Civeo Corporation

Greetings and welcome to the Cibio Corporation's second quarter 2025 earnings call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Regan Nielsen. Please go ahead.

Thank you, and welcome to Sibio's second quarter 2025 earnings conference call. Today, our call will be led by Bradley Dotson, Sibio's President and Chief Executive Officer, and Colin Gary, Sibio's Chief Financial Officer and Treasurer. Before we begin, we would like to caution listeners regarding forward-looking statements. To the extent that our remarks today contain anything other than historical information, please note that we're relying on the safe harbor protections afforded by federal law. These forward-looking remarks speak only as of the date of our earnings release and this conference call. We undertake no obligation to update or revise these forward-looking statements, except as required by law. Any such remarks should be read in the context of the many factors that affect our business, including risks and uncertainties disclosed in our Forms 10-K, 10-Q, and other SEC filings. I'll now turn the call over to Bradley.

Thank you, Reagan, and thank you all for joining us today on our second quarter 2025 earnings call. I'll start by highlighting some of the key takeaways before walking through a brief summary of our second quarter 2025 financial results. Then Colin will provide financial and segment level review. I'll conclude with our 2025 guidance and the underlying regional assumptions, and then we'll open the call up for questions. Turning to our key takeaways, I'll start with significant progress that we've made towards completing our expanded share repurchase authorization. We capitalized on equity market softness earlier in the second quarter to repurchase 883,000 common shares, which is approximately 7% of CIVIO's common shares outstanding. These repurchases made since the announcement of our new capital allocation plan equate to 30% of that new buyback authorization as of June 30th, 2025. Civio has now repurchased approximately 27% of its common shares outstanding since we began our share repurchase program in August of 2021. We believe that share repurchases represent a compelling use of capital, especially during broad equity market volatility. Given the accelerated buybacks and the recently completed acquisition, we have now reached the upper end of our target net leverage ratio of two times. We are comfortable with that ratio as we continue to execute under our share repurchase program. We remain committed to completing the 20% share repurchase authorization as soon as practicable and intend to use no less than 100% of the annual free cash flow to achieve that goal. I'll now move to some comments on the regional results. In Australia, we remain focused on growing our integrated services business and integrating the recent acquisition. Revenue in the region increased 4% year-over-year or 7% on a constant currency basis, and adjusted EBITDA grew by 10% or 12% on a constant currency basis. Contributions from the newly acquired Bowen Basin Villages and growth in our integrated services business are driving the strong margins that we experienced in the second quarter. Based on current customer discussions and our base of contracted room nights, we expect our current Australian occupancy levels to continue through the rest of the year, despite weakening in met coal prices experienced recently. We completed the acquisition of four villages in May and began integrating them into our operations. Approximately two months of those results were included in our second quarter 2025 results. We are pleased with their early contributions and we look to realize further margin leverage going forward. Additionally, we recently announced two contracts in Australia in the Bowen Basin. A renewal of a contract with an existing customer. The renewal is a four-year take-or-pay agreement at our own villages with expected revenues over the contract term of $250 million Australia. The second contract previously announced is a three-year integrated services contract worth approximately $64 million in revenue. These awards validate our winning strategy and position us for continued momentum and growth in Australia. In Canada, the second quarter saw the typical seasonal increase in occupancy relative to the first quarter, driven by turnaround activity in the core region of the core oil sands region. However, on a year-over-year basis, turnaround occupancy remains subdued. Conditions in Canada remain challenging given the macroeconomic headwinds, which include low and uncertain oil prices and our customers' fiscal conservatism. Customers remain steadfast in their singular focus on cost reductions in response to oil price and political uncertainty and investor pressure to return capital to shareholders. We remain focused on controlling what we can control. We continue to take steps to optimize our cost structure in Canada and align our business with realities in the current environment without sacrificing our ability to capitalize on opportunities to diversify our business away from the oil sands. Overall, we are executing on our strategic priorities in each region. In Australia, our Australian business is hitting on all cylinders, and while the Canadian headwinds remain, we know this market well and are working with our strategic partners to understand how we can continue to support them as we capitalize on evolving opportunities in the region. We are taking decisive action to apply our resources to position CIVIO for long-term resilience and cash generation. With that, I'll turn it over to Colin.