Engine Capital Pushes for Independent Board Appointment at Civeo Corp (CVEO)

Market Cap: $304 million | Civeo Corporation provides hospitality services to the natural resource industry in Canada, Australia, and the United States. 

On March 18, 2025, Engine Capital (9.8%) sent a letter to the Board stating that despite the company's strong assets and cash flow potential, it has failed to generate adequate shareholder returns. Engine proposes a major shift in Civeo's capital allocation, including eliminating its dividend, repurchasing 25% of shares through a tender offer, and reducing operational costs. They also recommend abandoning further M&A and prioritizing share buybacks. Engine believes these actions will unlock significant value, potentially increasing the stock's value between $40 and $54 per share, an upside of nearly 130% by 2027. They also suggest exploring strategic alternatives, including a sale of the company, to realize its full value. Engine requests a meeting with Civeo’s Board to discuss these initiatives.

On June 18, 2025, Engine Capital stated its belief that the Board would benefit from a highly qualified, independent director and are in ongoing discussions with the company regarding such an appointment. Source