Greetings, and welcome to the Cibio Corporation 4th Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Regan Nielsen, Vice President, Corporate Development and Investor Relations. Please go ahead.

Thank you, and welcome to Civio's fourth quarter and full year 2025 earnings conference call.

Today, our call will be led by Bradley Dotson, Civio's President and Chief Executive Officer, and Colin Gary, Civio's Chief Financial Officer and Treasurer. Before we begin, we would like to caution listeners regarding forward-looking statements. To the extent that our remarks today contain anything other than historical information, please note that we're relying on the safe harbor protections afforded by federal law. These forward-looking remarks speak only as of the date of our earnings release and this conference call. We undertake no obligation to update or revise these forward-looking statements except as required by law. Any such remarks should be read in the context of the many factors that affect our business, including risks and uncertainties disclosed in our Forms 10-K, 10-Q, and other SEC filings.

I'll now turn the call over to Bradley. Thank you, Reagan, and thank you all for joining us today on our recording's call.

I'll start with a few key takeaways for the quarter and the year, and then summarize our consolidated and regional performance. For that, Colin will provide further financial and segment-level detail, and I'll conclude our prepared remarks with our initial guidance for 2026 along with the

qualitative outlook by Rachel. We'll then open the call up for questions. Here are the four key

takeaways for the call today. One, significant progress on our share repurchase authorization including repurchasing 17 percent of our common stock during 2025 alone and subsequent to year end, we have repurchased an incremental approximately 500,000 shares, resulting in reaching 95%

completion of our current buyback authorization.

Strong performance in Australia, driven by growth in our integrated services business and the contribution from our May 2025 village acquisition. Third key point, meaningful margin recovery in Canada as our cost reduction initiatives continue to bear fruit. And lastly, the fourth key point, we are entering 2026 with an improved cost structure and balance sheet strength, positioning CIVIA to capitalize on anticipated North American

infrastructure development opportunities. Moving on to the content, I'll start with capital allocation.

During 2025, we repurchased 2.3 million common shares for approximately $54 million, representing 17% of our common shares outstanding at last year-end, and significant progress towards completing our authorization to repurchase 20% of our outstanding shares. Subsequent to year-end, we repurchased another 500,000 shares, resulting in 95% completion of our current buyback authorization. As a reminder, our current capital allocation policy announced last April, Phase 1 included a 20% repurchase authorization, which is now substantially complete. Today, we also announced a new authorization to purchase up to 10% of our outstanding shares, which will become effective upon the completion of our existing authorization. As of December 31st, 2025, our net leverage ratio is 1.9 times, and we're comfortable to remain committed to completing our current buyback authorization as soon as practice. Turning now to the operational results for the quarter and the full year. Overall, the fourth quarter and four-year results reflect discipline execution in a challenging macroeconomic environment. On a consolidated basis, the City of Sport Quarter 2025 revenues were up 7% year-over-year with adjusted EBITDA up 90%, a testament to our cost reduction efforts in Canada and the successful integration of our May 2025 Australia Night position. Moving to the segments, in Australia, we delivered record annual revenues in 2025, $460 million, reflecting growth in our integrated services business and a contribution from our May 2025 acquisition in the Boehm Basin. Revenue in adjusted dividend in Australia increased 9% year over year, driven primarily by the additional acquired villages and growth in our integrated services. Importantly, our integrated services business in Australia continues to scale and remains on track towards our goal of $500 million Australian in annual revenue by 2027. In Canada, while overall Lodge occupancy remained under pressure from customer spending discipline in the oil sands, cost projection initiatives undertaken in late 2024 and early 2025 grew substantial margin improvement. In the fourth quarter, Canadian revenue has increased 4% year-over-year, while adjusted EBITDA improved from negative $5.4 million in the fourth quarter of 2024 to positive $3.4 million in the fourth quarter of 2025. This performance reflects the structural cost actions we implemented. Overall, we believe that we are executing on our strategic priorities in each region. Our Australian business continues to generate strong cash flow, supported by integrated services growth and expanded village footprint. And our Canadian business is demonstrating improved profitability at current activity levels while positioned for anticipated demand from North American infrastructure.

With that, I'll turn the call over to Colin. Thank you, Bradley.

