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Associated Press
18 hours ago
- Business
- Associated Press
Axalta Releases Second Quarter 2025 Results
PHILADELPHIA, July 30, 2025 (GLOBE NEWSWIRE) -- Axalta Coating Systems Ltd. (NYSE:AXTA) ('Axalta'), a leading global coatings company, announced its financial results for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights: 'We delivered another excellent quarter, setting new records for Adjusted EBITDA and Adjusted Diluted EPS,' said Chris Villavarayan, CEO and President of Axalta. 'Our performance reflects Axalta's drive for operational excellence, and our commitment to meet financial targets and create value through our A Plan objectives.' Second Quarter 2025 Consolidated Financial Results Net sales decreased 3% year over year to $1.3 billion in the second quarter of 2025. Volume declines, primarily in Performance Coatings, more than offset contributions from the CoverFlexx acquisition and favorable currency translation. Net income decreased by 3% year over year to $110 million compared to $113 million in the prior year period resulting in a net income margin of 8.4%. The decrease was largely due to costs from restructuring programs initiated in the quarter designed to drive efficiencies, partially offset by a decline in operating expenses and lower interest and tax expense. Adjusted net income improved by $4 million year over year to $139 million driven by lower operating expenses, reduced interest expense and improved variable costs. Adjusted EBITDA was a new quarterly record of $292 million, an increase of $1 million year over year, and Adjusted EBITDA margin expanded by 90 basis points year over year to 22.4%. Diluted earnings per share decreased by 2% to $0.50 compared to $0.51 in the prior year period, while adjusted diluted earnings per share improved by 5% to $0.64. In the second quarter of 2025, Axalta generated $142 million in cash provided by operating activities, a significant improvement from $114 million in the same period last year. This year-over-year increase reflects the company's focus on margin expansion and operational discipline. In the second quarter, free cash flow was $101 million, up from $95 million in the prior year, driven by stronger operating performance, partially balanced by increases in strategic capital expenditures to support productivity and long term growth. Discussion of Segment Results Performance Coatings second quarter 2025 net sales were $836 million, compared to $887 million in the prior year period. Contributions from the CoverFlexx acquisition and favorable currency impacts helped partially offset the decline in organic net sales. Refinish net sales declined 6% year over year to $514 million predominantly driven by organic net sales decline in North America. Industrial net sales decreased by 6% year over year to $322 million as positive price-mix and favorable foreign currency translation were offset by lower volumes. The Performance Coatings segment generated Adjusted EBITDA of $200 million compared to $223 million in the prior year period, reflecting resilient earnings in the face of softer volumes. While organic net sales moderated, the segment maintained a healthy Adjusted EBITDA margin of 23.8% supported by lower operating and variable expenses compared to the prior year period. Mobility Coatings second quarter 2025 net sales were $469 million, an increase of 1% from the prior year period. Light Vehicle net sales were up 2% year over year due to organic net sales growth in three out of four regions, which more than offset declines in North America. Commercial Vehicle net sales decreased by 4% year over year to $107 million due to lower volumes from Class 8 builds and foreign currency translation headwinds partially mitigated by positive price-mix. Mobility Coatings price-mix drove a 4% benefit year over year. The Mobility Coatings segment delivered exceptional performance in the second quarter, generating Adjusted EBITDA of $92 million, a significant increase from the $68 million in the prior year period. The segment's Adjusted EBITDA margin expanded to 19.8%, up from 14.8% in the prior year period, reflecting benefits from positive price-mix and disciplined cost management. This strong margin expansion underscores Axalta's ability to drive profitable growth. Third Quarter and Updated Full Year 2025 Outlook LSD = low single digit percentage Axalta does not provide a reconciliation for non-GAAP estimates for Adjusted EBITDA, Adjusted Diluted EPS, Free Cash Flow or tax rate, as adjusted, on a forward-looking basis because the information necessary to calculate a meaningful or accurate estimation of reconciling items is not available without unreasonable effort. See 'Non-GAAP Financial Measures' for more information. Conference Call Information As previously announced, Axalta will hold a conference call to discuss its second quarter 2025 financial results on Wednesday, July 30, 2025, at 8:00 a.m. ET. A live webcast of the conference call will be available online at A replay of the webcast will be posted shortly after the call and will remain accessible through July 30, 2026. The dial-in phone number for the conference call is 1-800-225-9448 and the conference ID is AXALTA. For those unable to participate, a replay will be available through August 6, 2025. The replay dial-in number is +1-844-512-2921. The replay passcode is 11159306. Cautionary Statement Concerning Forward-Looking Statements This release may contain certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding Axalta and its subsidiaries including, but not limited to, statements regarding our previously announced three-year 2024-2026 strategy (the '2026 A Plan'), and our outlook and/or guidance, which includes net sales, net sales growth, Adjusted EBITDA, Adjusted Diluted EPS, Free Cash Flow, depreciation and amortization, tax rate, as adjusted, diluted shares outstanding, interest expense and capital expenditures. Axalta has identified some of these forward-looking statements with words such as 'outlook,' 'estimates,' 'objectives,' and 'projections,' and the negative of these words or other comparable or similar terminology. All of these statements are based on management's expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental, including any tariffs imposed by the U.S. and any retaliatory actions from other countries, and technological factors outside of Axalta's control, as well as risks related to the execution of, and assumptions underlying, the 2024 Transformation Initiative and the 2026 A Plan, that may cause its business, industry, strategy, financing activities or actual results to differ materially. More information on potential factors that could affect Axalta's financial results is available in 'Forward-Looking Statements,' 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' within Axalta's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and in other documents that we have filed with, or furnished to, the U.S. Securities and Exchange Commission (the 'SEC'). Axalta undertakes no obligation to update or revise any of the forward-looking statements contained herein, whether as a result of new information, future events or otherwise. Non-GAAP Financial Measures This release includes financial information that is not presented in accordance with generally accepted accounting principles in the United States ('GAAP'), including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, adjusted net income, Free Cash Flow, tax rate, as adjusted, and Adjusted EBIT. Management uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, adjusted net income, tax rate, as adjusted, and Adjusted EBIT in the analysis of our financial and operating performance because they assist in the evaluation of underlying trends in our business. Management uses Free Cash Flow in the analysis of (1) our liquidity, (2) our ability to incur and service our debt and (3) strategic capital allocation decisions. Adjusted EBITDA, Adjusted Diluted EPS, adjusted net income and Adjusted EBIT consist of EBITDA, Diluted EPS, net income attributable to common shareholders and EBIT, respectively, adjusted for (i) certain non-cash items included within net income, (ii) certain items Axalta does not believe are indicative of ongoing operating performance or (iii) certain nonrecurring, unusual or infrequent items that have not otherwise occurred within the last two years or we believe are not reasonably likely to recur within the next two years. Free Cash Flow consists of cash provided by (used for) operating activities less purchase of property, plant and equipment plus interest proceeds on swaps designated as net investment hedges. We believe that making the foregoing adjustments provides investors meaningful information to understand our operating results and ability to analyze financial and business trends on a period-to-period basis. The non-GAAP financial measures used by Axalta may differ from similarly titled measures reported by other companies. