Companies

Civeo Completes 20% Buyback After Convertible Notes

The Tip Desk · July 30, 2026 · 4 min read

Second-quarter revenue rose 11% to $180.0 million as the hospitality operator issued $115.0 million of convertible notes and finished its 20% share-repurchase authorization.

Civeo Corporation (CVEO), a hospitality provider in Australian resource regions and the Canadian oil sands, reported second-quarter revenue of $180.0 million, an 11% increase from a year earlier, as year-over-year growth slowed from 20% in the first quarter.

Adjusted EBITDA was $23.8 million, down from $25.0 million a year earlier after 78% year-over-year growth in the first quarter. The company said the modest decline reflected Canadian start-up costs on a new integrated-services contract, a modest drop in billed rooms in the core Canadian region tied to turnaround timing, and weaker owned-village occupancy in Australia as customers responded cautiously to geopolitical uncertainty around diesel prices and availability.

Net loss narrowed to $2.5 million, or $0.23 a share, from $3.3 million, or $0.25 a share, a year earlier. Operating cash flow turned positive at $11.6 million, versus negative $2.3 million a year earlier.

President and Chief Executive Officer Bradley J. Dodson said Australia benefited from a stronger Australian dollar, integrated-services growth and contributions from recently acquired villages. In Canada, he said higher occupancy and a new integrated-services contract in Ontario helped drive year-over-year revenue growth, while start-up costs on that contract negatively impacted Adjusted EBITDA.

The Australian segment generated revenue of $125.4 million, up 11% from a year earlier, after 19% year-over-year growth in the first quarter. Adjusted EBITDA rose 1% to $22.6 million. A stronger Australian dollar added $12.2 million to Australian revenue and $2.2 million to Australian Adjusted EBITDA. Billed rooms in Australia fell to 674,506 from 690,506 a year earlier, while average daily rates rose to $85 from $76.

The Canadian segment generated revenue of $54.6 million, up 9% from a year earlier, after 23% year-over-year growth in the first quarter. Adjusted EBITDA fell to $6.0 million from $6.9 million a year earlier. The company attributed the Adjusted EBITDA decline primarily to start-up costs on the Ontario contract. Canadian operating loss narrowed to $1.7 million from $2.5 million a year earlier. Canadian billed rooms rose to 458,020 from 449,970, and Canadian average daily rates rose to $96 from $94.

The company said those Canadian and Australian headwinds were partially offset by stronger year-over-year performance in Canadian LNG-related rooms, contributions from the recently acquired Australian villages, and the favorable Australian dollar.

Capital expenditures were $3.7 million, versus $4.5 million a year earlier, primarily maintenance on lodges and villages. Total debt at June 30, 2026 was $208.6 million. Net debt was $190.9 million, a $7.9 million decrease since March 31, 2026, and the reported net leverage ratio was 2.1x. Total liquidity was approximately $82.2 million.

In July, Civeo issued $115.0 million of 4.50% convertible senior notes due 2031, including full exercise of the initial purchasers’ option for an additional $15.0 million. The notes mature on August 1, 2031, with an initial conversion price of about $40.51 a share, a 20% premium to the July 1 closing price. Concurrently, the company repurchased 660,297 shares for about $22.3 million, completing its previously authorized 20% buyback and beginning a new 10% authorization. Dodson said the company intends to satisfy the principal amount of the notes in cash and that the transaction is not expected to dilute common shareholders unless the stock rises above about $53 a share. Net proceeds funded the buyback and repaid revolving-credit borrowings.

Civeo is maintaining full-year 2026 guidance of $675 million to $700 million in revenue and $85 million to $90 million in Adjusted EBITDA, with capital expenditures of $25 million to $30 million. Dodson said the company expects Canadian operations to deliver approximately 20% year-over-year revenue growth in the back half of 2026, driven by continued execution in the base business and growing success in integrated-services pursuits. In Australia, he said the business is executing well despite macro-driven headwinds likely to persist through year-end, and the company remains optimistic about a recovery in 2027 and beyond.

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