And thank you all for joining us this morning. Turning to the income statement, we reported total revenues in the fourth quarter of 2025 of $161.6 million, compared to $151 million in the fourth quarter of 2024, an increase of 7%. The year-over-year increase in revenues was primarily driven by higher activity in Australia, including contributions from the May 2025 acquisition and growth in our integrated services business. Net loss for the quarter of 2025, for the fourth quarter of 2025, was $6.5 million, or $0.56 per diluted share, compared to a net loss of $15.1 million, or $1.10 per diluted share in the fourth quarter of 2024. During the fourth quarter, Sevilla generated adjusted EBITDA of $21.7 million, compared to $11.4 million in the fourth quarter of 2024. It increased 90%. This increase in adjusted EBITDA was primarily driven by significant margin improvement in Canada, resulting from the structural cost actions implemented earlier in 2025, as well as contributions from the Australian acquisition and continued integrated services growth. Operating cash flow in the fourth quarter of 2025 was $19.3 million, compared to $9.5 million in the prior year quarter. For the full year 2025, we generated revenues of $638.8 million and adjusted EBITDA of $88.2 million, compared to revenues of $682.1 million and adjusted EBITDA of $79.9 million in 2024. The year-to-year revenue decline was primarily driven by lower activity levels in Canada, partially offset by Australian growth, including the contribution from the Boeing Basin acquisition, despite the revenue decline. Sorry, despite the revenue decline, the adjusted EBITDA increase of 10% is primarily driven by the cost reduction initiatives in Canada. Turning to our segments, I want to first point out the change. Prior to the fourth quarter of 2025, corporate SG&A included corporate IT expenses managed on a worldwide basis that were not allocated to individual segments in Australia and Canada. To better align segment results to the profitability measure used by management, these SG&A costs are now allocated to Australia and Canada beginning with the fourth quarter and year-ended December 31, 2025. For any prior period results discussed on this call, we have adjusted financial figures to conform to the updated 2025 presentation. In Australia, fourth quarter revenues were $119.5 million, up 9% from $110 million in the fourth quarter of 2024. Adjusted EBITDA was $22.4 million, up 9% from $22.6 million in the prior year quarter. The year-over-year increase in revenues was primarily driven by the contributions from the four owned villages acquired in May 2025 and continued growth in our integrated services business. These gains were partially offset by modest softness in portions of our legacy-owned village portfolio. This softness is reflective of the sub-$200 net toll pricing environment that our customers were experiencing the majority of the back half of 2025. The increase in adjusted EBITDA reflects the incremental contribution from the acquired villages and continued integrated services growth. Australian build rooms in the fourth quarter totaled approximately $705,000, compared to approximately $637,000 in the fourth quarter of 2024. Average daily rates were $76, compared to $77,000 in the prior year quarter. For the four-year 2025, Australian revenues were $460.3 million compared to $427 million in 2024. Turning to Canada, fourth quarter revenues were $42.1 million compared to $40.7 million in the fourth quarter of 2024, an increase of 4%. The Justin E. Vidal was $3.4 million compared to negative $5.4 million in the prior year quarters. The year-over-year increase in revenues was primarily driven by higher average daily rates due to improved occupancy mix, as build rooms were essentially flat year-over-year. The significant improvement in adjusted EBITDA was driven by structural cost reduction initiatives implemented earlier in 2025, including overhead reductions, large rationalization, and field-level cost alignment. Canadian build rooms in the fourth quarter totaled approximately $359,000, compared to approximately $360,000 in the fourth quarter of 2024. Average daily rates were $100 compared to $94 in the prior year quarter. For the full year 2025, Canadian revenues were $178.6 million compared to $245.1 million in 2024. Full year Canadian adjusted EBITDA was $17.1 million compared to $18.2 million in 2024. The decrease in revenues and adjusted EBITDA were primarily driven by lower oil sales activity with the adjusted EBITDA decline mitigated by the impact of cost-reduction initiatives implemented in 2025. Looking at our capital structure, as of December 31, 2025, total liquidity was $90.4 million, total debt was $182.8 million, and net debt was $168.4 million. Our net leverage ratio was 1.9x at year end. Finally, capital allocation. Capital expenditures for the full year of 2025 were $20.2 million, compared to $26.1 million in 2024. Capital expenditures in both periods were primarily related to planned maintenance spending on our lodges and villages. Specifically, in 2025, $11.2 million was associated with maintenance capex, and $9 million was related to growth projects, including the reactivation of our Buffalo Lodge in Canada and Wi-Fi infrastructure improvements in Australia. During 2025, we've repurchased approximately 2.3 million shares for approximately $54 million, reducing our share count by approximately 17% during the year. As Bradley mentioned, as of today, we have repurchased approximately 500,000 additional common shares year-to-date in 2026, resulting in 95% completion of our current authorization.