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Diluted EPS, adjusted net income, Free Cash Flow, tax rate, as adjusted, and Adjusted EBIT should not be considered as alternatives to net sales, net income (loss), income (loss) from operations or any other financial measures derived in accordance with GAAP. These non-GAAP financial measures have important limitations as analytical tools and should be considered in conjunction with, and not as substitutes for, our results as reported under GAAP. This release includes a reconciliation of certain non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP. Axalta does not provide a reconciliation for Adjusted EBITDA, Adjusted Diluted EPS, tax rate, as adjusted, or Free Cash Flow on a forward-looking basis because the information necessary to calculate a meaningful or accurate estimation of reconciling items is not available without unreasonable effort. For example, such reconciling items include the impact of foreign currency exchange gains or losses, gains or losses that are unusual or nonrecurring in nature, as well as discrete taxable events. These items are uncertain, depend on various factors and may have a substantial and unpredictable impact on our GAAP results. Organic Net Sales Organic net sales and related growth and decline measures are calculated by excluding (i) the impact of the change in average exchange rates between the current and comparable period by currency denomination exposure of the comparable period amount and (ii) net sales of CoverFlexx. We believe presenting organic net sales and related growth and decline measures assists investors with evaluating our sales performance without the impact of foreign exchange rates and recent acquisitions and divestitures of size, and management also routinely evaluates our sales in this manner. Non-GAAP Reporting Changes Beginning with the results for the fourth quarter and full year 2024, we have made changes to our presentation of the non-GAAP financial measures of adjusted net income (which is also leveraged in the calculation of Adjusted Diluted EPS) and Adjusted EBIT. More detail on these changes can be found in the Current Report on Form 8-K we furnished to the SEC on January 21, 2025, which is available on the investor relations portion of our website at Nothing on our website shall be deemed to be incorporated by reference into this release. Segment Financial Measures The primary measure of segment operating performance is Adjusted EBITDA, which is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts and prior year financial results and that management believes reflects Axalta's core operating performance. As we do not measure segment operating performance based on net income, a reconciliation of this non-GAAP financial measure with the most directly comparable financial measure calculated in accordance with GAAP is not available. Defined Terms All capitalized terms contained within this release that are not otherwise defined herein have been previously defined in our filings with the SEC. Rounding Certain amounts may not foot or crossfoot due to rounding. Additionally, certain percentages may not recalculate due to rounding. About Axalta Coating Systems Axalta is a global leader in the coatings industry, providing customers with innovative, colorful, beautiful and sustainable coatings solutions. From light vehicles, commercial vehicles and refinish applications to electric motors, building facades and other industrial applications, our coatings are designed to prevent corrosion, increase productivity and enhance durability. With more than 150 years of experience in the coatings industry, the global team at Axalta continues to find ways to serve our more than 100,000 customers in over 140 countries better every day with the finest coatings, application systems and technology. For more information visit and follow us @axalta on X. The following table reconciles net income to EBITDA, Adjusted EBITDA and segment Adjusted EBITDA for the periods presented (in millions): The following table reconciles net income to adjusted net income for the periods presented (in millions, except per share data): The following table reconciles cash provided by operating activities to free cash flow for the periods presented (in millions): The following table reconciles income from operations to adjusted EBIT for the periods presented (in millions):
National Post
2 days ago
- Business
- National Post
Civeo Reports Second Quarter 2025 Results
Article content Article content Reported revenues of $162.7 million, net loss of $3.3 million and Adjusted EBITDA of $25.0 million; Repurchased 883,000 common shares for $19.1 million at an average price of $21.64 per common share, or approximately 7% of Civeo's common shares outstanding as of March 31, 2025; Completed the previously announced acquisition of four villages in the Australian Bowen Basin; Awarded a previously announced four-year contract at Civeo's owned-villages in the Bowen Basin with expected revenues of A$250 million; and Awarded a previously announced three-year integrated services contract in the Bowen Basin with expected revenues of A$64 million. Article content HOUSTON — Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the second quarter ended June 30, 2025. Article content 'In the second quarter we delivered revenues and Adjusted EBITDA consistent with our expectations while accelerating the return of capital to shareholders,' said Bradley J. Dodson, Civeo's President and Chief Executive Officer. 'We continued to drive margin expansion in our integrated services business and positioned our Australian segment for continued success supported by multiple key contract awards and the accretive acquisition of four new owned-villages in the Bowen Basin. Our Canadian business continues to face similar macroeconomic headwinds as previously discussed. In addition, we experienced typical seasonality effects which contributed to a cash consumption in the quarter driven by working capital. We continue to right-size our Canadian business while simultaneously pursuing opportunities to diversify our business away from the oil sands region.' Article content Mr. Dodson added, 'We continued to deliver on our capital allocation framework, making significant progress in the second quarter toward our goal of repurchasing 20% of Civeo's common shares outstanding. We repurchased 883,000 common shares, or approximately 7% of Civeo's common shares outstanding as of March 31, 2025. We intend to continue opportunistically executing on our share repurchase authorization to complete the program.' Article content Second Quarter 2025 Results Article content In the second quarter of 2025, Civeo generated revenues of $162.7 million and reported a net loss of $3.3 million, or $0.25 per diluted share. During the second quarter of 2025, Civeo generated negative operating cash flow of $2.3 million and positive Adjusted EBITDA of $25.0 million. Article content By comparison, in the second quarter of 2024, Civeo generated revenues of $188.7 million and reported net income of $8.2 million, or $0.56 per diluted share. During the second quarter of 2024, Civeo produced operating cash flow of $32.4 million and Adjusted EBITDA of $31.9 million. Article content The year-over-year decrease in Adjusted EBITDA was primarily driven by decreased billed rooms at the Canadian lodges due to ongoing customer spending reductions, including lower turnaround activity. Article content The year-over-year decrease in operating cash flow was exacerbated by approximately $9.4 million in one-time collection of holdbacks associated with the wind-down of LNG-related mobile camp activity in the second quarter of 2024 as well as Australian cash taxes in the second quarter of 2025 not incurred in the second quarter of 2024 of approximately $15.8 million, including a one-time $9.4 million payment related to the 2024 tax year. Article content Business Segment Results Article content (Unless otherwise noted, the following discussion compares the quarterly results for the second quarter of 2025 to the results for the second quarter of 2024.) Article content Australia Article content During the second quarter of 2025, the Australian segment generated revenues of $112.7 million, operating income of $14.6 million and Adjusted EBITDA of $23.7 million, up from revenues of $108.6 million, operating income of $13.9 million and Adjusted EBITDA of $21.6 million in the second quarter of 2024. Results for the second quarter of 2025 include the impact of a weakened Australian dollar relative to the U.S. dollar, which negatively impacted revenues and Adjusted EBITDA by $3.2 million and $0.7 million, respectively. Article content Revenue from the Australian segment increased 4% period-over-period and Adjusted EBITDA was up 10%. The year-over-year increase was primarily driven by the recently completed acquisition of four owned-villages, which contributed $4.9 million in revenues in the last two months of the second quarter of 2025 as well as margin improvement in the integrated services business. Article content On May 7, 2025, Civeo announced that it had completed the acquisition of four villages and associated take-or-pay contracts in the Australian Bowen Basin, strengthening Civeo's presence and deepening relationships with metallurgical coal producers in the Basin. Approximately two months of results are included in Civeo's second quarter 2025 results. Article content Canada Article content During the second quarter of 2025, the Canadian segment generated revenues of $50.0 million, an operating loss of $1.9 million and Adjusted EBITDA of $7.5 million, compared to revenues of $79.5 million, operating income of $6.9 million and Adjusted EBITDA of $17.3 million in the second quarter of 2024. Article content Lodge occupancy in the Canadian oil sands region remains challenged as customers continue to reduce capital and operational spending. In the second quarter of 2025, the