Stonegate Capital Partners Updates Coverage on Civeo Corporation (CVEO) 2025 Q1

Rhea-AI Summary

Civeo Corporation (NYSE: CVEO) reported challenging Q1 2025 financial results with negative free cash flow of ($13.5M), down from $7.2M in the prior year. The company posted revenues of $144.0M, a net loss of $9.8M, and Adjusted EBITDA of $12.7M. Despite near-term challenges, CVEO doubled its share repurchase authorization from 10% to 20% of shares outstanding and plans to use 100% of FCF for buybacks. The company suspended its quarterly dividend and repurchased 153,000 shares for approximately $3.3M. Net debt increased by $20.9M to $59.0M, with a net leverage ratio of 0.8x. CVEO revised its 2025 guidance, projecting revenue between $620M-$650M and Adjusted EBITDA of $75M-$85M.

Positive

• Doubled share repurchase authorization from 10% to 20% of shares outstanding
• Maintains relatively low net leverage ratio of 0.8x
• Capital-light business model with high recurring revenue
• Clear capital allocation strategy with 100% of FCF dedicated to share repurchases

Negative

• Negative free cash flow of ($13.5M) vs positive $7.2M in prior year
• Net loss of $9.8M in Q1 2025
• Suspension of quarterly dividend payments
• Net debt increased by $20.9M quarter-over-quarter
• Negative operating cash flow of ($8.4M)

Dallas, Texas--(Newsfile Corp. - May 1, 2025) - Civeo Corporation (NYSE: CVEO): Stonegate Capital Partners updates their coverage on Civeo Corporation. Civeo reported negative free cash flow of ($13.5M) in 1Q25, down from $7.2M in the prior-year period, primarily due to negative operating cash flow of ($8.4M) and $5.3M in capital expenditures. Despite near-term headwinds, the Company reaffirmed its confidence in long-term free cash flow generation, supported by a capital-light model and a high mix of recurring asset-light services revenue. As part of its updated capital allocation strategy, Civeo increased its share repurchase authorization from 10% to 20% of shares outstanding and plans to use 100% of FCF to complete the program. In the quarter, the Company repurchased 153,000 shares for approximately $3.3M and suspended its quarterly dividend to prioritize buybacks and enhance financial flexibility. Net debt rose $20.9M quarter-over-quarter to $59.0M, resulting in a net leverage ratio of 0.8x.

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

Key Takeaways:

• Reported revenues of $144.0M, net loss of $9.8M and Adjusted EBITDA of $12.7M.
• CVEO announced a share repurchase authorization from 10% to 20% of shares outstanding, suspending its quarterly cash dividend.
• CVEO revised its 2025 guidance, with revenue between $620M and $650M and Adj. EBITDA of $75M to $85M.

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/250449

FAQ

What were Civeo's (CVEO) Q1 2025 financial results?

Civeo reported Q1 2025 revenues of $144.0M, a net loss of $9.8M, negative free cash flow of ($13.5M), and Adjusted EBITDA of $12.7M.

Why did CVEO suspend its dividend in Q1 2025?

Civeo suspended its quarterly dividend to prioritize share buybacks and enhance financial flexibility as part of its updated capital allocation strategy.

What is CVEO's share repurchase program for 2025?

Civeo increased its share repurchase authorization from 10% to 20% of shares outstanding and plans to use 100% of free cash flow to complete the program.

What is Civeo's revenue guidance for 2025?

Civeo revised its 2025 guidance, projecting revenue between $620M and $650M and Adjusted EBITDA of $75M to $85M.

How much debt does Civeo (CVEO) have in Q1 2025?

Civeo's net debt increased by $20.9M quarter-over-quarter to $59.0M, resulting in a net leverage ratio of 0.8x.