We will look to complete the current authorization as soon as practical.

and practicable, at which time we'll be able to transition into our new share repurchase authorization for up to 10% of our outstanding shares. With that, I'll turn the call back over to Bradley.

Thank you, Colin. I'd like to now turn to our outlook for 2026.

For the full year 2026, we expect revenues of between $650 million, $700 million, an adjusted EBITDA of $85 million to $90 million. We are also giving $26 million of $25 to $30 million. Looking at the regions, in Australia, metallurgical coal prices weakened in the back half of 2025, contributing to modest activity softness in the fourth quarter of 2025 across our Bowen Basin-owned village portfolio. Entering 2026, met coal pricing has improved, creating a more constructive economic environment. If prices remain above $200 a ton through the upcoming producer budgeting season, we can see improved activity levels in the back half of the years. Our base outlook assumes generally stable occupancy in our own villages with the full year impact of our May 2025 acquisition, largely offsetting potential softness in our legacy operations.

In the services business, we expect continued revenue growth as we advance towards our $500 million 2027 revenue goal. In Canada, we expect oil sands activities to remain stable, but at

subdued levels by historical standards, consistent with the spending discipline demonstrated by our

customers throughout 2025. But importantly, we hit our 2026 with a structurally lower cost space.

Let me back up and say the key investor themes to watch for USAPES are, one, continued strong results in Australian business with occupancy upside in our own villages, and that coal sentiment continues to improve in organic growth, and we continue organic growth in our integrated services business. Two, in Canada, continued stabilization and occupancy in our oil sands lodges with upside from asset deployment from North American infrastructure data centers in the U.S. and LNG and power-related infrastructure in Canada. And lastly, continued return of capital to shareholders through the buyback authorization. We believe 2026 will be a year focused on positioning the company to capitalize on anticipated infrastructure development in Canada and accelerating data center construction activity. While we do not expect these projects to materially impact 2026 results, we believe we are well positioned to support this demand as it develops. Overall, we expect 2026 to reflect continued solid performance from Australia, stable conditions in Canada, and meaningful progress, positioning business for potential infrastructure development

growth beginning in 2027 and beyond. We will now open the call for questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. And our first question will come from Stephen Gengaro with Stiefel.

Thanks. Good morning, everybody.

Good morning, Stephen.

A couple of things for me. The first on the Canadian cost-cutting side, did you see the full impact of that in the back half of 25, or is there more that will show up in the margins in 26?

We saw most of it. There will be some continued full-year impact on a comparison basis in the first half of 2026. But the vast majority of it, we had done by June 30th last year.

And then on the asset deployment potential for the assets that are available in Canada and potentially in the U.S. market, can you talk a little bit about, I guess, two parts to the question? One is the types of conversations that are ongoing, and B, when a decision's made, how How long would it take to get assets deployed and start generating revenue and profits?

So the status of the conversations are that we're providing detailed bidding proposals both in Canada and in the U.S.

In Canada, they're largely related to pipeline LNG infrastructure, things like PRGT, CYLISMs, CGL Phase II, LNGC Phase II, and also Alaska LNG.

And then in the U.S., it's all about data centers.

In terms of speed to market, sorry, I was getting to the same part of your question. In terms of speed to market, it depends on the asset deployment. If the asset deployment is from our mobile camp fleet, we can begin to have rooms up and running within three to four months and then phase in rooms over time. So we could have first meals within three to four months. Multistory, I would say that's nine to get to first meal from getting the authorization to sign contract.

Now, that's helpful. And just one final one to suggest. You gave some of the CapEx levels and the EBITDA guide for 2026. Any big other moving pieces from a working capital perspective we should be thinking about when we're trying to calibrate free cash flow?

I think I would say working capital is the plus or minus. I think the one thing in looking at free cash flow, you have to pay a million dollars to get you there, and then working capital should be plus or minus off of that.

Great. Thank you.

Our next question comes from Steve Farazzani with Sidodian Company.

Good morning, everyone. Appreciate all the detail on the call. I want to follow up to last questions, just thinking about how you're looking at capital allocation now that the 20% share repurchase is essentially complete, your net leverage still under two times. As we think about cash generation, at least until hopefully eventual ramp up on some of the mobile camp deployments, how do you think about cash flow generation? Does that go directly towards your 10% share repurchase authorization? Do you try to maintain two times that leverage? How are you going to balance that? And is the number one focus remaining share repurchases, or does that change as the initial 20% is complete?

