CVEO

Image source: The Motley Fool. Thursday, July 30, 2026 at 9:30 a.m. ET President and Chief Executive Officer - Bradley Dodson Chief Financial Officer and Treasurer - Collin Gerry Vice President, Corporate Development - Regan Nielsen Operator: Greetings, and welcome to the Civeo Corporation's Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Regan Nielsen, Vice President, Corporate Development. You may begin. Regan Nielsen: Thank you, and welcome to Civeo's Second Quarter 2026 Earnings Conference Call. Today, our call will be led by Bradley Dodson, Civeo's President and Chief Executive Officer; and Collin Gerry, Civeo'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 10-K, 10-Q and other SEC filings. I'll now turn the call over to Bradley. Bradley Dodson: Thank you, Regan, and thank you all for joining us today on our second quarter 2026 earnings call. I'll start with the key takeaways for the quarter and summarize our consolidated and regional performance. After that, Collin will provide further financial and segment level detail, and I'll conclude our prepared remarks with our outlook for 2026. We will then open the call for questions. There are 4 key takeaways for the call today. First, North American growth represents a tangible opportunity set for Civeo. Our bid pipeline remains robust with more than $1.5 billion in total contract value, in line with what we disclosed last quarter. While the pace and timing of these opportunities are dependent on customer and final investment decisions, we remain focused on what we can control, maintaining a sharp business development focus, preparing our assets and operating platform to execute and for preserving the financial flexibility to pursue the right opportunities as they advance. Second, the convertible debt offering we completed after the quarter end provides Civeo with the financial firepower to play offense. It gives us the flexibility to pursue the opportunity that I just described. We raised lower cost fixed rate capital and completed the first phase of our shareholder return commitment. Third, Australia remains the strength of our business, although the second quarter results reflected near-term softness from cost inflation and customer caution tied principally to the fuel cost and availability amid ongoing Middle East seaborne trade dislocation. With metallurgical coal prices in the $220-plus range, the underlying operating environment is healthy, and we see upside as this temporary noise dissipates. Lastly, in our base oil sands business, we believe there is more upside than downside from the current activity levels. Our confidence in the long-term outlook for the business is supported by the increasing focus from the federal and Alberta governments and oil sands producers on advancing pipeline and carbon capture infrastructure projects. I'll now start with our operational results for the quarter. On a consolidated basis, the second quarter results and operating drivers were in line with our expectations. In Australia, we had solid occupancy in our owned villages and continue to focus on mitigating inflationary pressures largely brought by the Middle East conflict and labor availability. Australian platform remains well contracted, generates strong cash flow and is positioned to benefit when fuel market conditions normalize. In Canada, the second quarter results were as expected, and our bidding activity remains robust. We continue to manage the base oil sands business for current demand while preserving capacity to benefit from future infrastructure activity. Now turning to capital allocation. We continue to make progress on our share buyback commitments. We completed the April 2025 commitment to repurchase 20% of the company just after the end of the second quarter. It was done in conjunction with a convertible debt offering in July 2026, where we bought back 660,000 shares. We continue to believe Civeo shares are undervalued and the transaction reinforces this conviction. We did not issue common equity at today's price and retired approximately $22.3 million of stock concurrent with the offering. At the same time, the North American opportunity set has become more actionable. We chose to raise capital when the market was open and the terms were attractive. The proceeds from the offering were immediately used to fund the concurrent share repurchase and repay revolver borrowings, restoring capacity under our secured bank facility while lowering the company's near-term cost of capital. However, the strategic intent of the convertible debt offering was to meaningfully enhance our financial flexibility to capitalize on the growth opportunities ahead. Stepping back, while we cannot control when customers make final investment decisions, we are taking steps to ensure Civeo is prepared to respond when they do. We have a growing and diversified opportunity set, available assets, proven operating capabilities and a business development team focused on converting that activity into committed work. We believe that combination of operational readiness, capital discipline and balance sheet flexibility position Civeo well to create long-term value as these opportunities advance. With that, I'll turn the call over to Collin. E. Gerry: Thank you, Bradley. Thank you all for joining us today. Starting with the income statement. Today, we reported total revenues in the second quarter of $180 million compared to $162.7 million in the second quarter of 2025, an increase of approximately 11%. Net loss for the quarter was $2.5 million or $0.23 per diluted share compared to a net loss of $3.3 million or $0.25 per diluted share in the prior year period. During the quarter, Civeo generated adjusted EBITDA of $23.8 million compared to $25 million in the second quarter of 2025. Operating cash flow was $11.6 million compared to a negative $2.3 million in the prior year period. The $17.3 million year-over-year increase in consolidated revenues was primarily driven by foreign exchange, with most of the Australian revenue increases attributed to the stronger Australian dollar. Remaining growth reflects contributions from acquired villages and increased integrated services activity in Australia as well as higher occupancy in the new integrated services contract in Ontario and Canada. Adjusted EBITDA decreased $1.2 million year-over-year, primarily due to start-up costs associated with the new integrated services contract in Ontario and transitory cost inflation in Australia, partially offset by the favorable impact of the stronger Australian dollar. Let's now turn to the second quarter results for our 2 segments. I'll begin with Australia. Second quarter revenues from our Australian segment were $125.4 million, up 11% from $112.7 million in the second quarter of 2025. Adjusted EBITDA was $22.6 million compared to $22.3 million in the prior year period. The year-over-year revenue increase was driven almost entirely by the stronger Australian dollar. Increased integrated services activity and contributions from the acquired buildings were largely offset by softer owned village occupancy while transitory cost inflation pressure adjusted EBITDA. Australian owned village billings in the quarter were approximately 675,000 compared to approximately 691,000 in the second quarter of 2025. Our average daily rate for Australian owned villages was $85 compared to $76 in the prior year period, with the increase primarily reflecting strengthening of the Australian dollar relative to the U.S. dollar. Turning to Canada. Second quarter revenues were $54.6 million compared to $50 million in the second quarter of 2025. Adjusted EBITDA was $6 million compared to $6.9 million in the prior year period. The year-over-year increase in revenues was driven by higher occupancy and the new integrated services contract in Ontario. The decrease in adjusted EBITDA was primarily driven by start-up costs associated with that new contract, which we expect to be temporary. Canadian billed rooms totaled approximately 458,000 compared to approximately 450,000 in the prior year quarter. Our average daily rate was $96 compared to $94 in the prior year period. Looking at our capital structure. As of June 30, 2026, total liquidity was approximately $82 million. Total debt was approximately $209 million, and net debt was approximately $191 million, a decrease of approximately $8 million from March 31, 2026, resulting in a net leverage ratio of approximately 2.1x. These figures are as of quarter end and therefore, preceded the convertible notes offering. In July, the company issued $115 million aggregate principal amount of 4.5% convertible senior notes due 2031, including the full exercise of the initial purchasers option. We used the net proceeds to fund the concurrent share repurchase and repay borrowings under the revolving credit facility, restoring undrawn capacity. Turning to capital allocation. Capital expenditures for the second quarter were $3.7 million compared to $4.5 million in the prior year period and were primarily related to maintenance spending on our lodges and villages. Subsequent to quarter end and concurrent with the convertible notes offering, we repurchased 660,297 common shares for approximately $22.3 million. Approximately 111,000 shares completed the April 2025 authorization to repurchase 20% of the company and the remaining approximately 549,000 shares were applied for the subsequent 10% authorization, bringing that authorization to approximately 50% complete. The notes have a 4.5% fixed coupon mature on August 1, 2031, and have an initial conversion price of $40.51 per share, representing a 20% premium to the July 1 closing price. Our current intent is to satisfy the principal amount in cash. As a result, shares will be issued only for conversion valued above the $40.51 conversion price, if any, and we retain the flexibility to settle in cash, shares or combination based on the circumstances at the time. Together with the concurrent share repurchase, the transaction is not expected to result in net share dilution unless the convertible debt settles with a share price of approximately $53 per share or higher. If the North American growth opportunity set takes longer to develop, we will still benefit from 5 years of lower cost fixed rate capital and no common share issuance below the conversion price. We will continue to take a disciplined and opportunistic approach to capital allocation. Our framework is to return at least 75% of annual free cash flow to shareholders through share repurchases. Including the shares repurchased as part of the convertible note offering, we have repurchased roughly $36.7 million worth of shares on a year-to-date basis, which we believe more than satisfies our intentions for 2026. Going forward, our focus remains maintaining the balance sheet flexibility to support the business and pursue high-return growth opportunities. As the opportunity set develops, we intend to preserve sufficient capacity to fund the right projects without compromising our strong balance sheet or our commitment to return to shareholder returns. The convert improves that flexibility while lowering the fixed rate cost of capital on the refinanced borrowings. With that, I'll turn it back over to Bradley. Bradley Dodson: Thank you, Collin. Turning now to our outlook for 2026. For the full year 2026, we are maintaining our revenue guidance range of $675 million to $700 million and our adjusted EBITDA guidance range of $85 million to $90 million. We are also maintaining our capital expenditure guidance range of $25 million to $30 million. I'll now provide additional color on our expectations by region. In Australia, metallurgical coal prices remain in the range of $220 per tonne or better, which is supportive of a healthy underlying mine economics. However, elevated fuel costs and concerns around diesel availability have continued to cause customers to operate conservatively, limiting near-term occupancy upside and creating transitory cost pressure for Civeo. We expect these temporary macro-driven headwinds to persist through the end of the year, but we remain optimistic about improved conditions in 2027 and beyond. Our owned village portfolio remains well contracted, and our integrated services business continues to advance towards our goal of reaching a run rate of AUD 500 million in annual services revenue by the year-end 2027. In Canada, we expect approximately 20% year-over-year revenue growth in the second half of 2026 compared to the second half of 2025, driven by continued execution in our base business, growing success in our integrated services pursuits and turnaround activity that shifted from the second quarter into the third quarter. We expect oil sands activity to remain stable and disciplined in the near term, but we see more upside than downside from current levels as the broader infrastructure backdrop improves. More broadly, our business development team continues to see strong engagement across LNG, Canadian infrastructure and power and data center-related projects. The bid pipeline remains robust at more than $1.5 billion in total contract value. These