Civeo reported higher third-quarter revenue and adjusted EBITDA, with stronger Canadian demand driving the largest gains. The workforce-accommodation and catering company also raised its 2026 financial outlook and increased planned capital spending as it prepares Canadian assets for new contracts covering about 700 mobile rooms.
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Third-quarter results: Revenue was $193.1 million, up 13% from a year earlier. Net income was $5.2 million and adjusted EBITDA was $30.1 million, up 5%. Operating cash flow was $26.4 million, nearly double the prior-year quarter.
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Canada led growth: Canadian revenue rose 38% year over year and adjusted EBITDA increased 47%. Civeo attributed the gains mainly to higher occupancy at its oil sands lodges, reflecting stronger-than-expected turnaround activity, as well as growth from a new integrated services contract in Ontario.
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Australian operations had mixed demand: Contractual rate increases and more shutdown work in integrated services helped offset lower occupancy at owned villages in the Bowen Basin. A stronger Australian dollar also lifted reported revenue growth.
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New Canadian contracts: Since the end of the second quarter, Civeo secured contracts with a range of customers for the deployment of approximately 700 mobile fleet rooms across Canada. The company said it expects Canadian revenue, in local currency, to grow about 30% year over year in the second half of 2026, compared with its prior expectation of 20%.
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Cash generation improved year to date: Operating cash flow totaled $28.3 million for the first nine months of 2026, up $25.2 million from the same period in 2025. Civeo attributed the increase to higher adjusted EBITDA—including a full nine months of contribution from Australian villages acquired in May 2025—lower cash taxes in Australia and favorable working-capital timing.
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Full-year outlook raised: Civeo now expects 2026 revenue of $710 million to $720 million and adjusted EBITDA of $89 million to $92 million. It raised its capital expenditure outlook to $30 million to $35 million, saying the additional spending will prepare Canadian assets for the contracted deployments.
The stronger outlook reflects improved Canadian occupancy and service activity, alongside the new mobile-room contracts. The higher capital spending is intended to ready assets for that work; the release did not specify deployment dates or the expected financial contribution from the contracts.