Civeo (NYSE:CVEO) held its first-quarter earnings conference call on Friday. Below is the complete transcript from the call.
Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more.
The full earnings call is available at https://edge.media-server.com/mmc/p/fusxhf9y/
Summary
Civeo reported a strong start to 2026 with consolidated revenue up 20% and adjusted EBITDA up 78%, driven by improved occupancy in Canadian assets and growth in Australian services.
The company raised the lower end of its revenue guidance for 2026, indicating an expected 8% growth, while maintaining adjusted EBITDA guidance due to potential inflationary impacts from global energy disruptions.
Civeo continues to focus on disciplined capital allocation, repurchasing shares and extending credit agreements to enhance financial flexibility and support future growth opportunities.
Operational highlights include strong performance in Australia due to acquisitions and integrated services growth, and improved occupancy and margins in Canada.
Management remains confident in future opportunities, especially in North America, with a robust bid pipeline and potential infrastructure projects, although final investment decisions remain a key factor.
Full Transcript
OPERATOR
Greetings and welcome to the Civeo Corporation first quarter 2026 earnings call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press Star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Regan Nielsen, Vice President, Corporate Development and Investor Relations. Please go ahead.
Regan Nielsen (Vice President, Corporate Development and Investor Relations)
Thank you and welcome to Civio’s first quarter 2026 earnings conference call today. Our call will be led by Bradley Dodson, Civeo’s President and Chief Executive Officer and Colin Gary, Civio’s Chief Financial Officer and Treasurer. Before we begin, we would like to caution listeners regarding forward looking statements. To the extent that our remarks today contain anything other than historical information, please note that we’re relying on the safe harbor protections afforded by federal law. These forward looking statements speak only as of the date of our earnings release and this conference call. We undertake no obligation to update or revise these statements except as required by law. Any such remarks should be read in the context of the many factors that affect our business, including risks and uncertainties disclosed in our Forms 10K, 10Q and other SEC filings. I’ll now turn the call over to Bradley. Thank you Reagan and thank you all for joining us today on our first quarter 2026 earnings call. I’ll start with some key takeaways for the quarter and summarize our consolidated and regional performance. After that, Colin will provide further financial and segment level detail and I’ll conclude prepared remarks with our outlook for 2026. We will then open the call for questions. There are four key takeaways from the call today. First, we delivered a strong start to 2026, outperforming our expectations for the quarter. Consolidated revenue was up 20% and adjusted EBITDA was up 78%. Revenue growth was driven by a mixture of improved occupancy across the Canadian assets in both the oil sands and LNG markets, continued growth in our Australian integrated services business, contributions from acquired villages in Australia, improvements in our mobile camp fleet utilization. We also benefited from foreign currency improvements. This was all complemented by strong incremental margins in Canada as a result of our cost reduction initiatives that we took last year. The second key takeaway is we continue to execute on our disciplined and balanced capital allocation strategy, returning capital to shareholders while enhancing Civeo’s financial flexibility. Third, we remain confident in the revenue trajectory of the business as a whole and are raising the lower end of our revenue guidance. The midpoint of the Revised guidance implies 8% revenue growth for the year. Our confidence stems from continued momentum in the Australian Integrated Services platform and an increasingly robust bid pipeline from North America. Asset and Service Deployment as of today, we are actively bidding on projects with total contract values in excess of $1.5 billion, which is the strongest we’ve seen today. While much of this growth is dependent on customer reaching final investment decisions which is outside of our control, we are excited about the opportunities that these present for later in 2026 and going into 2027. The last key point, the cost impacts of the ongoing conflict in Iran and associated dislocations of the global energy and raw materials trade will likely have an impact on our margins. Australia is highly dependent on normalized global seaborne energy trade for diesel and other fuels. As a result of this, the potential associated impact on inflation, energy prices and the impacts of those variables on our customers activity, we are anticipating temporary inflationary impacts to our adjusted EBITDA. Thus, we are maintaining our initial guidance of $85 million to $90 million of adjusted EBITDA for 2026. I’ll start with some operational results for the quarter On a consolidated basis, our first quarter results reflect strong year over year growth with revenues increasing 20% and adjusted EBITDA increasing 78% compared to the prior year period. In Australia, performance was strong for the first quarter, supported by the