opportunities remain dependent on customer final investment decisions and the timing of meaningful financial contributions for Civeo remains largely outside of our control. Our recently completed convert gives us the flexibility to move quickly when these opportunities advance without requiring us to compromise operating liquidity or our ongoing commitment to the return of capital to shareholders. What differentiates Civeo is the combination of our team, our assets, our operating resume and our financial flexibility. We have demonstrated that we can execute remote lodging and take care of people safely and reliably at scale, including in complex cold weather environments. We have 2,700 mobile camp rooms strategically located in Western Canada that are available for deployment, along with approximately 7,000 to 8,000 oil sands lodge rooms that could be redeployed for the right project. These are purpose-built assets well suited for projects in the Northern United States, Canada and Alaska. We also have the balance sheet strength and capital flexibility to tailor the right solution to each customer project, whether that requires redeploying existing capacity, investing in incremental capital or combining accommodations with integrated services. Overall, our outlook reflects a resilient Australian platform, improving diversification in Canada and a growing North American opportunity set. We remain focused on operating safely and efficiently, managing costs prudently and allocating capital to the highest return opportunities as we position Civeo for long-term growth and value creation. We will now open the call for questions. Operator: [Operator Instructions] Our first question today comes from Stephen Gengaro of Stifel. Stephen Gengaro: So I had a few things I wanted to ask, just because you just talk about the available rooms, maybe I'll start there. The 2,700 mobile rooms and then I think you said 7,000 to 8,000 lodges that are available. Are they better -- like how do we think about the applications that those 2 buckets of rooms are better suited for? Like are the mobile rooms, they have a unique application? Or can they be kind of adapted to kind of a more permanent need like the oil sands lodges? Bradley Dodson: The mobile camp rooms are well suited for quick deployment principally. They're well suited for camp sizes from 250 to 1,000 people, where you start getting into headcounts that are above 1,000, generally, the limitation is land availability. It becomes a much, much larger footprint where multistory lodge rooms that are currently installed in Alberta become more attractive, particularly if there is -- the project has sufficient term to justify the installation cost of multistory rooms. Our -- all of those assets are either in -- or largely in Alberta or in British Columbia. So from a project standpoint, we're going to be more competitive on a transportation cost basis closer to those areas. So that's why we highlighted in the prepared comments, the Northern U.S., Canada and Alaska. It really depends project by project what the project proponent is looking for. The mobile camp rooms are very well suited for 2- to 4-year projects. Below 2 years, it becomes -- the cost of transportation installation and then dismantle and trans out becomes a bigger cost to the total accommodations budget. So I don't know if that answers your question, Stephen, but that's how I... Stephen Gengaro: No, that's very helpful. The second one was around, I mean you had kind of alluded to this the pipeline of opportunities in North American data centers was kind of part of the equation. Can you tell us what you're seeing on that front? And I don't know if you're willing to kind of talk about there's -- it's almost 10,000 rooms total or maybe even a little bit more that you have available. Timing on when we may hear about some contracts, whether it be data center or other? Bradley Dodson: As we highlighted a couple of times in the prepared comments, they all depend on customer final investment decision. Those all appear to be progressing in a positive fashion, but ultimately, it is dependent on the customer. That being said, I would expect that based on the current opportunity set that something meaningful should be reach FID and we should be in a position to be awarded contracts by year-end. The question is, how close is it to now? Bringing to the question: Is there an opportunity to generate revenues in 2026 and/or how much revenue benefit are we going to get for the full year 2027? But as we look at them, I think what's interesting, we've tried to highlight this in the investor deck, which we had in the prior version, new version will also have this is that the opportunity set just in Canada and Alaska is meaningful between LNG opportunities, [ high-line ] power, general infrastructure, obviously, Alaska LNG. That in and of itself would be an opportunity set that is extremely attractive and would rank as some of the best opportunity set that we've seen over the last 5 to 10 years. You add in the fact that we have a data center opportunity set that we continue to pursue, that is something that is additive. So we are looking for term on the commitment. Obviously, a project that has 3 to 5 years of term as opposed to 2 to 3 is more attractive where you can put more rooms to work under a take-or-pay basis. That is more attractive. I would say, overall, the inbounds we were receiving on data center or data center-related projects were feverish at the beginning of this year. It has slowed some. That is not to mean that we are not pursuing those, but I would say the fervor for what we do related to that end market has softened a little bit. That being said, as we said in the comments, the overall opportunity set that we're pursuing is still extremely meaningful. Stephen Gengaro: Right. Okay. And just one follow-up. The full year guide is unchanged. When we think about the variability between the low end and the high end on the EBITDA side, is that just kind of around some of the uncertainty in Australia that you mentioned because of some of the apprehension of the customers around higher costs and higher diesel costs. Is that the main variable? Is it -- or how do we think about that? Bradley Dodson: It would be turnaround work in Canada, which we do have in the third quarter to some degree, had shifted from Q2 to Q3, partially because of the conflict in the Middle East and our customer base wanting to focus on production given the higher oil prices. Australia is a component of it in terms of kind of what we would call casual occupancy. So customers using rooms above their take-or-pay commitments. And then it is also going to be timing of mobile camp projects. We are expecting that we're going to have some work in the fourth quarter. Operator: The next question is from Steve Ferazani of Sidoti. Steve Ferazani: Bradley, just in terms of your outlook for Australia, can you sort of break it down? I know your accommodations and your integrated services are really in 2 different areas. Can you talk about the differences from what you're seeing on those 2 sides? And I know on the integrated services, it's not just been demand growth, but it's been market share growth, your sort of opportunity outlook on that side over the next couple of years? Bradley Dodson: Yes. So in terms of the owned villages, which are largely in Queensland, I would say that it's very solid occupancy. I think the piece that it's not -- it's been a little bit of a head scratcher has been that met coal prices are materially better this year than they were last year. Most of last year, met coal prices were in the $180 a ton, plus or minus. And this year, they spent most of the year above $220. And -- but I do think the uncertainty around availability and cost of diesel has been significant. The overall unemployment in Australia is low. And so as a result, there are a couple of headwinds there. But overall, our city-owned village occupancy is very strong. So I would say that if we -- if there is a resolution to the uncertainty surrounding diesel costs, that should set up for, as we said in the comments, for a stronger 2027, really across the village occupancy span. As it relates to the integrated services business, which, as you pointed out, is largely in Western Australia, although we have locations that we serve in South Australia and Queensland. The opportunity set to grow that organically remains strong. We've grown that business pretty successfully over the last 7 years. And we're in the crosshairs of the bigger players who are taking notice. So we recognize that it's going to be tougher to win new work, but we are continuing to win new work. And we still -- as we've maintained our goal of reaching AUD 500 million of revenues out of that business by next year. That goal still seems very achievable, and we have the opportunity set to do it. Steve Ferazani: Excellent. I got to ask as we go into 3Q, are we worse -- are we past the worst concerns around wildfires? Do you think you've dodged this year? Or are there still heightened concerns? Bradley Dodson: I don't want to jinx it, to be quite honest, but the -- there's been a fair amount of rain in Alberta. So Alberta wildfires seem to be less of a concern. Obviously, there's still concerns in B.C. and Ontario, which have been noted in the press. But I think generally for Alberta, we're going to be okay. It looks like turnaround work in the third quarter is going to progress. But as I noted to Stephen's question, that is kind of part of the variability in the guidance. Steve Ferazani: Excellent. That's helpful. And then last one, it looks like at least 2 significant Canadian LNG projects at least appear in the media to be exceptionally close to FID. And again, I'm sure you don't want to jinx it. But how quickly could that move forward if it gets to FID? I mean how do you typically think about timing from FID to you got to win the contract? I mean, what are we looking at? If those 2 went FID shortly they would both likely impact 2027 if you won the contracts, correct? Bradley Dodson: 100% particularly the way you phrased it. So for the rest of the audience, let me just be very clear in that if those reach positive FID, I would think it would take them 90 days to then kind of get the rest of the steps in order if the that's in order and then 90 days after that. So you're kind of looking at 4 to 6 months between FID and contract award for what we do. Then the third piece is mobilization because we can -- they can reach FID, we can our portion or a contract, but then it depends on when do they want us to mobilize. But given the time lines that are currently provided by those customers, I would say that they will meaningfully add to 2027 if they were to move forward. But they -- as we are sitting here at the end of July, you put all those months together, you're going to miss kind of the first quarter of 2027 somewhat regardlessly. And so I would say they're going to be meaningful contributors to 2027. We had hoped maybe 4 months ago that they might be full year contributors to 2027. I think that window is starting to close if it hasn't already. But as I mentioned to the prior question, we do believe that there will be some mobile camp mobilizations in the fourth quarter, and that is included in guidance. E. Gerry: If I can supplement the third variable that can come along with some of these major pipeline projects, which is the weather window. And so it's not impossible, but it is more expensive to mobilize camps in the winter at the B.C. mountains. And so depending on whether -- so all these kind of variables have to line up. So you have project timing FID, contract award, but then there's also the weather window when do they want to actually mobilize these camps. Summer is usually a little bit better, not to be -- winter can be done. But -- so there's a couple of unknowns, but I would say that all the kind of prework. It's not as if they're going to hit FID and then start talking to us about scope and execution plans. Those types of conversations are ongoing in the marketplace with us and our competitors. Operator: The next question is from Dave Storms of Stonegate. David Storms: I wanted to stick in North America and especially in Canada, you mentioned in your prepared remarks that you're preserving capacity in Alberta due to some of the tailwinds you've already mentioned. Maybe just what does preserving capacity look like on the ground? I'm assuming you're not mothballing anything, but is that just keeping really up to date on maintenance? And then additionally, is there any additional notable CapEx or expenses that comes with this that might impact margins while we're waiting for some of those FIDs to be awarded? Bradley Dodson: Yes, so let me address the first part, and I'll have to ask you to repeat the second part. But on the first part, our capacity comment was really more balance sheet related that we have the financial capacity to then have the mobilization expenses and manage through that piece of it. That being said, in that first part of the question, you mentioned, we are doing some