Civeo Posts $5.2 Million Third-Quarter Net Income After Year-Earlier Loss
Key Facts
Civeo reported net income of $5.2 million, or $0.50 per diluted share, in the third quarter of 2026, compared with a net loss of $0.5 million and a loss per share of $0.04 in the same period a year earlier. The results marked a return to year-over-year profitability, while operating cash flow was $26.4 million, versus $13.8 million a year earlier. The company said adjusted EBITDA was $30.1 million, compared with $28.6 million in the third quarter of 2025. CVEO shares closed at $30.22 on October 28, before the results were announced the following day. The official release did not cite analyst estimates or the amount by which they were exceeded.
Adjusted earnings showed limited improvement compared with the increase in operating cash flow: the former rose from $28.6 million to $30.1 million, while the latter nearly doubled, climbing from $13.8 million to $26.4 million. That divergence puts cash flow among the quarter’s leading indicators, alongside the company’s return to net income. In the second quarter of 2026, the company reported revenue of $180 million, up 11% year over year, but posted a net loss of $2.5 million and adjusted EBITDA of $23.8 million. In the first quarter, revenue was $172.7 million and the net loss was $3.8 million, while adjusted EBITDA was $22.5 million. Revenue and adjusted EBITDA growth in that quarter were 20% and 78% year over year, respectively.
Part of the growth trajectory outlined by management is tied to Canada, where the company said in the second quarter that it expected revenue to grow about 20% year over year in the second half of 2026. It attributed the outlook to continued execution in its core business and expanding integrated services opportunities. Since the end of the second quarter, Civeo has secured contracts with a diverse group of customers to deploy about 700 mobile rooms across Canada. The deployment represents a tangible operational expansion in the Canadian market, while the ability to execute the contracts and prepare the rooms remains part of the business picture presented by the company. The available release did not specify the contracts’ value or expected revenue.
By contrast, the company described its Australian business as facing macroeconomic pressures and said in July that those headwinds were likely to persist through year-end. Management added that it remained optimistic about a recovery in activity in 2027 and beyond. The chief executive had said in the second quarter that economic conditions in Australia would continue to weigh through the end of 2026, alongside the growth outlook in Canada. The divergent paths in the two markets highlight the importance of Civeo’s geographic business mix, with Canadian expansion taking place as its Australian operations face pressure. The release did not provide a separate figure for each market’s effect on third-quarter net income.
In May, Civeo raised the low end of its 2026 revenue guidance to $675 million from $650 million, while maintaining its adjusted EBITDA outlook range of $85 million to $90 million. In July, the company announced a $115 million offering of convertible notes bearing a fixed interest rate of 4.50% and maturing in 2031. It said the financing would strengthen its flexibility to invest in North American infrastructure opportunities, including liquefied natural gas, power and data centers, as company officials noted in May. These steps combine higher annual revenue guidance with new financing that the company said supports investment, amid continued divergence between growth in Canada and pressure in Australia. Civeo scheduled a call to discuss its third-quarter results for October 30, 2026, at 8:30 a.m. Eastern time.