What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-10-31 compared with 2025-07-29 · 175 added, 163 removed, 308 unchanged (52% of the section changed)

18 unchanged sentences

(per bbl) WCS

Third Quarter through July 25, 2025

Fourth Quarter through October 24, 2025

189.51 98.54 60.03 48.32

8 unchanged sentences

9/30/2023 260.12 111.04 82.50 66.20

6/30/2023 243.54 106.98 73.54 60.25

Hard coking prices are from IHS Markit, iron ore prices and WCS crude prices are from Bloomberg and WTI crude prices are from U.S.

1 unchanged sentence

In Australia, 86% of our Australian owned rooms are located in the Bowen Basin of Queensland, Australia and primarily serve met coal mines in that region.

Met coal pricing and production growth in the Bowen Basin region is predominantly influenced by the level of global steel production, which remained subdued with negative growth in the second quarter of 2025.

China, Europe and Japan all experienced negative growth during January through June 2025, while India continues to see consistent positive growth.

China, Europe and Japan all experienced negative growth during January through August 2025, while India continues to see consistent positive growth over the same period.

Global tariff changes, recession fears and associated business uncertainty are weighing on current and short-term global steel production.

Global steel production decreased by 2.2% for the six months through June 2025 compared to the same period of 2024.

As of July 25, 2025, met coal spot prices were $174.10 per tonne.

Met coal prices have remained between $168 and $198 per tonne during the first half of 2025, since dropping below $200 per tonne in late 2024.

Low prices are impacted by lower steel production driven by lower demand and trader reselling of met coal inventories.

In a low met coal price environment, producers are under increasing pressure to re-evaluate their production levels due to reduced operating margins.

An improvement in met coal prices is contingent upon increased demand for met coal, which would be driven by improving steel production along with a tightening in supply related to producer maintenance activity and production curtailment from higher cost suppliers.

Such improvements in the supply and demand fundamentals for met coal may be impacted by ongoing geopolitical tensions associated with global tariffs and trade agreements.

Iron ore prices declined to average $92.70 per tonne during the second quarter of 2025.

Analysts expect iron ore prices to continue to be subdued for the remainder of 2025, where strong supply is maintained by the major producers against reduced steel demand and production.

Further new iron ore supply to the market may be delayed and some supply rationalization is possible with continuing lower prices, as suppliers review current production levels in a low iron ore price environment.

In an effort to retain and recapture global market share, OPEC+ began reversing previously implemented production cuts at the beginning of the second quarter of 2025, increasing production despite flattening global demand for oil.

The combined impact of these factors reduced WTI prices, which are down 9% year-to-date in 2025.

OPEC+ has announced further production increases planned for August 2025 which will likely put further downward pressure on oil prices.

currently have oil prices averaging $65.33 per barrel in the second half of 2025.

Global steel production decreased by 1.6% for the nine months through September 2025 compared to the same period of 2024.

As of October 24, 2025, met coal spot prices were $194.20 per tonne.

Met coal prices have remained between $168 and $198 per tonne for the nine months through September 2025, since dropping below $200 per tonne in late 2024.

In the third quarter of 2025 met coal prices have consistently averaged between $172 and $190 per tonne.

Lower met coal prices are the result of lower steel demand and production, high global met coal inventories and increasing met coal supply.

With the lower met coal price environment persisting into the third quarter of 2025, producers continued to re-evaluate their production levels and costs.

In September 2025, several large and mid-tier producers in Queensland, Australia reported making production cuts and workforce reductions in response to pressure on operating margins.

An improvement in met coal prices remains contingent on stronger demand, which would be supported by increased steel production, as well as tighter supply resulting from producer maintenance activity and production curtailments by higher cost suppliers.

Such improvements in the supply and demand fundamentals for met coal may be impacted by ongoing geopolitical tensions associated with global tariffs and trade agreements, along with recent supply increases in the U.S.

Iron ore prices increased to average $96.97 per tonne during the third quarter of 2025, which was driven by demand from steel producer restocking activity.

Iron ore supply late in the third quarter of 2025 strengthened due to favorable weather conditions in Brazil and is expected to strengthen further with additional supply coming to the market in late 2025 and early 2026.

Analysts expect prices to remain stable over the fourth quarter;

however, any further upside in prices is likely to be limited given the strong production outlook.

In an effort to retain and recapture global market share, OPEC+ began reversing previously implemented production cuts at the beginning of the second quarter of 2025 and accelerating into the third quarter of 2025, increasing production despite flattening global demand for oil.

The combined impact of these factors reduced WTI prices, which are down approximately 13% year-to-date through the end of the third quarter of 2025.

Forecasts currently have oil prices averaging $60.00 per barrel in the fourth quarter of 2025.

In light of this macroeconomic backdrop, our Canadian oil sands customers are increasingly looking to reduce costs and headcounts.

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Pricing for WCS is driven by several factors, including the underlying price for WTI crude, the availability of transportation infrastructure (consisting of pipelines and crude by railcar), refinery blending requirements and governmental regulation.

Historically, WCS has traded at a discount to WTI, creating a “WCS Differential,” due to transportation costs and capacity restrictions to move Canadian heavy oil production to refineries, primarily along the U.S.

Historically, WCS has traded at a discount to WTI, creating a “WCS Differential,” due to transportation costs and export capacity limitations to move Canadian heavy oil production to refineries, primarily along the U.S.