Canadian segment revenues declined 37% period-over-period driven by decreased billed rooms at the Canadian lodges as a result of ongoing customer spending reductions, including lower turnaround activity. Article content During the second quarter of 2025, the Canadian segment incurred implementation costs of approximately $0.5 million related to the cold-closure of two lodges, which are excluded from Adjusted EBITDA. In light of the macroeconomic factors influencing the global oil market, the Company is continuing to evaluate additional cost saving actions to right size its North American cost structure. Article content Financial Condition Article content As of June 30, 2025, Civeo had total liquidity of approximately $72.8 million. Civeo's total debt at June 30, 2025 was $168.7 million, a $81.3 million increase from March 31, 2025. Civeo's net debt at June 30, 2025 was $154.0 million, a $95.0 million increase since March 31, 2025 attributable to the recent acquisition and share repurchases, bringing Civeo's reported net leverage ratio to 2.0x as of June 30, 2025. Article content In the second quarter of 2025, Civeo repurchased approximately 883,000 shares for approximately $19.1 million at an average price of $21.64 per share. As previously disclosed, the Board authorized an increase to the Company's share repurchase program and Civeo intends to use no less than 100% of its annual free cash flow to complete the program as market conditions allow. Article content During the second quarter of 2025, Civeo invested $4.5 million in capital expenditures compared to $5.3 million invested during the second quarter of 2024. Capital expenditures in both periods were primarily related to maintenance spending on the Company's lodges and villages. Article content Full Year 2025 Guidance Article content For the full year of 2025, Civeo is maintaining its revenue and Adjusted EBITDA guidance ranges of $640 million to $670 million and $86 million to $96 million, respectively. Article content The Company is maintaining its full year 2025 capital expenditure guidance range of $20 million to $25 million. Article content Conference Call Article content Civeo will host a conference call to discuss its second quarter 2025 financial results today at 8:30 a.m. Eastern time. This call is being webcast and can be accessed at Civeo's website at Participants may also join the conference call by dialing (877) 423-9813 in the United States or (201) 689-8573 internationally and asking for the Civeo call or using the conference ID 13755145#. A replay will be available after the call by dialing (844) 512-2921 in the United States or (412) 317-6671 internationally and using the conference ID 13755145#. Article content About Civeo Article content Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Australian natural resource regions and the Canadian oil sands. Civeo offers comprehensive solutions for lodging hundreds or thousands of workers with its long-term and temporary accommodations and provides food services, housekeeping, facility management, laundry, water and wastewater treatment, power generation, communications systems, security and logistics services. Civeo currently owns and operates a total of 28 lodges and villages in Australia and North America with an aggregate of approximately 27,500 rooms. In addition, Civeo operates and provides hospitality services at 24 customer-owned locations with approximately 19,500 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo's website at Forward Looking Statements This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements herein, including the statements regarding Civeo's future plans and outlook, strategic priorities, guidance, current trends, expectations with respect to Adjusted EBITDA, capital expenditures, future revenues, share repurchases, free cash flow generation, cost reductions, integration of the Australian asset acquisition and liquidity needs, are based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the accommodations industry, risks associated with the level of supply and demand for oil, coal, iron ore and other minerals, including the level of activity, spending and developments in the Canadian oil sands, the level of demand for coal and other natural resources from, and investments and opportunities in, Australia, and fluctuations or sharp declines in the current and future prices of coal, iron ore, oil, natural gas and other minerals, risks associated with failure by our customers to reach positive final investment decisions on, or otherwise not complete, projects with respect to which we have been awarded contracts, which may cause those customers to terminate or postpone contracts, risks associated with currency exchange rates, risks associated with inflation and volatility in the banking sector, risks associated with the company's ability to integrate any future acquisitions, risks associated with labor shortages, risks associated with the development of new projects, including whether such projects will continue in the future, risks associated with the trading price of the company's common shares, availability and cost of capital, risks associated with general global economic conditions, geopolitical events, inflation, global weather conditions, natural disasters, including wildfires, global health concerns, and security threats and changes to government and environmental regulations, including climate change, and other factors discussed in the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' and 'Risk Factors' sections of Civeo's most recent annual report on Form 10-K and other reports the company may file from time to time with the U.S. Securities and Exchange Commission. Each forward-looking statement contained herein speaks only as of the date of this release. Except as required by law, Civeo expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. Article content EBITDA, Adjusted EBITDA, free cash flow, net debt, bank-adjusted EBITDA and net leverage ratio are non-GAAP financial measures. See 'Non-GAAP Reconciliation' below for definitions and additional information concerning non-GAAP financial measures, including a reconciliation of the non-GAAP financial information presented in this press release to the most directly comparable financial information presented in accordance with GAAP. Non-GAAP financial information supplements and should be read together with, and is not an alternative or substitute for, the Company's financial results reported in accordance with GAAP. Because non-GAAP financial information is not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures. Article content Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues $ 162,694 $ 188,713 $ 306,738 $ 354,833 Costs and expenses: Cost of sales and services 121,531 140,834 236,146 271,279 Selling, general and administrative expenses 20,470 17,433 38,655 36,073 Depreciation and amortization expense 17,827 17,059 34,080 33,829 Impairment expense — — — 7,823 (Gain) loss on sale of McClelland Lake Lodge assets, net — 87 — (5,988 ) Other operating expense 66 188 573 486 159,894 175,601 309,454 343,502 Operating income (loss) 2,800 13,112 (2,716 ) 11,331 Interest expense (2,699 ) (2,203 ) (4,318 ) (4,563 ) Interest income 75 54 101 97 Other income 119 310 466 763 Income (loss) before income taxes 295 11,273 (6,467 ) 7,628 Income tax expense (3,606 ) (3,786 ) (6,694 ) (5,337 ) Net income (loss) (3,311 ) 7,487 (13,161 ) 2,291 Less: Net income (loss) attributable to noncontrolling interest 3 (740 ) (5 ) (803 ) Net income (loss) attributable to Civeo Corporation $ (3,314 ) $ 8,227 $ (13,156 ) $ 3,094 Net income (loss) per share attributable to Civeo Corporation common shareholders: Diluted $ (0.25 ) $ 0.56 $ (0.98 ) $ 0.21 Weighted average number of common shares outstanding: Basic 13,177 14,518 13,387 14,586 Article content June 30, 2025 December 31, 2024 (UNAUDITED) Current assets: Cash and cash equivalents $ 14,638 $ 5,204 Accounts receivable, net 104,491 89,038 Inventories 5,822 7,537 Prepaid expenses and other current assets 14,258 8,674 Total current assets 139,209 110,453 Property, plant and equipment, net 265,138 204,897 Goodwill, net 7,411 7,001 Other intangible assets, net 73,441 66,502 Operating lease right-of-use assets 14,575 9,401 Other noncurrent assets 9,065 6,818 Total assets $ 508,839 $ 405,072 Current liabilities: Accounts payable $ 44,702 $ 39,971 Accrued liabilities 39,403 34,933 Income taxes payable 82 10,853 Deferred revenue 2,838 2,501 Other current liabilities 5,213 4,388 Total current liabilities 92,238 92,646 Long-term debt 168,672 43,299 Deferred income taxes 5,813 3,558 Operating lease liabilities 11,066 6,655 Other noncurrent liabilities 21,612 21,916 Total liabilities 299,401 168,074 Shareholders' equity: Common shares — — Additional paid-in capital 1,633,022 1,631,823 Accumulated deficit (1,020,236 ) (980,720 ) Treasury stock (10,775 ) (10,130 ) Accumulated other comprehensive loss (392,573 ) (404,600 ) Total Civeo Corporation shareholders' equity 209,438 236,373 Noncontrolling interest — 625 Total shareholders' equity 209,438 236,998 Total liabilities and shareholders' equity $ 508,839 $ 405,072 Article content Six Months Ended June 30, 2025 2024 Cash flows from operating activities: Net income (loss) $ (13,161 ) $ 2,291 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 34,080 33,829 Impairment charges — 7,823 Deferred income tax benefit (1,868 ) (4,344 ) Non-cash compensation charge 1,199 1,158 Gains on