Stonegate Capital Partners has released an updated coverage report on Civeo Corporation (NYSE: CVEO), following the company's fourth-quarter 2025 earnings announcement. The report highlights Civeo's financial performance, strategic initiatives, and outlook for fiscal year 2026.
Civeo reported Q4 revenue of $161.6 million and adjusted EBITDA of $21.7 million. These figures compared to Stonegate's estimates of $168.9 million and $21.6 million, respectively, and consensus estimates of $170.2 million in revenue and $21.2 million in EBITDA. While revenue slightly missed expectations, EBITDA met or exceeded projections. The year-over-year increase in EBITDA was attributed to continued strength in the Australian operations and the benefits of cost-cutting initiatives in Canada.
Operational highlights include operating cash flow of $19.3 million for the quarter, with capital expenditures of $4.8 million primarily directed toward maintenance of lodges and villages. The company ended the quarter with net debt of $168.4 million, a net leverage ratio of 1.9x, and liquidity of approximately $90.4 million. These metrics underscore Civeo's solid financial position and ability to generate cash.
Looking ahead, management guided for fiscal year 2026 revenue in the range of $650 million to $700 million and adjusted EBITDA between $85 million and $90 million. This outlook implies stable-to-improving fundamentals, with continued focus on operational efficiency and margin recovery.
Capital returns remain a central theme for Civeo. The company's Phase 1 share buyback program is approximately 95% complete, and Phase 2 adds an additional 10% of shares authorized for repurchase. This commitment to returning capital to shareholders reflects management's confidence in the business and its cash generation capabilities.
For more details, the full announcement is available here, and additional information about Stonegate Capital Partners can be found on their website.