work to prepare units for mobilization, just ongoing R&M to get things ready. Not huge expenditures or speculative spending per se, but trying to be diligent and kind of thread that needle between not overextending and prefunding things before we've been awarded, but by the same token, trying not to be flat-footed when things do get awarded. And then Dave, if I could ask you to repeat the second part of the question. David Storms: No, I think that covered the second part of the question that you're not prefunding or being speculative. So we shouldn't expect a significant impact to margins from the smaller waiting. Bradley Dodson: Yes. I mean I think it is notable that the vast majority, really, just use the vast majority of the opportunity set is a contract camp contract structure, meaning that these are going to be dedicated camps to a customer, to a project. So the customer is going to pay for transportation installation of the assets, which typically is lower margin work. And they will rent the assets on a take-or-pay basis for the term that they want the assets there. They'll pay for the hospitality services on a per person per day basis as used. And then at the end, they will pay for the dismantle and trans out of the assets. The start-up pieces of these projects are the trans and install. Those are lower margin at 10% margin type work. So that piece will front will be at the front end. Then once the camps are up and running, then you're kind of into the rent and services, which does on a combined basis, have a higher margin. David Storms: That's very helpful. And then maybe just one more sticking in Canada and North America. The Ontario contract, there was mentioned that there's some start-up costs associated with that. Maybe just any comments on the overall North American integrated service businesses, if any of your opportunity pipeline could see -- could give a boost to the integrated service business? Anything there? Bradley Dodson: We continue to be very active on the integrated service from a business development standpoint, particularly in Eastern Canada, trying to build off of the First Nation partnerships that we put in place there as well as the Ontario contract. We are looking to also augment our integrated services in North America in a similar fashion that we did it in Australia with the platform acquisition. So we're actively looking for that opportunity, and that could be additive here in the next 12 months. Operator: This concludes our question-and-answer session. I would like to turn the floor back over to Bradley Dodson for closing comments. Bradley Dodson: Thank you very much, and thank you, everyone, for joining the call today. We greatly appreciate your interest in Civeo. We look forward to speaking to you on our third quarter earnings call expected in late October. Operator: Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines, and have a wonderful day. Before you buy stock in Civeo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Civeo wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Civeo Corp (NYSE:CVEO) reported an 11% year-over-year increase in total revenues, reaching $180 million in Q2 2026. The company completed a $115 million convertible debt offering, providing financial flexibility to pursue growth opportunities without issuing common equity at current prices. Civeo Corp (NYSE:CVEO)'s North American bid pipeline remains robust, with more than $1.5 billion in total contract value across LNG, infrastructure, and data center projects. The company's Australian integrated services business is on track to achieve its goal of AUD 500 million in annual revenue by the end of 2027. Civeo Corp (NYSE:CVEO) repurchased approximately $36.7 million worth of shares year-to-date, demonstrating a strong commitment to returning capital to shareholders. The company has 2,700 mobile camp rooms and 7,000-8,000 oil sands lodge rooms available for deployment, positioning it well for future North American projects. Civeo Corp (NYSE:CVEO)'s adjusted EBITDA decreased to $23.8 million in Q2 2026, down from $25 million in the prior-year period. The company experienced transitory cost inflation in Australia, driven by elevated fuel costs and concerns around diesel availability due to Middle East seaborne trade dislocation. Australian-owned village occupancy softened to approximately 675,000 billed rooms, down from 691,000 in Q2 2025, as customers operated conservatively. Startup costs associated with the new integrated services contract in Ontario negatively impacted Canadian segment adjusted EBITDA, which fell to $6 million from $6.9 million. The timing of meaningful financial contributions from the North American opportunity set remains largely outside of Civeo Corp (NYSE:CVEO)'s control, dependent on customers' final investment decisions. The company expects the temporary macro-driven headwinds in Australia to persist through the end of 2026, limiting near-term occupancy upside. Warning! GuruFocus has detected 8 Warning Signs with CVEO. Is CVEO fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more detail on the two buckets of available rooms (2,700 mobile rooms and 7,000-8,000 lodge rooms) and their best-suited applications?A: Bradley Dotson, President and CEO, explained that mobile camp rooms are ideal for quick deployment on projects with 250 to 1,000 people and a term of two to four years. For larger headcounts above 1,000, multi-story lodge rooms currently installed in Alberta are more attractive, especially if the project has sufficient term to justify installation costs. These assets are largely located in Alberta and British Columbia, making Civeo more competitive on transportation costs for projects in Northern US, Canada, and Alaska. Q: What are you seeing in the North American data center opportunity set, and when might we hear about contract awards?A: Bradley Dotson noted that while the "fervor" for data center-related projects has slowed from the beginning of the year, the overall opportunity set remains meaningful. He expects something significant to reach FID and result in contract awards by year-end. The opportunities in Canada and Alaska, including LNG, Highline Power, and general infrastructure, are among the best seen in the last five to ten years. Civeo is looking for term commitments of three to five years on a take-or-pay basis. Q: With the full-year guidance unchanged, what are the main variables between the low and high end of the EBITDA range?A: Bradley Dotson identified three key variables: turnaround work in Canada (some shifted from Q2 to Q3 due to the Middle East conflict and customers focusing on production), casual occupancy in Australia (customers using rooms above take-or-pay commitments), and the timing of mobile camp projects expected in the fourth quarter. Q: Can you break down the differences between the accommodations and integrated services businesses in Australia, and the growth outlook for integrated services?A: Bradley Dotson stated that owned villages in Queensland have very solid occupancy, despite headwinds from diesel cost uncertainty and low unemployment. Met coal prices above $220 are supportive, and a resolution to diesel uncertainty should set up a stronger 2027. For integrated services, largely in Western Australia, organic growth opportunities remain strong, though competition is increasing. The goal of reaching AUD500 million in annual revenues by next year remains achievable. Q: Are we past the worst concerns around wildfires, and how might they impact Q3?A: Bradley Dotson noted that significant rainfall in Alberta has reduced wildfire concerns there, though concerns remain in BC and Ontario. He expects turnaround work in Q3 to progress, but noted it remains part of the variability in guidance. Q: If the two significant Canadian LNG projects reach FID, how quickly could they move forward and impact 2027?A: Bradley Dotson explained that after FID, it would take roughly 90 days for customers to get their steps in order, followed by another 90 days for contract award, totaling four to six months. Mobilization would then depend on customer timelines. These projects would meaningfully contribute to 2027, but likely miss Q1 2027. Colin Gary, CFO, added that weather windows for mobilizing camps in BC mountains are a third variable, with summer being preferable. Q: What does "preserving capacity" look like on the ground in Alberta, and are there notable CapEx or expenses impacting margins while waiting for FIDs?A: Bradley Dotson clarified that the capacity comment was primarily balance sheet related, providing financial capacity for mobilization expenses. The company is doing ongoing R&M to prepare units for mobilization without speculative spending. He emphasized that most opportunities use a contract camp structure where customers pay for transportation, installation, rent on a take-or-pay basis, and dismantling. Startup work (transport and install) is lower margin (~10%), while ongoing rent and services have higher margins. Q: Are there any comments on the North American integrated services business and whether the opportunity pipeline could boost it?A: Bradley Dotson stated that Civeo is very active in integrated services business development, particularly in Eastern Canada, building off First Nation partnerships and the Ontario contract. The company is also actively looking for platform acquisitions in North America to augment the integrated services business, similar to what was done in Australia, which could be additive within the next 12 months. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Civeo Corporation? Here are five stocks we like better. Revenue grew 11% to $180 million in Q2 2026, while adjusted EBITDA declined modestly to $23.8 million due to Australian inflation and Canadian contract start-up costs. Operating cash flow improved to $11.6 million, and the net loss narrowed to $2.5 million. Australia remained Civeo’s primary cash-flow platform, with revenue rising 11% and EBITDA slightly increasing despite lower billed-room volume and higher fuel costs. Canada is expected to deliver approximately 20% revenue growth in the second half of 2026 as new contracts and turnaround work ramp up. Civeo maintained its 2026 guidance of $675 million-$700 million in revenue and $85 million-$90 million in adjusted EBITDA. The company also highlighted a North American bid pipeline above $1.5 billion and issued $115 million of convertible notes, partly funding share repurchases. Civeo (NYSE:CVEO) reported second-quarter 2026 revenue growth but a modest decline in adjusted EBITDA, as foreign exchange benefits and higher activity in Canada were partly offset by start-up costs and inflationary pressure in Australia. The company posted revenue of $180 million for the quarter, up 11% from $162.7 million a year earlier. Net loss narrowed to $2.5 million, or $0.23 per diluted share, from a loss of $3.3 million, or $0.25 per share, in the prior-year period. Adjusted EBITDA declined to $23.8 million from $25 million, while operating cash flow improved to $11.6 million from negative $2.3 million. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Chief Financial Officer and Treasurer Collin Gerry said the revenue increase was driven primarily by foreign exchange, particularly the stronger Australian dollar, alongside acquired villages and increased integrated-services work in Australia. Higher occupancy tied to a new Ontario integrated-services contract also contributed in Canada. Australia generated $125.4 million in second-quarter revenue, an 11% increase from $112.7 million a year ago. Adjusted EBITDA rose slightly to $22.6 million from $22.3 million, although the segment faced what management characterized as temporary cost inflation. → Microsoft Just Flipped the AI Spending Narrative Overnight Australian owned-village billed rooms fell to approximately 675,000 from 691,000 in the prior-year quarter. Average daily rates increased to AUD 85 from AUD 76, an increase that Gerry said primarily reflected the stronger Australian dollar against the U.S. dollar. President and Chief Executive Officer Bradley Dodson said the Australian operating environment remains fundamentally healthy, supported by metallurgical coal prices above $220 per ton. However, higher fuel costs and concerns regarding diesel availability have led customers to operate more conservatively, limiting occupancy upside and creating cost pressure. → Carrier Earnings Could Send the Stock to a New All-Time High Dodson said these headwinds are expected to persist through the end of 2026, though the company sees potential for improved conditions in 2027 and beyond if uncertainty surrounding diesel costs eases. He described occupancy at Civeo-owned villages in Queensland as “very strong.” The company also reaffirmed its objective for its Australian integrated-services business to reach an annualized run rate of AUD 500 million in services revenue by the end of 2027. Dodson said Civeo continues to win work despite facing greater competition from larger industry participants. Canadian revenue increased to $54.6 million from $50 million in the second quarter of 