disposals of assets (261 ) (6,104 ) Provision (benefit) for credit losses, net of recoveries (9 ) 34 Other, net 581 1,257 Changes in operating assets and liabilities: Accounts receivable (10,313 ) 15,229 Inventories 2,049 (1,525 ) Accounts payable and accrued liabilities (1,718 ) (17,166 ) Taxes payable (13,089 ) 5,836 Other current and noncurrent assets and liabilities, net (8,248 ) 25 Net cash flows provided by (used in) operating activities (10,758 ) 38,343 Cash flows from investing activities: Capital expenditures (9,769 ) (10,929 ) Acquisitions and related payments (64,948 ) — Proceeds from dispositions of property, plant and equipment 273 10,617 Other, net — 183 Net cash flows used in investing activities (74,444 ) (129 ) Cash flows from financing activities: Revolving credit borrowings (repayments), net 119,223 (15,825 ) Debt issuance costs (423 ) — Dividends paid (3,437 ) (7,368 ) Repurchases of common shares (22,474 ) (9,852 ) Taxes paid on vested shares (645 ) (1,067 ) Net cash flows provided by (used in) financing activities 92,244 (34,112 ) Effect of exchange rate changes on cash 2,392 10 Net change in cash and cash equivalents 9,434 4,112 Cash and cash equivalents, beginning of period 5,204 3,323 Cash and cash equivalents, end of period $ 14,638 $ 7,435 Article content CIVEO CORPORATION SEGMENT DATA (in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenues Australia $ 112,672 $ 108,608 $ 216,318 $ 200,345 Canada 50,022 79,527 90,420 146,687 Other — 578 — 7,801 Total revenues $ 162,694 $ 188,713 $ 306,738 $ 354,833 EBITDA (1) Australia $ 23,612 $ 21,551 $ 44,052 $ 36,073 Canada 6,963 17,154 5,708 28,773 Corporate, other and eliminations (9,832 ) (7,484 ) (17,925 ) (18,120 ) Total EBITDA $ 20,743 $ 31,221 $ 31,835 $ 46,726 Adjusted EBITDA (1) Australia $ 23,663 $ 21,605 $ 44,148 $ 41,943 Canada 7,452 17,337 7,224 23,020 Corporate, other and eliminations (6,107 ) (7,025 ) (13,709 ) (15,244 ) Total adjusted EBITDA $ 25,008 $ 31,917 $ 37,663 $ 49,719 Operating income (loss) Australia $ 14,573 $ 13,856 $ 27,212 $ 21,144 Canada (1,915 ) 6,854 (11,944 ) 8,559 Corporate, other and eliminations (9,858 ) (7,598 ) (17,984 ) (18,372 ) Total operating income (loss) $ 2,800 $ 13,112 $ (2,716 ) $ 11,331 (1) Please see Non-GAAP Reconciliation Schedule. Article content Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Supplemental Operating Data – Australian Segment Revenues Accommodation revenue (1) $ 52,682 $ 48,914 $ 99,505 $ 96,021 Food and other services revenue (3) 59,990 59,694 116,813 104,324 Total Australian revenues $ 112,672 $ 108,608 $ 216,318 $ 200,345 Costs Accommodation cost $ 25,890 $ 23,613 $ 48,961 $ 46,207 Food and other services cost 53,163 54,527 103,814 95,431 Indirect other cost 3,424 2,897 6,422 5,512 Total Australian cost of sales and services $ 82,477 $ 81,037 $ 159,197 $ 147,150 Average daily rates (4) $ 76 $ 78 $ 76 $ 77 Billed rooms (5) 690,506 625,353 1,316,142 1,239,289 Australian dollar to U.S. dollar $ 0.641 $ 0.659 $ 0.634 $ 0.658 Supplemental Operating Data – Canadian Segment Revenues Accommodation revenue (1) $ 42,590 $ 72,259 $ 76,026 $ 132,046 Mobile facility rental revenue (2) 434 356 653 1,350 Food and other services revenue (3) 6,998 6,912 13,741 13,291 Total Canadian revenues $ 50,022 $ 79,527 $ 90,420 $ 146,687 Costs Accommodation cost $ 30,618 $ 48,197 $ 59,483 $ 93,917 Mobile facility rental cost 135 1,401 135 4,052 Food and other services cost 6,237 6,314 12,710 12,454 Indirect other cost 2,047 2,937 4,354 5,683 Total Canadian cost of sales and services $ 39,037 $ 58,849 $ 76,682 $ 116,106 Average daily rates (4) $ 94 $ 96 $ 94 $ 97 Billed rooms (5) 449,970 752,364 808,667 1,362,396 Canadian dollar to U.S. dollar $ 0.723 $ 0.731 $ 0.710 $ 0.736 Article content (1) Includes revenues related to lodge and village rooms and hospitality services for owned rooms for the periods presented. (2) Includes revenues related to mobile assets for the periods presented. (3) Includes revenues related to food services, laundry and water and wastewater treatment services, and facilities management for the periods presented. (4) Average daily rate is based on billed rooms and accommodation revenue. Article content CIVEO CORPORATION SUPPLEMENTAL OPERATIONS BY SERVICE TYPE BY REGION DATA (U.S. dollars in thousands) (unaudited) The following table sets forth certain supplemental data for our Australia and Canada segment revenues attributable to the asset-light ('Catering and Facility Management') portion of the Company's business and the asset-intensive ('Accommodations and Infrastructure') portion of the Company's business. We provide Catering and Facility Management services to both customer-owned assets and Company-owned villages and lodges. When we provide Catering and Facility Management services to customer-owned assets, it is reflected in 'Food and other services' in our Supplemental Quarterly Segment and Operating Data. However, when we provide those same services to customers at our owned villages and lodges, it is reflected in 'Accommodation and other services', which also includes the Accommodations and Infrastructure component of our owned villages and lodges. This is because we bill our customers in one combined rate for both Accommodations and Infrastructure services and Catering and Facility Management services at Company-owned villages and lodges. The purpose of the disclosure below is to disaggregate the embedded Catering and Facility Management revenues from the 'Accommodation and other services' revenues associated with our owned villages and lodges that is included in our Supplemental Quarterly Segment and Operating Data. To do so, we apply a margin that is equal to Civeo's margin in similar services we provide to customer-owned assets to the cost of sales that are associated with Catering and Facility Management services within 'Accommodation and other services' for our owned villages and lodges. This table provides investors a supplemental view of the services provided by the Company which could assist with their valuation analysis. Three months ended June 30, 2025 Three months ended June 30, 2024 Asset Light: Catering and Facility management $ 82,633 $ 29,952 $ — $ 112,585 $ 80,697 $ 44,732 $ — $ 125,429 Asset Intensive: Accommodations and Infrastructure 30,039 20,070 — 50,109 27,911 34,795 578 63,284 Total revenues $ 112,672 $ 50,022 $ — $ 162,694 $ 108,608 $ 79,527 $ 578 $ 188,713 Six months ended June 30, 2025 Six months ended June 30, 2024 Australia Canada Other Total Australia Canada Other Total Revenues Asset Light: Catering and Facility management $ 159,292 $ 55,601 $ — $ 214,893 $ 145,026 $ 83,438 $ 549 $ 229,013 Asset Intensive: Accommodations and Infrastructure 57,026 34,819 — 91,845 55,319 63,249 7,252 125,820 Total revenues $ 216,318 $ 90,420 $ — $ 306,738 $ 200,345 $ 146,687 $ 7,801 $ 354,833 Article content (1) The term EBITDA is a non-GAAP financial measure that is defined as net income (loss) attributable to Civeo Corporation plus interest, taxes, depreciation and amortization. The term Adjusted EBITDA is a non-GAAP financial measure that is defined as EBITDA adjusted to exclude certain other unusual or non-operating items. EBITDA and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Civeo has included EBITDA and Adjusted EBITDA as supplemental disclosures because its management believes that EBITDA and Adjusted EBITDA provide useful information regarding its ability to service debt and to fund capital expenditures and provide investors a helpful measure for comparing Civeo's operating performance with the performance of other companies that have different financing and capital structures or tax rates. Civeo uses EBITDA and Adjusted EBITDA to compare and to monitor the performance of its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan. The following table sets forth a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) attributable to Civeo Corporation, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited): Article content 2025 2024 2025 2024 2025 Net income (loss) attributable to Civeo Corporation $ (3,314 ) $ 8,227 $ (13,156 ) $ 3,094 $ (33,317 ) Income tax expense 3,606 3,786 6,694 5,337 13,849 Depreciation and amortization 17,827 17,059 34,080 33,829 68,289 Interest income (75 ) (54 ) (101 ) (97 ) (191 ) Interest expense 2,699 2,203 4,318 4,563 7,728 EBITDA $ 20,743 $ 31,221 $ 31,835 $ 46,726 $ 56,358 Adjustments to EBITDA Impairment of long-lived assets (a) — — — 7,823 3,758 Net (gain) loss on disposition of McClelland Lake Lodge assets (b) — 87 — (5,988 ) 244 Cost saving initiatives (c) 474 — 1,438 — 1,438 Share-based compensation (d) 601 609 1,200 1,158 2,893 Shareholder activist costs 3,190 — 3,190 — 3,190 Adjusted EBITDA $ 25,008 $ 31,917 $ 37,663 $ 49,719 $ 67,881 Article content (a) Relates to asset impairments in the first and fourth quarters of 2024. In the fourth quarter of 2024, we recorded a pre-tax loss related to the impairment of long-lived assets in our Canadian segment of $3.2 million and a pre-tax loss related to the impairment of long-lived assets in the U.S. of $0.5 million. In the first quarter of 2024, we recorded a pre-tax loss related to the impairment of long-lived assets in our Australian segment of $5.7 million and a pre-tax loss related to the impairment of long-lived assets in the U.S. of $2.1 million. (b) Relates to proceeds received and expenses incurred associated with the dismantlement and sale of the McClelland Lake Lodge. In the fourth, third and second quarters