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1. Company Snapshot

1.a. Company Description

Civeo Corporation provides hospitality services to the natural resource industry in Canada, Australia, and the United States.The company develops lodges and villages; and mobile accommodations, including modular, skid-mounted accommodation, and central facilities that provide long-term and temporary work force accommodations.It also offers food, housekeeping, and maintenance services, as well as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security, and logistics services; and camp management services.


In addition, the company provides development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management, and site construction services, as well as catering and managed services.It owns and operates 27 lodges and villages with approximately 28,000 rooms; and a fleet of mobile accommodation assets.The company serves oil, mining, engineering, and oilfield and mining service companies.


Civeo Corporation is headquartered in Houston, Texas.

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1.b. Last Insights on CVEO

Civeo Corporation's recent performance was negatively impacted by a quarterly loss of $0.25 per share, significantly wider than the estimated loss of $0.03. The company's revenue also lagged estimates. Despite management's efforts to drive margin expansion in its integrated services business and return capital to shareholders, the Australian segment's growth, fueled by new contracts and acquisitions, was overshadowed by weakness in Canadian operations tied to the energy sector. The recent Bowen Basin acquisition increased net debt but is expected to boost EBITDA and revenue.

1.c. Company Highlights

2. Civeo's Q3 2025 Earnings: Progress on Share Repurchase and Growth in Australia

Civeo Corporation reported total revenues of $170.5 million, with a net loss of $0.5 million or $0.04 per diluted share, missing analyst estimates of $0.2 EPS. Adjusted EBITDA was $28.8 million, and operating cash flow was $13.8 million. The company's financial performance was marked by a significant progress on its share repurchase authorization, with approximately 1 million common shares repurchased during the quarter, completing 69% of its new buyback authorization as of September 30, 2025.

Publication Date: Nov -29

📋 Highlights
  • Share Repurchase Progress:: Repurchased 1 million shares, completing 69% of the buyback authorization.
  • Australia Revenue & EBITDA Growth:: 7% revenue increase YoY and 19% adjusted EBITDA growth, driven by new village integrations.
  • Canada Cost-Cutting Impact:: 35% higher gross profit due to field-level streamlining and operational efficiency.
  • Financial Performance:: Total revenues of $170.5M, net loss of $0.5M, and adjusted EBITDA of $28.8M.

Segment Performance

In Australia, revenues increased 7% year-over-year, and adjusted EBITDA grew 19%. The integration of four newly acquired villages in the Bowen Basin was completed, contributing to the growth. However, the company expects Australian occupancy in its owned villages to soften modestly in the fourth quarter due to seasonality and softness in met coal pricing and demand. In Canada, the company implemented cost-cutting measures, resulting in a 35% increase in gross profit. The focus now shifts to utilizing mobile camp assets for various infrastructure projects.

Guidance and Outlook

For full-year 2025, Civeo tightened its revenue and adjusted EBITDA guidance to $640-$655 million and $86-$91 million, respectively. The company provided a preliminary outlook for 2026, expecting its Australian business to experience modest softness in owned village occupancy, while its integrated services business continues to grow. Analysts estimate next year's revenue growth at 2.5%. The company is optimistic about deploying its mobile camp assets for infrastructure projects in Canada and the U.S., particularly those related to energy opportunities, such as lithium mining and data centers.

Valuation and Growth Prospects

Civeo's current valuation metrics indicate a 'P/E Ratio' of -10.14, 'P/S Ratio' of 0.47, and 'EV/EBITDA' of 7.36. The company's goal to hit $500 million in integrated services in Australia by 2027 seems achievable, with the team having made significant progress in capturing new work, market share, and expanding their customer base and geographic footprint. As Civeo continues to work on its cost structure and focus on growing revenue, the company's prospects appear positive, driven by its diversified business and growth opportunities in infrastructure projects.

Operational Highlights

The company has 2,500 mobile camp rooms readily deployable and another 1,000 that can be pulled off oil sands lodges. Staffing levels in Australia are a challenge, particularly with chefs, but the company has made progress in recruitment. Cost-cutting initiatives in Canada are specific to that market and may not be directly applicable to Australia. Civeo sees opportunities in its bid pipeline and is pushing the team to focus on growth while completing cost-cutting initiatives.