2025, while adjusted EBITDA declined to $6 million from $6.9 million. The EBITDA decline was principally related to start-up costs for the Ontario integrated-services contract, which management expects to be temporary. Canadian billed rooms increased to approximately 458,000 from 450,000 a year earlier, and the average daily rate rose to CAD 96 from CAD 94. For the second half of 2026, Civeo expects approximately 20% year-over-year revenue growth in Canada, driven by its base business, additional integrated-services activity and turnaround work that shifted from the second quarter into the third quarter. Dodson said recent rainfall has reduced wildfire concerns in Alberta, where the company expects third-quarter turnaround activity to proceed, although concerns remain in British Columbia and Ontario. Management said oil sands activity is expected to remain stable and disciplined near term, but it sees more upside than downside from present levels as pipeline and carbon-capture infrastructure initiatives advance. The company also cited continued engagement around LNG, Canadian infrastructure, power and data-center-related projects. Civeo said its North American bid pipeline remained above $1.5 billion in total contract value. The timing of awards remains dependent on customers reaching final investment decisions, but Dodson said the company expects that “something meaningful” could reach final investment decision and lead to contract awards by year-end. In response to questions about potential Canadian LNG work, Dodson said projects that receive final investment decisions could take roughly four to six months to progress to a Civeo contract award. Such projects could become meaningful contributors in 2027, although they may not contribute for the full year depending on mobilization schedules and weather conditions. The company has 2,700 mobile camp rooms in Western Canada available for deployment, along with approximately 7,000 to 8,000 oil sands lodge rooms that could be redeployed for suitable projects. Dodson said mobile camps are generally suited for projects requiring 250 to 1,000 workers and lasting two to four years, while larger, longer-duration projects may be better served by multi-story lodge rooms. After the quarter ended, Civeo issued $115 million in 4.5% convertible senior notes due 2031. The company used proceeds to repurchase shares and repay borrowings under its revolving credit facility. The notes have an initial conversion price of $40.51 per share, a 20% premium to the July 1 closing price. Concurrent with the offering, Civeo repurchased 660,297 shares for approximately $22.3 million. Including those purchases, the company has repurchased roughly $36.7 million of stock year to date. Gerry said the company’s framework calls for returning at least 75% of annual free cash flow to shareholders through repurchases, though management also intends to maintain balance-sheet capacity for growth projects. Civeo maintained its full-year guidance for revenue of $675 million to $700 million, adjusted EBITDA of $85 million to $90 million, and capital expenditures of $25 million to $30 million. At June 30, before the convertible notes issuance, the company had total liquidity of about $82 million, total debt of approximately $209 million and net debt of roughly $191 million. Its net leverage ratio stood at approximately 2.1 times. Dodson said variability within the company’s guidance range includes Canadian turnaround activity, Australian casual occupancy above take-or-pay commitments, and the timing of mobile-camp projects. He said the company expects some mobile-camp work in the fourth quarter and is preparing assets for potential deployment without making significant speculative expenditures. Civeo Corporation is a leading provider of workforce accommodations and integrated facility management services, primarily serving the oil and gas, mining, and construction sectors. The company specializes in the development, ownership, and operation of remote lodging facilities, commonly known as “man camps,” designed to house workers in geographically challenging environments. Its services include turnkey accommodations, catering, housekeeping, grounds maintenance, and logistical support, tailored to meet the needs of large-scale energy and resource projects. With a network of lodges and villages across North America and Australia, Civeo caters to clients operating in regions such as Alberta's oil sands, the Bakken shale play, and Australia's Pilbara and Bowen Basin mining districts. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Civeo Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. North American growth is anchored by a $1.5 billion contract value pipeline, driven by LNG, power infrastructure, and data center projects. Australian performance remains resilient with metallurgical coal prices above $220 per tonne, though near-term results were dampened by fuel cost volatility and Middle East trade dislocations. The July 2026 convertible debt offering was strategically timed to lower the cost of capital and provide 'financial firepower' for upcoming project mobilizations. Canadian oil sands activity is viewed as having more upside than downside, supported by government and producer focus on pipeline and carbon capture infrastructure. Management is prioritizing operational readiness by maintaining 2,700 mobile rooms and up to 8,000 lodge rooms for rapid deployment as customers reach final investment decisions. The Australian integrated services business continues to gain market share, trending toward a target run rate of AUD 500 million by year-end 2027. Full-year 2026 guidance remains unchanged, assuming temporary Australian macro headwinds persist through year-end with recovery expected in 2027 and beyond. Canada is projected to see 20% year-over-year revenue growth in the second half of 2026, fueled by turnaround activity and new integrated services contracts. Management anticipates meaningful contract awards by year-end 2026, though revenue contributions from major LNG projects are likely to shift into 2027. Capital allocation framework targets returning at least 75% of annual free cash flow to shareholders, having already repurchased $36.7 million in shares year-to-date. Strategic focus includes potential M&A to augment North American integrated services, mirroring the successful platform acquisition strategy used in Australia. The $115 million convertible note offering retired $22.3 million in stock and restored revolver capacity without causing net dilution below a $53 share price. Transitory cost inflation in Australia, specifically diesel availability and labor, continues to pressure margins despite healthy underlying commodity prices. Start-up costs for a new integrated services contract in Ontario negatively impacted Canadian EBITDA in Q2, though these are expected to be temporary. Project timing remains the primary risk, as Civeo's financial contributions are heavily dependent on customer final investment decisions (FID) outside of their direct control. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Mobile rooms are optimized for 250-1,000 person projects with 2-4 year durations due to rapid deployment capabilities. Multistory lodge rooms are preferred for projects exceeding 1,000 people where land is limited and longer terms justify higher installation costs. Management noted that while initial 'feverish' inbound interest for data center lodging has softened, it remains a meaningful additive component to the pipeline. The company is specifically targeting data center projects with 3-5 year terms to secure take-or-pay commitments. Typically, there is a 4-6 month lag between a customer's final investment decision and Civeo's contract award and mobilization. Major LNG projects reaching FID now would likely become meaningful contributors in 2027 rather than late 2026 due to mobilization and weather windows. Initial mobilization and installation phases typically yield lower margins (approximately 10%). Higher margins are realized during the subsequent rental and hospitality service phases of the contract life cycle.

Image source: The Motley Fool. Thursday, July 30, 2026 at 9:30 a.m. ET President and Chief Executive Officer - Bradley Dodson Chief Financial Officer and Treasurer - Collin Gerry Vice President, Corporate Development - Regan Nielsen Operator: Greetings, and welcome to the Civeo Corporation's Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Regan Nielsen, Vice President, Corporate Development. You may begin. Regan Nielsen: Thank you, and welcome to Civeo's Second Quarter 2026 Earnings Conference Call. Today, our call will be led by Bradley Dodson, Civeo's President and Chief Executive Officer; and Collin Gerry, Civeo'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 10-K, 10-Q and other SEC filings. I'll now turn the call over to Bradley. Bradley Dodson: Thank you, Regan, and thank you all for joining us today on our second quarter 2026 earnings call. I'll start with the key takeaways for the quarter and summarize our consolidated and regional performance. After that, Collin will provide further financial and segment level detail, and I'll conclude our prepared remarks with our outlook for 2026. We will then open the call for questions. There are 4 key takeaways for the call today. First, North American growth represents a tangible opportunity set for Civeo. Our bid pipeline remains robust with more than $1.5 billion in total contract value, in line with what we disclosed last quarter. While the pace and timing of these opportunities are dependent on customer and final investment decisions, we remain focused on what we can control, maintaining a sharp business development focus, preparing our assets and operating platform to execute and for preserving the financial flexibility to pursue the right opportunities as they advance. Second, the convertible debt offering we completed after the quarter end provides Civeo with the financial firepower to play offense. It gives us the flexibility to pursue the opportunity that I just described. We raised lower cost fixed rate capital and completed the first phase of our shareholder return commitment. Third, Australia remains the strength of our business, although the second quarter results reflected near-term softness from cost inflation and customer caution tied principally to the fuel cost and availability amid ongoing Middle East seaborne trade dislocation. With metallurgical coal prices in the $220-plus range, the underlying operating environment is healthy, and we see upside as this temporary noise dissipates. Lastly, in our base oil sands business, we believe there is more upside than downside from the current activity levels. Our confidence in the long-term outlook for the business is supported by the increasing focus from the federal and Alberta governments and oil sands producers on advancing pipeline and carbon capture infrastructure projects. I'll now start with our operational results for the quarter. On a consolidated basis, the second quarter results and operating drivers were in line with our expectations. In Australia, we had solid occupancy in our owned villages and continue to focus on mitigating inflationary pressures largely brought by the Middle East conflict and labor availability. Australian platform remains well contracted, generates strong cash flow and is positioned to benefit when fuel market conditions normalize. In Canada, the second quarter results were as expected, and our bidding activity remains robust. We continue to manage the base oil sands business for current demand while preserving capacity to benefit from future infrastructure activity. Now turning to capital allocation. We continue to make progress on our share buyback commitments. We completed the April 2025 commitment to repurchase 20% of the company just after the end of the second quarter. It was done in conjunction with a convertible debt offering in July 2026, where we bought back 660,000 shares. We continue to believe Civeo shares are undervalued and the transaction reinforces this conviction. We did not issue common equity at today's price and retired approximately $22.3 million of stock concurrent with the offering. At the same time, the North American opportunity set has become more actionable. We chose to raise capital when the market was open and the terms were attractive. The proceeds from the offering were immediately used to fund the concurrent share repurchase and repay revolver borrowings, restoring capacity under our secured bank facility while lowering the company's near-term cost of capital. However, the strategic intent of the convertible debt offering was to meaningfully enhance our financial flexibility to capitalize on the growth opportunities ahead. Stepping back, while we cannot control when customers make final investment decisions, we are taking steps to ensure Civeo is prepared to respond when they do. We have a growing and diversified opportunity set, available assets, proven operating capabilities and a business development team focused on converting that activity into committed work. We believe