of 2024, we recorded expenses associated with the sale of our McClelland Lake Lodge of $0.1 million, $0.2 million and $0.1 million, respectively, which are included in (Gain) loss on sale of McClelland Lake Lodge assets, net on the unaudited statements of operations. In the first quarter of 2024, we recorded gains associated with the sale of the McClelland Lake Lodge of $6.1 million, which are included in (Gain) loss on sale of McClelland Lake Lodge assets, net on the unaudited statements of operations. (c) Represents implementation costs (primarily severance costs and real estate expense rationalization) incurred as part of cost savings initiatives. (d) Represents share-based compensation expense associated with performance share awards, restricted share awards, restricted share units and deferred share awards. (2) The term net leverage ratio is a non-GAAP financial measure that is defined as net debt divided by bank-adjusted EBITDA. Net debt, bank-adjusted EBITDA and net leverage ratio are not financial measures under GAAP and should not be considered in isolation from or as a substitute for total debt, net income (loss) or cash flow measures prepared in accordance with GAAP or as a measure of profitability or liquidity. Additionally, net debt, bank-adjusted EBITDA and net leverage ratio may not be comparable to other similarly titled measures of other companies. Civeo has included net debt, bank-adjusted EBITDA and net leverage ratio as a supplemental disclosure because its management believes that this data provides useful information regarding the level of the Company's indebtedness and its ability to service debt. Additionally, per Civeo's credit agreement, the Company is required to maintain a net leverage ratio below 3.0x every quarter to remain in compliance with the credit agreement. The following table sets forth a reconciliation of net debt, bank-adjusted EBITDA and net leverage ratio to the most directly comparable measures of financial performance calculated under GAAP (in thousands) (unaudited): Article content (1) The following table sets forth a reconciliation of estimated EBITDA and Adjusted EBITDA to estimated net loss, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in millions) (unaudited): Article content Year Ending December 31, 2025 (estimated) Net loss $ (19.2 ) $ (11.2 ) Income tax expense 15.0 17.0 Depreciation and amortization 72.0 72.0 Interest expense 10.5 10.5 EBITDA $ 78.3 $ 88.3 Adjustments to EBITDA Shareholder activist costs 3.8 3.8 Cost saving initiatives 1.4 1.4 Share-based compensation 2.5 2.5 Adjusted EBITDA $ 86.0 $ 96.0 Article content Article content Article content Article content Article content Contacts Article content Article content Article content
Globe and Mail
2 days ago
- Business
- Globe and Mail
Ranger Energy Services, Inc. Announces Q2 2025 Results
Ranger Energy Services, Inc. (NYSE: RNGR) ('Ranger' or the 'Company') announced today its results for the second quarter ended June 30, 2025. Second Quarter 2025 Highlights Revenue of $140.6 million, a 2% increase from $138.1 million in the second quarter of 2024, and a 4% increase from $135.2 million in the first quarter of 2025 Net income of $7.3 million, or $0.32 per fully diluted share, an increase from $4.7 million in the second quarter of 2024, or $0.21 per share and an increase of $6.7 million from $0.6 million in the first quarter 2025, or $0.03 per fully diluted share Adjusted EBITDA (1) of $20.6 million with 14.7% Adjusted EBITDA margin, an improvement of 33% from $15.5 million reported in the first quarter of 2025 and down 2% from $21.0 million in the second quarter of 2024 Free Cash Flow (2) of $14.4 million, or $0.63 per share, with available cash of $48.9 million and $120.1 million of total liquidity at the end of the quarter with $3.3 million of cash used to repurchase 278,100 shares Announced technological step forward with next generation electrified workover rig, Ranger ECHO, bringing to bear differentiated operating efficiency and safety in the space _______________________________ 1 'Adjusted EBITDA' is not presented in accordance with generally accepted accounting principles in the United States ('U.S. GAAP'). The Company defines Adjusted EBITDA as net income or loss before net income expense, income tax provision or benefit, depreciation and amortization, equity-based compensation, acquisition-related, severance and reorganization costs, gain or loss on disposal of property and equipment, and certain other non-cash items that we do not view as indicative of our ongoing performance. A Non-GAAP supporting schedule is included with the statements and schedules attached to this press release and can also be found on the Company's website at: 2 'Free Cash Flow' is not presented in accordance with U.S. GAAP and should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. The Company defines Free Cash Flow as net cash provided by operating activities before purchase of property and equipment. A Non-GAAP supporting schedule is included with the statements and schedules attached to this press release and can also be found on the Company's website at Management Comments Stuart Bodden, Ranger's Chief Executive Officer, commented, 'Our second quarter results continue to demonstrate our resiliency as a through-cycle, production focused oilfield services company. Our strong presence in the Permian, the premier oil and gas basin in the Lower 48, and longstanding relationships with blue-chip operators both contributed to another quarter of consistent financial performance. Despite broader macroeconomic headwinds and a decline in crude pricing into the $60s, our high-quality asset base and best-in-class crews saw increased activity levels exiting winter and produced more than $20 million in adjusted EBITDA. Ranger's year over year performance clearly illustrates our ability to successfully navigate market pullbacks given our production exposure. 'Our flagship High Specification Rigs business delivered yet another record for rig hours in the face of declining drilling rig and frac crew counts and our Ancillary segment had several service lines show steady activity with improvements from the first quarter, including our Rentals and Torrent businesses. Coil Tubing rebounded out of the winter during the quarter and is expected to continue to post meaningful margins through the remainder of the year. 'Our Wireline segment revenue rebounded and grew 28% from the prior quarter and returned to a positive EBITDA contribution. Our Wireline leadership continues to explore ways to further reduce our cost structure, increase our customer reach into higher margin services, and create opportunities for profitability.' Mr. Bodden continued, 'Most importantly, today we are excited to announce the launch of our next generation hybrid e-rig, the ECHO rig. We talk regularly about our commitment to Lead the Way among well services providers, and our ECHO rig design is the best evidence of that to date. The ECHO rig delivers a new design to convert our existing Taylor rigs, a brand unique to Ranger, into a next generation hybrid rig refurbished with cutting edge electrification technology. Early in 2025, Ranger committed to converting two of these rigs and has secured contracts for both rigs with premier customers including capital payback features. These rigs include compelling technology such as battery-powered operations, regenerative breaking and the ability to operate with no emissions or infrastructure modifications where in-field power is available. These rigs are anticipated to be deployed by the end of the third quarter and we believe mark a turning point for the future of workover operations. 'We went into this year expecting a similar macro environment to 2024, but unfortunately several catalysts have resulted in incremental softness and activity declines. Ranger will not be entirely immune to this softness, but would point to our second quarter results as an illustration of our laser focus on cost control and resilient business model. As we enter the second half of the year, we see continued stability in activity levels during the third quarter, however the fourth quarter is unpredictable in the current market backdrop. Mr. Bodden concluded, 'Regardless of an inconsistent macro environment, Ranger has a track record of targeted capital investments tied to customer opportunities, and our ECHO rig is another example of that investment. We will continue to hold our balance sheet strength as a high priority and, through our share repurchase program, seize opportunities to return value to our shareholders. Additionally, we remain committed to growing our business both organically and inorganically, developing technology and pursuing accretive M&A activity.' CAPITAL RETURNS AND GOVERNANCE UPDATE Year to date through June 30th, the Company has repurchased 278,100 shares of stock for a total value of $3.3 million at an average price of $12.01 per share. Since the share repurchase program's inception in 2023 through the end of the second quarter of 2025, the Company has repurchased a total of 3,603,900 shares, for a total value of $38.1 million, net of tax. Additionally, today the Ranger Board of Directors declared this quarter's cash dividend of $0.06 per share payable on August 22, 2025, to common stockholders of record at the close of business on August 8, 2025 reinforcing our commitment to a consistent return of capital each and every quarter. PERFORMANCE SUMMARY For the second