The WCS Differential has varied depending on the extent of transportation capacity availability.

WCS prices in the second quarter of 2025 averaged $53.15 per barrel compared to an average of $67.24 in the second quarter of 2024.

The WCS Differential decreased from $13.49 per barrel at the end of the fourth quarter of 2024 to $11.67 at the end of the second quarter of 2025.

WCS prices in the third quarter of 2025 averaged $52.48 per barrel compared to an average of $59.97 in the third quarter of 2024.

The WCS Differential decreased from $13.49 per barrel at the end of the fourth quarter of 2024 to $11.98 at the end of the third quarter of 2025.

Further, the U.S.

Administration has implemented and amended several new tariffs over the past several months, including a 10% tariff on energy resources imported to the U.

Implementation of tariffs could have adverse impact on our Canadian customers profit margins, which may in turn reduce their spending on our accommodations and services.

administration has implemented and amended several new tariffs over the past several months, including a 10% tariff on Canadian energy imports to the U.

Implementation of tariffs on oil from Canada could have an adverse impact on our Canadian customers profit margins, which may in turn reduce their spending on our accommodations and services.

Qantac Acquisition .

6 unchanged sentences

Although inflation resulting from global tariffs implemented or threatened by the U.S.

administration, and the resulting retaliations by its trading partners, did not materially impact our cost structure in the second quarter of 2025, concerns remain that inflationary pressures could return in the second half of 2025.

administration, and the resulting retaliations by its trading partners, did not materially impact our cost structure in the third quarter of 2025, concerns remain that inflationary pressures could return in the future.

Labor Shortages.

In addition to the macro inflationary impacts on labor costs noted above, we continue to be impacted by increased staff costs as a result of hospitality labor shortages in Australia due to significantly reduced migration in and around Australia affecting labor availability, which has subsequently led to an increased reliance on more expensive temporary labor resources.

In addition to the macro inflationary impacts on labor costs noted above, we continue to be impacted by increased staff costs as a result of hospitality labor shortages in Australia.

Australia’s labor market remains historically tight, with unemployment holding around 4% and job mobility (movement of workers between different employers or businesses) at its lowest in 30 years.

A persistent overhang of vacancies continues to constrain recruitment, while government stimulus has disproportionately driven job growth in healthcare, aged care, education and public services.

Despite easing inflation, regulated labor costs remain high, with the Fair Work Commission decisions pushing wage increases well above Consumer Price Index changes, and statutory increases in superannuation, workers’ compensation and payroll tax are further inflating total labor costs.

For hospitality, this combination of scarce labor supply, competition from government-funded sectors and rising employment costs creates sustained pressure on staffing productivity and availability.

Our Sitka Lodge supports the LNG Canada (LNGC) project and related pipeline projects (specifically, the Coastal GasLink Pipeline, the pipeline constructed to transport natural gas feedstock to LNGC).

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 Change Percentage 2025 2024 Change Percentage

3 unchanged sentences

dollar $0.7260 $0.7334 ($0.007) (1.01)% $0.7152 $0.7352 ($0.020) (2.72)%

June 30, 2025 December 31, 2024 Change Percentage

September 30, 2025 December 31, 2024 Change Percentage

Australian dollar to U.S.

9 unchanged sentences

Results of Operations

Unless otherwise indicated, discussion of results for the three and six months ended June 30, 2025, is based on a comparison to the corresponding period of 2024.

Results of Operations – Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024

Unless otherwise indicated, discussion of results for the three and nine months ended September 30, 2025, is based on a comparison to the corresponding period of 2024.

Results of Operations – Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024

Three Months Ended

September 30,

2025 2024 Change

12 unchanged sentences

Depreciation and amortization expense 20,012 17,440 2,572

Gain on sale of McClelland Lake Lodge assets, net — 87 (87)

Other operating expense 66 188 (122)

Loss on sale of McClelland Lake Lodge assets, net — 171 (171)

Other operating (income) expense (1,298) 506 (1,804)

Total costs and expenses 163,525 176,294 (12,769)

2 unchanged sentences

Other income 10 204 (194)

Income before income taxes 295 11,273 (10,978)

Income (loss) before income taxes 3,582 (1,427) 5,009

Income tax expense (4,038) (3,862) (176)

Net income (loss) attributable to noncontrolling interest (3,311) 7,487 (10,798)

Net income (loss) attributable to noncontrolling interest 3 (740) 743

Net income (loss) attributable to Civeo Corporation $ (3,314) $ 8,227 $ (11,541)

We reported net loss attributable to Civeo for the quarter ended June 30, 2025 of $3.3 million, or $0.25 per diluted share.

Net loss included $3.2 million of shareholder activist related costs and $0.5 million of cost saving initiatives in Canada related to two lodge closures.

We reported net income attributable to Civeo for the quarter ended June 30, 2024 of $8.2 million, or $0.56 per diluted share.

Consolidated revenues decreased $26.0 million, or 14%, in the second quarter of 2025 compared to the second quarter of 2024.

This decrease was primarily driven by (i) lower billed rooms at our oil sands lodges in Canada as producers in the region remain focused on reducing operating costs, (ii) reduced occupancy at our Sitka Lodge in Canada as the Kitimat LNG facility was completed and commenced operations in the second quarter of 2025 and (iii) a weaker Australian dollar relative to the U.S.

dollar in the second quarter of 2025 compared to the second quarter of 2024.