that combination of operational readiness, capital discipline and balance sheet flexibility position Civeo well to create long-term value as these opportunities advance. With that, I'll turn the call over to Collin. E. Gerry: Thank you, Bradley. Thank you all for joining us today. Starting with the income statement. Today, we reported total revenues in the second quarter of $180 million compared to $162.7 million in the second quarter of 2025, an increase of approximately 11%. Net loss for the quarter was $2.5 million or $0.23 per diluted share compared to a net loss of $3.3 million or $0.25 per diluted share in the prior year period. During the quarter, Civeo generated adjusted EBITDA of $23.8 million compared to $25 million in the second quarter of 2025. Operating cash flow was $11.6 million compared to a negative $2.3 million in the prior year period. The $17.3 million year-over-year increase in consolidated revenues was primarily driven by foreign exchange, with most of the Australian revenue increases attributed to the stronger Australian dollar. Remaining growth reflects contributions from acquired villages and increased integrated services activity in Australia as well as higher occupancy in the new integrated services contract in Ontario and Canada. Adjusted EBITDA decreased $1.2 million year-over-year, primarily due to start-up costs associated with the new integrated services contract in Ontario and transitory cost inflation in Australia, partially offset by the favorable impact of the stronger Australian dollar. Let's now turn to the second quarter results for our 2 segments. I'll begin with Australia. Second quarter revenues from our Australian segment were $125.4 million, up 11% from $112.7 million in the second quarter of 2025. Adjusted EBITDA was $22.6 million compared to $22.3 million in the prior year period. The year-over-year revenue increase was driven almost entirely by the stronger Australian dollar. Increased integrated services activity and contributions from the acquired buildings were largely offset by softer owned village occupancy while transitory cost inflation pressure adjusted EBITDA. Australian owned village billings in the quarter were approximately 675,000 compared to approximately 691,000 in the second quarter of 2025. Our average daily rate for Australian owned villages was $85 compared to $76 in the prior year period, with the increase primarily reflecting strengthening of the Australian dollar relative to the U.S. dollar. Turning to Canada. Second quarter revenues were $54.6 million compared to $50 million in the second quarter of 2025. Adjusted EBITDA was $6 million compared to $6.9 million in the prior year period. The year-over-year increase in revenues was driven by higher occupancy and the new integrated services contract in Ontario. The decrease in adjusted EBITDA was primarily driven by start-up costs associated with that new contract, which we expect to be temporary. Canadian billed rooms totaled approximately 458,000 compared to approximately 450,000 in the prior year quarter. Our average daily rate was $96 compared to $94 in the prior year period. Looking at our capital structure. As of June 30, 2026, total liquidity was approximately $82 million. Total debt was approximately $209 million, and net debt was approximately $191 million, a decrease of approximately $8 million from March 31, 2026, resulting in a net leverage ratio of approximately 2.1x. These figures are as of quarter end and therefore, preceded the convertible notes offering. In July, the company issued $115 million aggregate principal amount of 4.5% convertible senior notes due 2031, including the full exercise of the initial purchasers option. We used the net proceeds to fund the concurrent share repurchase and repay borrowings under the revolving credit facility, restoring undrawn capacity. Turning to capital allocation. Capital expenditures for the second quarter were $3.7 million compared to $4.5 million in the prior year period and were primarily related to maintenance spending on our lodges and villages. Subsequent to quarter end and concurrent with the convertible notes offering, we repurchased 660,297 common shares for approximately $22.3 million. Approximately 111,000 shares completed the April 2025 authorization to repurchase 20% of the company and the remaining approximately 549,000 shares were applied for the subsequent 10% authorization, bringing that authorization to approximately 50% complete. The notes have a 4.5% fixed coupon mature on August 1, 2031, and have an initial conversion price of $40.51 per share, representing a 20% premium to the July 1 closing price. Our current intent is to satisfy the principal amount in cash. As a result, shares will be issued only for conversion valued above the $40.51 conversion price, if any, and we retain the flexibility to settle in cash, shares or combination based on the circumstances at the time. Together with the concurrent share repurchase, the transaction is not expected to result in net share dilution unless the convertible debt settles with a share price of approximately $53 per share or higher. If the North American growth opportunity set takes longer to develop, we will still benefit from 5 years of lower cost fixed rate capital and no common share issuance below the conversion price. We will continue to take a disciplined and opportunistic approach to capital allocation. Our framework is to return at least 75% of annual free cash flow to shareholders through share repurchases. Including the shares repurchased as part of the convertible note offering, we have repurchased roughly $36.7 million worth of shares on a year-to-date basis, which we believe more than satisfies our intentions for 2026. Going forward, our focus remains maintaining the balance sheet flexibility to support the business and pursue high-return growth opportunities. As the opportunity set develops, we intend to preserve sufficient capacity to fund the right projects without compromising our strong balance sheet or our commitment to return to shareholder returns. The convert improves that flexibility while lowering the fixed rate cost of capital on the refinanced borrowings. With that, I'll turn it back over to Bradley. Bradley Dodson: Thank you, Collin. Turning now to our outlook for 2026. For the full year 2026, we are maintaining our revenue guidance range of $675 million to $700 million and our adjusted EBITDA guidance range of $85 million to $90 million. We are also maintaining our capital expenditure guidance range of $25 million to $30 million. I'll now provide additional color on our expectations by region. In Australia, metallurgical coal prices remain in the range of $220 per tonne or better, which is supportive of a healthy underlying mine economics. However, elevated fuel costs and concerns around diesel availability have continued to cause customers to operate conservatively, limiting near-term occupancy upside and creating transitory cost pressure for Civeo. We expect these temporary macro-driven headwinds to persist through the end of the year, but we remain optimistic about improved conditions in 2027 and beyond. Our owned village portfolio remains well contracted, and our integrated services business continues to advance towards our goal of reaching a run rate of AUD 500 million in annual services revenue by the year-end 2027. In Canada, we expect approximately 20% year-over-year revenue growth in the second half of 2026 compared to the second half of 2025, driven by continued execution in our base business, growing success in our integrated services pursuits and turnaround activity that shifted from the second quarter into the third quarter. We expect oil sands activity to remain stable and disciplined in the near term, but we see more upside than downside from current levels as the broader infrastructure backdrop improves. More broadly, our business development team continues to see strong engagement across LNG, Canadian infrastructure and power and data center-related projects. The bid pipeline remains robust at more than $1.5 billion in total contract value. These opportunities remain dependent on customer final investment decisions and the timing of meaningful financial contributions for Civeo remains largely outside of our control. Our recently completed convert gives us the flexibility to move quickly when these opportunities advance without requiring us to compromise operating liquidity or our ongoing commitment to the return of capital to shareholders. What differentiates Civeo is the combination of our team, our assets, our operating resume and our financial flexibility. We have demonstrated that we can execute remote lodging and take care of people safely and reliably at scale, including in complex cold weather environments. We have 2,700 mobile camp rooms strategically located in Western Canada that are available for deployment, along with approximately 7,000 to 8,000 oil sands lodge rooms that could be redeployed for the right project. These are purpose-built assets well suited for projects in the Northern United States, Canada and Alaska. We also have the balance sheet strength and capital flexibility to tailor the right solution to each customer project, whether that requires redeploying existing capacity, investing in incremental capital or combining accommodations with integrated services. Overall, our outlook reflects a resilient Australian platform, improving diversification in Canada and a growing North American opportunity set. We remain focused on operating safely and efficiently, managing costs prudently and allocating capital to the highest return opportunities as we position Civeo for long-term growth and value creation. We will now open the call for questions. Operator: [Operator Instructions] Our first question today comes from Stephen Gengaro of Stifel. Stephen Gengaro: So I had a few things I wanted to ask, just because you just talk about the available rooms, maybe I'll start there. The 2,700 mobile rooms and then I think you said 7,000 to 8,000 lodges that are available. Are they better -- like how do we think about the applications that those 2 buckets of rooms are better suited for? Like are the mobile rooms, they have a unique application? Or can they be kind of adapted to kind of a more permanent need like the oil sands lodges? Bradley Dodson: The mobile camp rooms are well suited for quick deployment principally. They're well suited for camp sizes from 250 to 1,000 people, where you start getting into headcounts that are above 1,000, generally, the limitation is land availability. It becomes a much, much larger footprint where multistory lodge rooms that are currently installed in Alberta become more attractive, particularly if there is -- the project has sufficient term to justify the installation cost of multistory rooms. Our -- all of those assets are either in -- or largely in Alberta or in British Columbia. So from a project standpoint, we're going to be more competitive on a transportation cost basis closer to those areas. So that's why we highlighted in the prepared comments, the Northern U.S., Canada and Alaska. It really depends project by project what the project proponent is looking for. The mobile camp rooms are very well suited for 2- to 4-year projects. Below 2 years, it becomes -- the cost of transportation installation and then dismantle and trans out becomes a bigger cost to the total accommodations budget. So I don't know if that answers your question, Stephen, but that's how I... Stephen Gengaro: No, that's very helpful. The second one was around, I mean you had kind of alluded to this the pipeline of opportunities in North American data centers was kind of part of the equation. Can you tell us what you're seeing on that front? And I don't know if you're willing to kind of talk about there's -- it's almost 10,000 rooms total or maybe even a little bit more that you have available. Timing on when we may hear about some contracts, whether it be data center or other? Bradley Dodson: As we highlighted a couple of times in the prepared comments, they all depend on customer final investment decision. Those all appear to be progressing in a positive fashion, but ultimately, it is dependent on the customer. That being said, I would expect that based on the current opportunity set that something meaningful should be reach FID and we should be in a position to be awarded contracts by year-end. The question is, how close is it to now? Bringing to the question: Is there an opportunity to generate revenues in 2026 and/or how much revenue benefit are we going to get for the full year 2027? But as we look at them, I think what's interesting, we've tried to highlight this in the investor deck, which we had in the prior version, new version will also have this is that the opportunity set just in Canada and Alaska is meaningful between LNG opportunities, [ high-line ] power, general infrastructure, obviously, Alaska LNG. That in and of itself would be an opportunity set that is extremely attractive and would rank as some of the best opportunity set that we've seen over the last 5 to 10 years. You