3. NewsRoom

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Civeo Appoints Jeffrey B. Scofield and Daniel B.

Nov -26

Source: businesswire.com

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Stonegate Capital Partners Updates Coverage on Civeo Corporation (CVEO) 2025 Q3

Oct -31

Source: newsfilecorp.com

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Civeo Corporation (CVEO) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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Civeo (CVEO) Reports Q3 Loss, Misses Revenue Estimates

Oct -31

Source: zacks.com

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Civeo Reports Third Quarter 2025 Results

Oct -31

Source: businesswire.com

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Civeo (CVEO) Reports Next Week: Wall Street Expects Earnings Growth

Oct -24

Source: zacks.com

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Civeo: Buybacks Tell A Bigger Story, Promising Opportunity

Oct -22

Source: seekingalpha.com

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Civeo Announces Third Quarter 2025 Earnings Conference Call

Oct -21

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.92%)

6. Segments

Accommodation

Expected Growth: 4.65%

Civeo Corporation's Accommodation segment growth of 4.65% is driven by increasing demand for workforce accommodations in the oil and gas industry, expansion into new regions, and strategic partnerships. Additionally, investments in modular and scalable infrastructure, as well as cost-saving initiatives, have improved operational efficiency and contributed to the segment's growth.

Food Service and Other

Expected Growth: 8.4%

Civeo Corporation's Food Service and Other segment growth of 8.4% is driven by increasing demand for remote site accommodations and catering services in the oil and gas industry, coupled with strategic acquisitions and expansion into new markets, resulting in higher revenue from food and lodging services.

Mobile Facility Rental

Expected Growth: 7.9%

Civeo Corporation's Mobile Facility Rental segment growth of 7.9% is driven by increasing demand for temporary accommodations in remote areas, expansion of oil and gas operations, and rising need for modular infrastructure solutions. Additionally, strategic acquisitions and partnerships have enhanced the company's offerings, contributing to the segment's growth.

7. Detailed Products

Accommodations

Civeo provides a range of accommodation options, including lodges, villages, and camps, designed to meet the needs of workers in remote locations.

Catering and Food Services

Civeo offers catering and food services, including meal planning, food preparation, and dining facilities, tailored to meet the needs of workers in remote locations.

Facility Management

Civeo provides facility management services, including maintenance, repairs, and operations, to ensure that facilities are safe, efficient, and well-maintained.

Logistics and Supply Chain Management

Civeo offers logistics and supply chain management services, including transportation, warehousing, and inventory management, to support remote operations.

Waste Management

Civeo provides waste management services, including waste collection, disposal, and recycling, to support environmentally responsible operations in remote areas.

Camp Services

Civeo offers camp services, including camp management, housekeeping, and laundry services, to support the needs of workers in remote locations.

8. Civeo Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Civeo Corporation faces moderate threat from substitutes due to the availability of alternative accommodation options for workers in the oil and gas industry.

Bargaining Power Of Customers

Civeo Corporation has a diversified customer base, which reduces the bargaining power of individual customers. Additionally, the company's unique offerings and long-term contracts further reduce customer bargaining power.

Bargaining Power Of Suppliers

Civeo Corporation relies on a few key suppliers for its operations, which gives them some bargaining power. However, the company's scale and diversified supply chain mitigate this risk.

Threat Of New Entrants

The capital-intensive nature of the accommodation industry and the need for specialized facilities and equipment create barriers to entry, reducing the threat of new entrants.

Intensity Of Rivalry

The accommodation industry is highly competitive, with several established players competing for market share. Civeo Corporation must differentiate itself through its services and offerings to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.80%
Debt Cost 15.02%
Equity Weight 82.20%
Equity Cost 15.02%
WACC 15.02%
Leverage 21.65%

11. Quality Control: Civeo Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Quality: 6.8

Yield: 6.0

Momentum: 3.5

Volatility: 8.7

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Growth: 5.6

Quality: 5.1

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Civeo

A-Score: 4.0/10

Value: 6.8

Growth: 3.2

Quality: 2.3

Yield: 3.0

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Growth: 1.3

Quality: 3.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

22.5$

Current Price

22.5$

Potential

-0.00%

Expected Cash-Flows