Civeo Corp 10-Q for FY2026 Q3
Civeo Corp (CVEO)
10-Q
2026-10-30
For: 2026-09-30
View Original
Added on
October 30, 2026
About this 10-Q
Civeo Corp filed this 10-Q on October 30, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).
Civeo reported third-quarter 2026 revenue growth of 13% and operating income growth of 91%, primarily driven by higher activity levels in Canada and lower depreciation and amortization expenses. AI summary
Headline figures
Quarter ended September 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $193.1M
- up 13.3% from $170.49M a year earlier
- Net income
- $5.18M
- compared with a net loss of $455K a year earlier
- Diluted EPS
- $0.50
- compared with -$0.04 a year earlier
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended September 30, 2026
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
| For the transition period from _________________________ to _________________________ | |||||
Commission file number: 001-36246
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of | (I.R.S. Employer | ||||
| incorporation or organization) | Identification No.) | ||||
| (Zip Code) | |||||
| (Address of principal executive offices) | |||||
(713 ) 510-2400
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
| ☒ | No | ☐ | |||||||||
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
| ☒ | No | ☐ | |||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "accelerated filer," "large accelerated filer," "smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large Accelerated Filer | ☐ | ☒ | Emerging Growth Company | ||||||||||||||
| Non-Accelerated Filer | ☐ | Smaller Reporting Company | | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
| Yes | No | ☒ | |||||||||
The Registrant had 10,336,859 common shares outstanding as of October 26, 2026.
CIVEO CORPORATION
INDEX
| Page No. | |||||
| Part I -- FINANCIAL INFORMATION | |||||
| Item 1. Financial Statements: | |||||
| Consolidated Financial Statements | |||||
Unaudited Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2026 and 2025 | |||||
Unaudited Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2026 and 2025 | |||||
Consolidated Balance Sheets – as of September 30, 2026 (unaudited) and December 31, 2025 | |||||
Unaudited Consolidated Statements of Changes in Shareholders’ Equity for the Three and Nine Months Ended September 30, 2026 and 2025 | |||||
Unaudited Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2026 and 2025 | |||||
| Notes to Unaudited Consolidated Financial Statements | |||||
| Cautionary Statement Regarding Forward-Looking Statements | |||||
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | |||||
| Item 3. Quantitative and Qualitative Disclosures About Market Risk | |||||
| Item 4. Controls and Procedures | |||||
| Part II -- OTHER INFORMATION | |||||
| Item 1. Legal Proceedings | |||||
| Item 1A. Risk Factors | |||||
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | |||||
| Item 5. Other Information | |||||
| Item 6. Exhibits | |||||
| (a) Index of Exhibits | |||||
| Signature Page | |||||
3
PART I -- FINANCIAL INFORMATION
ITEM 1. Financial Statements
CIVEO CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenue | $ | $ | $ | $ | |||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Service and other costs | |||||||||||||||||||||||
| Selling, general and administrative expenses | |||||||||||||||||||||||
| Depreciation and amortization expense | |||||||||||||||||||||||
| Other operating income | ( | ( | ( | ( | |||||||||||||||||||
| Operating income | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Other income (expense) | ( | ||||||||||||||||||||||
| Income (loss) before income taxes | ( | ||||||||||||||||||||||
| Income tax expense | ( | ( | ( | ( | |||||||||||||||||||
| Net income (loss) | ( | ( | ( | ||||||||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interest | ( | ( | |||||||||||||||||||||
| Net income (loss) attributable to Civeo Corporation | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
| Per Share Data (see Note 6) | |||||||||||||||||||||||
| Basic net income (loss) per share attributable to Civeo Corporation common shareholders | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
| Diluted net income (loss) per share attributable to Civeo Corporation common shareholders | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
| Weighted average number of common shares outstanding: | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Diluted | |||||||||||||||||||||||
| Dividends per common share | $ | $ | $ | $ | |||||||||||||||||||
The accompanying notes are an integral part of these financial statements.
4
CIVEO CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In Thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net income (loss) | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
| Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||||
Foreign currency translation adjustment, net of | ( | ||||||||||||||||||||||
| Total other comprehensive income (loss), net of taxes | ( | ||||||||||||||||||||||
| Comprehensive income (loss) | ( | ( | |||||||||||||||||||||
| Less: Comprehensive income (loss) attributable to noncontrolling interest | ( | ( | |||||||||||||||||||||
| Comprehensive income (loss) attributable to Civeo Corporation | $ | $ | ( | $ | $ | ( | |||||||||||||||||
The accompanying notes are an integral part of these financial statements.
5
CIVEO CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Excluding Share Amounts)
| September 30, 2026 | December 31, 2025 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Accounts receivable, net | |||||||||||
| Inventories | |||||||||||
| Prepaid expenses | |||||||||||
| Other current assets | |||||||||||
| Assets held for sale | |||||||||||
| Total current assets | |||||||||||
| Property, plant and equipment, net | |||||||||||
| Goodwill | |||||||||||
| Other intangible assets, net | |||||||||||
| Operating lease right-of-use assets | |||||||||||
| Other noncurrent assets | |||||||||||
| Total assets | $ | $ | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | $ | |||||||||
| Accrued liabilities | |||||||||||
| Income taxes payable | |||||||||||
| Deferred revenue | |||||||||||
| Other current liabilities | |||||||||||
| Total current liabilities | |||||||||||
| Long-term debt, net | |||||||||||
| Deferred income taxes | |||||||||||
| Operating lease liabilities | |||||||||||
| Other noncurrent liabilities | |||||||||||
| Total liabilities | |||||||||||
| Shareholders’ Equity: | |||||||||||
Common shares ( | |||||||||||
| Additional paid-in capital | |||||||||||
| Accumulated deficit | ( | ( | |||||||||
Common shares held in treasury at cost, | ( | ( | |||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Total Civeo Corporation shareholders’ equity | |||||||||||
| Noncontrolling interest | |||||||||||
| Total shareholders’ equity | |||||||||||
| Total liabilities and shareholders’ equity | $ | $ | |||||||||
The accompanying notes are an integral part of these financial statements.
6
CIVEO CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF
CHANGES IN SHAREHOLDERS’ EQUITY
(In Thousands)
| Attributable to Civeo | |||||||||||||||||||||||||||||||||||||||||||||||
| Common Shares | |||||||||||||||||||||||||||||||||||||||||||||||
| Par Value | Additional Paid-in Capital | Accumulated Deficit | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||
| Net loss | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
| Dividends paid | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Common shares repurchased | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
| Excise tax on common shares repurchased | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2025 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2026 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Dividends paid | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| Common shares repurchased | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
| Excise tax on common shares repurchased | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2026 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||
| Net loss | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
| Dividends paid | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| Common shares repurchased | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
| Excise tax on common shares repurchased | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2025 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2025 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||
| Currency translation adjustment | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Dividends paid | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
| Common shares repurchased | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
| Excise tax on common shares repurchased | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Balance, September 30, 2026 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||
| Common Shares (in thousands) | |||||||||||
| Balance, December 31, 2025 | |||||||||||
| Share-based compensation | |||||||||||
| Common shares repurchased | ( | ||||||||||
| Balance, September 30, 2026 | |||||||||||
The accompanying notes are an integral part of these financial statements.
7
CIVEO CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | ( | $ | ( | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Deferred income tax benefit | ( | ( | |||||||||
| Non-cash compensation charge | |||||||||||
| Gains on disposals of assets | ( | ( | |||||||||
| Provision for credit losses, net of recoveries | |||||||||||
| Other, net | |||||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | ( | ( | |||||||||
| Inventories | ( | ||||||||||
| Accounts payable and accrued liabilities | ( | ||||||||||
| Taxes payable | ( | ||||||||||
| Other current and noncurrent assets and liabilities, net | ( | ( | |||||||||
| Net cash flows provided by operating activities | |||||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | ( | ( | |||||||||
| Payments related to acquisitions | ( | ||||||||||
| Proceeds from dispositions of property, plant and equipment | |||||||||||
| Net cash flows used in investing activities | ( | ( | |||||||||
| Cash flows from financing activities: | |||||||||||
| Revolving credit borrowings | |||||||||||
| Revolving credit repayments | ( | ( | |||||||||
| Convertible note borrowings | |||||||||||
| Debt issuance costs | ( | ( | |||||||||
| Dividends paid | ( | ||||||||||
| Repurchases of common shares | ( | ( | |||||||||
| Taxes paid on vested shares | ( | ( | |||||||||
| Net cash flows provided by (used in) financing activities | ( | ||||||||||
| Effect of exchange rate changes on cash | ( | ||||||||||
| Net change in cash and cash equivalents | |||||||||||
| Cash and cash equivalents, beginning of period | |||||||||||
| Cash and cash equivalents, end of period | $ | $ | |||||||||
The accompanying notes are an integral part of these financial statements.
8
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
1.DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
Description of the Business
We provide hospitality services to remote workforces in Australia and Canada, including catering and food service, lodging, housekeeping and maintenance at accommodation facilities that we or our customers own. We provide services that support the day-to-day operations of these facilities, such as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security and logistics. We also manage development activities for workforce accommodation facilities, including site selection, permitting, engineering and design and manufacturing and site construction management, along with providing hospitality services once the facility is constructed. We primarily operate in some of the world’s most active metallurgical (met) coal, oil, iron ore and liquefied natural gas (LNG) producing regions, and our customers include mining companies, major and independent oil companies, construction and engineering companies and oilfield and mining service companies. We operate in two principal reportable business segments – Australia and Canada.
Basis of Presentation
Unless otherwise stated or the context otherwise indicates: (i) all references in these consolidated financial statements to “Civeo,” “us,” “our” or “we” refer to Civeo Corporation and its consolidated subsidiaries; and (ii) all references in this report to “dollars” or “$” are to United States (U.S.) dollars. Certain reclassifications have been made to the prior year financial statements for them to conform with the 2026 presentation.
The accompanying unaudited consolidated financial statements of Civeo have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC) pertaining to interim financial information. Certain information in footnote disclosures normally included in financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) has been condensed or omitted pursuant to those rules and regulations. The unaudited consolidated financial statements included in this report reflect all the adjustments, consisting of normal recurring adjustments, which Civeo considers necessary for a fair presentation of the results of operations for the interim periods covered and for the financial condition of Civeo at the date of the interim balance sheet. Results for the interim periods are not necessarily indicative of results for the full year.
The preparation of consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. If the underlying estimates and assumptions upon which the financial statements are based change in future periods, actual amounts may differ from those included in the accompanying consolidated financial statements.
The unaudited consolidated financial statements included in this report should be read in conjunction with our audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2025.
9
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
2.REVENUE
The following table disaggregates our revenue by our two reportable segments (Australia and Canada) into major categories for the periods indicated (in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Australia | |||||||||||||||||||||||
| Accommodation and associated services revenues | $ | $ | $ | $ | |||||||||||||||||||
| Integrated services and other services revenues | |||||||||||||||||||||||
| Total Australia revenues | |||||||||||||||||||||||
| Canada | |||||||||||||||||||||||
| Accommodation and associated services revenues | $ | $ | $ | $ | |||||||||||||||||||
| Mobile facility rental and associated services revenues | |||||||||||||||||||||||
| Integrated services and other services revenues | |||||||||||||||||||||||
| Total Canada revenues | |||||||||||||||||||||||
| Total revenues | $ | $ | $ | $ | |||||||||||||||||||
Our payment terms vary by the type and location of our customer and the services offered. The time between invoicing and when our performance obligations are satisfied is not significant. Payment terms are generally within 30 days and in most cases do not extend beyond 60 days. We do not have significant financing components or significant payment terms.
As of September 30, 2026, for contracts that are greater than one year, the table below discloses the estimated revenues related to performance obligations that are unsatisfied (or partially unsatisfied) and when we expect to recognize the revenue. The table only includes revenue expected to be recognized from contracts where the quantity of service is certain (in thousands):
| For the years ending December 31, | |||||||||||||||||||||||||||||
| 2026 | 2027 | 2028 | Thereafter | Total | |||||||||||||||||||||||||
| Revenue expected to be recognized as of September 30, 2026 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
3.FAIR VALUE MEASUREMENTS
Our financial instruments consist of cash and cash equivalents, receivables, payables and debt instruments. We believe that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values.
As of September 30, 2026 and December 31, 2025, we believe the carrying value of our floating-rate debt outstanding under our revolving credit facilities approximates fair value because the terms include short-term interest rates and exclude penalties for prepayment. We estimated the fair value of our floating-rate revolving credit facilities using significant other observable inputs, representative of a Level 2 fair value measurement, including terms and credit spreads for these loans.
