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.
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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.
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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.
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