Civeo Reports Mixed Q3 2025 Results with Strong Australian Growth and Canadian Efficiency Gains

Civeo Corporation reported third-quarter 2025 revenue of $170.5 million and adjusted EBITDA of $28.8 million, showing mixed performance against analyst expectations but significant year-over-year improvement in profitability. The company's Australian segment continued to drive consolidated growth while Canadian operations demonstrated remarkable efficiency gains despite lower room occupancy.

The Canadian segment generated $46.0 million in revenue and $8.0 million in adjusted EBITDA, representing substantial improvement from $57.7 million and $3.4 million respectively in the third quarter of 2024. Despite a 20% decline in billed rooms, the company achieved a 35% increase in gross margin to 22.5% through successful cost rationalization measures. These actions included headcount reduction, closure of underutilized lodges, and streamlining of field operations. Management expects Canadian lodge occupancy to stabilize and sees potential upside from mobile camp utilization as infrastructure and LNG projects advance.

Australia remained the primary growth driver with revenues increasing 7% year-over-year to $124.5 million and adjusted EBITDA rising 19% to $26.7 million. The performance reflected a full quarter of contribution from the four Bowen Basin villages acquired in May 2025, which added approximately $8.4 million of incremental revenue. Civeo's Australian owned-village occupancy reached 763,000 billed rooms, up 18% year-over-year. The company continues to progress toward its goal of achieving A$500 million in integrated services revenue by 2027, supported by strong margins and expanding geographic presence across Australia.

Capital allocation remained aggressive with the company executing on its accelerated share repurchase program, buying back 1.05 million common shares during the quarter. Year-to-date, Civeo has returned approximately $52 million to shareholders, completing about 69% of its current authorization to repurchase 20% of total shares outstanding. Management reiterated its intent to use no less than 100% of annual free cash flow to complete the current authorization and, thereafter, 75% toward ongoing buybacks.

Civeo tightened full-year 2025 guidance to revenue of $640–$655 million and adjusted EBITDA of $86–$91 million, maintaining capital expenditures at $20–$25 million. The company expects Australian occupancy to remain strong but soften modestly in the fourth quarter due to seasonality and met coal market weakness, while Canadian performance continues to benefit from efficiency gains. For 2026, management anticipates relatively flat-to-up consolidated performance, supported by a full-year contribution from the Bowen Basin acquisition, further integrated services growth, and initial redeployment of mobile camp assets in North America as new infrastructure projects reach final investment decisions.

The company ended the quarter with net debt of $176 million, a net leverage ratio of 2.1x, and liquidity of approximately $70 million. Operating cash flow totaled $13.8 million, while capital expenditures were $5.6 million, primarily related to maintenance of lodges and villages. Stonegate Capital Partners maintains coverage on Civeo Corporation through their research platform available at https://stonegateinc.com/research.