These items were partially offset by an increase in Australia related to the Qantac Acquisition in the second quarter of 2025 and new business in our integrated services villages in Western Australia.

The assets from the Qantac Acquisition generated $4.9 million of revenues in the second quarter of 2025.

Net loss (456) (5,289) 4,833

Net loss attributable to noncontrolling interest (1) (198) 197

Net loss attributable to Civeo Corporation $ (455) $ (5,091) $ 4,636

We reported net loss attributable to Civeo for the quarter ended September 30, 2025 of $0.5 million, or $0.04 per diluted share.

Net loss included $0.6 million of shareholder activist related costs and $0.2 million of cost saving initiatives in Canada.

We reported net loss attributable to Civeo for the quarter ended September 30, 2024 of $5.1 million, or $0.36 per diluted share.

Consolidated revenues decreased $5.8 million, or 3%, in the third quarter of 2025 compared to the third quarter of 2024.

This decrease was primarily driven by (i) lower billed rooms at our oil sands lodges in Canada as producers in the region remain focused on reducing operating costs, (ii) lower food service and other services revenue in Canada as client maintenance work was softer in the third quarter of 2025 and (iii) a weaker Australian dollar relative to the U.S.

dollar in the third quarter of 2025 compared to the third quarter of 2024.

These items were partially offset by an increase in Australia related to the Qantac Acquisition in the second quarter of 2025 and new business in our integrated services villages in Queensland.

The assets from the Qantac Acquisition generated $8.4 million of revenues in the third quarter of 2025.

See the discussion of segment results of operations below for further information.

Cost of Sales and Services.

Our consolidated cost of sales and services decreased $19.3 million, or 14%, in the second quarter of 2025 compared to the second quarter of 2024.

This decrease was primarily driven by (i) lower costs at various lodges in Canada due to reduced occupancy levels, (ii) lower costs related to the reduced mobile asset activity in Canada from pipeline projects for which final costs were incurred in the second quarter of 2024, (iii) reduced indirect costs in Canada as a result of

various cost reduction measures and (iv) a weaker Australian dollar relative to the U.S.

dollar in the second quarter of 2025 compared to the second quarter of 2024.

Our consolidated cost of sales and services decreased $11.8 million, or 9%, in the third quarter of 2025 compared to the third quarter of 2024.

This decrease was primarily driven by (i) lower costs at various lodges in Canada due to reduced occupancy levels, (ii) reduced costs at various lodges and reduced indirect costs in Canada as a result of various cost reduction measures implemented in Canada in late 2024 and early 2025, (iii) reduced food service and other services costs in Canada as client maintenance work was softer in the third quarter of 2025 and (iv) a weaker Australian dollar relative to the U.S.

dollar in the third quarter of 2025 compared to the third quarter of 2024.

These items were partially offset by

an increase in Australia related to the Qantac Acquisition in the second quarter of 2025 and new business in our integrated services villages in Queensland and the associated overhead costs.

See the discussion of segment results of operations below for further information.

Selling, General and Administrative Expenses.

SG&A expenses increased $3.0 million, or 17%, in the second quarter of 2025 compared to the second quarter of 2024.

This increase was primarily due to higher professional fees of $3.6 million primarily due to shareholder activist related costs of $3.2 million, partially offset by lower office expenses of $0.4 million, lower share-based compensation expense of $0.3 million and a weaker Australian and Canadian dollar relative to the U.S.

dollar in the second quarter of 2025 compared to the second quarter of 2024.

Selling, general and administrative (SG&A) expenses decreased $1.5 million, or 8%, in the third quarter of 2025 compared to the third quarter of 2024.

This decrease was primarily due to lower incentive compensation cost of $0.6 million, lower office expenses of $0.5 million, lower share-based compensation of $0.4 million and a weaker Australian and Canadian dollar relative to the U.S.

dollar in the third quarter of 2025 compared to the third quarter of 2024.

Depreciation and Amortization Expense.

Depreciation and amortization expense increased $0.8 million, or 5%, in the second quarter of 2025 compared to the second quarter of 2024.

The increase was primarily due to additional property, plant and equipment acquired through the Qantac Acquisition, partially offset by reduced depreciation expense resulting from impairments recorded in 2024 and a weaker Australian and Canadian dollar relative to the U.S.

dollar in the second quarter of 2025 compared to the second quarter of 2024.

Depreciation and amortization expense increased $2.6 million, or 15%, in the third quarter of 2025 compared to the third quarter of 2024.

The increase was primarily due to additional property, plant and equipment acquired through the Qantac Acquisition and shortening the lives on certain assets in Canada, partially offset by reduced depreciation expense resulting from impairments recorded in 2024 and a weaker Australian and Canadian dollar relative to the U.S.

dollar in the third quarter of 2025 compared to the third quarter of 2024.

Operating Income.

Consolidated operating income decreased $10.3 million, or 79%, in the second quarter of 2025 compared to the second quarter of 2024, primarily due to lower lodge occupancy in Canada in the second quarter of 2025 compared to the second quarter of 2024 and higher SG&A expense, primarily due to shareholder activist related costs, in the second quarter of 2025.

