second quarter 2026
Filed Jul 30, 2026Civeo Reports Second Quarter 2026 Results
Revenue increased 11% year over year to $180.0 million, but Adjusted EBITDA declined to $23.8 million and the company reported a net loss of $2.5 million. Canada start-up costs and Australian occupancy headwinds offset growth in integrated services, Canadian LNG-related rooms, acquired Australian villages and the stronger Australian dollar.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated revenuesGAAP | $180.0 million | – | 11% |
| Net lossGAAP | $2.5 million | – | – |
| Net loss per diluted shareGAAP | $0.23 per diluted share | – | – |
| Operating cash flowother | $11.6 million | – | – |
| Adjusted EBITDAnon-GAAP | $23.8 million | – | – |
| Australia segment operating incomeGAAP | $13.6 million | – | – |
| Australia segment Adjusted EBITDAnon-GAAP | $22.6 million | – | 1% increase |
| Canada segment operating lossGAAP | $1.7 million | – | – |
| Canada segment Adjusted EBITDAnon-GAAP | $6.0 million | – | – |
| Capital expendituresother | $3.7 million | – | – |
| Total liquidityother | approximately $82.2 million | – | – |
| Total debtother | $208.6 million | a $3.7 million decrease from March 31, 2026 | – |
| Net debtother | $190.9 million | a $7.9 million decrease since March 31, 2026 | – |
| Net leverage ratioother | 2.1x | – | – |
| Australian dollar impact on Australian segment revenuesother | $12.2 million | – | – |
| Australian dollar impact on Australian segment Adjusted EBITDAnon-GAAP | $2.2 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| AustraliaThe year-over-year revenue increase was primarily driven by increased integrated services activity and the strengthening of the Australian dollar. Recently acquired villages also contributed, while owned-village occupancy was hampered by customers' cautious response to geopolitical uncertainty surrounding diesel prices and availability. | $125.4 million | – | 11% increase |
| CanadaRevenue growth was driven by higher occupancy and the new integrated services contract in Ontario. Adjusted EBITDA decreased primarily because of start-up costs associated with the new integrated services contract. | $54.6 million | – | 9% increase |
full year 2026 outlook
- Revenue$675 million to $700 million
- NoteAdjusted EBITDA: $85 million to $90 million
- NoteCapital expenditure guidance range: $25 million to $30 million
Capital returns
- In July 2026, the Company issued $115.0 million aggregate principal amount of 4.50% convertible senior notes due 2031.
- Concurrent with the offering, Civeo repurchased 660,297 of its common shares for approximately $22.3 million.
- Approximately 111,000 of these shares completed the 20% share repurchase authorization approved by the Board of Directors in April 2025.
- The remaining approximately 549,000 shares were applied to the additional 10% authorization, bringing it to approximately 50% complete.
- The notes bear interest at a fixed rate of 4.50% per annum, mature on August 1, 2031, and have an initial conversion price of approximately $40.51 per share, representing a 20% premium to the closing price of Civeo's common shares on July 1, 2026.
What drove it
- Consolidated revenue growth was driven by integrated services growth in both Australia and Canada, higher occupancy in Canada and the strengthening of the Australian dollar.
- Stronger year-over-year performance in Canadian LNG-related rooms supported results.
- Recently acquired villages in Australia contributed to performance.
- Australia's strengthened currency relative to the U.S. dollar positively impacted Australian segment revenues by $12.2 million and Adjusted EBITDA by $2.2 million.
- The company expects Canada operations to deliver approximately 20% year-over-year revenue growth in the back half of 2026, driven by base-business execution and integrated services pursuits.
Concerns
- Adjusted EBITDA declined to $23.8 million from $25.0 million despite 11% year-over-year consolidated revenue growth.
- Core-region billed rooms in Canada declined modestly because of the timing of turnaround demand.
- Start-up costs for the new Ontario integrated services contract negatively impacted Canadian Adjusted EBITDA.
- Australian owned-village occupancy was hampered by customers' cautious response to geopolitical uncertainty surrounding diesel prices and availability.
- Management said macro-driven headwinds in Australia are likely to persist through year-end.
What to watch
- Execution and start-up-cost progression on the new Ontario integrated services contract.
- Canadian occupancy, turnaround-demand timing and the expected approximately 20% year-over-year Canadian revenue growth in the back half of 2026.
- Australian owned-village occupancy amid diesel-price and availability uncertainty and macro-driven headwinds expected through year-end.
- Delivery against maintained full-year 2026 revenue guidance of $675 million to $700 million and Adjusted EBITDA guidance of $85 million to $90 million.
- Use of enhanced financial flexibility to pursue LNG, Canadian energy infrastructure, power and data center opportunities.
Balance sheet and cash flow
- Civeo had total liquidity of approximately $82.2 million as of June 30, 2026.
