CIVEO | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 180.02 M

Revenue: As of FY2026 Q2, the actual value is USD 180.02 M, beating the estimate of USD 170.92 M.

EPS: As of FY2026 Q2, the actual value is USD -0.23, missing the estimate of USD -0.15.

EBIT: As of FY2026 Q2, the actual value is USD 5.212 M.

Overall Performance

Civeo Corporation recorded a net loss of - $2.5 million in Q2 2026, an improvement from a net loss of - $3.3 million in Q2 2025. For the six months ended June 30, 2026, net loss was - $6.320 million, compared to - $13.161 million in the prior year period. Operating income for Q2 2026 was $5.092 million, up from $2.800 million in Q2 2025. For the six months ended June 30, 2026, operating income was $8.215 million, significantly improved from an operating loss of - $2.716 million in the same period of 2025. Adjusted EBITDA was $23.8 million in Q2 2026, a decrease from $25.0 million in Q2 2025. For the six months ended June 30, 2026, Adjusted EBITDA was $46.310 million, up from $37.663 million in the prior year period.

Operating Costs (Q2 2026 vs Q2 2025)

Cost of sales and services increased to $138.611 million in Q2 2026 from $121.531 million in Q2 2025. Selling, general and administrative expenses were $20.406 million in Q2 2026, a slight decrease from $20.470 million in Q2 2025. Depreciation and amortization expense decreased to $16.327 million in Q2 2026 from $17.827 million in Q2 2025. Other operating (income) expense was - $0.419 million in Q2 2026, compared to $0.066 million in Q2 2025.

Segment Performance (Q2 2026 vs Q2 2025)

Australia Segment

Revenues for the Australia Segment were $125.4 million, an 11% increase from $112.7 million, with a stronger Australian dollar positively impacting revenues by $12.2 million. Operating income was $13.6 million, compared to $13.2 million. Adjusted EBITDA was $22.6 million, a 1% increase from $22.3 million, with the stronger Australian dollar positively impacting Adjusted EBITDA by $2.2 million. Accommodation and associated services revenue was $57.373 million compared to $52.682 million. Integrated services and other services revenue was $68.073 million compared to $59.990 million. Average daily rates were $85 versus $76, and billed rooms were 674,506 versus 690,506.

Canada Segment

Revenues for the Canada Segment were $54.6 million, a 9% increase from $50.0 million, driven by higher occupancy and a new integrated services contract in Ontario. The segment reported an operating loss of - $1.7 million, an improvement from - $2.5 million. Adjusted EBITDA was $6.0 million, a decrease from $6.9 million, primarily due to start-up costs for the new integrated services contract. Accommodation and associated services revenue was $44.082 million compared to $42.590 million. Mobile facility rental and associated services revenue was $0.367 million compared to $0.434 million. Integrated services and other services revenue was $10.122 million compared to $6.998 million. Average daily rates were $96 versus $94, and billed rooms were 458,020 versus 449,970.

Cash Flow (Six Months Ended June 30, 2026 vs 2025)

Net cash flows from operating activities were $1.896 million, compared to - $10.758 million in the prior year period. Net cash flows used in investing activities were - $6.631 million, compared to - $74.444 million in the prior year period. Net cash flows provided by financing activities were $11.456 million, compared to $92.244 million in the prior year period.

Financial Condition & Capital Allocation (as of June 30, 2026)

Total liquidity was approximately $82.2 million. Total debt stood at $208.6 million, a $3.7 million decrease from March 31, 2026. Net debt was $190.9 million, a $7.9 million decrease since March 31, 2026. The net leverage ratio was 2.1x. Capital expenditures were $3.7 million in Q2 2026, compared to $4.5 million in Q2 2025, and for the six months ended June 30, 2026, capital expenditures were $7.846 million, compared to $9.769 million in the prior year period. In July 2026, Civeo Corporation issued $115.0 million of 4.50% convertible senior notes due 2031, replacing higher-cost, floating-rate borrowings with fixed-rate capital. Concurrent with the notes offering, the company repurchased 660,297 common shares for approximately $22.3 million, completing its 20% share repurchase program and commencing execution under an additional 10% authorization.

Outlook / Guidance (Full Year 2026)

Civeo Corporation is maintaining its full-year 2026 revenue guidance of $675 million to $700 million and Adjusted EBITDA guidance of $85 million to $90 million. The company also maintains its full-year 2026 capital expenditure guidance range of $25 million to $30 million. Canadian operations anticipate approximately 20% year-over-year revenue growth in the second half of 2026, while the Australian business faces macro-driven headwinds expected to persist until year-end, with recovery anticipated in 2027 and beyond.