Key Highlights

  • Third quarter Revenue rose 13% to $193.1 million from $170.5 million.
  • Net income was $5.2 million, or $0.50 per diluted share, versus a net loss of $0.5 million.
  • Adjusted EBITDA was $30.1 million, up from $28.6 million.
  • Canadian revenue increased 38% and Canadian adjusted EBITDA rose 47%.
  • 2026 revenue guidance rose to $710 million to $720 million.

Canada leads a 13% revenue increase

Civeo (NYSE:CVEO), a Houston-based provider of workforce accommodation and hospitality services, reported third quarter 2026 results on October 29, 2026. Revenue was $193.1 million versus $170.5 million, Net Income was $5.2 million, or $0.50 per diluted share, and adjusted EBITDA was $30.1 million versus $28.6 million.

The company said the increase came from higher occupancy and integrated services growth in Canada, plus a stronger Australian dollar. Canadian revenue rose 38% and adjusted EBITDA rose 47%, driven mainly by higher occupancy at oil sands lodges, reflecting stronger-than-expected turnaround activity.

CEO Bradley Dodson noted that some turnaround work expected to extend into the fourth quarter was completed in the third.

Australia grows revenue but Earnings dip

The Australian segment generated revenue of $129.5 million, compared with $124.5 million, along with Operating Income of $14.8 million and adjusted EBITDA of $23.2 million. Revenue rose 4%, mainly on the stronger Australian dollar and contractual increases, while adjusted EBITDA fell 7%.

Mr. Dodson said owned-village occupancy remains solid, though softer than healthy Commodity prices would typically suggest.

On a calculated basis, Australia contributed roughly two-thirds of consolidated revenue, so the segment's earnings trend matters even as Canada drives the growth.

Operating cash flow nearly doubles

Operating cash flow was $26.4 million in the quarter, compared with $13.8 million a year earlier. For the nine months, Operating Cash Flow was $28.3 million, an increase of $25.2 million, driven by higher adjusted EBITDA, a full nine months of contribution from the Australian villages acquired in May 2025, lower cash taxes in Australia and favorable Working Capital timing.

The company changed its definition of adjusted EBITDA, and the release includes a footnote on the updated definition.

In a separate note, Civeo said it was recognized by an Australian restaurant and catering association in the best industrial caterer category, winning state awards in three states.

Margins and guidance on a calculated basis

Adjusted EBITDA of $30.1 million equals about 15.6% of revenue, compared with about 16.8% a year earlier, so Margin eased even as dollars rose. The swing from a $0.5 million net loss to $5.2 million of net income is about $5.7 million.

The midpoint of the new guidance implies revenue of about $715 million and adjusted EBITDA of about $90.5 million, or a margin near 12.7%.

Guidance raised and 700 mobile fleet rooms contracted

Civeo raised full-year 2026 revenue guidance to $710 million to $720 million and adjusted EBITDA guidance to $89 million to $92 million. It also lifted Capital Expenditure guidance to $30 million to $35 million to prepare Canadian Assets for contracted deployments.

Since the end of the second quarter, the company secured contracts for approximately 700 mobile fleet rooms across Canada. Management now expects Canadian revenue, in local currency, to increase roughly 30% year over year in the back half of 2026.

Readers tracking the name will likely watch oil sands occupancy, deployment timing of the mobile rooms and Australian earnings.