There's been no change to the capital allocation framework that we laid out last April. We are completing phase one here shortly with the initial repurchase of 20%. We used more than 100% of free cash flow, I might note. Our leverage has stayed in that two times range. And the second phase is to use no less than 75% of annual free cash flow to continue to buy back stock.

The $1 million share authorization will allow us to maintain leverage at two times or less.

Correct. Okay. That's helpful. Thanks, Bradley. When we think about the CapEx guidance for this year, you only spent about $20 million. I think you said $11 million was maintenance capex. You're guiding now for $25 to $30. Are there any larger projects that pushed out from last year? Or how should we think about where the spending is going on that $25 to $30 range?

This is Colin. I'll take that one. The $11 million in maintenance this year is, I don't want to say a low watermark, but that's a pretty low number for us. Repeatability is aspirational. We'll certainly try for that. But, you know, and I would also offer that historically, I think we try to, at this stage of the year, we line out what the capital plan looks like. There's have-to-haves, and then there's should-dos. And as the year goes on, that list is refined. And I think our track record is that we've done pretty well, willing to guide it from the capital side as we really dial in the maintenance requirements throughout the year. So that's kind of the spirit behind the increase, but I would also say that the $11 million in maintenance that we spent last year was largely driven by some pretty material cuts in Canada, and we may have to kind of get back to a normal run rate this year.

And I would also point out that this time last year, CapEx guys.

That's right. Helpful. Thank you. In terms of mobile camp opportunities versus where you stood three months ago, have you seen progress? Are you having more conversations? Are we getting a little bit closer? Can you provide some color?

Conversations continue.

Say opportunities are increasing. you know whether I would say for the most part well in both markets quite frankly you're bidding on work that doesn't have full FID at the customer level yet and so to a great degree the wait and see is now clarifications to your question and we're completing those with our

clients but moving on to waiting for them to get to FID. Does that differ at all in terms of the data center progress where maybe that can happen a lot faster than some of these really large infrastructure projects that require pretty significant funding?

As a general answer, yes. Although there's potential that infrastructure projects could move sooner

rather than later.

Thanks, guys.

And as a reminder, If you'd like to ask a question, please press star one. And we'll go next to Dave Storms with Stonegate.

Morning, and thank you for taking my questions. Just want to start maybe with the Canadian market. There's been several geopolitical developments since we last spoke that have impacted oil prices. How is this changing your conversations with customers? I know a lot of this is done after budgeting. Just curious as to if anything materially has changed or if customers are looking through that.

I think it's too soon for customers to be making any material decisions based on the movement of oil. I don't expect them to do anything. It's certainly Canada as an oil producer, certainly interesting in times of geopolitical uncertainty,

given the security of that resource. It is maintained over a longer period of time. It could be positive, but in the short term, I don't expect any material changes.

Thank you. And sticking with Canada, you signed that contract in Ontario. Is this a playbook for more to come, or was this an opportunistic one-time contract? How would you characterize that?

Very pleased with the win in Ontario.

It's our first work over there. It's on the integrated services side, so adding a new geography, increasing the integrated services contributions in Canada or North America as a whole.

And, yes, we would like to build off of it. First plan, expanding further.

Understood. Thank you. And then just one more from me. It sounds like you could be picking up some momentum through 2026, especially if MetCole pays above that 200 level, cost cutting continues. Should we expect a similar seasonal trend as usual, or would you expect to see maybe a little bit more of a quarter-over-quarter, maybe not quite quarter-over-quarter, but a ramp going into 2027?

Kind of two questions there, if I'm hearing you correctly.

One thing that we've kind of always been, because Canadian turnaround season in particular is strongest in the second and third quarters. We typically have 60 to 65 percent of our annual EBITDA in the second, you know, I think that'll be slightly more muted. Second and third quarters, we'll still generate the majority of the capsule as opposed to the first and the fourth. but I don't believe it will be as strong.

So a more smooth even-dop progression throughout the year.

Dave, is there anything further?

Apologies, I was on mute. No, thank you for taking my questions, and good luck this quarter. Thank you, Dave. Appreciate it.

And this now concludes our question and answer session. I would like to turn the floor back over to Bradley Dodson for closing comments.

Thanks, Carrie, and thank you, everyone, for joining the call today. We appreciate your interest in CIVIO. We look forward to speaking to you on our first quarter earnings call plan.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.