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Civeo Corp (CVEO)
NYSE:CVEO
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Civeo
(NYSE:CVEO)
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Rating:55Neutral
Price Target:
$29.00
▲(4.24% Upside)
Action:ReiteratedDate:03/03/26
Score is held back primarily by weak financial quality (net losses, thin profitability, sharply lower free cash flow, and higher leverage). Technicals are supportive with an uptrend and positive momentum signals, and the latest earnings call was constructive on guidance, cash flow improvement, and continued buybacks, partially offsetting the fundamental risks. Valuation is constrained by the negative P/E despite a modest dividend yield.
Positive Factors
Strong Australian market position
Civeo's Australia segment produced record revenues and high billed-room volumes, giving the company a durable revenue base in a large resource market. Scaling integrated services toward the $500M 2027 target strengthens recurring revenue mix and operational leverage, improving resilience versus single-project exposure.
Improved operating cash flow
Material sequential improvement in operating cash flow reflects better cash conversion from operations and supports reinvestment and capital allocation. Sustained OCF growth reduces reliance on external financing and underpins management's ability to pursue buybacks and maintain leverage discipline over the medium term.
Disciplined capital allocation via buybacks
Aggressive repurchases demonstrate management confidence in cash generation and prioritize shareholder returns. Committing to a new 10% authorization and targeting leverage ≤2.0x shows a governance preference for disciplined capital use, which can sustainably boost per-share metrics if operating cash flow holds.
Negative Factors
Persistent GAAP unprofitability
Recurring GAAP losses and a negative net margin erode retained earnings and constrain the company's ability to internally fund growth or absorb shocks. Until profitability becomes durable, Civeo faces increased execution risk, reduced earnings quality, and limited capacity to restore returns on equity without structural margin improvement.
Weak free cash flow and tighter cash coverage
Near-zero free cash flow limits strategic flexibility for capex, debt reduction, or non-buyback investments. With free cash flow depressed versus prior years, the company is exposed if revenues soften; sustained low FCF could force tougher trade-offs between buybacks and balance-sheet strengthening.
Commodity and customer timing sensitivity
Revenue and utilization depend on customer FID timing and commodity cycles, creating lumpy, timing-driven cash flows. Long lead times for larger deployments make revenue ramps uncertain, raising structural volatility in occupancy, capital deployment pacing, and margin realization across planning horizons.
Civeo (CVEO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$320.35M
Dividend Yield4.25%
Average Volume (3M)42.56K
Price to Earnings (P/E)―
Beta (1Y)0.11
Revenue Growth-10.51%
EPS Growth-247.97%
CountryUS
Employees2,600
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-0.56
Shares Outstanding11,515,223
10 Day Avg. Volume48,128
30 Day Avg. Volume42,561
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)1.37
Price to Sales (P/S)0.48
P/FCF Ratio5.66
Enterprise Value/Market Cap1.67
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit5.68
Enterprise Value/Ebitda8.32
Forecast
1Y Price Target
$33.00Price Target Upside18.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.07
Revenue Forecast (FY)$670.96M
Civeo Business Overview & Revenue Model
Company DescriptionCiveo 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.
How the Company Makes MoneyCiveo generates revenue primarily through its accommodation services, where it charges clients for lodging and related services provided at its remote housing facilities. Key revenue streams include room rentals, catering services, and facility management fees. The company often enters into long-term contracts with major resource companies, ensuring a steady flow of income. Additionally, Civeo may benefit from partnerships with clients in the resource sector, which can lead to recurring business and increased occupancy rates at its facilities. The company's ability to scale its operations and manage costs effectively also contributes to its profitability.
Civeo Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| Next Earnings Date:Apr 24, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution in Australia, a meaningful margin recovery in Canada, significant progress on share repurchases, and improved adjusted EBITDA and Q4 operating cash flow—these are substantial positives. Offsetting these are a full-year revenue decline driven by weak Canadian activity, ongoing net loss on a GAAP basis, commodity price sensitivity in Australia, and timing uncertainty for new asset deployments tied to customer FIDs. On balance, the magnitude of profitability and cash-flow improvements, the completion of a large share buyback program, and constructive 2026 guidance outweigh the key challenges, though risks remain related to commodity cycles and project timing.Q4-2025 Updates
Positive Updates
Share Repurchase Progress
Repurchased ~2,300,000 common shares for approximately $54,000,000 in 2025 (≈17% of shares outstanding) and repurchased an additional ~500,000 shares subsequent to year-end, reaching ~95% completion of the current buyback authorization; new authorization announced to purchase up to 10% of outstanding shares after completion.