These items were partially offset by higher activity levels in Australia in the second quarter of 2025 compared to the second quarter of 2024.

Consolidated operating income increased $6.9 million in the third quarter of 2025 compared to the third quarter of 2024, primarily driven by higher activity levels in Australia and gross margin expansion in Canada despite lower lodge occupancy resulting from cost cutting measures previously implemented.

These items were partially offset by higher depreciation and amortization expense in the third quarter of 2025 compared to the third quarter of 2024.

Interest Expense, net.

Net interest expense increased by $0.5 million, or 22%, in the second quarter of 2025 compared to the second quarter of 2024, primarily related to higher average debt levels, partially offset by lower interest rates on credit facility borrowings during 2025 compared to 2024.

Net interest expense increased by $1.7 million, or 103%, in the third quarter of 2025 compared to the third quarter of 2024, primarily related to higher average debt levels, as a result of the Qantac Acquisition and increased share repurchases, partially offset by lower interest rates on credit facility borrowings during 2025 compared to 2024.

Income Tax Expense.

Our income tax expense for the three months ended June 30, 2025 totaled $3.6 million, or 1222.4% of pretax income, compared to an income tax expense of $3.8 million, or 33.6% of pretax income, for the three months ended June 30, 2024.

Our effective tax rate for the three months ended June 30, 2025 and 2024 was impacted by Canada and the U.S.

Our income tax expense for the three months ended September 30, 2025 totaled $4.0 million, or 112.7% of pretax income, compared to an income tax expense of $3.9 million, or (270.6)% of pretax loss, for the three months ended September 30, 2024.

Our effective tax rate for the three months ended September 30, 2025 and 2024 was impacted by Canada and the U.S.

being considered loss jurisdictions that were removed from the annual effective tax rate computation for purposes of computing the interim tax provision.

Other Comprehensive Income.

Other comprehensive income increased $9.3 million in the second quarter of 2025 compared to the second quarter of 2024, primarily as a result of foreign currency translation adjustments due to changes in the Australian and Canadian dollar exchange rates compared to the U.S.

Other Comprehensive Income (Loss).

Other comprehensive income decreased $8.0 million in the third quarter of 2025 compared to the third quarter of 2024, primarily as a result of foreign currency translation adjustments due to changes in the Australian and Canadian dollar exchange rates compared to the U.S.

The Australian dollar exchange rate compared to the U.S.

dollar increased 5% in the second quarter of 2025 compared to a 2% increase in the second quarter of 2024.

dollar remained constant in the third quarter of 2025 compared to a 4% increase in the third quarter of 2024.

The Canadian dollar exchange rate compared to the U.S.

dollar increased 5% in the second quarter of 2025 compared to a 1% decrease in the second quarter of 2024.

dollar decreased 2% in the third quarter of 2025 compared to a 1% increase in the third quarter of 2024.

Segment Results of Operations – Australian Segment

Three Months Ended

September 30,

2025 2024 Change

11 unchanged sentences

Gross margin as a % of revenues 26.9 % 25.3 % 1.5 %

Average daily rate for villages (3)

Average daily rate for owned villages (3)

$ 77 $ 79 $ (2)

Total billed rooms for villages (4)

Total billed rooms for owned villages (4)

762,974 647,358 115,616

3 unchanged sentences

(2) Includes revenues related to food services and other services, including facilities management for the periods presented.

(3) Average daily rate is based on billed rooms and accommodation revenue.

(3) Average daily rate is based on billed rooms and accommodation revenue in the Company's owned villages.

(4) Billed rooms represent total billed days for owned assets for the periods presented.

Our Australian segment reported revenues in the second quarter of 2025 that were $4.1 million, or 4%, higher than the second quarter of 2024.

Our Australian segment reported revenues in the third quarter of 2025 that were $7.8 million, or 7%, higher than the third quarter of 2024.

The weakening of the average exchange rate for the Australian dollar relative to the U.S.

dollar by 2.7% in the second quarter of 2025 compared to the second quarter of 2024 resulted in a $3.2 million period-over-period decrease in revenues.

dollar by 2.4% in the third quarter of 2025 compared to the third quarter of 2024 resulted in a $3.0 million period-over-period decrease in revenues.

On a constant currency basis, the Australian segment experienced a 9.3% period-over-period increase in revenues.

Excluding the impact of the weaker Australian exchange rate, the increase in the Australian segment was driven by the Qantac Acquisition in the second quarter of 2025 and new business in our integrated services villages in Western Australia.

Our Australian segment cost of sales and services increased $1.4 million, or 2%, in the second quarter of 2025 compared to the second quarter of 2024.

Excluding the impact of the weaker Australian exchange rate, the increase in the Australian segment was driven by the Qantac Acquisition in the second quarter of 2025 and new integrated services business in Queensland.

Our Australian segment cost of sales and services increased $4.0 million, or 5%, in the third quarter of 2025 compared to the third quarter of 2024.

The weakening of the average exchange rate for the Australian dollar relative to the U.S.

dollar by 2.7% in the second quarter of 2025 compared to the second quarter of 2024 resulted in a $2.3 million period-over-period decrease in cost of sales and services.

Excluding the impact of the weaker Australian exchange rate, the increase in cost of sales and services in the Australian segment was largely driven by the Qantac Acquisition and new business in our integrated services villages in Western Australia and the associated overhead costs.

