Stonegate Capital Partners Updates Coverage on Civeo Corporation (CVEO) 2024 Q4

Rhea-AI Summary

Civeo (NYSE: CVEO) has received an updated coverage from Stonegate Capital Partners for Q4 2024. The company demonstrated strong free cash flow generation of $68.4M in FY24, with guidance for 2025 FCF between $30M to $40M.

Key developments include securing a six-year, A$1.4B integrated services contract renewal across eleven villages and completing a strategic acquisition of four villages in the Bowen Basin valued at ~$67M. The company's 2025 guidance projects revenue between $630M to $660M and adjusted EBITDA of $80M to $90M.

While facing challenges in the Canadian segment, Civeo maintains a strong position through disciplined capital allocation, robust balance sheet, and continued Australian expansion, positioning itself for long-term shareholder value creation.

Positive

• Strong FCF generation of $68.4M in FY24
• Secured A$1.4B six-year contract renewal for eleven villages
• Strategic acquisition of four villages in Bowen Basin worth $67M
• Projected 2025 revenue of $630M-$660M
• Adjusted EBITDA guidance of $80M-$90M for 2025

Negative

• Reduced FCF guidance for 2025 ($30M-$40M vs $68.4M in 2024)
• Challenges reported in Canadian segment

Dallas, Texas--(Newsfile Corp. - February 28, 2025) - Civeo Corporation (NYSE: CVEO): Stonegate Capital Partners updates their coverage on Civeo Corporation. Despite challenges in the Canadian Segment, CVEO remains a strong free cash flow generator, reporting $68.4M in FCF for FY24. The Company announced its FCF guidance between $30M to $40M for 2025. Despite this, we believe that with disciplined capital allocation, a robust balance sheet, and continued expansion in Australia, Civeo is well-positioned to drive long-term value for shareholders, with an expected increase in FCF during the out years.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• Awarded a six-year, A$1.4B integrated services contract renewal at eleven villages.
• Executed a strategic acquisition in the Bowen Basin, purchasing four villages, valued at ~$67M.
• Announced 2025 guidance with revenue projected to range from $630M to $660M and adj. EBITDA between $80M and $90M.

Click image above to view full announcement.

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About Stonegate

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking, equity research and capital raising for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/242811

FAQ

What is Civeo's (CVEO) free cash flow guidance for 2025?

Civeo projects free cash flow between $30M to $40M for 2025.

How much is CVEO's new contract renewal worth in Australian villages?

CVEO secured a six-year integrated services contract renewal worth A$1.4B covering eleven villages.

What is the value of Civeo's recent Bowen Basin acquisition?

Civeo acquired four villages in the Bowen Basin for approximately $67M.

What is Civeo's (CVEO) revenue guidance for 2025?

Civeo expects 2025 revenue to range between $630M and $660M with adjusted EBITDA of $80M-$90M.

How much free cash flow did CVEO generate in fiscal year 2024?

Civeo generated $68.4M in free cash flow during FY24.