As of September 30, 2026, the outstanding principal amount of the 4.50 % Convertible Senior Notes due 2031 (Convertible Notes) was $115.0 million, and the net carrying value was $110.4 million after deducting unamortized debt
10
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
issuance costs. The estimated fair value was $121.5 million as of September 30, 2026, based on observable market-based pricing information obtained from a third-party service and is classified as Level 2 within the fair value hierarchy.
4.DETAILS OF SELECTED BALANCE SHEET ACCOUNTS
Additional information regarding selected balance sheet accounts at September 30, 2026 and December 31, 2025 is presented below (in thousands):
| September 30, 2026 | December 31, 2025 | ||||||||||
| Accounts receivable, net: | |||||||||||
| Trade | $ | $ | |||||||||
| Unbilled revenue | |||||||||||
| Other | |||||||||||
| Total accounts receivable | |||||||||||
| Allowance for credit losses | ( | ( | |||||||||
| Total accounts receivable, net | $ | $ | |||||||||
| September 30, 2026 | December 31, 2025 | ||||||||||
| Inventories: | |||||||||||
| Finished goods, including purchased food, housekeeping and retail inventory | $ | $ | |||||||||
| Raw materials | |||||||||||
| Total inventories | $ | $ | |||||||||
| Estimated Useful Life (in years) | September 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||||
| Property, plant and equipment, net: | |||||||||||||||||||||||||||||
| Land | $ | $ | |||||||||||||||||||||||||||
| Accommodations assets | — | ||||||||||||||||||||||||||||
| Buildings and leasehold improvements | — | ||||||||||||||||||||||||||||
| Machinery and equipment | — | ||||||||||||||||||||||||||||
| Office furniture and equipment | — | ||||||||||||||||||||||||||||
| Vehicles | — | ||||||||||||||||||||||||||||
| Construction in progress | |||||||||||||||||||||||||||||
| Total property, plant and equipment | |||||||||||||||||||||||||||||
| Accumulated depreciation | ( | ( | |||||||||||||||||||||||||||
| Total property, plant and equipment, net | $ | $ | |||||||||||||||||||||||||||
As of September 30, 2026, assets held for sale includes $1.6 million related to land located in Louisiana.
11
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
| September 30, 2026 | December 31, 2025 | ||||||||||
| Accrued liabilities: | |||||||||||
| Accrued compensation | $ | $ | |||||||||
| Accrued taxes, other than income taxes | |||||||||||
| Accrued interest | |||||||||||
| Other | |||||||||||
| Total accrued liabilities | $ | $ | |||||||||
| September 30, 2026 | December 31, 2025 | ||||||||||
| Contract assets: | |||||||||||
Current contract assets (1) | $ | $ | |||||||||
Noncurrent contract assets (1) | |||||||||||
| Total contract assets | $ | $ | |||||||||
| Contract liabilities (Deferred revenue): | |||||||||||
Current contract liabilities (2) | $ | $ | |||||||||
Noncurrent contract liabilities (2) | |||||||||||
| Total contract liabilities (Deferred revenue) | $ | $ | |||||||||
(1)Current contract assets and Noncurrent contract assets are included in "Other current assets" and "Other noncurrent assets," respectively, in our unaudited consolidated balance sheets.
Contract assets consists of upfront incentives offered as consideration for entering into multi-year contracts. These incentives are refundable to us if the customer cancels the contract prior to the end of the contracted terms. The contract assets are amortized as a reduction of revenue over the contract term as the related services are provided. The increase in contract assets from December 31, 2025 to September 30, 2026 was due to incentives provided to a customer in Australia, beginning in the first quarter of 2025, in connection with entering into a six-year integrated services contract.
Deferred revenue typically consists of upfront payments received before we satisfy the associated performance obligation. The increase in deferred revenue from December 31, 2025 to September 30, 2026 was primarily due to advance payments received for various projects in Canada, partially offset by decreases resulting from revenue recognized over the contracted terms related to advance payments received from a customer for village enhancements in Australia.
12
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
5.ASSET ACQUISITION
On May 6, 2025, we acquired assets of Qantac Pty Ltd (Qantac), located in Queensland, Australia (the Qantac Acquisition) for total consideration of A$105 million (or approximately US$68 million) in cash. The Qantac Acquisition included four villages, with 1,368 rooms in Australia’s Bowen Basin and the associated accommodation assets, land and customer contracts. As a result of the Qantac Acquisition, we expanded our existing accommodations business into the Blackwater region of the Bowen Basin, which was not previously served by our existing villages. The Qantac Acquisition was funded with cash on hand and borrowings under the Amended Credit Agreement (as defined in Note 7. Debt). Qantac’s operations are reported as new village locations in our Australia reportable business segment.
The Qantac Acquisition was accounted for as an asset acquisition based on the principles described in Accounting Standards Codification Topic 805, Business Combinations, which provides a screen to determine when a set of transferred assets is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similarly identifiable assets, the set of transferred assets is not a business. Under the accounting for asset acquisitions, the acquisition is recorded using a cost accumulation and allocation model under which the cost of such acquisition is allocated on a relative fair value basis to the assets acquired and liabilities assumed. Acquisition-related transaction costs are capitalized as a component of the cost of the assets acquired. Goodwill is not recognized in an asset acquisition, and any difference between consideration transferred and the fair value of the net assets acquired is allocated to certain identifiable assets acquired based on their relative fair values.
The purchase price was allocated to the net assets as follows (in thousands):
| Consideration: | |||||
| Cash | $ | ||||
| Direct transaction costs | |||||
| Total costs of the asset acquisition | $ | ||||
| Other current assets | $ | ||||
| Property, plant and equipment | |||||
| Intangible assets | |||||
| Total assets acquired | |||||
| Accounts payable and accrued liabilities | |||||
| Deferred income taxes | |||||
| Total liabilities assumed | |||||
| Net assets acquired | $ | ||||
6.EARNINGS PER SHARE
We calculate basic earnings per share by dividing net income (loss) attributable to Civeo Corporation by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed based on the basic shares outstanding plus the effect of dilutive potential common shares outstanding.
We use the treasury-stock method to determine the potential dilutive effect of our outstanding share-based awards and the if-converted method to determine the potential dilutive effect of the Convertible Notes. For diluted earnings per share, the Convertible Notes are assumed to have been converted at the beginning of the reporting period or, if issued during the period, on their respective issuance dates. When the Convertible Notes are included in diluted earnings per share, the numerator is adjusted to add back interest expense, net of the related income tax effect, including amortization of debt issuance costs.
13
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
The calculation of basic and diluted earnings per share attributable to Civeo common shareholders is presented below for the periods indicated (in thousands, except per share amounts):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
| Basic net income (loss) attributable to Civeo Corporation common shareholders | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
| Add: Tax adjusted interest expense related to the Convertible Notes | |||||||||||||||||||||||
| Diluted net income (loss) attributable to Civeo Corporation common shareholders | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
| Denominator: | |||||||||||||||||||||||
| Weighted average number of common shares outstanding - basic | |||||||||||||||||||||||
| Dilutive shares - share-based awards | |||||||||||||||||||||||
| Dilutive shares - Convertible Notes | |||||||||||||||||||||||
| Weighted average number of common shares outstanding - diluted | |||||||||||||||||||||||
Basic net income (loss) per share attributable to Civeo Corporation common shareholders (1) | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Diluted net income (loss) per share attributable to Civeo Corporation common shareholders (1) | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
For the three and nine months ended September 30, 2026, we excluded 2.6 million shares and 0.9 million shares, respectively, related to the assumed conversion of the Convertible Notes, from the calculation of weighted-average common shares outstanding because the effect is anti-dilutive. The Convertible Notes were no
Share-based awards that have been excluded from the calculation of weighted-average common shares outstanding because the effect is anti-dilutive totaled less than 0.1 million shares and 0.1 million shares, respectively, for the three months ended September 30, 2026 and 2025. Share-based awards that have been excluded from the calculation of weighted-average common shares outstanding because the effect is anti-dilutive totaled 0.1 million shares and 0.1 million shares, respectively, for the nine months ended September 30, 2026 and 2025.
14
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
7.DEBT
As of September 30, 2026 and December 31, 2025, long-term debt consisted of the following (in thousands):
| September 30, 2026 | December 31, 2025 | ||||||||||
| Credit Agreement | |||||||||||
U.S. revolving credit facility; weighted average interest rate of | $ | $ | |||||||||
Canadian revolving credit facility; weighted average interest rate of | |||||||||||
Australian revolving credit facility; weighted average interest rate of | |||||||||||
| Total debt | 217,530 | 182,842 | |||||||||
| Less: Unamortized debt issuance costs | |||||||||||
| Total long-term debt, net | $ | $ | |||||||||
Credit Agreement
On April 23, 2026, our Syndicated Facility Agreement was amended and restated (as amended and restated from time to time, the Amended Credit Agreement) to, among other things: (i) provide for an increase by $20.0 million of the aggregate revolving loan commitments under the Amended Credit Agreement, to an aggregate maximum principal amount of $285.0 million; (ii) extend the maturity from August 8, 2028 to April 23, 2030; and (iii) provide for other technical changes and amendments to the Amended Credit Agreement.
As of September 30, 2026, the Amended Credit Agreement provided for a $285.0 million revolving credit facility scheduled to mature on April 23, 2030, allocated as follows: (A) a $10.0 million senior secured revolving credit facility in favor of certain of our U.S. subsidiaries, as borrowers (the U.S. facility); (B) a $205.0 million senior secured revolving credit facility in favor of Civeo, as borrower (the Canadian facility); and (C) a $70.0 million senior secured revolving credit facility in favor of one of our Australian subsidiaries, as borrower (the Australian facility).
U.S. dollar amounts outstanding under the facilities provided by the Amended Credit Agreement bear interest at a variable rate equal to Adjusted Term Secured Overnight Financing Rate (SOFR), which is equal to Term SOFR plus a 10 basis point adjustment, plus a margin of 2.50 % to 3.75 %, or a base rate plus a margin of 1.50 % to 2.75 %, in each case based on a ratio of our total net debt to Consolidated EBITDA (as defined in the Amended Credit Agreement). Canadian dollar amounts outstanding bear interest at a variable rate equal to Adjusted Term Canadian Overnight Repo Rate Average (CORRA), which is equal to the Term CORRA plus a 29.55 basis point adjustment for one month terms or a 32.14 basis point adjustment for three month terms, plus a margin of 2.50 % to 3.75 %, or a Canadian Prime rate plus a margin of 1.50 % to 2.75 %, in each case based on a ratio of our total net debt to Consolidated EBITDA (as defined in the Amended Credit Agreement). Australian dollar amounts outstanding under the Amended Credit Agreement bear interest at a variable rate equal to the Bank Bill Swap Bid Rate plus a margin of 2.50 % to 3.75 %, based on a ratio of our total net debt to Consolidated EBITDA (as defined in the Amended Credit Agreement).
15
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
The Amended Credit Agreement contains customary affirmative and negative covenants that, among other things, limit or restrict: (i) indebtedness, liens and fundamental changes; (ii) asset sales; (iii) specified acquisitions; (iv) certain restrictive agreements; (v) transactions with affiliates; and (vi) investments and other restricted payments, including dividends and other distributions. In addition, we must maintain a minimum interest coverage ratio, defined as the ratio of consolidated EBITDA to consolidated interest expense, of at least 3.00 to 1.00. Following the issuance of the Convertible Notes in July 2026, we are also required to maintain a maximum total net leverage ratio, defined as the ratio of total net debt to Consolidated EBITDA, of no greater than 3.50 to 1.00 and a maximum senior secured net leverage ratio of no greater than 2.50 to 1.00. Each of the factors considered in the calculations of these ratios are defined in the Amended Credit Agreement. EBITDA and consolidated interest, as defined, exclude goodwill and asset impairments, debt discount amortization, amortization of intangibles and other non-cash charges. We were in compliance with our covenants as of September 30, 2026.
Borrowings under the Amended Credit Agreement are secured by a pledge of substantially all of our assets and the assets of our subsidiaries subject to customary exceptions. The obligations under the Amended Credit Agreement are guaranteed by our material subsidiaries. As of September 30, 2026, we had six lenders that were parties to the Amended Credit Agreement, with total revolving commitments ranging from $37.5 million to $52.5 million. As of September 30, 2026, we had outstanding letters of credit of zero under the U.S. facility, zero under the Australian facility and $0.8 million under the Canadian facility. We also had outstanding bank guarantees of A$1.2 million under the Australian facility.