quarter of 2025, revenue was $140.6 million, an increase from $138.1 million in the prior year period, and an increase from the prior quarter of $135.2 million. Quarter over quarter increases are attributable to increased revenues across Wireline Services and Processing Solutions and Ancillary Services segments. Cost of services for the second quarter of 2025 was $115.0 million, or 82% of revenue, flat compared to the prior year period. General and administrative expenses were $7.0 million for the second quarter of 2025, relatively flat with the prior quarter and the prior year period. Net income totaled $7.3 million for the second quarter of 2025 compared to $4.7 million in the prior year period and $0.6 million in the prior quarter. Fully diluted earnings per share was $0.32 for the second quarter of 2025 compared to $0.21 in the prior year period and $0.03 in the prior quarter. Adjusted EBITDA of $20.6 million for the second quarter of 2025, a decrease of $0.4 million from $21.0 million in the prior year period, and an increase of $5.8 million from $15.5 million in the prior quarter. The year over year decrease was driven by slightly lower margins across most segments. Quarter over quarter increases were driven primarily by improved revenues in Wireline and Processing Solutions and Ancillary Services segments and improved margins across all segments. BUSINESS SEGMENT FINANCIAL RESULTS High Specification Rigs High Specification Rigs segment revenue was $86.3 million in the second quarter of 2025, an increase of $3.6 million relative to the prior year period and a decrease of $1.2 million relative to the prior quarter revenue of $87.5 million. Rig hours were up to 117,000 from 113,100 in the prior year period and slightly increased from 115,700 in the prior quarter. Hourly rig rates increased by 1% to $738 from $732 in the prior year period largely due to the addition of incremental rental equipment to rig packages deployed. Hourly rig rates slightly decreased by 2% from $756 per hour in the prior quarter, due to asset mix and rig packaging changes reflecting relatively consistent pricing levels quarter over quarter. Operating income was $12.0 million in the second quarter of 2025, an increase of $0.2 million, or 2% compared to $11.8 million in the prior year period, and flat compared to the prior quarter. Adjusted EBITDA was $17.6 million in the second quarter, down from $18.7 million in the prior year period and up from $17.4 million in the prior quarter. Processing Solutions and Ancillary Services Processing Solutions and Ancillary Services segment revenue was $32.2 million in the second quarter of 2025, up $1.7 million, or 6% from $30.5 million in the prior quarter and up $1.3 million, or 4% from $30.9 million for the prior year period. The increase from the prior year period was largely attributable to increased operational activity in Coil Tubing and Torrent service lines. The increase from the prior quarter was largely attributable to increased operational activity in our Coil Tubing service line. Operating income in this segment was $4.5 million in the second quarter, down from $5.2 million in the prior year period and up from $3.3 million in the prior quarter. Adjusted EBITDA was $6.6 million, down from $7.3 million in the prior year period and up from $5.6 million in the prior quarter. Wireline Services Wireline Services segment revenue was $22.1 million in the second quarter of 2025, down $2.4 million or 10% compared to $24.5 million in the prior year period, and up $4.9 million or 28% compared to $17.2 million in the prior quarter. Our Completions service line reported completed stage counts of 2,500, an increase of 47% compared to 1,700 in the prior year period and 79% compared to 1,400 for the prior quarter. Operating loss was $1.2 million in the second quarter, down $1.4 million from an operating loss of $2.6 million in the prior year period and down $4.6 million from an operating loss of $5.8 million in the prior quarter. Adjusted EBITDA was $1.6 million, up from $0.4 million in the prior year period and up from a loss of $2.3 million for the prior quarter. BALANCE SHEET, CASH FLOW AND LIQUIDITY As of June 30, 2025, the Company had $120.1 million of liquidity, consisting of $71.2 million of capacity on its revolving credit facility and $48.9 million of cash on hand. This compares to December 31, 2024 when the Company had $112.1 million of liquidity, consisting of $71.2 million of capacity on its revolving credit facility and $40.9 million of cash on hand. The Company had no borrowings under its loan facility as of June 30, 2025. Cash provided by Operating Activities for the second quarter of 2025 is $31.3 million, compared to $34.1 million in the same quarter of 2024. The Company's Free Cash Flow (2) of $17.8 million for year to date 2025 compares to Free Cash Flow (2) of $12.3 million in the prior year period primarily due to reduced capital expenditures. The Company had capital expenditures of $13.5 million for year to date 2025, compared to $21.8 million in the prior year period. Part of our investment in capital expenditures to date includes milestone payments on the announced Ranger ECHO rigs. Conference Call The Company will host a conference call to discuss its second quarter 2025 results on Tuesday, July 29, 2025, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). To join the conference call from within the United States, participants may dial 1-833-255-2829, or participants may dial 1-412-902-6710 from outside the United States. To listen via live webcast, please visit the Investor Relations section of the Company's website, Participants are encouraged to log in to the webcast or dial in to the conference call prior to the start time. An audio replay of the conference call will be available shortly after the conclusion of the call and will remain available for approximately seven days through the Investor Relations section of the Company's website. About Ranger Energy Services, Inc. Ranger is one of the largest providers of high specification mobile rig well services, cased hole wireline services, and ancillary services in the U.S. oil and gas industry. Our services facilitate operations throughout the lifecycle of a well, including the completion, production, maintenance, intervention, workover and abandonment phases. Cautionary Statement Concerning Forward-Looking Statements Certain statements contained in this press release constitute 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, regarding our strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words 'may,' 'should,' 'intend,' 'could,' 'believe,' 'anticipate,' 'estimate,' 'expect,' 'outlook,' 'project' and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements represent Ranger's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Ranger's control. Should one or more of these risks or uncertainties described occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. Our future results will depend upon various other risks and uncertainties, including, but not limited to, those detailed in our current and past filings with the U.S. Securities and Exchange Commission ('SEC'). These documents are available through our website or through the SEC's Electronic Data Gathering and Analysis Retrieval system at These risks include, but are not limited to, the risks described under 'Part I, Item 1A, Risk Factors' in our Annual Report on 10-K filed with the SEC on March 5, 2024, and those set forth from time-to-time in other filings by the Company with the SEC. All forward looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, any forward-looking statement speaks only as of the date on which it is made. We disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this cautionary statement, to reflect events or circumstances after the date of this press release. 2025 2025 2024 2025 2024 Revenue High Specification Rigs $ 87.5 $ 86.3 $ 82.7 $ 173.8 $ 162.4 Wireline Services 17.2 22.1 24.5 39.3 57.3 Processing Solutions and Ancillary Services 30.5 32.2 30.9 62.7 55.3 Total revenue 135.2 140.6 138.1 275.8 275.0 Operating expenses Cost of services (exclusive of depreciation and amortization): High Specification Rigs 70.1 68.7 65.3 138.8 131.6 Wireline Services 20.3 20.7 24.2 41.0 56.8 Processing Solutions and Ancillary Services 25.0 25.6 23.7 50.6 45.6 Total cost of services 115.4 115.0 113.2 230.4 234.0 General and administrative 7.1 7.0 6.9 14.1 13.6 Depreciation and amortization 10.6 10.9 11.0 21.5 22.2 Impairment of assets 0.4 — — 0.4 — (Gain) loss on sale of assets 0.7 (0.9 ) (0.3 ) (0.2 ) (1.6 ) Total operating expenses 134.2 132.0 130.8 266.2 268.2 Operating income 1.0 8.6 7.3 9.6 6.8 Other income and expenses Interest expense, net 0.5 0.1 0.6 0.6 1.4 Other income, net — (1.6 ) — (1.6 ) — Total other expenses (income), net 0.5 (1.5 ) 0.6 (1.0 ) 1.4 Income before income tax expense 0.5 10.1 6.7 10.6 5.4 Income tax expense (benefit) (0.1 ) 2.8 2.0 2.7 1.5 Net income 0.6 7.3 4.7 7.9 3.9 Income per common share: Basic $ 0.03 $ 0.33 $ 0.21 $ 0.35 $ 0.17 Diluted $ 0.03 $ 0.32 $ 0.21 $ 0.35 $ 0.17 Weighted average common shares outstanding Basic 22,308,855 22,457,455 22,364,422 22,384,737 22,363,364 RANGER ENERGY SERVICES, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) June 30, 2025 December 31, 2024 Assets Cash and cash equivalents $ 48.9 $ 40.9 Accounts receivable, net 69.5 68.4 Contract assets 18.5 16.7 Inventory 5.6 5.7 Prepaid expenses and other current assets 8.7 11.4 Assets held for