Key Highlights

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

Canada leads a 13% revenue increase

Civeo (NYSE:CVEO), a Houston-based supplier of workforce accommodation and hospitality services, released third quarter 2026 results on October 29, 2026. Revenue came in at $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 compared with $28.6 million.

Management said the rise reflected higher occupancy and growth in integrated services in Canada, along with a stronger Australian dollar. Canadian revenue jumped 38% and adjusted EBITDA rose 47%, driven mainly by higher occupancy at oil sands lodges, which reflected stronger-than-expected turnaround activity.

CEO Bradley Dodson said some turnaround work that had been expected to run into the fourth quarter was finished in the third.

Australia grows revenue but Earnings dip

The Australian segment produced revenue of $129.5 million, compared with $124.5 million, plus Operating Income of $14.8 million and adjusted EBITDA of $23.2 million. Revenue increased 4%, mainly due to the stronger Australian dollar and contractual escalators, while adjusted EBITDA slipped 7%.

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

On a calculated basis, Australia accounted for roughly two-thirds of consolidated revenue, so that segment's earnings trend matters even though Canada is driving growth.

Operating cash flow nearly doubles

Operating cash flow reached $26.4 million in the quarter, versus $13.8 million a year earlier. For the nine months, Operating Cash Flow totaled $28.3 million, a $25.2 million increase, supported 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 revised its definition of adjusted EBITDA, and the release carries a footnote describing the update.

Separately, Civeo said an Australian restaurant and catering association recognized it in the best industrial caterer category, with 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 roughly 16.8% a year earlier, so the Margin eased even as dollars increased. The move from a $0.5 million net loss to $5.2 million of net income amounts to about $5.7 million.

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

Guidance raised and 700 mobile fleet rooms contracted

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

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

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