On July 7, 2026, we issued $100.0 million in aggregate principal amount of 4.50 % Convertible Senior Notes due 2031 (the Firm Notes) in a private unregistered offering. On July 14, 2026, we issued an additional $15.0 million in aggregate principal amount of 4.50 % Convertible Senior Notes due 2031 (together with the Firm Notes, the Convertible Notes) pursuant to the exercise in full by the initial purchasers of their option to purchase additional notes. The Convertible Notes bear interest at a rate of 4.50 % per annum, payable semi-annually in arrears on February 1 and August 1 of each year, beginning on February 1, 2027. The Convertible Notes will mature on August 1, 2031, unless earlier repurchased or redeemed by us or converted pursuant to their terms. In connection with the issuance of the Convertible Notes, we entered into an indenture (the Indenture) with U.S. Bank Trust Company, National Association, as trustee. We received approximately $110.8 million in net proceeds, of which approximately $22.3 million was used to repurchase 660,297 of our common shares, with the remaining proceeds used to repay outstanding borrowings under our Amended Credit Agreement. Debt issuance costs are amortized to interest expense over the term of the Convertible Notes using the effective interest method, resulting in an annual effective interest rate 5.4 %.
We may not redeem the Convertible Notes prior to August 1, 2029, except in the event of a tax redemption or a cleanup redemption as described below. The Convertible Notes will be redeemable, in whole or in part (subject to certain limitations described below), at our option at any time, and from time to time, on or after August 1, 2029 and on or before the 60th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, but only if (i) the Convertible Notes are freely tradable as of the date we send the related redemption notice and all accrued and unpaid additional interest, if any, has been paid in full as of the first interest payment date occurring on or before the date we send such notice; and (ii) the last reported sale price per common share exceeds 130 % of the conversion price on (1) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we send such redemption notice; and (2) the trading day immediately before the date we send such notice (an Optional Redemption). However, we may not redeem less than all of the outstanding Convertible Notes unless at least $50.0 million aggregate principal amount of the Convertible Notes are outstanding and not called for redemption as of the time we send the related redemption notice. In addition, the Convertible Notes will be redeemable, in whole and not in part, at our option if (i) certain changes in tax law occur (a Tax Redemption); or (ii) the principal amount of the Convertible Notes outstanding is less than 10 % of the aggregate principal amount of the Convertible Notes initially issued (a Cleanup Redemption), in each case, subject to certain conditions. The redemption price for any Optional Redemption, Tax Redemption or Cleanup Redemption will be 100 % of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the relevant redemption date. No sinking fund is provided for the Convertible Notes.
Prior to the close of business on the business day immediately preceding May 1, 2031, holders of the Convertible Notes may convert their Convertible Notes at their option only in the following circumstances: (i) during any calendar quarter commencing after the calendar quarter ending on September 30, 2026, if the last reported sale price per common share exceeds 130 % of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (ii) during the five consecutive business days immediately after any 10 consecutive trading day period (the measurement period) in which the trading price (as defined in the
16
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Indenture) per $1,000 principal amount of the Convertible Notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price per common share on such trading day and the conversion rate on such trading day; (iii) upon the occurrence of certain corporate events or distributions on our common shares; or (iv) if we call the Convertible Notes for redemption. On or after May 1, 2031, until the close of business on the second scheduled trading day immediately before the maturity date, holders of the Convertible Notes may convert their Convertible Notes at any time, regardless of the foregoing circumstances.
Upon conversion, we will pay or deliver, as applicable, cash, common shares or a combination of cash and common shares, at our election, based on the applicable conversion rate(s). If we elect to deliver cash or a combination of cash and common shares, then the consideration due upon conversion will be determined over an observation period consisting of 60 “VWAP Trading Days” (as defined in the Indenture). The initial conversion rate is 24.6840 common shares per $1,000 principal amount of the Convertible Notes, which represents an initial conversion price of approximately $40.51 per common share. The conversion rate is subject to adjustment upon the occurrence of certain specified events as set forth in the Indenture. In addition, following certain corporate events that occur prior to the maturity date or if we deliver a notice of redemption, we will increase, in certain circumstances, the conversion rate for a holder who elects to convert its Convertible Notes in connection with such corporate event or notice of redemption. The maximum number of common shares issuable in connection with the conversion of the Convertible Notes is 3,406,392 , based on the initial maximum conversion rate of 29.6208 common shares per $1,000 principal amount of the Convertible Notes, which amount is subject to adjustment in the same manner as, and at the same time and for the same events for which, the conversion rate is required to be adjusted.
Upon the occurrence of a fundamental change (as defined in the Indenture), subject to certain conditions, holders of the Convertible Notes may require us to repurchase all or a portion of the Convertible Notes for cash at a price equal to 100 % of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date.
The Indenture contains customary events of default, including for certain delisting events with respect to the common shares. In the event of certain events of bankruptcy, insolvency or reorganization involving us or any of our significant subsidiaries or certain delisting events with respect to the common shares that we fail to cure in accordance with the Indenture, 100 % of the principal amount of the Convertible Notes plus accrued and unpaid interest, if any, may be declared immediately due and payable, subject to certain conditions in the Indenture. In the case of any other event of default, the trustee or the holders of at least 25 % in aggregate principal amount of the then-outstanding Convertible Notes may declare the Convertible Notes to be due and payable immediately.
8.INCOME TAXES
Our operations are conducted through various subsidiaries in a number of countries throughout the world. We have provided for income taxes based upon the tax laws and rates in the countries in which operations are conducted and income is earned. We operate in three jurisdictions, Australia, Canada and the U.S., where statutory tax rates range from 15 % to 30 %. Our effective tax rate will vary from period to period based on changes in earnings mix between these different jurisdictions.
We compute our quarterly taxes under the effective tax rate method by applying an anticipated annual effective rate to our year-to-date income, except for significant unusual or extraordinary transactions. Income taxes for any significant and unusual or extraordinary transactions are computed and recorded in the period in which the specific transaction occurs. As of September 30, 2026 and 2025, Canada and the U.S. were considered loss jurisdictions for tax accounting purposes and were removed from the annual effective tax rate computation for purposes of computing the interim tax provision.
Our income tax expense for the three months ended September 30, 2026 totaled $3.9 million, or 42.8 % of pretax income, compared to income tax expense of $4.0 million, or 112.7 % of pretax income, for the three months ended September 30, 2025. Our effective tax rate for the three months ended September 30, 2026 and 2025 was impacted by Canada and the U.S. being considered loss jurisdictions that were removed from the annual effective tax rate computation for purposes of computing the interim tax provision.
17
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
9.COMMITMENTS AND CONTINGENCIES
10.ACCUMULATED OTHER COMPREHENSIVE LOSS
11.SHARE REPURCHASE PROGRAMS
In March 2025, our Board of Directors (Board) authorized a common share repurchase program (the Share Repurchase Program) to repurchase up to 10.0 % of our total common shares which were issued and outstanding at that date, or approximately 1.4 million common shares over a twelve month period. In April 2025, our Board authorized an increase to the Share Repurchase Program to repurchase up to 20.0 % of our total common shares which are issued and outstanding at that date, or approximately 2.7 million common shares. In March 2026, our Board authorized an additional repurchase authorization of up to 10.0 % of our common shares outstanding upon completion of the existing Share Repurchase Program.
The repurchase authorization allows repurchases from time to time through a variety of methods, including but not limited to open market repurchases, pursuant to a Rule 10b5-1 compliant plan, or privately negotiated transactions. We have funded, and intend to continue to fund, repurchases through cash on hand, cash from debt incurrences and cash generated from operations. Any common shares repurchased are cancelled in the periods they are acquired and the payment is accounted for as an increase to accumulated deficit in our Unaudited Consolidated Statements of Changes in Shareholders’ Equity in the period the payment is made.
The following table summarizes our common share repurchases for the periods presented (in thousands, except per share data):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Dollar-value of shares repurchased | $ | $ | $ | $ | |||||||||||||||||||
| Shares repurchased | |||||||||||||||||||||||
| Average price paid per share | $ | $ | $ | $ | |||||||||||||||||||
In connection with the issuance of the Convertible Notes, we repurchased 660,297 common shares for a total of approximately $22.3 million. See Note 7 - Debt for further discussion.
12.SHARE-BASED COMPENSATION
Certain key employees and non-employee directors participate in the Amended and Restated 2014 Equity Participation Plan of Civeo Corporation (the Civeo Plan). The Civeo Plan authorizes our Board and the Compensation Committee of our Board to approve and grant awards of options, awards of share appreciation rights, awards of restricted shares, performance share awards, phantom share units and dividend equivalents, awards of deferred shares, and share payments to our employees and non-employee directors. Approximately 3.5 million Civeo common shares are authorized to be issued under the Civeo Plan.
18
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
Outstanding Awards
Phantom Share Units. On March 5, 2026, we granted 132,804 phantom share units under the Civeo Plan, which vest in equal annual installments beginning on March 5, 2027. We also granted 44,187 phantom share units under the Canadian Long-Term Incentive Plan, which vest in equal annual installments beginning on March 5, 2027. Phantom share units are settled in cash upon vesting.
During the three months ended September 30, 2026 and 2025, we recognized compensation expense associated with phantom share units totaling $1.6 million and $1.5 million, respectively. During the nine months ended September 30, 2026 and 2025, we recognized compensation expense associated with phantom share units totaling $6.2 million and $4.8 million, respectively. At September 30, 2026, unrecognized compensation cost related to phantom share units was $9.1 million, as remeasured at September 30, 2026, which is expected to be recognized over a weighted average period of 1.8 years.
Performance Share Awards. On March 5, 2026, we granted 144,433 performance share awards under the Civeo Plan, which cliff vest after three years subject to attainment of applicable performance goals. These awards will be earned in amounts between 0 % and 200 % of the participant’s target performance share award, based on the payout percentage associated with Civeo’s relative total shareholder return rank among a peer group of other companies and the payout percentage associated with Civeo's three-year growth in EBITDA over the performance period relative to a preset 2028 EBITDA target. The portion of the performance share awards tied to the 2028 EBITDA target includes a performance-based vesting requirement. We evaluate the probability of achieving the performance goals throughout the performance period and will adjust share-based compensation expense based on the number of shares expected to vest based on our estimate of the most probable performance outcome. No share-based compensation expense is recognized if the performance criteria are not probable of being achieved.
During the three months ended September 30, 2026 and 2025, we recognized compensation expense associated with performance share awards totaling $0.3 million and $0.8 million, respectively. During the nine months ended September 30, 2026 and 2025, we recognized compensation expense associated with performance share awards totaling $0.5 million and $1.5 million, respectively. No 0.9 million and $1.7 million, respectively. At September 30, 2026, unrecognized compensation cost related to performance share awards was $2.0 million, which is expected to be recognized over a weighted average period of 2.0 years.
Restricted Share Awards / Deferred Share Awards. On May 27, 2026, we granted 30,224 restricted share and deferred share awards to our non-employee directors, which vest in their entirety in May 2027.
Compensation expense associated with restricted share awards and deferred share awards recognized in the three months ended September 30, 2026 and 2025 totaled $0.3 million and $0.3 million, respectively. Compensation expense associated with restricted share awards and deferred share awards recognized in the nine months ended September 30, 2026 and 2025 totaled $1.0 million and $0.8 million, respectively. No 2.2 million and $0.9 million, respectively.
At September 30, 2026, unrecognized compensation cost related to restricted share awards and deferred share awards was $0.7 million, which is expected to be recognized over a weighted average period of 0.6 years.
19
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
13.SEGMENT AND RELATED INFORMATION
We report segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. Our Chief Executive Officer is the chief operating decision maker (CODM). We have identified two reportable segments, Australia and Canada, which represent our strategic focus on hospitality services and workforce accommodations.