Our Australian segment gross margin as a percentage of revenues increased to 26.8% in the second quarter of 2025 from 25.4% in the second quarter of 2024.

This was primarily driven by increased relative contribution from our accommodation business resulting from the Qantac Acquisition.

dollar by 2.4% in the third quarter of 2025 compared to the third quarter of 2024 resulted in a $2.2 million period-over-period decrease in cost of sales and services.

Excluding the impact of the weaker Australian exchange rate, the increase in cost of sales and services in the Australian segment was largely driven by the Qantac Acquisition and new integrated services business in Queensland and the associated overhead costs.

Our Australian segment gross margin as a percentage of revenues increased to 26.9% in the third quarter of 2025 from 25.3% in the third quarter of 2024.

This was primarily driven by increased relative contribution from our accommodation business associated with the Qantac Acquisition.

Our accommodation business generates higher gross margins than our integrated services business which has a service-only business model.

1 unchanged sentence

Three Months Ended

September 30,

2025 2024 Change

13 unchanged sentences

Gross margin as a % of revenues 22.5 % 13.3 % 9.2 %

Average daily rate for lodges (4)

Average daily rate for owned lodges (4)

$ 100 $ 100 $ —

Total billed rooms for lodges (5)

Total billed rooms for owned lodges (5)

382,660 483,767 (101,107)

4 unchanged sentences

(3) Includes revenues related to food services, laundry and water and wastewater treatment services for the periods presented.

(4) Average daily rate is based on billed rooms and accommodation revenue.

(4) Average daily rate is based on billed rooms and accommodation revenue in the Company's owned lodges.

(5) Billed rooms represents total billed days for owned assets for the periods presented.

Our Canadian segment reported revenues in the second quarter of 2025 that were $29.5 million, or 37%, lower than the second quarter of 2024.

The decrease in the Canadian segment was driven by lower billed rooms at our oil sands lodges as producers in the region remain focused on reducing operating costs and reduced occupancy at our Sitka Lodge as the Kitimat LNG facility was completed and commenced operations in the second quarter of 2025.

Our Canadian segment cost of sales and services decreased $19.8 million, or 34%, in the second quarter of 2025 compared to the second quarter of 2024.

The decrease in cost of sales and services in the Canadian segment was largely driven by (i) lower costs at various lodges due to reduced occupancy levels, (ii) lower demobilization costs related to mobile asset activity from pipeline projects, the final costs for which were incurred in the second quarter of 2024 and (iii) reduced indirect costs as a result of various cost reduction measures.

Our Canadian segment gross margin as a percentage of revenues decreased from 26.0% in the second quarter of 2024 to 22.0% in the second quarter of 2025.

This was primarily driven by reduced efficiencies at our lodges with lower occupancy levels.

Results of Operations – Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Six Months Ended June 30,

Our Canadian segment reported revenues in the third quarter of 2025 that were $11.7 million, or 20%, lower than the third quarter of 2024.

The decrease in the Canadian segment was driven by lower billed rooms at our oil sands lodges, down 20% year-over-year, as producers in the region remain focused on reducing operating costs and lower food service and other services revenue as client maintenance work in the third quarter of 2024 did not recur to the same extent in 2025.

Our Canadian segment cost of sales and services decreased $14.4 million, or 29%, in the third quarter of 2025 compared to the third quarter of 2024.

The decrease in cost of sales and services in the Canadian segment was largely driven by (i) lower costs at various lodges due to reduced occupancy levels, (ii) reduced costs at various lodges and reduced indirect costs as a result of various cost reduction measures implemented in late 2024 and early 2025 and (iii) reduced food service and other services costs as client maintenance work in the third quarter of 2024 did not recur to the same extent in 2025.

Our Canadian segment gross margin as a percentage of revenues increased from 13.3% in the third quarter of 2024 to 22.5% in the third quarter of 2025.

This was primarily driven by higher margins at our lodges as a result of various cost reduction measures implemented in late 2024 and early 2025.

Results of Operations – Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024

Nine Months Ended September 30,

2025 2024 Change

14 unchanged sentences

Gain on sale of McClelland Lake Lodge assets, net — (5,817) 5,817

Other operating expense 573 486 87

Other operating (income) expense (725) 992 (1,717)

Total costs and expenses 472,979 519,796 (46,817)

Operating income (loss) (2,716) 11,331 (14,047)

Operating income 4,250 11,375 (7,125)

Interest expense, net (7,611) (6,141) (1,470)

2 unchanged sentences

Income tax expense (10,732) (9,199) (1,533)

Net income (loss) (13,161) 2,291 (15,452)

Net loss (13,617) (2,998) (10,619)

Net loss attributable to noncontrolling interest (6) (1,001) 995

Net income (loss) attributable to Civeo Corporation $ (13,156) $ 3,094 $ (16,250)

We reported net loss attributable to Civeo for the six months ended June 30, 2025 of $13.2 million, or $0.98 per diluted share.

Net loss included $3.2 million of shareholder activist related costs and $1.4 million of cost saving initiatives in Canada related to severance and two lodge closures.

We reported net income attributable to Civeo for the six months ended June 30, 2024 of $3.1 million, or $0.21 per diluted share.