add in the fact that we have a data center opportunity set that we continue to pursue, that is something that is additive. So we are looking for term on the commitment. Obviously, a project that has 3 to 5 years of term as opposed to 2 to 3 is more attractive where you can put more rooms to work under a take-or-pay basis. That is more attractive. I would say, overall, the inbounds we were receiving on data center or data center-related projects were feverish at the beginning of this year. It has slowed some. That is not to mean that we are not pursuing those, but I would say the fervor for what we do related to that end market has softened a little bit. That being said, as we said in the comments, the overall opportunity set that we're pursuing is still extremely meaningful. Stephen Gengaro: Right. Okay. And just one follow-up. The full year guide is unchanged. When we think about the variability between the low end and the high end on the EBITDA side, is that just kind of around some of the uncertainty in Australia that you mentioned because of some of the apprehension of the customers around higher costs and higher diesel costs. Is that the main variable? Is it -- or how do we think about that? Bradley Dodson: It would be turnaround work in Canada, which we do have in the third quarter to some degree, had shifted from Q2 to Q3, partially because of the conflict in the Middle East and our customer base wanting to focus on production given the higher oil prices. Australia is a component of it in terms of kind of what we would call casual occupancy. So customers using rooms above their take-or-pay commitments. And then it is also going to be timing of mobile camp projects. We are expecting that we're going to have some work in the fourth quarter. Operator: The next question is from Steve Ferazani of Sidoti. Steve Ferazani: Bradley, just in terms of your outlook for Australia, can you sort of break it down? I know your accommodations and your integrated services are really in 2 different areas. Can you talk about the differences from what you're seeing on those 2 sides? And I know on the integrated services, it's not just been demand growth, but it's been market share growth, your sort of opportunity outlook on that side over the next couple of years? Bradley Dodson: Yes. So in terms of the owned villages, which are largely in Queensland, I would say that it's very solid occupancy. I think the piece that it's not -- it's been a little bit of a head scratcher has been that met coal prices are materially better this year than they were last year. Most of last year, met coal prices were in the $180 a ton, plus or minus. And this year, they spent most of the year above $220. And -- but I do think the uncertainty around availability and cost of diesel has been significant. The overall unemployment in Australia is low. And so as a result, there are a couple of headwinds there. But overall, our city-owned village occupancy is very strong. So I would say that if we -- if there is a resolution to the uncertainty surrounding diesel costs, that should set up for, as we said in the comments, for a stronger 2027, really across the village occupancy span. As it relates to the integrated services business, which, as you pointed out, is largely in Western Australia, although we have locations that we serve in South Australia and Queensland. The opportunity set to grow that organically remains strong. We've grown that business pretty successfully over the last 7 years. And we're in the crosshairs of the bigger players who are taking notice. So we recognize that it's going to be tougher to win new work, but we are continuing to win new work. And we still -- as we've maintained our goal of reaching AUD 500 million of revenues out of that business by next year. That goal still seems very achievable, and we have the opportunity set to do it. Steve Ferazani: Excellent. I got to ask as we go into 3Q, are we worse -- are we past the worst concerns around wildfires? Do you think you've dodged this year? Or are there still heightened concerns? Bradley Dodson: I don't want to jinx it, to be quite honest, but the -- there's been a fair amount of rain in Alberta. So Alberta wildfires seem to be less of a concern. Obviously, there's still concerns in B.C. and Ontario, which have been noted in the press. But I think generally for Alberta, we're going to be okay. It looks like turnaround work in the third quarter is going to progress. But as I noted to Stephen's question, that is kind of part of the variability in the guidance. Steve Ferazani: Excellent. That's helpful. And then last one, it looks like at least 2 significant Canadian LNG projects at least appear in the media to be exceptionally close to FID. And again, I'm sure you don't want to jinx it. But how quickly could that move forward if it gets to FID? I mean how do you typically think about timing from FID to you got to win the contract? I mean, what are we looking at? If those 2 went FID shortly they would both likely impact 2027 if you won the contracts, correct? Bradley Dodson: 100% particularly the way you phrased it. So for the rest of the audience, let me just be very clear in that if those reach positive FID, I would think it would take them 90 days to then kind of get the rest of the steps in order if the that's in order and then 90 days after that. So you're kind of looking at 4 to 6 months between FID and contract award for what we do. Then the third piece is mobilization because we can -- they can reach FID, we can our portion or a contract, but then it depends on when do they want us to mobilize. But given the time lines that are currently provided by those customers, I would say that they will meaningfully add to 2027 if they were to move forward. But they -- as we are sitting here at the end of July, you put all those months together, you're going to miss kind of the first quarter of 2027 somewhat regardlessly. And so I would say they're going to be meaningful contributors to 2027. We had hoped maybe 4 months ago that they might be full year contributors to 2027. I think that window is starting to close if it hasn't already. But as I mentioned to the prior question, we do believe that there will be some mobile camp mobilizations in the fourth quarter, and that is included in guidance. E. Gerry: If I can supplement the third variable that can come along with some of these major pipeline projects, which is the weather window. And so it's not impossible, but it is more expensive to mobilize camps in the winter at the B.C. mountains. And so depending on whether -- so all these kind of variables have to line up. So you have project timing FID, contract award, but then there's also the weather window when do they want to actually mobilize these camps. Summer is usually a little bit better, not to be -- winter can be done. But -- so there's a couple of unknowns, but I would say that all the kind of prework. It's not as if they're going to hit FID and then start talking to us about scope and execution plans. Those types of conversations are ongoing in the marketplace with us and our competitors. Operator: The next question is from Dave Storms of Stonegate. David Storms: I wanted to stick in North America and especially in Canada, you mentioned in your prepared remarks that you're preserving capacity in Alberta due to some of the tailwinds you've already mentioned. Maybe just what does preserving capacity look like on the ground? I'm assuming you're not mothballing anything, but is that just keeping really up to date on maintenance? And then additionally, is there any additional notable CapEx or expenses that comes with this that might impact margins while we're waiting for some of those FIDs to be awarded? Bradley Dodson: Yes, so let me address the first part, and I'll have to ask you to repeat the second part. But on the first part, our capacity comment was really more balance sheet related that we have the financial capacity to then have the mobilization expenses and manage through that piece of it. That being said, in that first part of the question, you mentioned, we are doing some work to prepare units for mobilization, just ongoing R&M to get things ready. Not huge expenditures or speculative spending per se, but trying to be diligent and kind of thread that needle between not overextending and prefunding things before we've been awarded, but by the same token, trying not to be flat-footed when things do get awarded. And then Dave, if I could ask you to repeat the second part of the question. David Storms: No, I think that covered the second part of the question that you're not prefunding or being speculative. So we shouldn't expect a significant impact to margins from the smaller waiting. Bradley Dodson: Yes. I mean I think it is notable that the vast majority, really, just use the vast majority of the opportunity set is a contract camp contract structure, meaning that these are going to be dedicated camps to a customer, to a project. So the customer is going to pay for transportation installation of the assets, which typically is lower margin work. And they will rent the assets on a take-or-pay basis for the term that they want the assets there. They'll pay for the hospitality services on a per person per day basis as used. And then at the end, they will pay for the dismantle and trans out of the assets. The start-up pieces of these projects are the trans and install. Those are lower margin at 10% margin type work. So that piece will front will be at the front end. Then once the camps are up and running, then you're kind of into the rent and services, which does on a combined basis, have a higher margin. David Storms: That's very helpful. And then maybe just one more sticking in Canada and North America. The Ontario contract, there was mentioned that there's some start-up costs associated with that. Maybe just any comments on the overall North American integrated service businesses, if any of your opportunity pipeline could see -- could give a boost to the integrated service business? Anything there? Bradley Dodson: We continue to be very active on the integrated service from a business development standpoint, particularly in Eastern Canada, trying to build off of the First Nation partnerships that we put in place there as well as the Ontario contract. We are looking to also augment our integrated services in North America in a similar fashion that we did it in Australia with the platform acquisition. So we're actively looking for that opportunity, and that could be additive here in the next 12 months. Operator: This concludes our question-and-answer session. I would like to turn the floor back over to Bradley Dodson for closing comments. Bradley Dodson: Thank you very much, and thank you, everyone, for joining the call today. We greatly appreciate your interest in Civeo. We look forward to speaking to you on our third quarter earnings call expected in late October. Operator: Ladies and gentlemen, thank you for your participation. This concludes today's event. You may disconnect your lines, and have a wonderful day. Before you buy stock in Civeo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Civeo wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Civeo (CVEO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Highlights: Reported revenues of $180.0 million, net loss of $2.5 million and Adjusted EBITDA of $23.8 million; Consolidated revenues increased 11%, driven by integrated services growth in both Australia and Canada, higher occupancy in Canada and the strengthening of the Australian dollar; Subsequent to quarter-end, issued $115.0 million of 4.50% convertible senior notes due 2031, securing long-term, fixed-rate capital that lowers the Company's near-term cost of capital and positions Civeo to invest in a growing pipeline of North American infrastructure opportunities; and Concurrent with the convertible notes offering, repurchased 660,297 common shares for approximately $22.3 million, completing the Company’s previously authorized 20% share repurchase program and commencing execution under its additional 10% authorization. HOUSTON, July 30, 2026--(BUSINESS WIRE)--Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the second quarter ended June 30, 2026. Bradley J. Dodson, Civeo's President and Chief Executive Officer, said, "We delivered a solid second quarter with 11% year-over-year revenue growth. In Australia, we benefited from the stronger Australian dollar, revenue growth in our integrated services platform and contributions from our recently acquired villages. In Canada, higher occupancy and our new integrated services contract in Ontario helped drive year-over-year revenue growth, while start-up costs associated with the new contract negatively impacted Adjusted EBITDA." Mr. Dodson continued, "In July, we took a significant step to better position Civeo to capitalize on a rapidly expanding set of North American growth opportunities, including LNG, Canadian energy infrastructure, and power and data center development. By issuing $115.0 million of 4.50% convertible senior notes due 2031, we replaced higher-cost, floating-rate