia revenue of AUD 119.5 million, up 9% from AUD 110.0 million a year earlier, with adjusted EBITDA of AUD 22.4 million, up 9% from AUD 20.6 million.

Management said the increase was primarily driven by the contribution from four owned villages acquired in May 2025 and continued integrated services growth, partially offset by “modest softness” in portions of the legacy owned village portfolio. Gerry said that softness reflected a “sub-$200 met coal pricing environment” experienced by customers through much of the back half of 2025.

Australian billed rooms totaled about 705,000 in the fourth quarter, up from roughly 637,000 in the prior-year quarter, while average daily rates were $76 versus $77 a year earlier. Management reiterated that the integrated services business is scaling and remains on track toward a goal of AUD 500 million in annual revenue by 2027.

Canada: In Canada, management said lodge occupancy remained pressured by customer spending discipline in the oil sands, but cost reductions begun in late 2024 and early 2025 drove “substantial margin improvement.” Fourth-quarter Canada revenue rose to $42.1 million from $40.7 million, while adjusted EBITDA improved to $3.4 million from negative $5.4 million a year earlier.

Gerry attributed the year-over-year revenue increase primarily to higher average daily rates from improved occupancy mix, noting billed rooms were essentially flat at about 359,000 compared with about 360,000. Average daily rates increased to $100 from $94. Management said the adjusted EBITDA improvement was driven by “overhead reductions, lodge rationalization and field level cost alignment.”

For the full year, Canadian revenue was CAD 178.6 million versus CAD 245.1 million in 2024, and full-year Canadian adjusted EBITDA was CAD 17.1 million versus CAD 18.2 million. Management said lower oil sands activity drove the decreases, with the impact partially mitigated by cost reductions.

Balance sheet, capital spending, and 2026 guidance

Civeo ended 2025 with total liquidity of $90.4 million. Total debt was $182.8 million and net debt was $168.4 million, resulting in a net leverage ratio of 1.9x, which management said it was comfortable with.

Capital expenditures totaled $20.2 million in 2025, down from $26.1 million in 2024. Gerry said 2025 spending included $11.2 million of maintenance capital and $9.0 million tied to growth projects, including reactivation of the Buffalo Lodge in Canada and Wi-Fi infrastructure improvements in Australia.

For 2026, management guided to:

• Revenue of $650 million to $700 million
• Adjusted EBITDA of $85 million to $90 million
• Capital expenditures of $25 million to $30 million

Discussing the higher 2026 CapEx range versus 2025 spending, Gerry said the $11 million of maintenance CapEx in 2025 was “a pretty low number” and that the company may need to return to a more normal run rate, especially after “pretty material cuts in Canada.”

Dodson said met coal prices improved entering 2026 and that if prices remain above $200 per ton through the upcoming producer budgeting season, activity could improve in the back half of the year. The company’s base outlook assumes generally stable occupancy in Australia’s owned villages, with the full-year impact of the May 2025 acquisition offsetting potential softness in legacy operations, while integrated services is expected to continue growing.

In Canada, Civeo expects oil sands activity to remain stable but subdued by historical standards, with management emphasizing it is entering 2026 with a structurally lower cost base. Dodson also pointed to potential upside from North American infrastructure construction, U.S. data center activity, and LNG and power-related infrastructure in Canada, but said the company does not expect these projects to materially impact 2026 results.

On timing for potential mobile camp deployments, Dodson said Civeo is providing “detailed bidding proposals” in Canada and the U.S., but many opportunities are awaiting customer final investment decisions. He said that once authorized under a signed contract, mobile camp deployments could have rooms and meals operating within three to four months for a first phase, while moving multi-story assets would take roughly nine to 12 months to first meals.

Addressing free cash flow considerations, Gerry told analysts that working capital should be “plus or minus,” while noting the company has about $20 million of cash taxes to assume and about $10 million of interest expense.

About Civeo (NYSE:CVEO)

Civeo Corporation is a leading provider of workforce accommodations and integrated facility management services, primarily serving the oil and gas, mining, and construction sectors. The company specializes in the development, ownership, and operation of remote lodging facilities, commonly known as “man camps,” designed to house workers in geographically challenging environments. Its services include turnkey accommodations, catering, housekeeping, grounds maintenance, and logistical support, tailored to meet the needs of large-scale energy and resource projects.

With a network of lodges and villages across North America and Australia, Civeo caters to clients operating in regions such as Alberta’s oil sands, the Bakken shale play, and Australia’s Pilbara and Bowen Basin mining districts.