Civeo’s Q2-25 results weakened materially. Revenue fell 14% YoY to $162.7 million, driving operating income down 79% to $2.8 million and swinging to a net loss of $3.3 million (-$0.25 EPS) versus $8.2 million profit a year ago. Six-month revenue declined 13.6% to $306.7 million and the company posted a $13.2 million loss.
Segment trends diverged. Australian revenue rose 4% (≈7% in constant currency) helped by the May 6 acquisition of Qantac’s four villages (1,340 rooms), but Canadian revenue dropped 37% on lower oil-sands lodge occupancy and the completion of LNG construction activity. Consolidated gross margin narrowed to 21.8% from 24.9%.
Balance sheet & cash flow. The Qantac deal, funded with borrowings, lifted total assets to $508.8 million and long-term debt to $168.7 million (vs. $43.3 million at 12/24). Operating cash flow was a negative $10.8 million; capex $9.8 million; acquisition outlay $64.9 million. Cash ended at $14.6 million. The company remained within credit-facility leverage (≤3×) and interest-coverage covenants.
Capital returns shifted. Quarterly dividends were suspended in April; instead Civeo repurchased 1.0 million shares YTD for $22.5 million (avg. $21.65). Treasury shares now total 438 k.
Outlook factors. Management cites weak Canadian oil-sands demand, lingering inflation and labor shortages, but expects Australian growth from Qantac and new integrated-services contracts. Remaining contracted backlog for multi-year commitments totals $710.8 million.