Civeo Lifts 2026 Outlook After Canadian Lodge Occupancy

The Tip Desk · October 29, 2026 · 3 min read

Third-quarter revenue reached $193.1 million, up 13% from a year earlier, as the hospitality provider raised full-year revenue guidance to $710 million to $720 million.

Civeo Corporation (CVEO) reported third-quarter revenue of $193.1 million, up 13% from $170.5 million a year earlier, and raised its full-year 2026 revenue and Adjusted EBITDA outlook after Canadian oil-sands lodges ran hotter than the company had planned.

The hospitality provider, which operates lodging and integrated services in Australia and the Canadian oil sands, swung to net income of $5.2 million, or $0.50 a share, from a $0.5 million net loss, or $0.04 a share, a year earlier. Adjusted EBITDA rose 5% to $30.1 million from $28.6 million. Operating cash flow nearly doubled to $26.4 million from $13.8 million.

President and Chief Executive Officer Bradley J. Dodson said the company delivered 13% year-over-year revenue growth and a 5% increase in Adjusted EBITDA, with third-quarter operating cash flow nearly doubling.

The Canadian segment was the inflection. Revenues increased 38% to $63.6 million from $46.0 million a year earlier, and Adjusted EBITDA increased 47% to $11.1 million from $7.6 million. The company attributed the revenue gain to higher occupancy at oil-sands lodges, reflecting stronger-than-expected turnaround activity, and a new integrated-services contract in Ontario. Canadian billed rooms rose to 516,317 from 382,660. Average daily rates were $97, down from $100.

The year-over-year increase in consolidated Adjusted EBITDA was driven primarily by that Canadian occupancy and a stronger Australian dollar, the company said, partially offset by lower owned-village occupancy in Australia’s Bowen Basin as elevated diesel costs and inflation kept producers focused on cost discipline.

Australia, still the larger book, generated revenues of $129.5 million, up 4% from $124.5 million, and Adjusted EBITDA of $23.2 million, down 7% from $25.0 million. A stronger Australian dollar added $9.6 million to revenues and $1.7 million to Adjusted EBITDA. Contractual rate increases and more shutdown activity in integrated services helped offset lower owned-village occupancy. Australian billed rooms fell to 668,855 from 762,974. Average daily rates rose to $84 from $77.

Since the end of the second quarter, Civeo secured contracts for approximately 700 mobile fleet rooms across Canada. Dodson said the company now expects Canadian revenue, in local currency, to increase approximately 30% year-over-year in the back half of 2026, an improvement from the prior quarter’s guidance of 20% year-over-year growth over the same period. He said some turnaround activity expected to extend into the fourth quarter was instead completed in the third quarter.

For the full year 2026, Civeo raised revenue guidance to $710 million to $720 million from $675 million to $700 million, and Adjusted EBITDA guidance to $89 million to $92 million from $85 million to $90 million. Capital-expenditure guidance increased to $30 million to $35 million from $25 million to $30 million to prepare Canadian assets for contracted deployments.

In July the company issued $115.0 million of 4.50% convertible senior notes due 2031, including a $15.0 million greenshoe, and repurchased 660,297 shares for about $22.3 million, completing a 20% buyback authorization and bringing an additional 10% authorization to about 50% complete. Remaining net proceeds repaid revolving-credit borrowings. Total debt was $217.5 million at September 30, 2026, and net debt was $196.0 million, with a total net leverage ratio of 2.1x. Availability under the revolving credit facility was $126.9 million.

Beginning in the third quarter, Civeo revised its Adjusted EBITDA definition to exclude foreign currency gains and losses, net, and restated prior periods.

Dodson said owned-village occupancy in Australia remains solid, though softer than healthy commodity prices would typically support, and that the company expects those dynamics to persist through year-end.