Prior to the fourth quarter of 2025, Corporate, other and eliminations selling, general and administrative expenses included corporate information technology (IT) expenses managed on a worldwide basis that were not allocated to individual segments in Australia and Canada. To better align segment operating income (loss) to the profitability measure used by our CODM, these shared general and administrative costs are now allocated to Australia and Canada beginning with the year ended December 31, 2025. For the three and nine months ended September 30, 2025, we allocated corporate IT expenses to Australia and Canada of $1.8 5.8
Financial information by business segment for each of the three and nine months ended September 30, 2026 and 2025 is summarized in the following table (in thousands):
| Three Months Ended September 30, 2026 | Australia | Canada | Corporate, other and eliminations | Total | |||||||||||||||||||
| Revenues | $ | $ | $ | $ | |||||||||||||||||||
| Cost of sales and services | |||||||||||||||||||||||
| Revenues less cost of sales and services | ( | ||||||||||||||||||||||
| Selling, general and administrative expenses | |||||||||||||||||||||||
| Depreciation and amortization expense | |||||||||||||||||||||||
Other operating expense (income) (1) | ( | ( | ( | ||||||||||||||||||||
| Operating income (loss) | ( | ||||||||||||||||||||||
| Reconciliation to income (loss) before income taxes | |||||||||||||||||||||||
Other loss (2) | ( | ||||||||||||||||||||||
| Income before income taxes | $ | ||||||||||||||||||||||
| Capital expenditures | $ | $ | $ | $ | |||||||||||||||||||
| Total assets | $ | $ | $ | $ | |||||||||||||||||||
20
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
| Three Months Ended September 30, 2025 | Australia | Canada | Corporate, other and eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Cost of sales and services | ||||||||||||||||||||||||||||||||||||||||||||
| Revenues less cost of sales and services | ( | |||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | ||||||||||||||||||||||||||||||||||||||||||||
Other operating expense (income) (1) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
| Reconciliation to income (loss) before income taxes | ||||||||||||||||||||||||||||||||||||||||||||
Other loss (2) | ( | |||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | $ | |||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2026 | Australia | Canada | Corporate, other and eliminations | Total | |||||||||||||||||||
| Revenues | $ | $ | $ | $ | |||||||||||||||||||
| Cost of sales and services | |||||||||||||||||||||||
| Revenues less cost of sales and services | ( | ||||||||||||||||||||||
| Selling, general and administrative expenses | |||||||||||||||||||||||
| Depreciation and amortization expense | |||||||||||||||||||||||
Other operating expense (income) (1) | ( | ( | ( | ||||||||||||||||||||
| Operating income (loss) | ( | ( | |||||||||||||||||||||
| Reconciliation to income (loss) before income taxes | |||||||||||||||||||||||
Other loss (2) | ( | ||||||||||||||||||||||
| Income before income taxes | $ | ||||||||||||||||||||||
| Capital expenditures | $ | $ | $ | $ | |||||||||||||||||||
| Total assets | $ | $ | $ | $ | |||||||||||||||||||
21
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
| Nine Months Ended September 30, 2025 | Australia | Canada | Corporate, other and eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
| Revenues | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Cost of sales and services | ||||||||||||||||||||||||||||||||||||||||||||
| Revenues less cost of sales and services | ( | |||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | ||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | ||||||||||||||||||||||||||||||||||||||||||||
Other operating expense (income) (1) | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
| Operating income (loss) | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
| Reconciliation to income (loss) before income taxes | ||||||||||||||||||||||||||||||||||||||||||||
Other loss (2) | ( | |||||||||||||||||||||||||||||||||||||||||||
| Loss before income taxes | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
(1)Other operating expense (income) for each reportable segment primarily includes other operating income and expenses and foreign exchange impacts for the three and nine months ended September 30, 2026 and 2025.
(2)Other loss is primarily related to interest expense, interest income and other income.
22
Cautionary Statement Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the Exchange Act). The Private Securities Litigation Reform Act of 1995 provides safe harbor provisions for forward-looking information. The forward-looking statements can be identified by the use of forward-looking terminology including “may,” “expect,” “anticipate,” “estimate,” “continue,” “believe” or other similar words. The forward-looking statements in this report include, but are not limited to, the statements in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” relating to our expectations about the macroeconomic environment and industry conditions, including the volatility in the price of and demand for commodities, as well as our expectations about capital expenditures in 2026, beliefs with respect to liquidity needs and expectations with respect to growth strategies and opportunities, cost reductions, share repurchases and benefits of the Qantac Acquisition. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of important factors. For a discussion of known material factors that could affect our results, refer to “Risk Factors” in this quarterly report and "Risk Factors," “Cautionary Statement Regarding Forward-Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2025 and our subsequent SEC filings. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Our management believes these forward-looking statements are reasonable. However, you should not place undue reliance on these forward-looking statements, which are based only on our current expectations and are not guarantees of future performance. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the foregoing. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any of them in light of new information, future events or otherwise, except to the extent required by applicable law.
In addition, in certain places in this quarterly report, we may refer to reports published by third parties that purport to describe trends or developments in the natural resources industry. We do so for the convenience of our shareholders and in an effort to provide information available in the market that will assist our investors in a better understanding of the market environment in which we operate. However, we specifically disclaim any responsibility for the accuracy and completeness of such information and undertake no obligation to update such information.
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis together with our consolidated financial statements and the notes to those statements included elsewhere in this Quarterly Report on Form 10-Q.
Overview and Macroeconomic Environment
Demand for the majority of our hospitality services is driven primarily by ongoing operations of existing natural resource projects in Australia and Canada. Historically, initial demand for our hospitality services has been driven by our customers’ capital spending programs related to the construction and development of natural resource projects and associated infrastructure. Long-term demand for our services has been driven by natural resource production, maintenance, operation and expansion of those facilities. In general, industry capital spending programs are based on the outlook for commodity prices, production costs, economic growth, perceived political risk, global commodity supply/demand dynamics, reserve replacement requirements, estimates of resource production, annual maintenance requirements, inclusive of turnaround requirements, and the expectations of our customers' shareholders. As a result, demand for our hospitality services may be sensitive to expected commodity prices, principally related to metallurgical (met) coal, oil, iron ore and liquefied natural gas (LNG), and the resultant impact of these commodity price expectations on our customers' spending. In addition to these historical demand drivers, there is increasing demand for our assets and services tied to data center construction, electrification projects and associated infrastructure. This is principally occurring in the United States (U.S.) but could begin to occur in Australia and Canada as well. Other factors that can affect our business and financial results include the general global economic environment, including inflationary pressures, supply chain disruptions and labor shortages, the impact of global tariff changes and other changes to trade policies, volatility affecting the banking system and financial markets, availability of capital to the natural resource industry and regulatory changes in Australia, Canada and other markets, including governmental measures introduced to mitigate climate change.
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Commodity Prices
Prices for the commodities that our customers produce remained elevated through the first nine months of 2026, although there remains continued risk of future volatility, particularly in light of ongoing geopolitical tensions in the Middle East and continuing uncertainty surrounding global trade policy. The factors that could drive such volatility and underlying activity include the ongoing conflict involving Iran, expectations for global macroeconomic stability and growth, inflationary pressures, interest rates, economic growth (or contraction) in China and resultant economic stimulus by the Chinese government, the impact of changes to global tariff and trade policies, actions taken by Organization of the Petroleum Exporting Countries Plus (OPEC+) to adjust oil production levels, other geopolitical events such as the ongoing conflicts in Russia and Ukraine, U.S. oil production levels and regulatory implications on such prices. In Canada, ongoing uncertainty regarding trade policy between the U.S. and Canada may spur Canadian infrastructure projects, including pipelines for LNG or oil, carbon capture installation for oil producing operations and mining for critical minerals.
Recent Commodity Prices.
Recent met coal, iron ore, West Texas Intermediate (WTI) crude, and Western Canadian Select (WCS) crude pricing trends are as follows:
Average Price (1) | ||||||||||||||||||||||||||
| Quarter ended | Hard Coking Coal (Met Coal) (per tonne) | Iron Ore (per tonne) | WTI Crude (per bbl) | WCS Crude (per bbl) | ||||||||||||||||||||||
Fourth Quarter through October 26, 2026 | $ | 267.31 | $ | 86.98 | $ | 96.67 | $ | 67.10 | ||||||||||||||||||
| 9/30/2026 | 246.63 | 92.06 | 86.13 | 66.21 | ||||||||||||||||||||||
| 6/30/2026 | 235.53 | 100.10 | 93.11 | 73.05 | ||||||||||||||||||||||
| 3/31/2026 | 231.01 | 102.86 | 72.74 | 57.16 | ||||||||||||||||||||||
| 12/31/2025 | 198.75 | 100.23 | 59.24 | 46.73 | ||||||||||||||||||||||
| 9/30/2025 | 183.06 | 96.97 | 65.06 | 52.48 | ||||||||||||||||||||||
| 6/30/2025 | 186.10 | 92.70 | 63.81 | 53.15 | ||||||||||||||||||||||
| 3/31/2025 | 185.13 | 97.25 | 71.47 | 58.27 | ||||||||||||||||||||||
| 12/31/2024 | 203.50 | 96.00 | 70.42 | 57.50 | ||||||||||||||||||||||
| 9/30/2024 | 210.74 | 94.54 | 75.29 | 59.97 | ||||||||||||||||||||||
| 6/30/2024 | 242.93 | 106.01 | 80.83 | 67.24 | ||||||||||||||||||||||
(1)Source: Hard coking coal prices are from IHS Markit, iron ore prices and WCS crude prices are from Bloomberg and WTI crude prices are from U.S. Energy Information Administration.
Met Coal. In Australia, 86% of our Australian owned rooms are located in the Bowen Basin of Queensland, Australia and primarily serve met coal mines in that region. Met coal pricing and production growth in the Bowen Basin region are predominantly influenced by global steel production, which remained subdued throughout 2025 and into 2026. China, Japan, Brazil and Russia continued to experience declines in steel production through the first nine months of 2026, while India, Germany and the U.S. continue to experience positive growth in 2026. Global tariff developments, economic uncertainty and weaker Chinese demand continue to weigh on global steel production, while the ongoing conflict in the Middle East has contributed to further economic and trade uncertainty. While met coal prices improved during the third quarter of 2026, producers continue to manage inflationary costs pressures, particularly higher diesel prices resulting from disruptions in global seaborne crude oil and refined products trade.
Global steel production decreased by 0.7% for the nine months through September 30, 2026 compared to the same period in 2025. As of October 26, 2026, met coal spot prices were $266.05 per tonne.
Met coal prices during the nine months ended September 30, 2026 fluctuated between $213 and $283 per tonne. During the third quarter of 2026, prices remained above $213 per tonne and increased to over $270 per tonne in September, primarily due to domestic supply constraints in China.
Although met coal prices were higher year-over-year during the first nine months of 2026, producers continue to maintain a heightened focus on cost management following production cuts and workforce reductions announced by several large and mid-tier producers in Queensland, Australia during late 2025. The Middle East conflict has disrupted the seaborne
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transportation of oil, LNG and refined products through the Strait of Hormuz, contributing to higher oil, gasoline and diesel prices and putting further pressure on producer costs. More recently, met coal prices increased as a result of domestic supply constraints in China. As these supply constraints are expected to ease and strong production continues in Australia, downward pressure on prices towards $240 per tonne is expected during the fourth quarter of 2026. These supply and demand dynamics may also be impacted by steel demand and ongoing geopolitical uncertainties, including the conflict in the Middle East.
Iron Ore. Iron ore prices fluctuated between $97 and $111 through the first half of 2026 before declining below $100 per tonne during the third quarter of 2026, driven by softer steel demand and continued strong iron ore supply. As of September 29, 2026, the iron ore spot price was $89.57 per tonne.
Chinese steel demand remained subdued due to policy constraints and declining investment, while iron ore supply from major exporters, including Australia and Brazil, remained strong. In addition, higher input costs, including increased met coal prices, have pressured Chinese steel producer margins. As a result, iron ore prices declined into the low $90s per tonne late in the third quarter of 2026. Market sentiment remains cautious heading into the fourth quarter of 2026, with iron ore prices expected to continue to be influenced by the balance between global supply and steel demand.
WTI Crude. WTI crude prices remained elevated and volatile during the third quarter of 2026 as oil markets continued to react to disruptions to Middle East production and exports and concerns regarding the security of global oil supply and shipping routes. Oil flows through the Strait of Hormuz increased during the third quarter; however, Middle East oil exports remain below pre-conflict levels and uncertainty regarding the timing and extent of a return to normalized production and trade flows continues to support oil prices.
In an effort to retain and recapture global market share, OPEC+ began reversing previously implemented production cuts at the beginning of the second quarter of 2025 and continued increasing production through September 2026. OPEC+ subsequently announced that participating countries would maintain September production levels in October 2026. Current geopolitical conditions continue to increase volatility in the oil markets, making it more difficult to forecast spending and activity for our Canadian oil customers.
WCS Crude. In Canada, WCS crude is the benchmark price for our oil sands customers. Pricing for WCS is driven by several factors, including the underlying price for WTI crude, the availability of transportation infrastructure (consisting of pipelines and crude by railcar), refinery blending requirements and governmental regulation. Historically, WCS has traded at a discount to WTI, creating a “WCS Differential,” due to transportation costs and export capacity limitations to move Canadian heavy oil production to refineries, primarily along the U.S. Gulf Coast.
WCS prices in the third quarter of 2026 averaged $66.21 per barrel compared to an average of $52.48 in the third quarter of 2025. The WCS Differential increased from an average of $12.50 per barrel at the end of the fourth quarter of 2025 to an average of $19.94 at the end of the third quarter of 2026. Changes to global tariff and trade policies affecting oil from Canada could have an adverse impact on our Canadian customers' profit margins, which may in turn reduce their spending on our accommodations and services. With higher oil prices during 2026, overall Canadian market sentiment has improved, while oil sands customers are prioritizing production, focusing on capital discipline and reducing downtime, while continuing to strive for lower operating costs and lower headcount.