Net income included (i) $6.0 million of net gains associated with the sale of the McClelland Lake Lodge in Canada and (ii) a $7.8 million pre-tax loss resulting from the impairment of fixed assets included in Impairment expense.

Consolidated revenues decreased $48.1 million, or 14%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

This decrease was primarily driven by (i) lower billed rooms at our oil sands lodges in Canada as producers in the region remain focused on reducing operating costs, (ii) reduced occupancy at our Sitka Lodge in Canada as the Kitimat LNG facility was completed and commenced operations in the second quarter of 2025, (iii) reduced mobile asset activity in Canada from pipeline projects which were completed in the first six months of 2024 and (iv) a weaker Australia and Canadian dollar relative to the U.S.

dollar in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Net loss attributable to Civeo Corporation $ (13,611) $ (1,997) $ (11,614)

We reported net loss attributable to Civeo for the nine months ended September 30, 2025 of $13.6 million, or $1.04 per diluted share.

Net loss included $3.8 million of shareholder activist related costs and $1.7 million of cost saving initiatives in Canada related to severance, two lodge closures and other real estate rationalization efforts.

We reported net loss attributable to Civeo for the nine months ended September 30, 2024 of $2.0 million, or $0.14 per diluted share.

As further discussed below, net loss included $5.8 million of net gains associated with the sale of the McClelland Lake Lodge in Canada and a $7.8 million pre-tax loss resulting from the impairment of fixed assets included in Impairment expense.

Consolidated revenues decreased $53.9 million, or 10%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

This decrease was primarily driven by (i) lower billed rooms at our oil sands lodges in Canada as producers in the region remain focused on reducing operating costs, (ii) reduced occupancy at our Sitka Lodge in Canada as the Kitimat LNG facility was completed and commenced operations in the second quarter of 2025, (iii) reduced food service and other services revenue in Canada as client maintenance work was softer in the third quarter of 2025 and (iv) a weaker Australia and Canadian dollar relative to the U.S.

dollar in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

The assets from the Qantac Acquisition generated $13.3 million of revenues in the nine months ended September 30, 2025.

See the discussion of segment results of operations below for further information.

Cost of Sales and Services.

Our consolidated cost of sales and services decreased $35.1 million, or 13%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

This decrease was primarily driven by (i) lower costs at various lodges in Canada due to reduced occupancy levels, (ii) lower costs related to the reduced mobile asset activity in Canada from pipeline projects for which final costs were incurred in the first six months of 2024, (iii) reduced indirect costs in Canada as a result of various cost reduction measures and (iv) a weaker Australia and Canadian dollar relative to the U.S.

dollar in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

These items were partially offset

by an increase in Australia related to the Qantac Acquisition in the second quarter of 2025 and new business in our integrated services villages in Western Australia.

Our consolidated cost of sales and services decreased $47.0 million, or 11%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

costs related to the reduced mobile asset activity in Canada from pipeline projects for which final costs were incurred in the first six months of 2024, (iv) reduced food service and other services costs in Canada as client maintenance work was softer in the third quarter of 2025 and (v) a weaker Australia and Canadian dollar relative to the U.S.

dollar in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

See the discussion of segment results of operations below for further information.

Selling, General and Administrative Expenses.

SG&A expenses increased $2.6 million, or 7%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

This increase was primarily due to higher professional fees of $3.5 million due to shareholder activist related costs of $3.2 million and higher share-based compensation expense of $0.4 million due to lower forfeitures in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

These items were partially offset by lower travel and entertainment costs of $0.7 million, down 43% year-of-year, lower compensation costs of $0.5 million and a weaker Australian and Canadian dollar relative to the U.S.

dollar in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

SG&A expenses increased $1.1 million, or 2%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

This increase was primarily due to higher professional fees of $3.4 million due to shareholder activist related costs of $3.8 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, partially offset by lower travel and entertainment costs of $1.0 million, down 42% year-of-year, lower incentive compensation cost of $0.9 million and a weaker Australian and Canadian dollar relative to the U.S.

dollar in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Depreciation and Amortization Expense.

Depreciation and amortization expense increased $0.3 million, or 1%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

The increase was primarily due to additional property, plant and equipment acquired through the Qantac Acquisition, partially offset by a weaker Australian and Canadian dollar relative to the U.S.

dollar in the six months ended June 30, 2025 compared to the six months ended June 30, 2024 and reduced depreciation expense resulting from impairments recorded in 2024.

Depreciation and amortization expense increased $2.8 million, or 6%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

The increase was primarily due to additional property, plant and equipment acquired through the Qantac Acquisition and shortening the lives on certain assets in Canada, partially offset by a weaker Australian and Canadian dollar relative to the U.S.

dollar in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 and reduced depreciation expense resulting from impairments recorded in 2024.

Impairment Expense.

We recorded pre-tax impairment expense of $7.8 million in the six months ended June 30, 2024 associated with long-lived assets in Australia and the U.S.

We recorded pre-tax impairment expense of $7.8 million in the nine months ended September 30, 2024 associated with long-lived assets in Australia and the U.S.

See Note 3 - Impairment Charges to the notes to the unaudited consolidated financial statements included in Item 1 of this quarterly report for further discussion.

Gain on Sale of McClelland Lake Lodge Assets, net.

We recorded $6.0 million in the six months ended June 30, 2024 related to net gains associated with the sale of the McClelland Lake Lodge.

