Civeo Corporation

Civeo reported second-quarter 2026 revenue of $180 million, up about 11% from $162.7 million in Q2 2025. Net loss was $2.5 million, or $0.23 per diluted share, versus a net loss of $3.3 million, or $0.25 per share, a year ago. Adjusted EBITDA was $23.8 million, down from $25 million, while operating cash flow was $11.6 million versus negative $2.3 million last year. By segment, Australia revenue was $125.4 million and adjusted EBITDA was $22.6 million; Canada revenue was $54.6 million and adjusted EBITDA was $6 million. Management maintained full-year 2026 guidance for revenue of $675 million to $700 million, adjusted EBITDA of $85 million to $90 million, and capex of $25 million to $30 million. As of June 30, total liquidity was approximately $82 million, total debt was approximately $209 million, net debt was approximately $191 million, and net leverage was about 2.1x, though these figures were before the July convertible notes offering.

Bradley Dodson framed the quarter around three themes: Australia remains the core cash-generating strength, Canada offers a growing base and more upside, and North American growth opportunities are becoming more actionable. He said the company is preparing for possible project awards with a robust business development effort and available assets, while emphasizing that timing still depends on customer final investment decisions. His tone was constructive but cautious, especially on Australia’s near-term fuel-cost and diesel-availability issues, which he described as temporary.

Collin Gerry highlighted that revenue growth was largely driven by foreign exchange, especially the stronger Australian dollar, plus contributions from acquired villages and integrated services activity. He said adjusted EBITDA was pressured by startup costs in Ontario and transitory inflation in Australia, partially offset by FX. He also detailed capital structure moves: $115 million of 4.5% convertible senior notes due 2031 issued in July, 660,297 shares repurchased for about $22.3 million, and year-to-date share repurchases of about $36.7 million, which he said more than satisfy 2026 return-of-capital intentions. He reiterated a framework to return at least 75% of annual free cash flow through buybacks and noted the transaction restored revolver capacity while lowering near-term cost of capital.

Analysts focused on where Civeo’s North American growth could come from, especially data centers, LNG, and Canadian infrastructure, and on how quickly projects could move from final investment decision to contract award. Management said the data center end market has softened somewhat versus the “feverish” pace seen earlier in the year, but the broader opportunity set remains meaningful, and some awards could be in place by year-end. On timing, Bradley Dodson said contract awards often take 4 to 6 months after FID for Civeo’s work, with mobilization timing depending on the customer and weather window. Questions also probed Australia’s split between villages and integrated services; management said village occupancy is solid, diesel uncertainty is the main drag, and the integrated services business still has room to grow toward AUD 500 million by year-end 2027.