Recent Developments and Market Trends
Qantac Acquisition. On May 6, 2025, we completed the Qantac Acquisition, which included four villages with 1,368 rooms in Australia’s Bowen Basin and the associated accommodation assets, land and customer contracts. See Note 5 - Asset Acquisition to the notes to the unaudited consolidated financial statements included in Item 1 of this quarterly report for further discussion.
Inflationary Pressures. Since 2023, price increases resulting from pandemic-related inflation and supply chain disruptions have, and are expected to continue to have, a negative impact on our labor, food and consumable costs, including fuel. Lingering inflation from the pandemic has recently been exacerbated by changes to global tariffs and trade policies. We are managing inflation risk with negotiated service scope changes and contractual protections. Although inflation resulting from global tariffs implemented or threatened by the U.S. administration, and the resulting retaliations by its trading partners, did not materially impact our cost structure in 2025 or for the nine months ended September 30, 2026, concerns remain that inflationary pressures could return in the future.
The conflict with Iran and the associated disruptions to oil, LNG and refined products production and shipping in the Middle East have contributed to higher global oil and other refined product prices during 2026. Australia imports the majority of its oil and petroleum products, including gasoline and diesel. As a result, continued disruption to Middle East energy
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production and trade, or a further escalation of the conflict, could materially increase gasoline and diesel prices in Australia, contribute to increased inflation expectations and increase the risk of higher fuel and transportation costs.
Labor Shortages. We continue to experience increased staff costs and workforce availability challenges as a result of persistent hospitality labor shortages in Australia. Australia’s labor market remains tight, with ongoing vacancies and strong competition for workers, particularly across hospitality and other service-intensive sectors. These challenges are being compounded for industries such as ours, which have traditionally supplemented the domestic workforce with temporary visa holders, as Australian Government migration settings place increasing constraints on the ability of certain temporary visa holders to enter Australia, remain in-country and extend their working authorizations. Regulated employment costs also remain elevated, with wage increases and statutory increases in superannuation, workers’ compensation and payroll tax continuing to increase total labor costs. In response, we continue to focus on employee attraction and retention and are exploring alternative workforce sources to improve workforce stability and reduce reliance on contingent and temporary labor.
LNG. Our Sitka Lodge supports the LNG Canada (LNGC) project and related pipeline projects (specifically, the Coastal GasLink (CGL) Pipeline, the pipeline constructed to transport natural gas feedstock to LNGC), as well as Cedar LNG. Phase 1 of the LNGC facility commenced commercial operations in June 2025 and the CGL Pipeline was completed in 2024. On September 28, 2026, the LNGC joint venture participants announced a final investment decision to proceed with Phase 2 of the LNGC project, which is expected to double the facility's LNG production capacity. Construction activity associated with LNGC Phase 2 and the CGL Pipeline expansion is expected to support accommodation demand in the region.
From a macroeconomic standpoint, LNG demand has continued to grow, reinforcing the need for the global LNG industry to expand access to natural gas. Evolving government energy policies around the world and ongoing geopolitical conflicts have reinforced the importance of secure and diversified natural gas supply globally, particularly in Europe and Asia. Accordingly, we expect additional investment in LNG supply will be needed to meet the resulting expected long-term LNG demand growth.
Foreign Currency Exchange Rates. Exchange rates between the U.S. dollar and each of the Australian dollar and the Canadian dollar influence our U.S. dollar reported financial results. Our business has historically derived the vast majority of its revenues and operating income (loss) in Australia and Canada. These revenues and profits/losses are translated into U.S. dollars for financial reporting purposes under U.S. generally accepted accounting principles. The following tables summarize the fluctuations in the exchange rates between the U.S. dollar and each of the Australian dollar and the Canadian dollar:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | Percentage | 2026 | 2025 | Change | Percentage | ||||||||||||||||||||||||||||||||||||||||
| Average Australian dollar to U.S. dollar | $0.707 | $0.654 | $0.053 | 8.0% | $0.704 | $0.641 | $0.063 | 9.9% | |||||||||||||||||||||||||||||||||||||||
| Average Canadian dollar to U.S. dollar | $0.715 | $0.726 | ($0.011) | (1.5)% | $0.722 | $0.715 | $0.007 | 1.0% | |||||||||||||||||||||||||||||||||||||||
| As of | |||||||||||||||||||||||
| September 30, 2026 | December 31, 2025 | Change | Percentage | ||||||||||||||||||||
| Australian dollar to U.S. dollar | $0.698 | $0.667 | $0.031 | 4.6% | |||||||||||||||||||
| Canadian dollar to U.S. dollar | $0.705 | $0.730 | ($0.025) | (3.4)% | |||||||||||||||||||
These fluctuations of the Australian and Canadian dollars have had and will continue to have an impact on the translation of earnings generated from our Australian and Canadian subsidiaries and, therefore, our financial results.
Capital Expenditures. We continue to monitor the global economy, commodity prices, demand for met coal, oil, iron ore and LNG, inflation, trade policy and the resultant impact on the capital spending plans of our customers in order to plan our business activities. We currently expect that our 2026 capital expenditures will be in the range of approximately $30 million to $35 million, compared to 2025 capital expenditures of $20.2 million. We may adjust our capital expenditure plans in the future as we continue to monitor customer activity.
See “Liquidity and Capital Resources” below for further discussion of our 2026 capital expenditures.
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Results of Operations
Unless otherwise indicated, discussion of results for the three and nine months ended September 30, 2026, is based on a comparison to the corresponding period of 2025.
Results of Operations – Three Months Ended September 30, 2026 Compared to Three Months Ended September 30, 2025
| Three Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| ($ in thousands) | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Australia | $ | 129,516 | $ | 124,460 | $ | 5,056 | |||||||||||
| Canada | 63,585 | 46,031 | 17,554 | ||||||||||||||
| Total revenues | 193,101 | 170,491 | 22,610 | ||||||||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of sales and services | |||||||||||||||||
| Australia | 97,595 | 91,024 | 6,571 | ||||||||||||||
| Canada | 49,181 | 35,660 | 13,521 | ||||||||||||||
| Other | 38 | 20 | 18 | ||||||||||||||
| Total cost of sales and services | 146,814 | 126,704 | 20,110 | ||||||||||||||
| Selling, general and administrative expenses | 18,604 | 18,107 | 497 | ||||||||||||||
| Depreciation and amortization expense | 15,714 | 20,012 | (4,298) | ||||||||||||||
| Other operating income | (1,331) | (1,298) | (33) | ||||||||||||||
| Total costs and expenses | 179,801 | 163,525 | 16,276 | ||||||||||||||
| Operating income | 13,300 | 6,966 | 6,334 | ||||||||||||||
| Interest expense, net | (4,232) | (3,394) | (838) | ||||||||||||||
| Other income (expense) | (6) | 10 | (16) | ||||||||||||||
| Income before income taxes | 9,062 | 3,582 | 5,480 | ||||||||||||||
| Income tax expense | (3,879) | (4,038) | 159 | ||||||||||||||
| Net income (loss) | 5,183 | (456) | 5,639 | ||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interest | 4 | (1) | 5 | ||||||||||||||
| Net income (loss) attributable to Civeo Corporation | $ | 5,179 | $ | (455) | $ | 5,634 | |||||||||||
We reported net income attributable to Civeo for the quarter ended September 30, 2026 of $5.2 million or $0.50 per diluted share. Net income included $0.4 million of cost saving initiatives in Australia and corporate related to severance costs.
We reported net loss attributable to Civeo for the quarter ended September 30, 2025 of $0.5 million, or $0.04 per diluted share. Net loss included $0.6 million of shareholder activist related costs and $0.2 million of cost saving initiatives in Canada.
Revenues. Consolidated revenues increased $22.6 million, or 13%, in the third quarter of 2026 compared to the third quarter of 2025. This increase was primarily driven by (i) higher billed rooms at our Canadian lodges up 35% year-over-year, (ii) new integrated services business in Canada and (iii) the impact of a stronger Australian dollar relative to the U.S. dollar in the third quarter of 2026 compared to the third quarter of 2025. These increases were partially offset by reduced occupancy at our Bowen Basin villages in Queensland. See the discussion of segment results of operations below for further information.
Cost of Sales and Services. Our consolidated cost of sales and services increased $20.1 million, or 16%, in the third quarter of 2026 compared to the third quarter of 2025. This increase was primarily driven by (i) higher operating costs associated with increased occupancy levels, higher food and service costs resulting from inflation and increased repairs and maintenance expense in Canada, (ii) new integrated services business in Canada and (iii) the impact of a stronger Australian dollar relative to the U.S. dollar in the third quarter of 2026 compared to the third quarter of 2025. These increases were partially offset by (i) improved efficiencies at certain Canadian lodges resulting from increased occupancy, (ii) lower indirect costs at certain Canadian lodges resulting from cost reduction measures implemented in early 2025 and (iii) reduced activity at our Bowen Basin villages in Queensland. See the discussion of segment results of operations below for further information.
Selling, General and Administrative Expenses. Selling, general and administrative (SG&A) expenses increased $0.5 million in the third quarter of 2026 compared to the third quarter of 2025. This increase was primarily driven by the impact of a
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stronger Australian dollar relative to the U.S. dollar of $0.6 million, higher incentive compensation costs of $0.4 million, higher compensation expense of $0.3 million and higher rent expense of $0.3 million. These increases were partially offset by a $0.7 million decrease in professional fees, including $0.6 million of shareholder activist related costs incurred in the third quarter of 2025 and a $0.4 million decrease in share-based compensation expense.
Depreciation and Amortization Expense. Depreciation and amortization expense decreased $4.3 million, or 21%, in the third quarter of 2026 compared to the third quarter of 2025. The decrease was primarily due to certain assets becoming fully depreciated in Canada and Australia. This decrease was partially offset by a stronger Australian dollar relative to the U.S. dollar in the third quarter of 2026 compared to the third quarter of 2025.
Operating Income. Consolidated operating income increased $6.3 million, or 91%, in the third quarter of 2026 compared to the third quarter of 2025, primarily driven by higher activity levels in Canada and lower depreciation and amortization expenses in the third quarter of 2026 compared to the third quarter of 2025.
Interest Expense, net. Net interest expense increased by $0.8 million, or 25%, in the third quarter of 2026 compared to the third quarter of 2025, primarily due to higher average debt levels resulting from increased share repurchases and higher interest rates on Australian credit facility borrowings. These increases were partially offset by lower interest rates associated with the 4.50% convertible senior notes due 2031 (Convertible Notes).
Income Tax Expense. Our income tax expense for the three months ended September 30, 2026 totaled $3.9 million, or 42.8% of pretax income, compared to an income tax expense of $4.0 million, or 112.7% of pretax income, for the three months ended September 30, 2025. Our effective tax rate for the three months ended September 30, 2026 and 2025 was impacted by Canada and the U.S. being considered loss jurisdictions that were removed from the annual effective tax rate computation for purposes of computing the interim tax provision.
Other Comprehensive Income (Loss). Other comprehensive income increased $2.6 million in the third quarter of 2026 compared to the third quarter of 2025, primarily as a result of foreign currency translation adjustments due to changes in the Australian and Canadian dollar exchange rates compared to the U.S. dollar. The Australian dollar exchange rate compared to the U.S. dollar increased 1.1% in the third quarter of 2026 compared to a 4% increase in the third quarter of 2025. The Canadian dollar exchange rate compared to the U.S. dollar increased 0.2% in the third quarter of 2026 compared to a 2% decrease in the third quarter of 2025.
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Segment Results of Operations – Australian Segment
| Three Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Revenues ($ in thousands) | |||||||||||||||||
Accommodation and associated services revenue (1) | $ | 56,463 | $ | 58,405 | $ | (1,942) | |||||||||||
Integrated services and other services revenue (2) | 73,053 | 66,055 | 6,998 | ||||||||||||||
| Total revenues | $ | 129,516 | $ | 124,460 | $ | 5,056 | |||||||||||
| Cost of sales and services ($ in thousands) | |||||||||||||||||
| Accommodation and associated services cost | $ | 28,401 | $ | 27,779 | $ | 622 | |||||||||||
| Integrated services and other services cost | 65,101 | 59,469 | 5,632 | ||||||||||||||
| Indirect other cost | 4,093 | 3,776 | 317 | ||||||||||||||
| Total cost of sales and services | $ | 97,595 | $ | 91,024 | $ | 6,571 | |||||||||||
| Gross margin as a % of revenues | 24.6 | % | 26.9 | % | (2.2) | % | |||||||||||
Average daily rate for owned villages (3) | $ | 84 | $ | 77 | $ | 7 | |||||||||||
Total billed rooms for owned villages (4) | 668,855 | 762,974 | (94,119) | ||||||||||||||
| Average Australian dollar to U.S. dollar | $ | 0.707 | $ | 0.654 | $ | 0.053 | |||||||||||
(1)Includes revenues related to village rooms and hospitality services for owned rooms for the periods presented.
