Civeo Q1 Earnings Call Highlights

Key Points

• Civeo beat expectations in Q1: consolidated revenue rose 20% to $172.7 million and adjusted EBITDA jumped 78% to $22.5 million, while net loss narrowed to $3.8 million (‑$0.34/share).
• Regional performance mixed but improving: Australia grew on acquired villages and integrated services (billed rooms ~676,000), while Canada rebounded with higher occupancy and cost cuts (billed rooms ~434,000), though management flagged diesel/inflation pressures, labor challenges, and shifted timing of Canadian maintenance activity.
• Guidance and capital actions: the company raised the low end of full‑year revenue guidance to $675M–$700M but kept adjusted EBITDA guidance at $85M–$90M due to higher input costs; Civeo repurchased ~500,000 shares, extended its revolver to $285 million, and reported net leverage of about 2.2x.

Civeo NYSE: CVEO reported first-quarter 2026 results that exceeded management’s expectations, driven by higher occupancy in Canada, continued growth in Australia’s integrated services business, and contributions from Australian villages acquired in May 2025.

President and CEO Bradley Dodson said the company delivered “a strong start to 2026,” with consolidated revenue up 20% year over year and adjusted EBITDA up 78%. CFO Collin Gerry attributed the improvement to “higher activity levels in both Australia and Canada,” including improved lodge occupancy in Canada and the acquired village portfolio in Australia.

First-quarter results: revenue up 20%, adjusted EBITDA up 78%

Gerry said total revenue for the quarter was $172.7 million, up from $144.0 million in the first quarter of 2025. Net loss narrowed to $3.8 million, or $0.34 per diluted share, compared to a net loss of $9.8 million, or $0.72 per diluted share, a year earlier. Adjusted EBITDA increased to $22.5 million from $12.7 million.

Operating cash flow was negative $9.7 million, which Gerry said “primarily reflect[ed] expected seasonal working capital outflows in the first quarter.”

Dodson said the company also benefited from foreign currency movements and “strong incremental margins in Canada as a result of our cost reduction initiatives that we took last year.”

Regional performance: Australia steady with services growth; Canada rebounds

In Australia, first-quarter revenue rose to $123.0 million from $103.6 million, while adjusted EBITDA increased to $21.8 million from $19.0 million. Gerry said the higher revenue reflected “the contribution from the villages acquired in May 2025, as well as continued growth in our integrated services business,” partially offset by “modest softness in portions of the legacy-owned village portfolio.”

Australian billed rooms increased to approximately 676,000 from 626,000. The daily room rate for Australian-owned villages was AUD 83, up from AUD 75, which Gerry said primarily reflected “the strengthening of the Australian dollar relative to the U.S. dollar.”

In Canada, revenue increased to $49.6 million from $40.4 million, and adjusted EBITDA improved to $5.2 million from a loss of $0.8 million. Gerry said the improvement was driven by “higher occupancy across key lodges, as well as the continued benefits of cost reductions implemented during 2025.” Canadian billed rooms rose to approximately 434,000 from 359,000, and the daily room rate increased to $99 from $93.

On the call, management discussed shifting timing for Canadian turnaround activity. Dodson said customers are prioritizing production amid higher oil prices, and Civeo expects some maintenance activity that “normally occurs in the second quarter” to be deferred “into later in this year.” In Q&A, Dodson added that he expects a “smoother year” and a flatter cadence of Canadian occupancy versus the historical pattern where a majority of annual EBITDA is generated in the second and third quarters.

Macro backdrop and cost pressures: diesel and inflation in focus

Management described a volatile and dynamic operating environment. Dodson said commodity prices, including oil and metallurgical coal, have been volatile, and customer spending “remains disciplined in both Australia and Canada.” He noted metallurgical coal prices were “currently in the $230 per ton range,” up roughly 25% from the second half of last year, but said disruptions tied to the war in the Middle East have “likely shift[ed] the timing” of potential occupancy uplift in Australia “into 2027.”

Dodson also warned that the “ongoing conflict in Iran and associated dislocations of the global energy and raw materials trade” could pressure margins, particularly in Australia, which he said is “highly dependent on normalized global seaborne energy trade for diesel and other fuels.”

During Q&A, Dodson said labor availability remains a challenge in Australia. “Labor availability continues to be a struggle across our Australian business,” he said, adding that the company has relied on temporary labor when needed and has worked to recruit and retain staff, including “recruiting foreign chefs to come in and work rotations.”

Capital allocation and balance sheet: buybacks continue; credit facility extended

Civeo continued share repurchases during the quarter. Dodson said the company repurchased approximately 500,000 shares, representing about 4% of shares outstanding at year-end 2025, and has completed about 96% of its current authorization. Gerry said the average repurchase price was $28.06, totaling approximately $14.4 million. Management said an additional authorization remains in place for repurchases up to 10% of the company’s outstanding shares once the current program is completed.

The company also amended and extended its credit agreement. Gerry said total revolving capacity was increased to $285 million and the maturity extended to April 2030. As of March 31, 2026, Civeo had total liquidity of approximately $68 million, total debt of $215 million, and net debt of $199 million, resulting in a net leverage ratio of approximately 2.2x.

Capital expenditures in the quarter were $4.1 million, down from $5.3 million, and were “primarily related to maintenance spending,” according to Gerry.

Guidance updated: revenue range tightened higher; EBITDA maintained

For full-year 2026, Civeo raised the low end of its revenue guidance to $675 million to $700 million, from a prior range of $650 million to $700 million. Dodson said the revision reflects “continued momentum in our Australian integrated services platform and continued recovery in our Canadian business.”

However, the company maintained its 2026 adjusted EBITDA guidance of $85 million to $90 million. Dodson said that decision reflects higher input costs, “particularly diesel,” and broader inflationary pressures associated with ongoing global energy market disruptions. Civeo also maintained its 2026 capital expenditures outlook of $25 million to $30 million.

Looking ahead, management emphasized a growing bid environment in North America. Dodson said Civeo is actively bidding on projects with total contract values “in excess of $1.5 billion,” which he described as the strongest pipeline the company has seen to date, while noting that many opportunities depend on customers reaching final investment decisions.

During Q&A, Dodson said the company is “extremely active” bidding on data center-related opportunities and adjacent power projects, while highlighting that its available assets are in Western Canada and are best positioned for Northern U.S., Canada, and Alaska deployments where transport costs are more favorable. He also said construction-related opportunities generally span “two to four-year projects,” with fewer extending beyond five years.

Civeo expects any material financial contribution from large North American infrastructure projects to occur “in 2027 and beyond,” though Dodson said some work may be announced in 2026 and mobile camps can typically be deployed within about 90 days.

About Civeo NYSE: CVEO

Civeo Corporation is a leading provider of workforce accommodations and integrated facility management services, primarily serving the oil and gas, mining, and construction sectors. The company specializes in the development, ownership, and operation of remote lodging facilities, commonly known as “man camps,” designed to house workers in geographically challenging environments. Its services include turnkey accommodations, catering, housekeeping, grounds maintenance, and logistical support, tailored to meet the needs of large-scale energy and resource projects.

With a network of lodges and villages across North America and Australia, Civeo caters to clients operating in regions such as Alberta's oil sands, the Bakken shale play, and Australia's Pilbara and Bowen Basin mining districts.

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