Operating Income (Loss).

Consolidated operating loss increased $14.0 million, or 124%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily due to lower lodge occupancy in Canada in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, higher SG&A expense during the 2025 period compared to the 2024 period and a net gain on sale of McClelland Lake Lodge assets in the six months ended June 30, 2024.

These items were partially offset by higher activity levels in Australia in the six months ended June 30, 2025 compared to the six months ended June 30, 2024 and impairment expenses in the six months ended June 30, 2024.

We recorded $5.8 million in the nine months ended September 30, 2024 related to net gains associated with the sale of the McClelland Lake Lodge.

Operating Income.

Consolidated operating income decreased $7.1 million, or 63%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily due to lower lodge occupancy in Canada, higher depreciation and amortization expense and higher SG&A expense during the 2025 period compared to the 2024 period.

In addition, the nine months ended September 30, 2024 included a net gain on sale of McClelland Lake Lodge assets.

These items were partially offset by higher activity levels in Australia in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 and impairment expenses recorded in the nine months ended September 30, 2024.

Interest Expense, net.

Net interest expense decreased by $0.2 million, or 6%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily related to lower interest rates on credit facility borrowings, partially offset by higher average debt levels during the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Net interest expense increased by $1.5 million, or 24%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily related to higher average debt levels, partially offset by lower interest rates on credit facility borrowings during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Income Tax Expense.

Our income tax expense for the six months ended June 30, 2025 totaled $6.7 million, or (103.5)% of pretax loss, compared to an income tax expense of $5.3 million, or 70.0% of pretax income, for the six months ended June 30, 2024.

Our effective tax rate for the six months ended June 30, 2025 and 2024 was impacted by Canada and the U.S.

Our income tax expense for the nine months ended September 30, 2025 totaled $10.7 million, or (372.0)% of pretax loss, compared to an income tax expense of $9.2 million, or 148.3% of pretax income, for the nine months ended September 30, 2024.

Our effective tax rate for the nine months ended September 30, 2025 and 2024 was impacted by Canada and the U.S.

being considered loss jurisdictions that were removed from the annual effective tax rate computation for purposes of computing the interim tax provision.

Other Comprehensive Income.

Other comprehensive income increased $20.6 million in the six months ended June 30, 2025 compared to the six months ended June 30, 2024, primarily as a result of foreign currency translation adjustments due to changes in the Australian and Canadian dollar exchange rates compared to the U.S.

Other Comprehensive Income (Loss).

Other comprehensive income increased $12.6 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, primarily as a result of foreign currency translation adjustments due to changes in the Australian and Canadian dollar exchange rates compared to the U.S.

The Australian dollar exchange rate compared to the U.S.

dollar increased 6% in the of six months ended June 30, 2025 compared to a 2% decrease in the six months ended June 30, 2024.

dollar increased 6% in the of nine months ended September 30, 2025 compared to a 2% increase in the nine months ended September 30, 2024.

The Canadian dollar exchange rate compared to the U.S.

dollar increased 5% in the six months ended June 30, 2025 compared to a 3% decrease in the six months ended June 30, 2024.

dollar increased 3% in the nine months ended September 30, 2025 compared to a 2% decrease in the nine months ended September 30, 2024.

Segment Results of Operations – Australian Segment

Six Months Ended June 30,

Nine Months Ended September 30,

2025 2024 Change

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Gross margin as a % of revenues 26.6 % 26.1 % 0.5 %

Average daily rate for villages (3)

Average daily rate for owned villages (3)

$ 76 $ 78 $ (2)

Total billed rooms for villages (4)

Total billed rooms for owned villages (4)

2,079,116 1,886,647 192,469

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(2) Includes revenues related to food services and other services, including facilities management for the periods presented.

(3) Average daily rate is based on billed rooms and accommodation revenue.

(3) Average daily rate is based on billed rooms and accommodation revenue in the Company's owned villages.

(4) Billed rooms represent total billed days for owned assets for the periods presented.

Our Australian segment reported revenues in the six months ended June 30, 2025 that were $16.0 million, or 8%, higher than the six months ended June 30, 2024.

Our Australian segment reported revenues in the nine months ended September 30, 2025 that were $23.8 million, or 8%, higher than the nine months ended September 30, 2024.

The weakening of the average exchange rate for the Australian dollar relative to the U.S.

dollar by 3.6% in the six months ended June 30, 2025 compared to the six months ended June 30, 2024 resulted in a $8.0 million period-over-period decrease in revenues.

dollar by 3.2% in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 resulted in a $11.1 million period-over-period decrease in revenues.

On a constant currency basis, the Australian segment experienced a 11% period-over-period increase in revenues.

Excluding the impact of the weaker Australian exchange rate, the increase in the Australian segment was driven by the Qantac Acquisition in the second quarter of 2025, which generated revenues of $4.9 million in 2025, and new business in our integrated services villages in Western Australia.

Our Australian segment cost of sales and services increased $12.0 million, or 8%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Our Australian segment cost of sales and services increased $16.0 million, or 7%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

The weakening of the average exchange rate for the Australian dollar relative to the U.S.

dollar by 3.6% in the six months ended June 30, 2025 compared to the six months ended June 30, 2024 resulted in a $5.9 million period-over-period decrease in cost of sales and services.