sale 0.4 0.8 Total current assets 151.6 143.9 Property and equipment, net 218.6 224.3 Intangible assets, net 5.2 5.6 Operating leases, right-of-use assets 5.3 7.0 Other assets 1.0 0.8 Total assets $ 381.7 $ 381.6 Liabilities and Stockholders' Equity Accounts payable 23.6 27.2 Accrued expenses 28.3 28.2 Other financing liability, current portion 0.7 0.7 Long-term debt, current portion — — Short-term lease liability 8.7 8.7 Other current liabilities — 0.4 Total current liabilities 61.3 65.2 Long-term lease liability 12.9 14.1 Other financing liability 9.9 10.3 Deferred tax liability 20.7 18.2 Total liabilities $ 104.8 $ 107.8 Commitments and contingencies Stockholders' equity Preferred stock, $0.01 per share; 50,000,000 shares authorized; no shares issued and outstanding as of June 30, 2025 and December 31, 2024 — — Class A Common Stock, $0.01 par value, 100,000,000 shares authorized; 26,392,290 shares issued and 22,236,562 shares outstanding as of June 30, 2025; 26,130,574 shares issued and 22,252,946 shares outstanding as of December 31, 2024 0.3 0.3 Class B Common Stock, $0.01 par value, 100,000,000 shares authorized; no shares issued or outstanding as of June 30, 2025 and December 31, 2024 — — Less: Class A Common Stock held in treasury at cost; 4,155,728 treasury shares as of June 30, 2025 and 3,877,628 treasury shares as of December 31, 2024 (41.9 ) (38.6 ) Retained earnings 47.3 42.2 Additional paid-in capital 271.2 269.9 Total controlling stockholders' equity 276.9 273.8 Total liabilities and stockholders' equity $ 381.7 $ 381.6 RANGER ENERGY SERVICES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (in millions) Six Months Ended June 30, 2025 2024 Cash Flows from Operating Activities Net income (loss) $ 7.9 $ 3.9 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 21.5 22.2 Equity based compensation 3.2 2.7 Gain on sale of assets (0.2 ) (1.6 ) Impairment of assets 0.4 — Deferred income tax expense (benefit) 2.5 1.2 Other expenses 0.9 0.6 Changes in operating assets and liabilities Accounts receivable, net (1.3 ) 15.1 Contract assets (1.8 ) (4.3 ) Inventory (0.1 ) (0.1 ) Prepaid expenses and other current assets 2.7 3.2 Other assets 1.2 0.7 Accounts payable (3.6 ) (7.4 ) Accrued expenses (0.3 ) (1.3 ) Other current liabilities (1.7 ) (1.2 ) Other long-term liabilities — 0.4 Net cash provided by operating activities 31.3 34.1 Cash Flows from Investing Activities Purchase of property and equipment (13.5 ) (21.8 ) Proceeds from disposal of property and equipment 1.9 1.5 Net cash used in investing activities (11.6 ) (20.3 ) Cash Flows from Financing Activities Borrowings under Revolving Credit Facility 0.2 11.4 Principal payments on Revolving Credit Facility (0.2 ) (11.4 ) Principal payments on financing lease obligations (3.4 ) (2.6 ) Principal payments on other financing liabilities (0.3 ) (0.3 ) Dividends paid to Class A Common Stock shareholders (2.8 ) (2.3 ) Shares withheld for equity compensation (1.9 ) (1.7 ) Payments on Other Installment Purchases — (0.1 ) Repurchase of Class A Common Stock (3.3 ) (13.8 ) Net cash used in financing activities (11.7 ) (20.8 ) Increase (decrease) in cash and cash equivalents 8.0 (7.0 ) Cash and cash equivalents, Beginning of Period 40.9 15.7 Cash and cash equivalents, End of Period $ 48.9 $ 8.7 Supplemental Cash Flow Information Interest paid $ 1.0 $ 0.9 Supplemental Disclosure of Non-cash Investing and Financing Activities Capital expenditures included in accounts payable and accrued liabilities $ 0.1 $ 0.1 Additions to fixed assets through installment purchases and financing leases $ (3.5 ) $ (3.7 ) Additions to fixed assets through asset trades $ (0.9 ) $ (4.2 ) RANGER ENERGY SERVICES, INC. SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES Note Regarding Non‑GAAP Financial Measure The Company utilizes certain non-GAAP financial measures that management believes to be insightful in understanding the Company's financial results. These financial measures, which include Adjusted EBITDA and Free Cash Flow, should not be construed as being more important than, or as an alternative for, comparable U.S. GAAP financial measures. Detailed reconciliations of these Non-GAAP financial measures to comparable U.S. GAAP financial measures have been included below and are available in the Investor Relations sections of our website at Our presentation of Adjusted EBITDA and Free Cash Flow should not be construed as an indication that our results will be unaffected by the items excluded from the reconciliations. Our computations of these Non-GAAP financial measures may not be identical to other similarly titled measures of other companies. Adjusted EBITDA We believe Adjusted EBITDA is a useful performance measure because it allows for an effective evaluation of our operating performance when compared to our peers, without regard to our financing methods or capital structure. We exclude the items listed below from net income or loss in arriving at Adjusted EBITDA because these amounts can vary substantially within our industry depending upon accounting methods, book values of assets, capital structures and the method by which the assets were acquired. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDA. We define Adjusted EBITDA as net income or loss before net interest expense, income tax provision or benefit, depreciation and amortization, equity‑based compensation, acquisition-related, severance and reorganization costs, gain or loss on disposal of property and equipment, and certain other non-cash items that we do not view as indicative of our ongoing performance. The following tables are a reconciliation of net income or loss to Adjusted EBITDA for the respective periods, in millions: Three Months Ended June 30, 2025 Net income (loss) $ 12.0 $ (1.2 ) $ 4.5 $ (8.0 ) $ 7.3 Interest expense, net — — — 0.1 0.1 Income tax expense — — — 2.8 2.8 Depreciation and amortization 5.6 2.6 2.1 0.6 10.9 EBITDA 17.6 1.4 6.6 (4.5 ) 21.1 Equity based compensation — — — 1.7 1.7 Gain on sale of assets — — — (0.9 ) (0.9 ) Severance and reorganization costs — — — 0.1 0.1 Acquisition related costs — 0.2 — — 0.2 Employee retention credit — — — (1.6 ) (1.6 ) Adjusted EBITDA $ 17.6 $ 1.6 $ 6.6 $ (5.2 ) $ 20.6 High Specification Rigs Wireline Services Processing Solutions and Ancillary Services Other Total Three Months Ended March 31, 2025 Net income (loss) $ 12.0 $ (5.8 ) $ 3.3 $ (8.9 ) $ 0.6 Interest expense, net — — — 0.5 0.5 Income tax benefit — — — (0.1 ) (0.1 ) Depreciation and amortization 5.4 2.7 2.2 0.3 10.6 EBITDA 17.4 (3.1 ) 5.5 (8.2 ) 11.6 Impairment of assets — — — 0.4 0.4 Equity based compensation — — — 1.5 1.5 Loss on sale of assets — — — 0.7 0.7 Severance and reorganization costs — 0.6 — — 0.6 Acquisition related costs — 0.2 0.1 0.1 0.4 Legal fees and settlements — — — 0.3 0.3 Adjusted EBITDA $ 17.4 $ (2.3 ) $ 5.6 $ (5.2 ) $ 15.5 High Specification Rigs Wireline Services Processing Solutions and Ancillary Services Other Total Three Months Ended June 30, 2024 Net income (loss) $ 11.8 $ (2.6 ) $ 5.2 $ (9.7 ) $ 4.7 Interest expense, net — — — 0.6 0.6 Income tax expense — — — 2.0 2.0 Depreciation and amortization 5.6 2.9 2.0 0.5 11.0 EBITDA 17.4 0.3 7.2 (6.6 ) 18.3 Equity based compensation — — — 1.4 1.4 Gain on sale of assets — — — (0.3 ) (0.3 ) Severance and reorganization costs 0.7 0.1 0.1 0.1 1.0 Acquisition related costs 0.1 — — — 0.1 Legal fees and settlements 0.5 — — — 0.5 Adjusted EBITDA $ 18.7 $ 0.4 $ 7.3 $ (5.4 ) $ 21.0 High Specification Rigs Wireline Services Processing Solutions and Ancillary Services Other Total Six Months Ended June 30, 2025 Net income (loss) $ 24.0 $ (7.0 ) $ 7.8 $ (16.9 ) $ 7.9 Interest expense, net — — — 0.6 0.6 Income tax expense — — — 2.7 2.7 Depreciation and amortization 11.0 5.3 4.3 0.9 21.5 EBITDA 35.0 (1.7 ) 12.1 (12.7 ) 32.7 Impairment of assets — — — 0.4 0.4 Equity based compensation — — — 3.2 3.2 Gain on sale of assets — — — (0.2 ) (0.2 ) Severance and reorganization costs — 0.6 — 0.1 0.7 Acquisition related costs — 0.4 0.1 0.1 0.6 Legal fees and settlements — — — 0.3 0.3 Employee retention credit — — — (1.6 ) (1.6 ) Adjusted EBITDA $ 35.0 $ (0.7 ) $ 12.2 $ (10.4 ) $ 36.1 High Specification Rigs Wireline Services Processing Solutions and Ancillary Services Other Total Six Months Ended June 30, 2024 Net income (loss) $ 19.6 $ (5.5 ) $ 5.7 $ (15.9 ) $ 3.9 Interest expense, net — — — 1.4 1.4 Income tax expense — — — 1.5 1.5 Depreciation and amortization 11.2 6.0 4.0 1.0 22.2 EBITDA 30.8 0.5 9.7 (12.0 ) 29.0 Equity based compensation — — — 2.6 2.6 Gain on sale of assets — — — (1.6 ) (1.6 ) Severance and reorganization costs 0.7 0.1 0.1 0.1 1.0 Acquisition related costs 0.3 — — 0.1 0.4 Legal fees and settlements 0.5 — — — 0.5 Adjusted EBITDA $ 32.3 $ 0.6 $ 9.8 $ (10.8 ) $ 31.9 Free Cash Flow We believe Free Cash Flow is an important financial measure for use in evaluating the Company's financial performance, as it measures our ability to generate additional cash from our business operations. Free Cash Flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of Free Cash Flow is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Therefore, we believe it is important to view Free Cash Flow as supplemental to our entire statement of cash flows. The following table is a reconciliation of consolidated operating cash flows to Free Cash Flow for the respective periods, in millions:
Yahoo
3 days ago
- Business
- Yahoo
Alicorp SA (LIM:ALICORC1) Q2 2025 Earnings Call Highlights: Strong EBITDA Growth Amid Market ...
