Civeo Reports Mixed Q1 2025 Results with Canadian Weakness Offset by Australian Growth and Strategic Acquisition

Civeo Corporation reported first-quarter 2025 financial results that highlighted contrasting regional performances, with Canadian operations facing substantial headwinds while Australian operations demonstrated robust growth. The company's consolidated revenue of $144.0 million fell short of analyst expectations, primarily due to weakness in the Canadian market segment where revenues declined 40% year-over-year to $40.4 million. Reduced customer spending in the oil sands region and the loss of Fort Hills-related occupancy drove this downturn, prompting aggressive cost-cutting measures including a 25% reduction in Canadian headcount and the cold-shuttering of two lodges.

In stark contrast, the Australian segment posted a 13% year-over-year revenue growth to $103.6 million, benefiting from increased integrated services activity under a six-year, A$1.4 billion contract. The segment maintained stable adjusted EBITDA of $20.5 million, demonstrating resilience amid challenging market conditions. A significant strategic development occurred on May 7, 2025, when Civeo closed an acquisition of four villages in the Australian Bowen Basin that is immediately accretive to the company. This move is expected to add approximately $32.0 million in revenue and $17.0 million in EBITDA while establishing Civeo's presence in the Blackwater region and providing contract coverage with met coal producers.

Following the acquisition, Civeo revised its full-year 2025 guidance upward, now projecting revenue between $640 million and $670 million with adjusted EBITDA ranging from $86 million to $96 million. Capital expenditure guidance remains consistent at $20 million to $25 million, reflecting the company's disciplined approach to capital deployment. Financial analysts at Stonegate Capital Partners conducted a valuation analysis using discounted cash flow and enterprise value to EBITDA comparative methods, suggesting a valuation range between $29.03 and $37.91 per share with midpoint estimates of $30.53 and $34.49 respectively. The quarter underscores Civeo's strategic efforts to navigate challenging market conditions in the Canadian energy sector while expanding and strengthening its position in the Australian market through targeted acquisitions and operational efficiency.