Civeo Corporation Q2 FY2025 earnings call

• Significant progress on share repurchase authorization: repurchased 883,000 shares in Q2 2025, equating to 30% of new authorization. - Completed acquisition of 4 villages in May, with early positive contributions. - In Australia, strong revenue and adjusted EBITDA growth driven by acquisition and integrated services; renewed contracts validate winning strategy. - In Canada, challenging macroeconomic headwinds with subdued turnaround occupancy; focusing on cost optimization and business diversification. - Capital expenditures for Q2 2025 were $4.5 million, down from $5.3 million YOY, primarily maintenance spending.

Australia: Second quarter revenues were $112.7 million, up 4% year-over-year (7% constant currency). Adjusted EBITDA was $23.7 million, up 10% year-over-year (12% constant currency). Contributions from the newly acquired Bowen Basin Villages and growth in the integrated services business drove strong margins. Australian-owned village build rooms were 690,000, up 10% YOY. Canada: Revenues were $50 million, down from $79.5 million in the second quarter of 2024. Adjusted EBITDA was $7.5 million, down from $17.3 million YOY. Billed rooms in Canadian lodges totaled 450,000, down from 752,000 YOY.

• Maintaining full-year 2025 revenue guidance of $640 million to $670 million and adjusted EBITDA guidance of $86 million to $96 million. - Maintaining full-year CapEx guidance of $20 million to $25 million. - Australia: Strong customer activity in owned villages; expected continued strength in remainder of year. Integrated services business showing top-line growth and margin improvement. - Canada: Navigating difficult operating environment in oil sands; expected billed rooms in second half to be more in line with 2024 second half; focusing on cost reduction, operational efficiency, and aligning resource base with demand.

• Trade uncertainty: Impact on customers and their spending on rooms not yet material but closely monitored. - Met coal price volatility: Could influence customers' need for rooms or spending, though currently not significantly impacting business.

Q: Thoughts on trade deals and their impact on guidance?

A: Trade uncertainty not significantly impacting business yet; monitoring closely for any material impact on customers.

Q: Acquisition run rate and synergies?

A: Originally expected $11 million EBITDA impact in 2025, closed in May, fundamentals intact, no change to outlook yet.

Q: Second half profit improvement?

A: Third quarter stable; Canada fourth quarter may have seasonal downtime; Australia third quarter improved with full quarter of acquired villages and integrated services wins.

Q: Canadian occupancy and stabilization?

A: Third quarter stable, expected pickup in July-August, but turnaround activity uncertain.

Q: Australia oil and gas opportunity?

A: Minimal current exposure, but natural gas drilling projects in NSW could present opportunities, with Boggabri and Narrabri locations suited to support.