Civeo Q2 Earnings Call Highlights

Revenue grew 11% to $180 million in Q2 2026, while adjusted EBITDA declined modestly to $23.8 million due to Australian inflation and Canadian contract start-up costs. Operating cash flow improved to $11.6 million, and the net loss narrowed to $2.5 million. Australia remained Civeo’s primary cash-flow platform, with revenue rising 11% and EBITDA slightly increasing despite lower billed-room volume and higher fuel costs. Canada is expected to deliver approximately 20% revenue growth in the second half of 2026 as new contracts and turnaround work ramp up. Civeo maintained its 2026 guidance of $675 million-$700 million in revenue and $85 million-$90 million in adjusted EBITDA. The company also highlighted a North American bid pipeline above $1.5 billion and issued $115 million of convertible notes, partly funding share repurchases.

Civeo NYSE: CVEO reported second-quarter 2026 revenue growth but a modest decline in adjusted EBITDA, as foreign exchange benefits and higher activity in Canada were partly offset by start-up costs and inflationary pressure in Australia. The company posted revenue of $180 million for the quarter, up 11% from $162.7 million a year earlier. Net loss narrowed to $2.5 million, or $0.23 per diluted share, from a loss of $3.3 million, or $0.25 per share, in the prior-year period. Adjusted EBITDA declined to $23.8 million from $25 million, while operating cash flow improved to $11.6 million from negative $2.3 million.

Chief Financial Officer and Treasurer Collin Gerry said the revenue increase was driven primarily by foreign exchange, particularly the stronger Australian dollar, alongside acquired villages and increased integrated-services work in Australia. Higher occupancy tied to a new Ontario integrated-services contract also contributed in Canada.

Australia generated $125.4 million in second-quarter revenue, an 11% increase from $112.7 million a year ago. Adjusted EBITDA rose slightly to $22.6 million from $22.3 million, although the segment faced what management characterized as temporary cost inflation. Australian owned-village billed rooms fell to approximately 675,000 from 691,000 in the prior-year quarter. Average daily rates increased to AUD 85 from AUD 76, an increase that Gerry said primarily reflected the stronger Australian dollar against the U.S. dollar.

President and Chief Executive Officer Bradley Dodson said the Australian operating environment remains fundamentally healthy, supported by metallurgical coal prices above $220 per ton. However, higher fuel costs and concerns regarding diesel availability have led customers to operate more conservatively, limiting occupancy upside and creating cost pressure. Dodson said these headwinds are expected to persist through the end of 2026, though the company sees potential for improved conditions in 2027 and beyond if uncertainty surrounding diesel costs eases. He described occupancy at Civeo-owned villages in Queensland as “very strong.” The company also reaffirmed its objective for its Australian integrated-services business to reach an annualized run rate of AUD 500 million in services revenue by the end of 2027. Dodson said Civeo continues to win work despite facing greater competition from larger industry participants.

Canadian revenue increased to $54.6 million from $50 million in the second quarter of 2025, while adjusted EBITDA declined to $6 million from $6.9 million. The EBITDA decline was principally related to start-up costs for the Ontario integrated-services contract, which management expects to be temporary. Canadian billed rooms increased to approximately 458,000 from 450,000 a year earlier, and the average dai...