(2)Includes revenues related to food services and other services, including facilities management for the periods presented.
(3)Average daily rate is based on billed rooms and accommodation revenue in our owned villages.
(4)Billed rooms represent total billed days for owned assets for the periods presented.
Our Australian segment reported revenues in the third quarter of 2026 that were $5.1 million, or 4%, higher than the third quarter of 2025. The strengthening of the average exchange rate for the Australian dollar relative to the U.S. dollar by 8.0% in the third quarter of 2026 compared to the third quarter of 2025 resulted in a $9.6 million period-over-period increase in revenues. On a constant currency basis, the Australian segment experienced a 3.7% period-over-period decrease in revenues. Excluding the impact of foreign currency translation, the decrease was driven by reduced occupancy at our Bowen Basin villages in Queensland.
Our Australian segment cost of sales and services increased $6.6 million, or 7%, in the third quarter of 2026 compared to the third quarter of 2025. The strengthening of the average exchange rate for the Australian dollar relative to the U.S. dollar by 8.0% in the third quarter of 2026 compared to the third quarter of 2025 resulted in a $7.3 million period-over-period increase in cost of sales and services. Excluding the impact of foreign currency translation, the decrease in cost of sales and services was largely driven by reduced activity at our Bowen Basin villages in Queensland.
Our Australian segment gross margin as a percentage of revenues decreased to 24.6% in the third quarter of 2026 from 26.9% in the third quarter of 2025. This was primarily driven by reduced activity at our Bowen Basin villages in Queensland, reduced retail sales across our integrated services business and increased operating costs arising from the ongoing industry-wide shortages of skilled labor. The reduced segment gross margin was also due to higher relative revenue contribution from our integrated services business, which has a service-only business model and generates lower overall gross margins than our accommodation business.
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Segment Results of Operations – Canadian Segment
| Three Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Revenues ($ in thousands) | |||||||||||||||||
Accommodation and associated services revenue (1) | $ | 50,599 | $ | 38,684 | $ | 11,915 | |||||||||||
Mobile facility rental and associated services revenue (2) | 1,195 | 393 | 802 | ||||||||||||||
Integrated services and other services revenue (3) | 11,791 | 6,954 | 4,837 | ||||||||||||||
| Total revenues | $ | 63,585 | $ | 46,031 | $ | 17,554 | |||||||||||
| Cost of sales and services ($ in thousands) | |||||||||||||||||
| Accommodation and associated services cost | $ | 34,338 | $ | 27,107 | $ | 7,231 | |||||||||||
| Mobile facility rental and associated services cost | 1,063 | 36 | 1,027 | ||||||||||||||
| Integrated services and other services cost | 11,889 | 6,547 | 5,342 | ||||||||||||||
| Indirect other costs | 1,891 | 1,970 | (79) | ||||||||||||||
| Total cost of sales and services | $ | 49,181 | $ | 35,660 | $ | 13,521 | |||||||||||
| Gross margin as a % of revenues | 22.7 | % | 22.5 | % | 0.1 | % | |||||||||||
Average daily rate for owned lodges (4) | $ | 97 | $ | 100 | $ | (3) | |||||||||||
Total billed rooms for owned lodges (5) | 516,317 | 382,660 | 133,657 | ||||||||||||||
| Average Canadian dollar to U.S. dollar | $ | 0.715 | $ | 0.726 | $ | (0.011) | |||||||||||
(1)Includes revenues related to lodge rooms and hospitality services for owned rooms for the periods presented.
(2)Includes revenues related to mobile assets for the periods presented.
(3)Includes revenues related to food services, laundry and water and wastewater treatment services for the periods presented.
(4)Average daily rate is based on billed rooms and accommodation revenue in our owned lodges.
(5)Billed rooms represents total billed days for owned assets for the periods presented.
Our Canadian segment reported revenues in the third quarter of 2026 that were $17.6 million, or 38%, higher than the third quarter of 2025. The increase in the Canadian segment was driven by a 35% year-over-year increase in billed rooms at our lodges and the commencement of a new integrated services contract in Ontario in the second quarter of 2026. Producers in the region remain focused on reducing operating costs while also prioritizing maintaining and increasing oil production, resulting in additional personnel at site.
Our Canadian segment cost of sales and services increased $13.5 million, or 38%, in the third quarter of 2026 compared to the third quarter of 2025. The increase was primarily driven by higher operating costs at various lodges due to increased occupancy levels, higher food and service costs resulting from inflation, increased repairs and maintenance expense and startup costs associated with the new integrated services contract. These increases were partially offset by improved efficiencies at certain lodges from increased occupancy and lower indirect costs resulting from cost reduction measures implemented in early 2025.
Our Canadian segment gross margin as a percentage of revenues increased from 22.5% in the third quarter of 2025 to 22.7% in the third quarter of 2026. This was primarily driven by efficiencies while operating with increased occupancy levels, partially offset by increased startup costs associated with a new integrated services contract, higher inflation and increased repairs and maintenance expense.
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Results of Operations – Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025
| Nine Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| ($ in thousands) | |||||||||||||||||
| Revenues: | |||||||||||||||||
| Australia | $ | 377,980 | $ | 340,778 | $ | 37,202 | |||||||||||
| Canada | 167,805 | 136,451 | 31,354 | ||||||||||||||
| Total revenues | 545,785 | 477,229 | 68,556 | ||||||||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of sales and services | |||||||||||||||||
| Australia | 284,177 | 250,221 | 33,956 | ||||||||||||||
| Canada | 133,466 | 112,342 | 21,124 | ||||||||||||||
| Other | 288 | 287 | 1 | ||||||||||||||
| Total cost of sales and services | 417,931 | 362,850 | 55,081 | ||||||||||||||
| Selling, general and administrative expenses | 59,078 | 56,762 | 2,316 | ||||||||||||||
| Depreciation and amortization expense | 49,349 | 54,092 | (4,743) | ||||||||||||||
| Other operating income | (2,088) | (725) | (1,363) | ||||||||||||||
| Total costs and expenses | 524,270 | 472,979 | 51,291 | ||||||||||||||
| Operating income | 21,515 | 4,250 | 17,265 | ||||||||||||||
| Interest expense, net | (12,160) | (7,611) | (4,549) | ||||||||||||||
| Other income | 53 | 476 | (423) | ||||||||||||||
| Income (loss) before income taxes | 9,408 | (2,885) | 12,293 | ||||||||||||||
| Income tax expense | (10,545) | (10,732) | 187 | ||||||||||||||
| Net loss | (1,137) | (13,617) | 12,480 | ||||||||||||||
| Less: Net income (loss) attributable to noncontrolling interest | 13 | (6) | 19 | ||||||||||||||
| Net loss attributable to Civeo Corporation | $ | (1,150) | $ | (13,611) | $ | 12,461 | |||||||||||
We reported net loss attributable to Civeo for the nine months ended September 30, 2026 of $1.2 million, or $0.11 per diluted share. Net loss included $1.5 million related to the resolution of a sales and occupancy tax matter, $1.4 million in severance, $0.6 million related to real estate rationalization efforts in Canada and $0.5 million of shareholder activist related costs.
We reported net loss attributable to Civeo for the nine months ended September 30, 2025 of $13.6 million, or $1.04 per diluted share. Net loss included $3.8 million of shareholder activist related costs and $1.7 million of cost saving initiatives in Canada related to severance, two lodge closures and other real estate rationalization efforts.
Revenues. Consolidated revenues increased $68.6 million, or 14%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. This increase was primarily driven by (i) new integrated services business in Queensland, Western Australia and Canada, (ii) contributions in Australia from the Qantac Acquisition completed in the second quarter of 2025, (iii) higher billed rooms at our owned lodges in Canada and (iv) the impact of a stronger Australian and Canadian dollar relative to the U.S. dollar in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. These increases were partially offset by reduced occupancy at our legacy Bowen Basin villages in Queensland. See the discussion of segment results of operations below for further information.
Cost of Sales and Services. Our consolidated cost of sales and services increased $55.1 million, or 15%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. This increase was primarily driven by (i) new integrated services business in Queensland, Western Australia and Canada, including the associated overhead costs, (ii) incremental costs in Australia associated with the Qantac Acquisition in the second quarter of 2025, (iii) higher operating costs resulting from increased occupancy levels, higher food and service costs due to inflation and increased repairs and maintenance expense in Canada and (iv) the impact of a stronger Australian and Canadian dollar relative to the U.S. dollar in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. These items were partially offset by improved efficiencies and lower costs at certain Canadian lodges and reduced indirect costs resulting from cost reduction measures implemented in early 2025. See the discussion of segment results of operations below for further information.
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Selling, General and Administrative Expenses. SG&A expenses increased $2.3 million, or 4%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. This increase was primarily driven by the impact of a stronger Australian dollar relative to the U.S. dollar of $2.4 million, $1.5 million related to the resolution of a sales and occupancy tax matter, higher compensation expense of $1.5 million, primarily due to severance costs incurred in Canada, a $0.8 million write-off of accounts receivable in Australia resulting from a customer insolvency and higher incentive compensation costs of $0.8 million. These increases were partially offset by a $4.4 million decrease in professional fees, including $3.8 million of shareholder activist related costs incurred in the nine months ended September 30, 2025.
Depreciation and Amortization Expense. Depreciation and amortization expense decreased $4.7 million, or 9%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The decrease was primarily due to certain assets becoming fully depreciated in Canada and Australia. This decrease was partially offset by additional depreciation on property, plant and equipment acquired in the Qantac Acquisition and a stronger Australian and Canadian dollar relative to the U.S. dollar in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Operating Income. Consolidated operating income increased $17.3 million, or 406%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily driven by higher activity levels in Canada and gross margin expansion in Canada resulting from cost cutting measures previously implemented, the Qantac Acquisition in Australia and lower depreciation and amortization expenses.
Interest Expense, net. Net interest expense increased by $4.5 million, or 60%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily related to higher average debt levels, as a result of the Qantac Acquisition and increased share repurchases and higher interest rates on Australian credit facility borrowings. These increases were partially offset by lower interest rates associated with the Convertible Notes.
Income Tax Expense. Our income tax expense for the nine months ended September 30, 2026 totaled $10.5 million, or 112.1% of pretax income, compared to an income tax expense of $10.7 million or (372.0)% of pretax loss, for the nine months ended September 30, 2025. Our effective tax rate for the nine months ended September 30, 2026 and 2025 was impacted by Canada and the U.S. being considered loss jurisdictions that were removed from the annual effective tax rate computation for purposes of computing the interim tax provision.
Other Comprehensive Income (Loss). Other comprehensive income decreased $4.0 million in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025, primarily as a result of foreign currency translation adjustments due to changes in the Australian and Canadian dollar exchange rates compared to the U.S. dollar. The Australian dollar exchange rate compared to the U.S. dollar increased 5% in the nine months ended September 30, 2026 compared to a 6% increase in the nine months ended September 30, 2025. The Canadian dollar exchange rate compared to the U.S. dollar decreased 3% in the nine months ended September 30, 2026 compared to a 3% increase in the nine months ended September 30, 2025.
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Segment Results of Operations – Australian Segment
| Nine Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Revenues ($ in thousands) | |||||||||||||||||
Accommodation and associated services revenue (1) | $ | 169,642 | $ | 157,910 | $ | 11,732 | |||||||||||
Integrated services and other services revenue (2) | 208,338 | 182,868 | 25,470 | ||||||||||||||
| Total revenues | $ | 377,980 | $ | 340,778 | $ | 37,202 | |||||||||||
| Cost of sales and services ($ in thousands) | |||||||||||||||||
| Accommodation and associated services cost | $ | 85,391 | $ | 76,740 | $ | 8,651 | |||||||||||
| Integrated services and other services cost | 186,646 | 163,283 | 23,363 | ||||||||||||||
| Indirect other cost | 12,140 | 10,198 | 1,942 | ||||||||||||||
| Total cost of sales and services | $ | 284,177 | $ | 250,221 | $ | 33,956 | |||||||||||
| Gross margin as a % of revenues | 24.8 | % | 26.6 | % | (1.8) | % | |||||||||||
Average daily rate for owned villages (3) | $ | 84 | $ | 76 | $ | 8 | |||||||||||
Total billed rooms for owned villages (4) | 2,018,863 | 2,079,116 | (60,253) | ||||||||||||||
| Average Australian dollar to U.S. dollar | $ | 0.704 | $ | 0.641 | $ | 0.063 | |||||||||||
(1)Includes revenues related to village rooms and hospitality services for owned rooms for the periods presented.