- Total debt was $208.6 million at June 30, 2026, a $3.7 million decrease from March 31, 2026.
- Net debt was $190.9 million at June 30, 2026, a $7.9 million decrease since March 31, 2026.
- Reported net leverage ratio was 2.1x as of June 30, 2026.
- The Company produced operating cash flow of $11.6 million during the second quarter of 2026.
- The Company used net proceeds from the convertible notes offering to fund the concurrent share repurchase and repay borrowings under its revolving credit facility, restoring undrawn capacity.
Analysis
Civeo reported second-quarter 2026 revenue of $180.0 million, up 11% from $162.7 million in the second quarter of 2025. The company recorded a net loss of $2.5 million, or $0.23 per diluted share, compared with a net loss of $3.3 million, or $0.25 per diluted share. Operating cash flow improved to $11.6 million from negative operating cash flow of $2.3 million, while Adjusted EBITDA declined to $23.8 million from $25.0 million.
Australia generated $125.4 million of revenue, operating income of $13.6 million and Adjusted EBITDA of $22.6 million. Revenue increased 11% and Adjusted EBITDA increased 1%. Increased integrated services activity and a stronger Australian dollar supported revenue, with the currency contributing $12.2 million of revenue and $2.2 million of Adjusted EBITDA. Recently acquired villages also contributed, but cautious customer behavior tied to geopolitical uncertainty surrounding diesel prices and availability constrained owned-village occupancy.
Canada generated $54.6 million of revenue, an operating loss of $1.7 million and Adjusted EBITDA of $6.0 million. Revenue increased 9%, supported by higher occupancy and the new Ontario integrated services contract. However, the new contract's start-up costs reduced Adjusted EBITDA, and core-region billed rooms declined modestly because of turnaround-demand timing. These operational costs, along with Australian occupancy pressure, explain why EBITDA declined despite consolidated revenue growth.
Capital allocation shifted materially after quarter-end. Civeo issued $115.0 million of 4.50% convertible senior notes due 2031 and repurchased 660,297 common shares for approximately $22.3 million. The company said the proceeds also repaid revolving-credit borrowings. At quarter-end, it reported approximately $82.2 million of liquidity, $208.6 million of total debt, $190.9 million of net debt and a 2.1x net leverage ratio. Capital expenditures were $3.7 million and were primarily maintenance spending.
Management maintained full-year 2026 guidance for revenue of $675 million to $700 million, Adjusted EBITDA of $85 million to $90 million and capital expenditures of $25 million to $30 million. The outlook identifies Canada as the nearer-term growth contributor, with operations expected to deliver approximately 20% year-over-year revenue growth in the back half of 2026. Australia remains exposed to macro-driven headwinds that management expects to persist through year-end, making Canadian execution, Australian occupancy and EBITDA conversion the key reported items to monitor.
Management, verbatim
We delivered a solid second quarter with 11% year-over-year revenue growth. In Australia, we benefited from the stronger Australian dollar, revenue growth in our integrated services platform and contributions from our recently acquired villages. In Canada, higher occupancy and our new integrated services contract in Ontario helped drive year-over-year revenue growth, while start-up costs associated with the new contract negatively impacted Adjusted EBITDA.
Bradley J. Dodson, President and Chief Executive Officer
In July, we took a significant step to better position Civeo to capitalize on a rapidly expanding set of North American growth opportunities, including LNG, Canadian energy infrastructure, and power and data center development. By issuing $115.0 million of 4.50% convertible senior notes due 2031, we replaced higher-cost, floating-rate borrowings with five-year, fixed-rate, unsecured capital while enhancing our financial flexibility to capitalize on these opportunities.
Bradley J. Dodson, President and Chief Executive Officer
Looking ahead, we expect our operations in Canada to deliver approximately 20% year-over-year revenue growth in the back half of 2026, driven by continued execution in our base business and growing success in our integrated services pursuits. In Australia, our business is executing well despite macro-driven headwinds that are likely to persist through year-end, and we remain optimistic about a recovery in 2027 and beyond.
Bradley J. Dodson, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook needed to assess actual performance versus prior guidance was not provided.
- Gross profit and gross margin.
- Consolidated operating income or loss.
- Consolidated non-GAAP earnings or loss and non-GAAP diluted EPS.
- Free cash flow.
- Cash and cash equivalents as a separate balance-sheet amount.
- Dividend information.
- Tax rate.
- Operating-expense guidance, gross-margin guidance and tax-rate guidance.
- Prior-quarter values for consolidated revenue, net loss, diluted EPS, operating cash flow, Adjusted EBITDA, segment revenue, segment operating income or loss, and segment Adjusted EBITDA.
- Percentage changes for net loss, diluted EPS, operating cash flow, capital expenditures, liquidity, total debt, net debt and net leverage ratio.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.