Civeo Raises 2026 Revenue Outlook to $720 Million After Growth in Canada
Key Facts
Civeo raised its fiscal 2026 revenue outlook to a range of $710 million to $720 million, from $675 million to $700 million, and lifted its forecast for adjusted earnings before interest, taxes, depreciation and amortization to $89–92 million, from $85–90 million. The company announced the revision in its third-quarter results released on October 29, citing performance so far this year. The revision came as activity in Canada improved, with oil sands turnaround work exceeding expectations and a new integrated services contract starting in Ontario. However, some turnaround work expected in the fourth quarter was completed during the third quarter. Management said it expects current market dynamics to continue through year-end.
The company reported third-quarter 2026 revenue of $193.1 million and net income of $5.2 million, or $0.50 per diluted share. Adjusted earnings before interest, taxes, depreciation and amortization were $30.1 million, while operating cash flow reached $26.4 million. Compared with the third quarter of 2025, revenue rose from $170.5 million. Results swung from a net loss of $0.5 million in the year-earlier period to a profit in the latest quarter. The comparison reflects improved revenue and bottom-line results over one year.
In Canada, revenue increased 38% to $63.6 million in the third quarter, compared with $46 million a year earlier. Adjusted segment earnings rose 47% to $11.1 million, from $7.6 million. The company attributed revenue growth to higher occupancy in oil sands lodges, alongside stronger-than-expected turnaround activity. The new integrated services contract in Ontario also contributed to the segment's performance. The company said its current outlook points to local-currency Canadian revenue growth of about 30% in the second half of 2026 year over year, compared with previous guidance of 20%.
Civeo raised its 2026 capital spending outlook to $30–35 million, from $25–30 million, to prepare its Canadian assets for contracted deployments. The company said that since the end of the second quarter, it had signed contracts with a range of customers to deploy about 700 rooms from its mobile fleet across Canada. Deployment of these rooms is expected to begin between late 2026 and the first quarter of 2027, according to the company's guidance. The higher spending comes as it prepares the assets tied to these contracts. Management also said some Canadian turnaround work expected to extend into the fourth quarter was completed in the third quarter, and it expects market dynamics to continue through year-end.
In Australia, segment revenue increased 4%, but adjusted earnings before interest, taxes, depreciation and amortization fell 7% to $23.2 million, from $25 million in the third quarter of 2025. The company attributed part of the integrated services performance to contractual price increases and higher shutdown activity. This was offset by lower occupancy at its owned villages in the Bowen Basin, which weighed on adjusted earnings. The contrast between the two segments reflects different operating conditions: stronger occupancy and higher turnaround activity in Canada, compared with the impact of village occupancy on Australia's results. Civeo scheduled a call to discuss its third-quarter results for October 30, 2026, at 7:30 a.m. Central Time, or 8:30 a.m. Eastern Time.