(2)Includes revenues related to food services and other services, including facilities management for the periods presented.
(3)Average daily rate is based on billed rooms and accommodation revenue in our owned villages.
(4)Billed rooms represent total billed days for owned assets for the periods presented.
Our Australian segment reported revenues in the nine months ended September 30, 2026 that were $37.2 million, or 11%, higher than the nine months ended September 30, 2025. The strengthening of the average exchange rate for the Australian dollar relative to the U.S. dollar by 9.9% in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 resulted in a $33.9 million period-over-period increase in revenues. On a constant currency basis, the Australian segment experienced a 1.1% period-over-period increase in revenues. Excluding the impact of foreign currency translation, the increase was driven by the new integrated services business in Queensland and Western Australia and the Qantac Acquisition in the second quarter of 2025. These items were partially offset by reduced occupancy at our legacy Bowen Basin villages in Queensland.
Our Australian segment cost of sales and services increased $34.0 million, or 14%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The strengthening of the average exchange rate for the Australian dollar relative to the U.S. dollar by 9.9% in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025 resulted in a $25.5 million period-over-period increase in cost of sales and services. Excluding the impact of foreign currency translation, the increase in cost of sales and services was primarily driven by the Qantac Acquisition and new integrated services business in Queensland and Western Australia, including the associated overhead costs.
Our Australian segment gross margin as a percentage of revenues decreased to 24.8% in the nine months ended September 30, 2026 from 26.6% in the nine months ended September 30, 2025. This was primarily driven by reduced activity at our Bowen Basin villages in Queensland, lower retail sales across our integrated services business and higher operating costs arising from the ongoing industry-wide shortages of skilled labor. The reduced segment gross margin was also due to higher relative revenue contribution from our integrated services business, which has a service-only business model and generates lower overall gross margins than our accommodation business.
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Segment Results of Operations – Canadian Segment
| Nine Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Revenues ($ in thousands) | |||||||||||||||||
Accommodation and associated services revenue (1) | $ | 137,815 | $ | 114,710 | $ | 23,105 | |||||||||||
Mobile facility rental and associated services revenue (2) | 2,600 | 1,046 | 1,554 | ||||||||||||||
Integrated services and other services revenue (3) | 27,390 | 20,695 | 6,695 | ||||||||||||||
| Total revenues | $ | 167,805 | $ | 136,451 | $ | 31,354 | |||||||||||
| Cost of sales and services ($ in thousands) | |||||||||||||||||
| Accommodation and associated services cost | $ | 97,878 | $ | 86,590 | $ | 11,288 | |||||||||||
| Mobile facility rental and associated services cost | 2,090 | 171 | 1,919 | ||||||||||||||
| Integrated services and other services cost | 27,544 | 19,257 | 8,287 | ||||||||||||||
| Indirect other costs | 5,954 | 6,324 | (370) | ||||||||||||||
| Total cost of sales and services | $ | 133,466 | $ | 112,342 | $ | 21,124 | |||||||||||
| Gross margin as a % of revenues | 20.5 | % | 17.7 | % | 2.8 | % | |||||||||||
Average daily rate for owned lodges (4) | $ | 97 | $ | 96 | $ | 1 | |||||||||||
Total billed rooms for owned lodges (5) | 1,407,927 | 1,191,327 | 216,600 | ||||||||||||||
| Average Canadian dollar to U.S. dollar | $ | 0.722 | $ | 0.715 | $ | 0.007 | |||||||||||
(1)Includes revenues related to lodge rooms and hospitality services for owned rooms for the periods presented.
(2)Includes revenues related to mobile assets for the periods presented.
(3)Includes revenues related to food services, laundry and water and wastewater treatment services for the periods presented.
(4)Average daily rate is based on billed rooms and accommodation revenue in our owned lodges.
(5)Billed rooms represents total billed days for owned assets for the periods presented.
Our Canadian segment reported revenues in the nine months ended September 30, 2026 that were $31.4 million, or 23%, higher than the nine months ended September 30, 2025. The increase was driven by an 18% year-over-year increase in billed rooms at our owned lodges and the commencement of a new integrated services contract in Ontario, which began in the second quarter of 2026. Producers in the region remain focused on reducing operating costs while prioritizing maintaining and increasing oil production, resulting in additional personnel at site.
Our Canadian segment cost of sales and services increased $21.1 million, or 19%, in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The increase in cost of sales and services was largely driven by higher operating costs at various lodges due to increased occupancy levels, higher food and service costs resulting from inflation, increased repairs and maintenance expense and higher costs associated with the new integrated services contract. These increases were partially offset by improved efficiencies and lower costs at certain lodges, as well as reduced indirect costs resulting from cost reduction measures implemented in early 2025.
Our Canadian segment gross margin as a percentage of revenues increased from 17.7% in the nine months ended September 30, 2025 to 20.5% in the nine months ended September 30, 2026. This was primarily driven by efficiencies while operating with increased occupancy levels, as well as higher margins as a result of various cost reduction measures implemented in early 2025, partially offset by startup costs associated with the new integrated services contract.
Liquidity and Capital Resources
Our primary liquidity needs are to fund capital expenditures, which in the past have included expanding and improving our hospitality services, developing new lodges and villages and purchasing or leasing land, to repurchase common shares, to pay dividends and for general working capital needs. In addition, capital has been used to repay debt and fund strategic business acquisitions. Historically, our primary sources of funds have been available cash, cash flow from operations, borrowings under our Amended Credit Agreement and proceeds from debt and equity issuances. In the future, we may seek to access the debt and equity capital markets from time to time to raise additional capital, increase liquidity, fund acquisitions or refinance debt.
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The following table summarizes our consolidated liquidity position as of September 30, 2026 and December 31, 2025 (in thousands):
| September 30, 2026 | December 31, 2025 | ||||||||||
| Lender commitments | $ | 285,000 | $ | 265,000 | |||||||
Reduction in availability (1) | (54,730) | (5,344) | |||||||||
| Borrowings against revolving credit capacity | (102,530) | (182,842) | |||||||||
| Outstanding letters of credit | (836) | (866) | |||||||||
| Unused availability under the Amended Credit Agreement | $ | 126,904 | $ | 75,948 | |||||||
(1)As of September 30, 2026 and December 31, 2025, $54.7 million and $5.3 million, respectively, of our borrowing capacity under the Amended Credit Agreement could not be utilized in order to maintain compliance with the applicable leverage ratio financial covenants. Following the issuance of the Convertible Notes in July 2026, we are subject to a maximum total net leverage ratio of 3.50 to 1.00 and a maximum senior secured net leverage ratio of 2.50 to 1.00. At September 30, 2026, the total net leverage ratio covenant was the more restrictive limitation on borrowing availability.
At September 30, 2026 and December 31, 2025, we also held cash and cash equivalents of $24.3 million and $14.4 million, respectively. Borrowing availability under the Amended Credit Agreement reflects the deduction of qualifying unrestricted cash in calculating our leverage ratios, subject to the agreement’s limitations. Accordingly, the use of such cash may reduce borrowing availability.
Cash totaling $28.3 million was provided by operations during the nine months ended September 30, 2026, compared to $3.1 million during the nine months ended September 30, 2025. Net cash used in working capital was $20.0 million during the nine months ended September 30, 2026 compared to net cash used in working capital of $36.4 million during the nine months ended September 30, 2025. The year-over-year decrease in cash used in working capital in 2026 compared to 2025 is largely due to lower cash taxes paid in Australia and increases in accounts payable and accrued liabilities in Canada, partially offset by increases in accounts receivable in Canada.
Cash was used in investing activities during the nine months ended September 30, 2026 in the amount of $10.6 million, compared to cash used in investing activities during the nine months ended September 30, 2025 in the amount of $85.9 million. The decrease was primarily due to the Qantac Acquisition completed during 2025. We received net proceeds from the sale of property, plant and equipment of $2.6 million during the nine months ended September 30, 2026 compared to $1.4 million during the nine months ended September 30, 2025. Capital expenditures totaled $13.2 million and $15.4 million during the nine months ended September 30, 2026 and 2025, respectively. Capital expenditures in both periods were primarily related to maintenance.
We expect our capital expenditures for 2026 to be in the range of $30 million to $35 million, which excludes any unannounced and uncommitted projects, the spending for which is contingent on obtaining customer contracts or commitments or attractive risk-adjusted economics. Whether planned expenditures will actually be spent in 2026 depends on industry conditions, project approvals and schedules, customer room commitments and project and construction timing. We expect to fund these capital expenditures with available cash, cash flow from operations and revolving credit borrowings under our Amended Credit Agreement. The foregoing capital expenditure forecast does not include any funds for strategic acquisitions, which we could pursue should the transaction economics be attractive enough to us compared to the current capital allocation priorities of returning capital to shareholders. We continue to monitor the global economy, commodity prices, demand for met coal, crude oil, LNG and iron ore, inflation and the resultant impact on the capital spending plans of our customers in order to plan our business activities, and we may adjust our capital expenditure plans in the future.
Net cash of $7.6 million was used in financing activities during the nine months ended September 30, 2026 primarily due to net repayments under our revolving credit facilities of $77.4 million, repurchases of our common shares of $36.6 million, debt issuance costs of $8.2 million and payments to settle tax obligations on vested shares under our share-based compensation plans of $0.3 million, partially offset by borrowings of $115.0 million due to the issuance of the Convertible Notes. Net cash of $87.6 million was provided by financing activities during the nine months ended September 30, 2025 primarily due to net borrowings under our revolving credit facilities of $140.8 million primarily to fund the Qantac Acquisition and share repurchases, partially offset by repurchases of our common shares of $48.7 million, dividend payments of $3.4 million, payments to settle tax obligations on vested shares under our share-based compensation plans of $0.6 million and debt issuance costs of $0.4 million.
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The following table summarizes the changes in debt outstanding during the nine months ended September 30, 2026 (in thousands):
| Balance at December 31, 2025 | $ | 182,842 | |||||||||||||||||||||
| Borrowings under revolving credit facilities | 505,005 | ||||||||||||||||||||||
| Repayments of borrowings under revolving credit facilities | (582,396) | ||||||||||||||||||||||
| Borrowings under the Convertible Notes | 115,000 | ||||||||||||||||||||||
| Translation | (2,921) | ||||||||||||||||||||||
| Balance at September 30, 2026 | $ | 217,530 | |||||||||||||||||||||
We believe that cash on hand and cash flow from operations will be sufficient to meet our anticipated liquidity needs for the next 12 months. If our plans or assumptions change, including as a result of changes in our customers' capital spending or changes in the price of and demand for natural resources, or are inaccurate, or if we make acquisitions, we may need to raise additional capital. Selectively pursuing strategic organic and inorganic growth opportunities that fit with our current capital allocation priorities of returning capital to shareholders has been, and our management believes will continue to be, an element of our long-term business strategy. The timing, size or success of any growth opportunities and the associated potential capital commitments are unpredictable and uncertain. We may seek to fund all or part of any such efforts with proceeds from debt and/or equity issuances or may issue equity directly to the sellers. Our ability to obtain capital for additional projects to implement our growth strategy over the longer term will depend on our future operating performance, financial condition and, more broadly, on the availability of equity and debt financing. Capital availability will be affected by prevailing conditions in our industry, the global economy, the global financial markets and other factors, many of which are beyond our control. In addition, any additional debt service requirements we take on could be based on higher interest rates and shorter maturities and could impose a significant burden on our results of operations and financial condition, and the issuance of additional equity securities could result in significant dilution to shareholders.
In March 2025, our Board authorized a common share repurchase program (the Share Repurchase Program) to repurchase up to 10.0% of our total common shares which were issued and outstanding at that date, or approximately 1.4 million common shares over a twelve-month period. In April 2025, our Board authorized an increase to the Share Repurchase Program to repurchase up to 20.0% of our total common shares which are issued and outstanding at that date, or approximately 2.7 million common shares. In March 2026, our Board authorized an additional repurchase authorization of up to 10.0% of our common shares outstanding upon completion of the April 2025 authorization. The Share Repurchase Program (including the additional authorizations in April 2025 and March 2026) does not expire. See Note 11 – Share Repurchase Programs to the notes to the unaudited consolidated financial statements included in Item 1 of this quarterly report for further discussion.
Amended Credit Agreement
On April 23, 2026, our Syndicated Facility Agreement was amended and restated (as amended and restated from time to time, the Amended Credit Agreement) to, among other things: (i) provide for an increase by $20.0 million of the aggregate revolving loan commitments under the Amended Credit Agreement, to an aggregate maximum principal amount of $285.0 million; (ii) extend the maturity from August 8, 2028 to April 23, 2030; and (iii) provide for other technical changes and amendments to the Amended Credit Agreement.
