- Civeo Corporation (CVEO, Financial) reported a net loss of $9.8M in Q1 2025 alongside negative free cash flow of ($13.5M).
- Revenues totaled $144.0M, with an Adjusted EBITDA of $12.7M.
- Civeo increased its share repurchase authorization from 10% to 20% of shares outstanding, suspending its quarterly dividend.
Civeo Corporation (CVEO) faced a challenging first quarter of 2025, reporting a net loss of $9.8 million. The company's revenues reached $144.0 million, while Adjusted EBITDA stood at $12.7 million. Notably, Civeo experienced negative free cash flow of ($13.5 million), a significant downturn from the positive $7.2 million recorded in the previous year. This decline was primarily due to negative operating cash flow of ($8.4 million) and capital expenditures amounting to $5.3 million.
In response to these financial challenges, Civeo has taken strategic steps to bolster its financial position. The company has doubled its share repurchase authorization, increasing it from 10% to 20% of shares outstanding. Additionally, Civeo has suspended its quarterly dividend to focus on share buybacks, with the intention of using 100% of free cash flow for this purpose. During the quarter, the company repurchased 153,000 shares for approximately $3.3 million.
The company's net debt increased by $20.9 million, totaling $59.0 million, which resulted in a net leverage ratio of 0.8x. Despite the near-term hurdles, Civeo remains confident in its long-term free cash flow generation, supported by a capital-light business model and a high mix of recurring revenue from asset-light services.
Looking ahead, Civeo has revised its 2025 financial guidance. The company projects revenues between $620 million and $650 million, with an Adjusted EBITDA forecasted to range between $75 million and $85 million.
