Civeo Corporation Reports Decline in Q3 2025 Revenues and Net Loss

Civeo Corporation reported a decline in financial performance for the third quarter of 2025, with total revenues of $170.5 million, down 3% from $176.3 million in the same period last year. The decrease was primarily attributed to lower billed rooms at oil sands lodges in Canada and reduced food service revenues, as clients focused on cost-cutting measures. The company recorded a net loss of $0.5 million, or $0.04 per diluted share, compared to a net loss of $5.1 million, or $0.36 per diluted share, in the third quarter of 2024. The improved loss figures were influenced by cost-saving initiatives and a stronger performance in the Australian segment, which saw revenues increase by 7% year-over-year.

For the nine months ended September 30, 2025, Civeo's total revenues decreased by 10% to $477.2 million from $531.2 million in the prior year. The Canadian segment experienced a significant revenue drop of 33%, largely due to lower occupancy at oil sands lodges and reduced food service revenues. In contrast, the Australian segment reported a revenue increase of 8%, bolstered by the Qantac Acquisition, which contributed $13.3 million in revenues during the nine-month period. The overall net loss for the nine months was $13.6 million, compared to a loss of $3.0 million in the same period last year.

Civeo's operational metrics reflected a mixed performance across its segments. The Australian segment reported a gross margin of 26.6%, slightly up from 26.1% in the previous year, while the Canadian segment's gross margin decreased to 17.7% from 18.7%. The company also noted a significant increase in depreciation and amortization expenses, primarily due to the Qantac Acquisition. Additionally, Civeo's selling, general, and administrative expenses rose slightly, reflecting higher professional fees related to shareholder activism.

Strategically, Civeo completed the acquisition of Qantac Pty Ltd in May 2025, which included four villages in Queensland, Australia, expanding its accommodation offerings in the Bowen Basin. This acquisition was funded through cash on hand and borrowings under its Amended Credit Agreement. The company has also been actively repurchasing shares, with $48.7 million spent on share repurchases in the nine months ended September 30, 2025, as part of its strategy to return capital to shareholders.

Looking ahead, Civeo anticipates capital expenditures in the range of $20 million to $25 million for 2025, focusing on maintenance and potential growth opportunities. The company remains cautious about the macroeconomic environment, including commodity price volatility and inflationary pressures, which could impact its operations and financial results. Civeo's management believes that cash on hand and cash flow from operations will be sufficient to meet its liquidity needs for the next 12 months, although they may seek additional capital if necessary.