Civeo Corporation Reports Strong Quarterly Performance Driven by Australian Growth and Canadian Efficiency Gains

Civeo Corporation reported third-quarter revenue of $170.5 million and adjusted EBITDA of $28.8 million, reflecting continued strength in Australian operations and the benefit of cost-cutting initiatives in Canada. The year-over-year EBITDA increase occurred despite revenue coming in below consensus estimates of $173.5 million, demonstrating improved operational efficiency across the company's lodging and workforce accommodation business. Operating cash flow totaled $13.8 million while capital expenditures were $5.6 million, primarily related to maintenance of lodges and villages. The company ended the quarter with net debt of $176 million, a net leverage ratio of 2.1 times, and liquidity of approximately $70 million.

Canadian operations generated $46.0 million in revenue and $8.0 million in adjusted EBITDA, compared to $57.7 million and $3.4 million in the same quarter last year. Despite a 20 percent decline in billed rooms, results improved significantly due to successful cost rationalization measures including headcount reduction, closure of underutilized lodges, and streamlining of field operations. These actions collectively drove a 35 percent increase in gross margin to 22.5 percent. Management expects Canadian lodge occupancy to stabilize and sees incremental upside from mobile camp utilization as infrastructure and LNG projects advance according to information available at https://www.civeo.com.

The Australian business remained the primary driver of consolidated growth with revenues increasing 7 percent year-over-year to $124.5 million and adjusted EBITDA rising 19 percent to $26.7 million. This performance reflected a full quarter of contribution from the four Bowen Basin villages acquired in May 2025, which added approximately $8.4 million of incremental revenue. Civeo's Australian owned-village occupancy reached 763,000 billed rooms, representing an 18 percent year-over-year increase. The company noted steady progress toward its goal of achieving A$500 million in integrated services revenue by 2027, supported by strong margins and expanding geographic presence across Australia as detailed in their corporate filings.

Civeo continued to execute on its accelerated share repurchase program, buying back 1.05 million common shares during the quarter. Year-to-date, the company has returned approximately $52 million to shareholders, completing about 69 percent of its current authorization to repurchase 20 percent of total shares outstanding. Management reiterated its intent to use no less than 100 percent of annual free cash flow to complete the current authorization and, thereafter, 75 percent toward ongoing buybacks as outlined in their capital allocation strategy available at https://investors.civeo.com.

The company tightened full-year 2025 guidance to revenue of $640 to $655 million and adjusted EBITDA of $86 to $91 million while maintaining capital expenditures at $20 to $25 million. Civeo expects Australian occupancy to remain strong but soften modestly in the fourth quarter due to seasonality and met coal market weakness, while Canadian performance continues to benefit from efficiency gains. For 2026, management anticipates relatively flat-to-up consolidated performance supported by a full-year contribution from the Bowen Basin acquisition, further integrated services growth, and initial redeployment of mobile camp assets in North America as new infrastructure projects reach final investment decisions according to the company's forward-looking statements.