As of September 30, 2026, the Amended Credit Agreement provided for a $285.0 million revolving credit facility scheduled to mature on April 23, 2030, allocated as follows: (A) a $10.0 million senior secured revolving credit facility in favor of certain of our U.S. subsidiaries, as borrowers (the U.S. facility); (B) a $205.0 million senior secured revolving credit facility in favor of Civeo, as borrower (the Canadian facility); and (C) a $70.0 million senior secured revolving credit facility in favor of one of our Australian subsidiaries, as borrower (the Australian facility).
As of September 30, 2026, we had outstanding letters of credit of zero under the U.S. facility, zero under the Australian facility and $0.8 million under the Canadian facility. We also had outstanding bank guarantees of A$1.2 million under the Australian facility.
See Note 7 – Debt to the notes to the unaudited consolidated financial statements included in Item 1 of this quarterly report for further discussion.
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4.50% Convertible Senior Notes
In July 2026, we strengthened our liquidity through the issuance of $115.0 million aggregate principal amount of the Convertible Notes in a private placement, including the full exercise of the initial purchasers’ option to purchase an additional $15.0 million aggregate principal amount of the Convertible Notes. We received approximately $110.8 million in net proceeds, of which approximately $22.3 million was used to repurchase 660,297 of our common shares. We used the remainder of the net proceeds from the offering to repay outstanding borrowings under our Amended Credit Agreement. The Convertible Notes bear interest at a rate of 4.50% per annum, payable semi-annually in arrears on February 1 and August 1 of each year, beginning on February 1, 2027. The Convertible Notes will mature on August 1, 2031, unless earlier repurchased or redeemed by us or converted pursuant to their terms. See Note 7 – Debt to the notes to the unaudited consolidated financial statements included in Item 1 of this quarterly report for further discussion.
Dividends
In April 2025, our Board suspended quarterly dividends on our common shares to prioritize returning capital to our shareholders through ongoing share repurchases. The declaration and amount of any potential future dividends will be at the discretion of our Board and will depend upon many factors, including our financial condition, results of operations, cash flows, prospects, industry conditions, capital requirements of our business, covenants associated with certain debt obligations, legal requirements, regulatory constraints, industry practice and other factors the Board deems relevant. In addition, our ability to pay cash dividends on common shares is limited by covenants in the Amended Credit Agreement. Future agreements may also limit our ability to pay dividends, and we may incur incremental taxes if we are required to repatriate foreign earnings to pay such dividends. If any dividends are declared in the future, the amount per share of our dividend payments may be changed, or dividends may again be suspended, without advance notice. The likelihood that dividends will be reduced or suspended is increased during periods of market weakness. There can be no assurance that we will pay any dividends in the future.
Critical Accounting Policies
For a discussion of the critical accounting policies and estimates that we use in the preparation of our consolidated financial statements, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025. These estimates require significant judgments, assumptions and estimates. We have discussed the development, selection and disclosure of these critical accounting policies and estimates with the audit committee of our Board. There have been no material changes to the judgments, assumptions and estimates upon which our critical accounting estimates are based.
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ITEM 3. Quantitative and Qualitative Disclosures about Market Risk
Our principal market risks are our exposure to changes in interest rates and foreign currency exchange rates.
Interest Rate Risk
We have credit facilities that are subject to the risk of higher interest charges associated with increases in interest rates. As of September 30, 2026, we had $102.5 million of outstanding floating-rate obligations under our credit facilities. These floating-rate obligations expose us to the risk of increased interest expense in the event of increases in short-term interest rates. If floating interest rates increased by 100 basis points, our consolidated interest expense would increase by approximately $1.0 million annually, based on our floating-rate debt obligations and interest rates in effect as of September 30, 2026.
Foreign Currency Exchange Rate Risk
Our operations are conducted in various countries around the world, and we receive revenue and pay expenses from these operations in a number of different currencies. As such, our earnings are subject to movements in foreign currency exchange rates when transactions are denominated in currencies other than the U.S. dollar, which is our reporting currency, or the functional currency of our subsidiaries, which is not necessarily the U.S. dollar. Excluding intercompany balances, our Australian dollar functional currency net assets totaled approximately A$245 million and our Canadian dollar functional currency net liabilities totaled approximately C$57 million at September 30, 2026. We use a sensitivity analysis model to measure the impact of a 10% adverse movement of foreign currency exchange rates against the U.S. dollar. A hypothetical 10% adverse change in the value of the Australian dollar and Canadian dollar relative to the U.S. dollar as of September 30, 2026 would result in translation adjustments of approximately $24 million and $6 million, respectively, recorded in other comprehensive loss. Although we do not currently have any foreign exchange agreements outstanding, to reduce our exposure to fluctuations in currency exchange rates, we may enter into foreign exchange agreements with financial institutions in the future.
ITEM 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2026, at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
During the three months ended September 30, 2026, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) which have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II -- OTHER INFORMATION
ITEM 1. Legal Proceedings
We are a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning our commercial operations, products, employees and other matters, including occasional claims by individuals alleging exposure to hazardous materials as a result of our products or operations. Some of these claims relate to matters occurring prior to our acquisition of businesses, and some relate to businesses we have sold. In certain cases, we are entitled to indemnification from the sellers of businesses, and in other cases, we have indemnified the buyers of businesses from us. Although we can give no assurance about the outcome of pending legal and administrative proceedings and the effect such outcomes may have on us, we believe that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by indemnity or insurance, will not have a material adverse effect on our consolidated financial position, results of operations or liquidity.
ITEM 1A. Risk Factors
In addition to information set forth in this Quarterly Report on Form 10-Q, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations", you should carefully read and consider “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025, which contains descriptions of significant factors that may cause our future operating results to differ materially from those currently expected.
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table provides information about purchases of our common shares during the three months ended September 30, 2026.
| Total Number of Shares Purchased | Average Price Paid per Share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number of shares that may be purchased under the plans or programs | ||||||||||||||||||||
| July 1, 2026 - July 31, 2026 | 660,297 | (1) (2) | $ | 33.76 | 660,297 | 473,307 | (2) | ||||||||||||||||
| August 1, 2026 - August 31, 2026 | — | $ | — | — | 473,307 | ||||||||||||||||||
| September 1, 2026 - September 30, 2026 | — | $ | — | — | 473,307 | ||||||||||||||||||
| Total | 660,297 | $ | 33.76 | 660,297 | 473,307 | ||||||||||||||||||
(1)In March 2025, our Board authorized the repurchase of up to 10.0% of our total common shares which are issued and outstanding at that date, or approximately 1.4 million common shares (the 2025 Share Repurchase Program). In April 2025, our Board authorized a further increase to the 2025 Share Repurchase Program to repurchase up to 20.0% of our total common shares which are issued and outstanding at that date, or approximately 2.7 million common shares. We repurchased an aggregate of 111,020 of our common shares outstanding for approximately $3.7 million under the 2025 Share Repurchase Program during the three months ended September 30, 2026.
(2)In March 2026, our Board authorized the repurchase of up to 10.0% of our total common shares which are issued and outstanding at that date, or approximately 1.0 million common shares (the 2026 Share Repurchase Program) upon completion of the 2025 Share Repurchase Program. Under the 2026 Share Repurchase Program, we may repurchase shares through a variety of methods, including but not limited to open market repurchases, pursuant to a Rule 10b5‑1 compliant plan, or privately negotiated transactions. We repurchased an aggregate of 549,277 of our common shares outstanding for approximately $18.5 million under the 2026 Share Repurchase Program during the three months ended September 30, 2026.
ITEM 5. Other Information
39
ITEM 6. Exhibits
(a)INDEX OF EXHIBITS
| Exhibit No. | Description | |||||||||||||
| 4.1 | ||||||||||||||
| 4.2 | ||||||||||||||
| 31.1* | — | |||||||||||||
| 31.2* | — | |||||||||||||
| 32.1** | — | |||||||||||||
| 32.2** | — | |||||||||||||
| 101.INS* | — | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||||||||||
| 101.SCH* | — | Inline XBRL Taxonomy Extension Schema Document | ||||||||||||
| 101.CAL* | — | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||||||
| 101.DEF* | — | Inline Taxonomy Extension Definition Linkbase Document | ||||||||||||
| 101.LAB* | — | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||||||||||
| 101.PRE* | — | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||||||
| 104 | — | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | ||||||||||||
| * | Filed herewith. | |||||||
| ** | Furnished herewith. | |||||||
PLEASE NOTE: Pursuant to the rules and regulations of the Securities and Exchange Commission, we have filed or incorporated by reference the agreements referenced above as exhibits to this Quarterly Report on Form 10-Q. The agreements have been filed to provide investors with information regarding their respective terms. The agreements are not intended to provide any other factual information about Civeo or its business or operations. In particular, the assertions embodied in any representations, warranties and covenants contained in the agreements may be subject to qualifications with respect to knowledge and materiality different from those applicable to investors and may be qualified by information in confidential disclosure schedules not included with the exhibits. These disclosure schedules may contain information that modifies, qualifies and creates exceptions to the representations, warranties and covenants set forth in the agreements. Moreover, certain representations, warranties and covenants in the agreements may have been used for the purpose of allocating risk between the parties, rather than establishing matters as facts. In addition, information concerning the subject matter of the representations, warranties and covenants may have changed after the date of the respective agreement, which subsequent information may or may not be fully reflected in our public disclosures. Accordingly, investors should not rely on the representations, warranties
40
and covenants in the agreements as characterizations of the actual state of facts about Civeo or its business or operations on the date hereof.
41
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
CIVEO CORPORATION
| Date: October 30, 2026 | By /s/ E. Collin Gerry | ||||
| E. Collin Gerry | |||||
| Senior Vice President, Chief Financial Officer and Treasurer (Duly Authorized Officer and Principal Financial Officer) | |||||
42
EXHIBIT 31.1
CERTIFICATION OF
CHIEF EXECUTIVE OFFICER
OF CIVEO CORPORATION
PURSUANT TO RULE 13a–14(a) UNDER THE
SECURITIES EXCHANGE ACT OF 1934
I, Bradley J. Dodson, certify that:
| 1 | I have reviewed this Quarterly Report on Form 10-Q of Civeo Corporation (Registrant); | |||||||
| 2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||
| 3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; | |||||||
| 4 | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: | |||||||
| a | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
| b | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
| c | evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
| d | disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and | |||||||
| 5 | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s Board of Directors (or persons performing the equivalent functions): | |||||||
| a | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and | |||||||
| b | any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. | |||||||
Date: October 30, 2026
| /s/ Bradley J. Dodson | |||||
| Bradley J. Dodson | |||||
| President and Chief Executive Officer | |||||
EXHIBIT 31.2
CERTIFICATION OF
CHIEF FINANCIAL OFFICER
OF CIVEO CORPORATION
PURSUANT TO RULE 13a–14(a) UNDER THE
SECURITIES EXCHANGE ACT OF 1934
I, E. Collin Gerry, certify that:
| 1 | I have reviewed this Quarterly Report on Form 10-Q of Civeo Corporation (Registrant); | |||||||
| 2 | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||
| 3 | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; | |||||||
| 4 | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: | |||||||
| a | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||
| b | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||
| c | evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||
| d | disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and | |||||||
| 5 | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s Board of Directors (or persons performing the equivalent functions): | |||||||
| a | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and | |||||||
| b | any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. | |||||||
Date: October 30, 2026
| /s/ E. Collin Gerry | |||||
| E. Collin Gerry | |||||
| Senior Vice President, Chief Financial Officer and Treasurer | |||||
EXHIBIT 32.1
CERTIFICATION OF
CHIEF EXECUTIVE OFFICER
OF CIVEO CORPORATION
PURSUANT TO 18 U.S.C. § 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Civeo Corporation (the “Company”) for the quarterly period ended September 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Bradley J. Dodson, President and Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:
| 1 | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||||
| 2 | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. | ||||
| /s/ Bradley J. Dodson | |||||||||||
| Name: | Bradley J. Dodson | ||||||||||
| Date: | October 30, 2026 | ||||||||||
EXHIBIT 32.2
CERTIFICATION OF
CHIEF FINANCIAL OFFICER
OF CIVEO CORPORATION
PURSUANT TO 18 U.S.C. § 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of Civeo Corporation (the “Company”) for the quarterly period ended September 30, 2026, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, E. Collin Gerry, Senior Vice President, Chief Financial Officer and Treasurer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:
| 1 | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | ||||
| 2 | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. | ||||
| /s/ E. Collin Gerry | |||||||||||
| Name: | E. Collin Gerry | ||||||||||
| Date: | October 30, 2026 | ||||||||||