Civeo — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported third quarter 2026 revenues of $193.1 million, a 13% year-over-year increase compared to $170.5 million in the same period of 2025.
• Reported net income of $5.2 million ($0.50 per diluted share) for the quarter, compared to a net loss of $0.5 million ($0.04 per diluted share) in the prior year period.
• Adjusted EBITDA was $30.1 million for the quarter, up from $28.6 million in the third quarter of 2025.
• Operating cash flow for the third quarter was $26.4 million, nearly doubling from $13.8 million in the third quarter of 2025.
• Year-to-date operating cash flow was $28.3 million, an increase of $25.2 million over the first nine months of 2025.
• Total debt was $217.5 million as of September 30, 2026, an increase of $8.9 million from June 30, 2026.
• Net debt was $196.0 million as of September 30, 2026, a $5.1 million increase since June 30, 2026.
• Reported total net leverage ratio was 2.1x as of September 30, 2026.
• Deferred revenue was $5.3 million as of September 30, 2026, compared to $2.9 million as of December 31, 2025.

Guidance and Future Outlook:

• Raised full year 2026 revenue guidance to $710 million to $720 million, up from the prior range of $675 million to $700 million.
• Raised full year 2026 Adjusted EBITDA guidance to $89 million to $92 million, up from the prior range of $85 million to $90 million.
• Increased full year 2026 capital expenditure guidance to $30 million to $35 million, up from the prior range of $25 million to $30 million.
• Expects Canadian revenue, in local currency, to increase approximately 30% year-over-year in the back half of 2026, an improvement from the prior quarter's guidance of 20%.
• Anticipates elevated diesel costs and broader inflationary pressures will persist through year-end in Australia, keeping producers focused on cost discipline.
• Notes a robust pipeline of North American infrastructure opportunities including LNG, Canadian energy infrastructure, and power and data center development.

Business Segments and Product Lines:

• Canada: Revenues increased 38% year-over-year to $63.6 million, driven by higher occupancy at oil sands lodges and a new integrated services contract in Ontario. Adjusted EBITDA increased 47% to $11.1 million.
• Australia: Revenues increased 4% year-over-year to $129.5 million, driven by a strengthened Australian dollar (positively impacting revenue by $9.6 million), contractual rate increases, and increased shutdown activity. Adjusted EBITDA decreased 7% to $23.2 million due to lower occupancy in higher-margin owned villages in the Bowen Basin.
• Secured contracts for the deployment of approximately 700 mobile fleet rooms across Canada since the end of the second quarter of 2026.
• Australian operations won Restaurant & Catering Australia's Best Industrial Caterer category, sweeping the top three places nationally and winning state awards in Western Australia, Queensland, and South Australia.

Market and Competitive Landscape:

• Canadian oil sands turnaround activity was stronger than expected, driving higher occupancy.
• Australian owned-village occupancy in the Bowen Basin was lower, offset by integrated services growth and currency benefits.
• The company maintains prominent market positions in Australian natural resource regions and Canadian oil sands, operating 26 lodges and villages with approximately 26,300 rooms and providing services at 22 customer-owned locations with approximately 18,300 rooms.

Risks and Challenges:

• Elevated diesel costs and inflationary pressures in Australia are impacting producer cost discipline and owned-village occupancy.
• Risks include fluctuations in commodity prices (oil, coal, iron ore), potential customer project delays or terminations, currency exchange rate volatility, and labor shortages.
• Forward-looking statements note risks related to general economic conditions, geopolitical events, natural disasters, and changes to government and environmental regulations.

Management Commentary and Tone:

• CEO Bradley J. Dodson described the quarter as "strong," highlighting 13% revenue growth, a 5% increase in Adjusted EBITDA, and nearly doubled operating cash flow.
• Management expressed confidence in the North American business gaining traction due to stabilizing oil sands occupancy and recent contractual wins.
• Management emphasized a deliberate approach to capital commitment, focusing on safe, efficient operations and cost discipline while pursuing long-term growth and value creation.

Other Key Points:

• In July 2026, the Company issued $115.0 million of 4.50% convertible senior notes due 2031.
• Concurrent with the convertible notes offering, Civeo repurchased 660,297 common shares for approximately $22.3 million, completing the 20% share repurchase authorization approved in April 2025.
• The remaining net proceeds from the convertible notes offering were used to repay borrowings under the revolving credit facility.
• Capital expenditures for the third quarter were $5.4 million, primarily related to maintenance spending on lodges and villages.
• The Company has $126.9 million of availability under its revolving credit facility as of September 30, 2026.