Adjusted Gross Profit: PEN782 million, a 13% increase year-over-year. Adjusted EBITDA: PEN450 million, a 22% increase year-over-year. Adjusted EBITDA Margin: Improved by 0.4 percentage points to 15.1%. Consumer Goods Peru Sales Volume: 13% year-over-year increase. Consumer Goods Peru Adjusted EBITDA: Declined 18% to PEN170 million. International Business Adjusted EBITDA: PEN41 million, a 13% increase year-over-year. B2B Business Volume Growth: 27% year-over-year increase. B2B Business Adjusted EBITDA: PEN105 million, a 22% increase year-over-year. Aquafeed Adjusted EBITDA: $40 million, a threefold increase year-over-year. Leverage Ratio: Improved from 2.8x in June 2024 to 1.9x in June 2025. Available Cash Position: PEN1,521 million, an increase of PEN494 million year-over-year. Revenue Growth Guidance for 2025: Between 10% and 12%. Adjusted EBITDA Growth Guidance for 2025: Mid- to high single-digit growth. CapEx Projection for 2025: $70 million. Warning! GuruFocus has detected 8 Warning Signs with LIM:ALICORC1. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Alicorp SA (LIM:ALICORC1) successfully issued a PEN1,530 million international bond with a 7.40% coupon, reflecting strong market confidence. The Aquafeed business showed significant growth, contributing PEN88 million to the year-over-year improvement in gross profit. Adjusted EBITDA increased by 22% year-over-year, driven by growth in adjusted gross profit. The company repurchased 44.6 million shares, representing 7.23% of total issued common shares, demonstrating a commitment to shareholder value. Alicorp SA (LIM:ALICORC1) maintained a strong cash position, with available cash covering 1.2x debt maturities over the next 12 months. Negative Points The Consumer Goods Peru unit faced challenges, particularly in the detergents and edible oils categories, leading to a PEN38 million decline in adjusted EBITDA. Bolivia's challenging economic environment and social tensions impacted Alicorp's operations, with currency volatility affecting financial costs. The edible oils category experienced pressure due to rising raw material costs and increased competition from new entrants. The company anticipates challenges in EBITDA growth expectations in the second half of the year due to Bolivia's foreign exchange environment. Intense competition in the detergents market, particularly from Chinese imports, required strategic repricing and adjustments. Q & A Highlights Q: We've noticed that the only business unit showing a slight lag compared to the others is Consumer Goods Peru. What is the current outlook, and how do you expect both markets to evolve? A: The lag is due to increased competition from imported detergents, particularly from China. We have repriced and improved our value brands and core brands to address this. The outlook is positive, with volumes and market share starting to increase. We expect better dynamics for core brands in the coming quarters. - Alvaro Correa, CEO Q: Considering the company's strong cash flow generation, should we expect an increase in the dividend payout for next year? A: Our priority is to maintain financial strength and leverage within a range. While paying more dividends is an option, we are also considering growth opportunities, including the acquisition of Jaboneria Wilson in Ecuador. We aim to maintain our current dividend policy but remain open to discussions about additional dividends. - Alvaro Correa, CEO Q: Can you provide your views about consumer health in Peru and the macro situation in Bolivia? A: In Peru, consumption remains strong, supported by stable employment and economic growth of around 3-3.5%. In Bolivia, the situation is challenging due to upcoming elections, foreign exchange issues, and liquidity constraints. We are managing these challenges with stringent liquidity and foreign exchange management. - Luis Banchero Picasso, VP of Finance and Transformation Q: Could you elaborate on what has triggered the high-end competition in the oils segment in Consumer Goods Peru? A: The competition is due to increased imports of crude oil by smaller local refineries and discounters. Additionally, oil from Bolivia is entering the market. We are managing these challenges by leveraging our production capabilities in Bolivia and adjusting our strategies accordingly. - Alvaro Correa, CEO Q: What is your current strategy for hedging raw materials, and have you taken advantage of current low prices and volatility? A: We maintain a hedging strategy of three to nine months, depending on the commodity. Our approach is to mitigate volatility rather than speculate on commodity prices. We believe this provides a competitive advantage and stability in our cost structure. - Luis Banchero Picasso, VP of Finance and Transformation Q: Are the margins in the Aquafeed business sustainable, and do you plan to invest in increasing production? A: The Aquafeed business is volatile, influenced by shrimp demand and weather conditions. While margins were favorable due to good weather and controlled costs, we expect some pressure in the third quarter. We have spare capacity and will consider further investments based on demand growth. - Alvaro Correa, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
HCA Healthcare Inc (HCA) Q2 2025 Earnings Call Highlights: Strong EPS Growth and Strategic ...
Diluted Earnings Per Share: Increased 24% to $6.84. Revenue Growth: 6.4% increase driven by greater demand, improved payer mix, and consistent patient acuity levels. Equivalent Admissions: Increased 1.7% for the quarter and 2.3% for the year. Managed Care Equivalent Admissions: Grew 4% year-to-date. Medicare Growth: 3%, slightly below expectations. Adjusted EBITDA Margin: Improved by 30 basis points compared to the prior-year quarter. Adjusted EBITDA Growth: 8.4% over the prior-year quarter. Cash Flow from Operations: $4.2 billion in the quarter. Capital Expenditures: $1.2 billion in the second quarter. Share Repurchases: $2.5 billion in the second quarter. Dividends: $171 million in the second quarter. 2025 Revenue Guidance: Expected to range between $74 billion and $76 billion. 2025 Net Income Guidance: Expected to range between $6.11 billion and $6.48 billion. 2025 Adjusted EBITDA Guidance: Expected to range between $14.7 billion and $15.3 billion. 2025 Diluted EPS Guidance: Expected to range between $25.50 and $27. 2025 Capital Spending Guidance: Approximately $5 billion. Warning! GuruFocus has detected 4 Warning Signs with UVE. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points HCA Healthcare Inc (NYSE:HCA) reported a strong financial performance for the second quarter of 2025, with a 24% increase in diluted earnings per share to $6.84. The company experienced solid revenue growth of 6.4%, driven by increased demand for services, improved payer mix, and consistent patient acuity levels. HCA Healthcare Inc (NYSE:HCA) improved quality outcomes, throughput measures in emergency rooms, and patient satisfaction during the quarter. The company increased its 2025 guidance, reflecting a positive demand environment and the effectiveness of strategic initiatives. HCA Healthcare Inc (NYSE:HCA) maintained a strong balance sheet and executed a balanced capital allocation strategy, including $4.2 billion in cash flow from operations and $2.5 billion in share repurchases. Negative Points Medicaid volumes were down slightly, and self-pay volumes were below expectations, representing the lowest reimbursing payers. The company anticipates some people will lose insurance coverage due to the expiration of enhanced premium tax credits, which could impact financial performance. HCA Healthcare Inc (NYSE:HCA) faces challenges from the One Big Beautiful Bill Act, which includes potential adverse impacts from Medicaid components and exchange provisions. The company experienced underperformance in a couple of markets, which offset some of the better performance in hurricane-affected markets. Supply expenses increased slightly as a percentage of revenue due to increased spending on cardiac-related devices. Q & A Highlights Q: Can you elaborate on the guidance update, particularly regarding the Tennessee DPP program and the modest tweak on admissions numbers? A: Michael Marks, CFO, explained that the $300 million increase in guidance is split equally between state supplemental payment programs, including the new Tennessee program, and better-than-expected performance in their portfolio. The Tennessee program is expected to start contributing cash in the latter half of the year. The admissions number was adjusted due to lower-than-expected Medicaid and self-pay volumes, but overall, the portfolio is performing well. Q: Could you provide more details on your resiliency programs, especially in light of the potential expiration of subsidies? A: Michael Marks stated that HCA is developing resiliency programs to offset potential adverse impacts from the expiration of enhanced premium tax credits (EPTCs). These efforts include benchmarking corporate departments, operational improvements, and leveraging automation and digital transformation. More details will be provided in the fourth-quarter earnings call. Q: What are you seeing in terms of commercial volume trends, and how might consumer confidence affect this? A: Michael Marks noted that managed care equivalent admissions are up 4% year-to-date, aligning with expectations. Exchange volumes are slightly better than expected, while traditional commercial volumes are slightly below. CEO Sam Hazen added that healthcare demand appears inelastic, and they haven't observed significant changes in consumer confidence affecting volumes. Q: How is HCA managing market share and local market dynamics, especially with high utilization rates reported by payers? A: CEO Sam Hazen highlighted sustained market share gains across service lines and markets. HCA is investing in network integrity and capacity to meet demand and achieve share gains. Despite some competitive dynamics, HCA remains agile and confident in its market positioning. Q: Can you provide insights into the impact of the One Big Beautiful Bill Act and the expiration of EPTCs on long-term guidance? A: Michael Marks stated that HCA's financial resiliency program should offset near-term impacts from the Act's exchange provisions. Long-term, HCA expects to manage impacts through phased reforms and potential supplemental payment approvals. The outcome of EPTCs is uncertain, but HCA is preparing resiliency plans to mitigate adverse effects. For the complete transcript of the earnings call, please refer to the full earnings call transcript. 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