Q4 Consolidated Revenue and EBITDA Improvement
Fourth quarter consolidated revenues increased 7% year-over-year and adjusted EBITDA rose 90% (Q4 adjusted EBITDA $21.7M vs $11.4M in Q4 2024), driven by Canadian margin recovery and the May 2025 Australian acquisition.
Full-Year Adjusted EBITDA Growth Despite Revenue Decline
Full-year 2025 adjusted EBITDA increased 10% to $88.2M (from $79.9M in 2024) despite full-year revenues declining to $630.8M from $682.1M (≈-7.5%), reflecting effective cost-reduction actions.
Record Annual Revenues in Australia
Australia delivered record 2025 revenues of $460.3M (up from $427.0M in 2024, ≈+7.8%); Q4 Australia revenues rose 9% YoY to $119.5M and Q4 adjusted EBITDA increased 9% to $22.4M. Australian billed rooms in Q4 were ~705,000 vs ~637,000 prior year (≈+10.7%).
Integrated Services Growth and 2027 Target
Integrated services business in Australia continues to scale and is on track toward management's goal of $500,000,000 in annual revenue by 2027, contributing meaningfully to recent revenue and EBITDA gains.
Canadian Margin Recovery
Canada showed meaningful margin recovery: Q4 revenues rose 4% YoY to $42.1M and adjusted EBITDA swung from negative $5.4M in Q4 2024 to positive $3.4M in Q4 2025, driven by structural cost-reduction initiatives (overhead cuts, lodge rationalization, field-level cost alignment).
Improved Operating Cash Flow
Operating cash flow in Q4 2025 was $19.3M versus $9.5M in prior-year quarter (≈+103%), supporting buybacks and liquidity.
Healthy Capital Structure and Liquidity
As of 12/31/2025, total liquidity was $90.4M, total debt $182.8M, net debt $168.4M, and net leverage ratio was 1.9x—management states comfort with this leverage level while continuing buybacks.
2026 Guidance
Initial 2026 guidance: revenues $650M–$700M (implying growth vs 2025), adjusted EBITDA $85M–$90M (near FY2025 levels), and CapEx $25M–$30M, indicating confidence in stable to improving operations and measured reinvestment.
Negative Updates
Full-Year Revenue Decline
Full-year 2025 revenues declined to $630.8M from $682.1M in 2024 (≈-7.5%), driven primarily by lower activity in Canada (full-year Canada revenue fell to $178.6M from $245.1M, ≈-27.2%).
Persisting Net Loss
Net loss for 2025 was $6.5M (loss per share $0.56), an improvement versus a $15.1M loss in 2024, but the company remains unprofitable on a GAAP basis for the year.
Commodity-Driven Demand Volatility
Weakened metallurgical coal prices in H2 2025 contributed to modest softness in portions of the Bowen Basin legacy village portfolio (sub-$200/ton environment), creating sensitivity to commodity price moves and occupancy levels.
Canada Activity and Revenue Headwinds
Oil sands customer spending discipline kept lodge occupancy under pressure in 2025; billed rooms in Canada were flat YoY in Q4 (~359,000 vs ~360,000) while full-year activity declined materially, limiting revenue recovery potential near term.
Uncertainty on Asset Deployment Timing
Many mobile camp and infrastructure opportunities are tied to customer FID timing. Management indicated mobile camp deployments can begin generating revenue in ~3–4 months while multistory deployments may take ~9–12 months, creating timing risk for revenue ramp.
Share Buybacks and Free Cash Flow Consumption
Management indicated they used more than 100% of free cash flow to complete Phase One buybacks and plan to use at least 75% of annual free cash flow for further repurchases under Phase Two, which could constrain flexibility for other investments despite a comfortable leverage target (~2x).
CapEx Rebound Expectations
Full-year CapEx in 2025 was $20.2M (down from $26.1M in 2024, ≈-22.6%), but guidance for 2026 rises to $25M–$30M as maintenance spend normalizes—this could modestly reduce free cash flow versus the depressed 2025 baseline.