full quarter contribution from the villages we acquired in May 2025 as well as continued revenue growth in our integrated services business. In Canada, we delivered strong year over year improvement with higher occupancy across key lodges and meaningful margin expansion. Importantly, this reflects both improved activity levels and the continued benefit of structural cost improvements we implemented last year. From a macro perspective, our operating environment remains dynamic. Mining prices, including oil and metallurgical coal have been volatile and customer spending remains disciplined in both Australia and Canada. We are focused therefore on maintaining our flexibility as conditions continue to evolve. In Australia, met coal prices currently in the $230 per ton range, which is up approximately 25% from the second half of last year. Last quarter we were optimistic that healthy commodity prices would drive higher occupancy in our villages in the back half of 2026. However, the ongoing disruption to global supply chains as a result of the war in the Middle east has likely shifted the timing of any such uplift into 2027. On the oil side, prices are undoubtedly higher, but activity levels have not changed as our customers planning requires much longer term perspectives in terms of improved oil prices to adjust their activity levels. Said differently there’s too much uncertainty in the oil market for our customers to change spending plans at this time, and as such, cost discipline remains their priority. From a timing perspective, we will likely see a deferral of turnaround activity in Canada from what normally occurs in the second quarter into later in this year. Turning to capital allocation, during the quarter we repurchased approximately 500,000 shares representing approximately 4% of Sevilla’s shares outstanding at year end 2025. We have now completed approximately 96% of our current authorization and remain committed to completing it as soon as practicable. As a reminder, upon the completion of this current authorization, we have an additional authorization in place to repurchase up to 10% of the company’s outstanding shares. Also during in April, we amended and extended our credit agreement, increasing the company’s total revolving capacity and extending the maturity of our bank agreement to April 2030. This further enhances civilization’s liquidity and provides additional flexibility as we evaluate capital deployment opportunities going forward. Stepping back Before I turn it over to Colin, I want to reiterate my tremendous confidence in Civio’s future. The bid pipeline in North America is robust with levels of inbound inquiries for beds and services that I haven’t seen since oil sands days of the early 2000s. Like then, this demand is highly dependent on highly project dependent, meaning dependent on positive final investment decisions. However, unlike the 2015-2020 timeframe when North America growth was almost exclusively dependent on on one major LNG project, this time is especially exciting given the variety and volume of different projects. While we recognize growth will not be linear, we are confident in our ability to weather the changes as they arise. Just as we are navigating today’s energy dislocation. I am confident that our values of service quality and excellence coupled with our world class asset base and asset availability position Civio well for the opportunities ahead, what we do best is take care of people. If the industry demand materializes to even a fraction of what’s outstanding today, there’ll be a lot more people for us to take care of. This is an exciting time for Civeo. We are more confident than ever in our actions, positioning and prospects for growth and value creations. With that, I’ll turn it over to Tom.
Colin Gary (Chief Financial Officer and Treasurer)
Thank you Bradley. Thank you all for joining us this morning. Turning to the income statement, today we reported total revenues first quarter of $172.7 million compared to $144 million in the first quarter of 2025, an increase of approximately 20%. Net loss for the quarter was 3.8 million or $0.34 per diluted share compared to a net loss of 9.8 million or $0.72 per diluted share in the prior year period. During the quarter we had generated adjusted EBITDA of 22.5 million compared to 12.7 million in the first quarter of 2025, an increase of 78%. Operating cash flow in the quarter was negative $9.7 million, primarily reflecting expected seasonal working capital outflows in the first quarter. The year over year increase in revenue was primarily driven by higher activity levels in both Australia and Canada including the contribution from the villages we acquired in May 2025 in Australia and higher occupancy across key lodges in Canada. Year over year increase in adjusted EBITDA was primarily driven by higher occupancy and improved margins in Canada as well as increased contributions from the Australian villages acquired in May of 2025. Looking at Australia specifically, first quarter revenues were $123 million up 19% from $103.6 million in the prior year quarter. Adjusted EBITDA was 21.8 million compared to 19 million in the prior year period. The increase in revenues was probably primarily driven by the contribution from the villages acquired in May 2025 as well as continued growth in our integrated services business. These gains were partially offset by modest …
This post was originally published here