borrowings with five-year, fixed-rate, unsecured capital while enhancing our financial flexibility to capitalize on these opportunities. Because we intend to satisfy the principal amount of the notes in cash and repurchased approximately 660,000 common shares concurrent with the offering, the transaction is not expected to result in common shareholder dilution unless Civeo common shares increase in value above approximately $53 per share." Mr. Dodson concluded, "Looking ahead, we expect our operations in Canada to deliver approximately 20% year-over-year revenue growth in the back half of 2026, driven by continued execution in our base business and growing success in our integrated services pursuits. In Australia, our business is executing well despite macro-driven headwinds that are likely to persist through year-end, and we remain optimistic about a recovery in 2027 and beyond. Supported by our enhanced financial flexibility and growing pipeline of North American infrastructure opportunities, we believe Civeo is well positioned for long-term growth and value creation as we continue to operate safely and efficiently, manage costs prudently and allocate capital to high-return opportunities in a prudent and disciplined manner." Second Quarter 2026 Results In the second quarter of 2026, Civeo generated revenues of $180.0 million and reported a net loss of $2.5 million, or $0.23 per diluted share. During the second quarter of 2026, Civeo produced operating cash flow of $11.6 million and Adjusted EBITDA of $23.8 million. By comparison, in the second quarter of 2025, Civeo generated revenues of $162.7 million and reported a net loss of $3.3 million, or $0.25 per diluted share. During the second quarter of 2025, Civeo produced negative operating cash flow of $2.3 million and Adjusted EBITDA of $25.0 million. The modest year-over-year decrease in Adjusted EBITDA reflected several factors. In Canada, billed rooms in the core region declined modestly due to the timing of turnaround demand, and the Company incurred start-up costs associated with a new integrated services contract. In Australia, owned-village occupancy was hampered by customers’ cautious response to geopolitical uncertainty surrounding diesel prices and availability, despite relatively strong underlying commodity prices. These headwinds were partially offset by stronger year-over-year performance in the Company’s Canadian LNG-related rooms, contributions from the recently acquired villages in Australia and the favorable impact of a stronger Australian dollar. Business Segment Results Australia During the second quarter of 2026, the Australian segment generated revenues of $125.4 million, operating income of $13.6 million and Adjusted EBITDA of $22.6 million, compared to revenues of $112.7 million, operating income of $13.2 million and Adjusted EBITDA of $22.3 million in the second quarter of 2025. Results for the second quarter of 2026 include the impact of a strengthened Australian dollar relative to the U.S. dollar, which positively impacted revenues and Adjusted EBITDA by $12.2 million and $2.2 million, respectively. The Australian segment reported an 11% increase in revenues and a 1% increase in Adjusted EBITDA. The year-over-year increase in revenues was primarily driven by increased integrated services activity and the strengthening of the Australian dollar. Canada During the second quarter of 2026, the Canadian segment generated revenues of $54.6 million, an operating loss of $1.7 million and Adjusted EBITDA of $6.0 million, compared to revenues of $50.0 million, an operating loss of $2.5 million and Adjusted EBITDA of $6.9 million in the second quarter of 2025. The Canadian segment reported a 9% increase in revenues driven by higher occupancy and the new integrated services contract in Ontario. Adjusted EBITDA decreased, primarily reflecting start-up costs associated with the new integrated services contract. Financial Condition and Capital Allocation As of June 30, 2026, Civeo had total liquidity of approximately $82.2 million. Civeo's total debt at June 30, 2026 was $208.6 million, a $3.7 million decrease from March 31, 2026. Civeo's net debt at June 30, 2026 was $190.9 million, a $7.9 million decrease since March 31, 2026, bringing Civeo's reported net leverage ratio to 2.1x as of June 30, 2026. During the second quarter of 2026, Civeo invested $3.7 million in capital expenditures compared to $4.5 million invested during the second quarter of 2025. Capital expenditures in both periods were primarily related to maintenance spending on the Company’s lodges and villages. In July 2026, the Company issued $115.0 million aggregate principal amount of 4.50% convertible senior notes due 2031, including the full exercise of the initial purchasers' option to purchase an additional $15.0 million of notes. The offering closed on July 7, 2026. The notes bear interest at a fixed rate of 4.50% per annum, mature on August 1, 2031, and have an initial conversion price of approximately $40.51 per share, representing a 20% premium to the closing price of Civeo's common shares on July 1, 2026. Concurrent with the offering, Civeo repurchased 660,297 of its common shares for approximately $22.3 million. Approximately 111,000 of these shares completed the 20% share repurchase authorization approved by the Board of Directors in April 2025. Upon completion of that authorization, the Company began executing on its previously announced authorization to repurchase up to an additional 10% of its outstanding common shares. The remaining approximately 549,000 shares were applied to the new authorization, bringing it to approximately 50% complete. The Company used the net proceeds from the offering to fund the concurrent share repurchase and repay borrowings under its revolving credit facility, restoring undrawn capacity and further enhancing its financial flexibility. Full Year 2026 Guidance For the full year of 2026, Civeo is maintaining its previously provided revenue and Adjusted EBITDA guidance of $675 million to $700 million and $85 million to $90 million, respectively. The Company is maintaining its full year 2026 capital expenditure guidance range of $25 million to $30 million. Conference Call Civeo will host a conference call to discuss its second quarter 2026 financial results today at 9:30 a.m. Eastern time. This call is being webcast and can be accessed at Civeo's website at www.civeo.com. Participants may also join the conference call by dialing (877) 423-9813 in the United States or (201) 689-8573 internationally and asking for the Civeo call or using the conference ID 13761993#. A replay will be available after the call by dialing (844) 512-2921 in the United States or (412) 317-6671 internationally and using the conference ID 13761993#. About Civeo Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Australian natural resource regions and the Canadian oil sands. Civeo offers comprehensive solutions for lodging hundreds or thousands of workers with its long-term and temporary accommodations and provides food services, housekeeping, facility management, laundry, water and wastewater treatment, power generation, communications systems, security and logistics services. Civeo currently owns and operates a total of 26 lodges and villages in Australia and North America with an aggregate of approximately 26,300 rooms. In addition, Civeo operates and provides hospitality services at 22 customer-owned locations with approximately 18,300 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo's website at www.civeo.com Forward Looking Statements This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements herein, including the statements regarding Civeo’s future plans and outlook, strategic priorities, guidance, current trends, expectations with respect to Adjusted EBITDA, capital expenditures, future revenues, share repurchases, free cash flow generation, cost reductions, integration of the Australian asset acquisition, future infrastructure-related opportunities and liquidity needs, are based on then-current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the accommodations industry, risks associated with the level of supply and demand for oil, coal, iron ore and other minerals, including the level of activity, spending and developments in the Canadian oil sands, the level of demand for coal and other natural resources from, and investments and opportunities in, Australia, and fluctuations or sharp declines in the current and future prices of coal, iron ore, oil, natural gas and other minerals, risks associated with failure by our customers to reach positive final investment decisions on, or otherwise not complete, projects with respect to which we have been awarded contracts, which may cause those customers to terminate or postpone contracts, risks associated with currency exchange rates, risks associated with inflation and volatility in the banking sector, risks associated with the company’s ability to integrate any future acquisitions, risks associated with labor shortages, risks associated with the development of new projects, including whether such projects will continue in the future, risks associated with the trading price of the company’s common shares, availability and cost of capital, risks associated with general global economic conditions, geopolitical events, inflation, global weather conditions, natural disasters, including wildfires, global health concerns, and security threats and changes to government and environmental regulations, including climate change, and other factors discussed in the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of Civeo’s most recent annual report on Form 10-K and other reports the company may file from time to time with the U.S. Securities and Exchange Commission. Each forward-looking statement contained herein speaks only as of the date of this release. Except as required by law, Civeo expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. Non-GAAP Financial Information EBITDA, Adjusted EBITDA, net debt, bank-adjusted EBITDA and net leverage ratio are non-GAAP financial measures. See "Non-GAAP Reconciliation" below for definitions and additional information concerning non-GAAP financial measures, including a reconciliation of the non-GAAP financial information presented in this press release to the most directly comparable financial information presented in accordance with GAAP. Non-GAAP financial information supplements and should be read together with, and is not an alternative or substitute for, the Company’s financial results reported in accordance with GAAP. Because non-GAAP financial information is not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures. CIVEO CORPORATIONSUPPLEMENTAL OPERATIONS BY SERVICE TYPE BY REGION DATA(U.S. dollars in thousands)(unaudited) The following table sets forth certain supplemental data for our Australia and Canada segment revenues attributable to the asset-light ("Catering and Facility Management") portion of the Company’s business and the asset-intensive ("Accommodations and Infrastructure") portion of the Company’s business. We provide Catering and Facility Management services to both customer-owned assets and Company-owned villages and lodges. When we provide Catering and Facility Management services to customer-owned assets, it is reflected in "Food and other services" in our Supplemental Quarterly Segment and Operating Data. However, when we provide those same services to customers at our owned villages and lodges, it is reflected in "Accommodation and other services", which also includes the Accommodations and Infrastructure component of our owned villages and lodges. This is because we bill our customers in one combined rate for both Accommodations and Infrastructure services and Catering and Facility Management services at Company-owned villages and lodges. The purpose of the disclosure below is to disaggregate the embedded Catering and Facility Management revenues from the "Accommodation and other services" revenues associated with our owned villages and lodges that is included in our Supplemental Quarterly Segment and Operating Data. To do so, we apply a margin that is equal to Civeo’s margin in similar services we provide to customer-owned assets to the cost of sales that are associated with Catering and Facility Management services within "Accommodation and other services" for our owned villages and lodges. This table provides investors a supplemental view of the services provided by the Company which could assist with their valuation analysis. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730633246/en/ Contacts Regan NielsenCiveo CorporationVice President, Corporate Development & Investor Relations713-510-2400