Company Guidance
For 2026 Civeo provided full‑year guidance of $650 million to $700 million of revenue, $85 million to $90 million of adjusted EBITDA, and $25 million to $30 million of CapEx; management enters the year with $90.4 million of liquidity, $182.8 million total debt ($168.4 million net debt) and a 1.9x net leverage ratio (12/31/2025), expects to complete the current 20% repurchase program (2025 repurchases: ~2.3 million shares for ~$54.0 million, ~17% of shares, plus ~500,000 shares repurchased post‑year end for ~95% completion) and then begin a new authorization to buy up to 10% of outstanding shares while targeting use of at least 75% of annual free cash flow for buybacks and maintaining leverage at ≤2.0x; assumptions underlying the outlook include generally stable owned‑village occupancy in Australia with integrated‑services growth on track toward a $500 million 2027 target (Australia Q4 billed rooms ~705k, ADR ~$76; 2025 Australia revenue $460.3M), potential upside if metallurgical coal prices remain above ~$200/ton, and stable but muted Canada activity (Canada Q4 billed rooms ~359k, ADR $100) on a structurally lower cost base, with seasonality expected to be slightly more muted than the historical ~60–65% of annual EBITDA concentrated in Q2–Q3 and working‑capital considerations including roughly $20M of U.S. cash taxes and ~$10M of interest.Civeo Financial Statement Overview
Summary
Strong TTM revenue rebound, but profitability remains weak (TTM net loss and negative margin), free cash flow is near break-even, and leverage has risen (debt above equity). Positives include still-positive EBITDA and operating cash flow, but overall earnings quality and cash conversion are pressured.Income Statement
TTM (Trailing-Twelve-Months) revenue grew sharply (+170%+) but profitability is weak: net loss of about $20M and negative net margin (~-4.6%). EBITDA margin is still positive (~10%), yet operating profitability is thin/negative, showing the recent growth has not translated into durable earnings. Results also look volatile versus prior years (profit in 2023, losses in 2024 and TTM).44
Neutral
Balance Sheet
Leverage has increased meaningfully in TTM (Trailing-Twelve-Months), with debt above equity (debt-to-equity ~1.08) versus much lower leverage in 2023–2024. Equity remains positive, but returns are negative (TTM return on equity ~-13.5%), reflecting the current loss and reducing balance-sheet quality if losses persist.46
Neutral
Cash Flow
Cash generation deteriorated in TTM (Trailing-Twelve-Months): operating cash flow fell to ~$22M and free cash flow is near break-even (~$2M), down sharply from 2023–2024. While the business is still producing positive operating cash flow, the drop in free cash flow and weak cash coverage versus debt signal tighter financial flexibility.42
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 638.85M | 682.12M | 700.80M | 697.05M | 594.46M | 529.73M |
| Gross Profit | 94.37M | 149.46M | 170.52M | 179.99M | 158.00M | 147.64M |
| EBITDA | 64.45M | 70.07M | 128.68M | 109.95M | 101.94M | -30.18M |
| Net Income | -20.07M | -17.07M | 30.16M | 4.00M | 1.35M | -134.25M |
Balance Sheet | ||||||
| Total Assets | 477.41M | 405.07M | 548.06M | 566.18M | 672.73M | 740.85M |
| Cash, Cash Equivalents and Short-Term Investments | 14.44M | 5.20M | 3.32M | 7.95M | 6.28M | 6.16M |
| Total Debt | 193.98M | 55.75M | 79.19M | 143.72M | 192.85M | 272.86M |
| Total Liabilities | 303.03M | 168.07M | 225.02M | 262.48M | 309.62M | 365.50M |
| Stockholders Equity | 174.38M | 236.37M | 320.17M | 300.14M | 361.50M | 374.69M |
Cash Flow | ||||||
| Free Cash Flow | 2.15M | 57.37M | 64.93M | 66.35M | 72.96M | 107.28M |
| Operating Cash Flow | 22.34M | 83.51M | 96.56M | 91.77M | 88.53M | 117.36M |
| Investing Cash Flow | -90.11M | -14.94M | -14.52M | -8.95M | -706.00K | -1.77M |
| Financing Cash Flow | 74.72M | -65.20M | -86.80M | -79.66M | -86.51M | -114.21M |
Civeo Technical Analysis
Positive
27.82
Price Trends
25.57
Positive
23.78
Positive
23.35
Positive
Market Momentum
0.68
Positive
62.11
Neutral
26.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVEO, the sentiment is Positive. The current price of 27.82 is above the 20-day moving average (MA) of 27.76, above the 50-day MA of 25.57, and above the 200-day MA of 23.35, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 62.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVEO.
Civeo Risk Analysis
Civeo disclosed 36 risk factors in its most recent earnings report. Civeo reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Civeo Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $771.30M | -78.40 | -2.36% | ― | -26.65% | -110.98% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.01B | 43.14 | -24.71% | ― | -68.48% | 2198.47% | |
59 Neutral | $1.29B | -1,653.01 | 3.13% | ― | -3.40% | -51.58% | |
55 Neutral | $320.35M | -13.17 | -12.34% | 4.25% | -10.51% | -247.97% |
* Consumer Cyclical Sector Average
CVEO
Civeo
27.82
6.11
28.14%
PRSU
Pursuit Attractions and Hospitality
36.22
-2.69
-6.91%
BV
BrightView Holdings
13.72
1.13
8.98%
TH
Target Hospitality
7.73
2.24
40.80%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.