Hilton Worldwide Holdings Inc. (HLT) came out with quarterly earnings of $2.29 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $2.2 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $1.96 per share when it actually produced earnings of $2.01, delivering a surprise of +2.55%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Hilton Worldwide, which belongs to the Zacks Hotels and Motels industry, posted revenues of $3.34 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.62%. This compares to year-ago revenues of $3.14 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hilton Worldwide shares have added about 15.2% since the beginning of the year versus the S&P 500's gain of 8.3%. While Hilton Worldwide has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hilton Worldwide was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.41 on $3.45 billion in revenues for the coming quarter and $9.03 on $13.04 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Hotels and Motels is currently in the bottom 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Civeo (CVEO), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30. This provider of remote-site workforce housing is expected to post quarterly loss of $0.30 per share in its upcoming report, which represents a year-over-year change of -20%. The consensus EPS estimate for the quarter has been revised 4.8% higher over the last 30 days to the current level. Civeo's revenues are expected to be $170.92 million, up 5.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report Civeo Corporation (CVEO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Civeo beat expectations in Q1: consolidated revenue rose 20% to $172.7 million and adjusted EBITDA jumped 78% to $22.5 million, while net loss narrowed to $3.8 million (‑$0.34/share). Regional performance mixed but improving: Australia grew on acquired villages and integrated services (billed rooms ~676,000), while Canada rebounded with higher occupancy and cost cuts (billed rooms ~434,000), though management flagged diesel/inflation pressures, labor challenges, and shifted timing of Canadian maintenance activity. Guidance and capital actions: the company raised the low end of full‑year revenue guidance to $675M–$700M but kept adjusted EBITDA guidance at $85M–$90M due to higher input costs; Civeo repurchased ~500,000 shares, extended its revolver to $285 million, and reported net leverage of about 2.2x. Interested in Civeo Corporation? Here are five stocks we like better. Civeo (NYSE:CVEO) reported first-quarter 2026 results that exceeded management’s expectations, driven by higher occupancy in Canada, continued growth in Australia’s integrated services business, and contributions from Australian villages acquired in May 2025. President and CEO Bradley Dodson said the company delivered “a strong start to 2026,” with consolidated revenue up 20% year over year and adjusted EBITDA up 78%. CFO Collin Gerry attributed the improvement to “higher activity levels in both Australia and Canada,” including improved lodge occupancy in Canada and the acquired village portfolio in Australia. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss Gerry said total revenue for the quarter was $172.7 million, up from $144.0 million in the first quarter of 2025. Net loss narrowed to $3.8 million, or $0.34 per diluted share, compared to a net loss of $9.8 million, or $0.72 per diluted share, a year earlier. Adjusted EBITDA increased to $22.5 million from $12.7 million. Operating cash flow was negative $9.7 million, which Gerry said “primarily reflect[ed] expected seasonal working capital outflows in the first quarter.” → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? Dodson said the company also benefited from foreign currency movements and “strong incremental margins in Canada as a result of our cost reduction initiatives that we took last year.” In Australia, first-quarter revenue rose to $123.0 million from $103.6 million, while adjusted EBITDA increased to $21.8 million from $19.0 million. Gerry said the higher revenue reflected “the contribution from the villages acquired in May 2025, as well as continued growth in our integrated services business,” partially offset by “modest softness in portions of the legacy-owned village portfolio.” → Is Oracle Undervalued as Cloud Growth Accelerates? Australian billed rooms increased to approximately 676,000 from 626,000. The daily room rate for Australian-owned villages was AUD 83, up from AUD 75, which Gerry said primarily reflected “the strengthening of the Australian dollar relative to the U.S. dollar.” In Canada, revenue increased to $49.6 million from $40.4 million, and adjusted EBITDA improved to $5.2 million from a loss of $0.8 million. Gerry said the improvement was driven by “higher occupancy across key lodges, as well as the continued benefits of cost reductions implemented during 2025.” Canadian billed rooms rose to approximately 434,000 from 359,000, and the daily room rate increased to $99 from $93. On the call, management discussed shifting timing for Canadian turnaround activity. Dodson said customers are prioritizing production amid higher oil prices, and Civeo expects some maintenance activity that “normally occurs in the second quarter” to be deferred “into later in this year.” In Q&A, Dodson added that he expects a “smoother year” and a flatter cadence of Canadian occupancy versus the historical pattern where a majority of annual EBITDA is generated in the second and third quarters. Management described a volatile and dynamic operating environment. Dodson said commodity prices, including oil and metallurgical coal, have been volatile, and customer spending “remains disciplined in both Australia and Canada.” He noted metallurgical coal prices were “currently in the $230 per ton range,” up roughly 25% from the second half of last year, but said disruptions tied to the war in the Middle East have “likely shift[ed] the timing” of potential occupancy uplift in Australia “into 2027.” Dodson also warned that the “ongoing conflict in Iran and associated dislocations of the global energy and raw materials trade” could pressure margins, particularly in Australia, which he said is “highly dependent on normalized global seaborne energy trade for diesel and other fuels.” During Q&A, Dodson said labor availability remains a challenge in Australia. “Labor availability continues to be a struggle across our Australian business,” he said, adding that the company has relied on temporary labor when needed and has worked to recruit and retain staff, including “recruiting foreign chefs to come in and work rotations.” Civeo continued share repurchases during the quarter. Dodson said the company repurchased approximately 500,000 shares, representing about 4% of shares outstanding at year-end 2025, and has completed about 96% of its current authorization. Gerry said the average repurchase price was $28.06, totaling approximately $14.4 million. Management said an additional authorization remains in place for repurchases up to 10% of the company’s outstanding shares once the current program is completed. The company also amended and extended its credit agreement. Gerry said total revolving capacity was increased to $285 million and the maturity extended to April 2030. As of March 31, 2026, Civeo had total liquidity of approximately $68 million, total debt of $215 million, and net debt of $199 million, resulting in a net leverage ratio of approximately 2.2x. Capital expenditures in the quarter were $4.1 million, down from $5.3 million, and were “primarily related to maintenance spending,” according to Gerry. For full-year 2026, Civeo raised the low end of its revenue guidance to $675 million to $700 million, from a prior range of $650 million to $700 million. Dodson said the revision reflects “continued momentum in our Australian integrated services platform and continued recovery in our Canadian business.” However, the company maintained its 2026 adjusted EBITDA guidance of $85 million to $90 million. Dodson said that decision reflects higher input costs, “particularly diesel,” and broader inflationary pressures associated with ongoing global energy market disruptions. Civeo also maintained its 2026 capital expenditures outlook of $25 million to $30 million. Looking ahead, management emphasized a growing bid environment in North America. Dodson said Civeo is actively bidding on projects with total contract values “in excess of $1.5 billion,” which he described as the strongest pipeline the company has seen to date, while noting that many opportunities depend on customers reaching final investment decisions. During Q&A, Dodson said the company is “extremely active” bidding on data center-related opportunities and adjacent power projects, while highlighting that its available assets are in Western Canada and are best positioned for Northern U.S., Canada, and Alaska deployments where transport costs are more favorable. He also said construction-related opportunities generally span “two to four-year projects,” with fewer extending beyond five years. Civeo expects any material financial contribution from large North American infrastructure projects to occur “in 2027 and beyond,” though Dodson said some work may be announced in 2026 and mobile camps can typically be deployed within about 90 days. Civeo Corporation is a leading provider of workforce accommodations and integrated facility management services, primarily serving the oil and gas, mining, and construction sectors. The company specializes in the development, ownership, and operation of remote lodging facilities, commonly known as “man camps,” designed to house workers in geographically challenging environments. Its services include turnkey accommodations, catering, housekeeping, grounds maintenance, and logistical support, tailored to meet the needs of large-scale energy and resource projects. With a network of lodges and villages across North America and Australia, Civeo caters to clients operating in regions such as Alberta's oil sands, the Bakken shale play, and Australia's Pilbara and Bowen Basin mining districts. The article "Civeo Q1 Earnings Call Highlights" was originally published by MarketBeat.

Delivered 20% revenue growth driven by improved Canadian occupancy and the full-quarter contribution of Australian village acquisitions. Achieved 78% adjusted EBITDA growth through strong incremental margins in Canada following structural cost reduction initiatives implemented in 2025. Attributed the robust North American bid pipeline, exceeding $1.5 billion, to a diverse mix of LNG, power, and data center-related projects. Noted that while high commodity prices are favorable, global energy trade dislocations have shifted the timing of expected occupancy uplifts into 2027. Maintained a disciplined capital allocation strategy, repurchasing 4% of outstanding shares while extending credit facilities to 2030 for enhanced flexibility. Observed that Canadian customers are prioritizing production over maintenance, leading to a deferral of traditional second-quarter turnaround activity into later in the year. Raised the 2026 revenue guidance to $675 million–$700 million, increasing the lower end from $650 million due to momentum in Australian Integrated Services and Canadian recovery. Maintained adjusted EBITDA guidance of $85 million–$90 million to account for temporary inflationary impacts from higher diesel and input costs. Anticipates a smoother, flatter earnings cadence throughout 2026 as Canadian turnaround activity shifts from the second quarter to the back half of the year. Expects meaningful financial contributions from the North American infrastructure pipeline to materialize in 2027 and beyond, pending final investment decisions. Targets A$500 million in annual Australian Integrated Services revenue by 2027 through continued platform expansion. Identified the conflict in Iran and global energy dislocations as primary drivers for increased diesel costs and potential margin compression in Australia. Flagged persistent labor availability challenges in Australia, particularly for specialized roles like head chefs, necessitating the use of higher-cost temporary labor. Highlighted the mobilization of the Ontario correctional facilities contract as a strategic entry into the Eastern Canadian market and a new end-market vertical. Noted the strategic positioning of 2,500 mobile camp rooms and 7,000 redeployable lodge rooms in Western Canada to capture upcoming infrastructure demand. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is actively bidding on U.S. data center and power projects, noting that proximity to Western Canadian assets makes them competitive for Northern U.S. and Alaska deployments. Confirmed that the market is beginning to tighten, with some customers prioritizing speed of delivery and asset availability over price. Labor remains a significant challenge; the company is recruiting foreign chefs to mitigate shortages but has not yet reached desired labor cost efficiencies. High turnover necessitates a focus on both recruitment and long-term retention strategies to reduce reliance on expensive temporary labor. Elevated oil prices have led Canadian customers to focus on maximizing production, deferring planned maintenance (turnarounds) from Q2 into the back half of the year. In Australia, the 'new normal' for metallurgical coal activity levels has likely shifted from $200 to approximately $225 per ton due to increased diesel and inflationary costs. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.