Our Australian segment gross margin as a percentage of revenues decreased to 26.4% in the six months ended June 30, 2025 from 26.6% in the six months ended June 30, 2024.

This was primarily driven by an increased relative revenue contribution from our integrated services business, which has a service-only business model, and generates lower overall gross margins than our accommodation business.

dollar by 3.2% in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 resulted in a $8.1 million period-over-period decrease in cost of sales and services.

Our Australian segment gross margin as a percentage of revenues slightly increased to 26.6% in the nine months ended September 30, 2025 from 26.1% in the nine months ended September 30, 2024.

This was primarily driven by improved profitability across our integrated services villages in the nine months ended September 30, 2025.

Segment Results of Operations – Canadian Segment

Six Months Ended June 30,

Nine Months Ended September 30,

2025 2024 Change

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Gross margin as a % of revenues 17.7 % 18.7 % (1.0) %

Average daily rate for lodges (4)

Average daily rate for owned lodges (4)

$ 96 $ 97 $ (1)

Total billed rooms for lodges (5)

Total billed rooms for owned lodges (5)

1,191,327 1,846,163 (654,836)

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(3) Includes revenues related to food services, laundry and water and wastewater treatment services for the periods presented.

(4) Average daily rate is based on billed rooms and accommodation revenue.

(4) Average daily rate is based on billed rooms and accommodation revenue in the Company's owned lodges.

(5) Billed rooms represents total billed days for owned assets for the periods presented.

Our Canadian segment reported revenues in the six months ended June 30, 2025 that were $56.3 million, or 38%, lower than the six months ended June 30, 2024.

Our Canadian segment reported revenues in the nine months ended September 30, 2025 that were $68.0 million, or 33%, lower than the nine months ended September 30, 2024.

The weakening of the average exchange rate for the Canadian dollar relative to the U.S.

dollar by 3.6% in the six months ended June 30, 2025 compared to the six months ended June 30, 2024 resulted in a $3.1 million period-over-period decrease in revenues.

On a constant currency basis, the Canadian segment experienced a 36.2% period-over-period decrease in revenues.

Excluding the impact of the weaker Canadian exchange rate, the decrease in the Canadian segment was driven by (i) lower billed rooms at our oil sands lodges as producers in the region remain focused on reducing operating costs, (ii) reduced occupancy at our Sitka Lodge as the Kitimat LNG facility was completed and commenced operations in the second quarter of 2025 and (iii) reduced mobile asset activity from pipeline projects which were completed in the first six months of 2024.

Our Canadian segment cost of sales and services decreased $39.4 million, or 34%, in the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

dollar by 2.7% in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 resulted in a $3.6 million period-over-period decrease in revenues.

Excluding the impact of the weaker Canadian exchange rate, the decrease in the Canadian segment was driven by (i) lower billed rooms at our oil sands lodges as producers in the region remain focused on reducing operating costs, (ii) reduced occupancy at our Sitka Lodge as the Kitimat LNG facility was completed and commenced operations in the second quarter of 2025 and (iii) reduced food service and other services revenue as client maintenance work in the third quarter of 2024 did not recur to the same extent in 2025.

Our Canadian segment cost of sales and services decreased $53.8 million, or 32%, in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

The weakening of the average exchange rate for the Canadian dollar relative to the U.S.

dollar by 3.6% in the six months ended June 30, 2025 compared to the six months ended June 30, 2024 resulted in a $2.9 million period-over-period decrease in cost of sales and services.

Excluding the impact of the weaker Canadian exchange rate, the decrease in cost of sales and services in the Canadian segment was largely driven by (i) lower costs at various lodges due to reduced occupancy levels, (ii) lower costs related to the reduced mobile asset activity from pipeline projects for which final costs were incurred in the first six months of 2024 and (iii) reduced indirect costs as a result of various cost reduction measures.

Our Canadian segment gross margin as a percentage of revenues decreased from 20.8% in the six months ended June 30, 2024 to 15.2% in the six months ended June 30, 2025.

This was primarily driven by reduced efficiencies at our lodges with lower occupancy levels.

dollar by 2.7% in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 resulted in a $3.2 million period-over-period decrease in cost of sales and services.

Excluding the impact of the weaker Canadian exchange rate, the decrease in cost of sales and services in the Canadian segment was largely driven by (i) lower costs at various lodges due to reduced occupancy levels, (ii) reduced costs at various lodges and reduced indirect costs as a result of various cost reduction measures implemented in late 2024 and early 2025, (iii) lower costs related to the reduced mobile asset activity from pipeline projects for which final costs were incurred in the first six months of 2024 and (iv) reduced food service and other services costs as client maintenance work in the third quarter of 2024 did not recur to the same extent in 2025.

Our Canadian segment gross margin as a percentage of revenues decreased from 18.7% in the nine months ended September 30, 2024 to 17.7% in the nine months ended September 30, 2025.

This was primarily driven by reduced efficiencies at our lodges with lower occupancy levels, partially offset by various cost reduction measures impacting lodges and indirect costs.

Liquidity and Capital Resources

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Historically, our primary sources of funds have been available cash, cash flow from operations, borrowings under our Amended Credit Agreement and proceeds from equity issuances.

In the future, capital may be required to move lodges from one site to another, and we may seek to access the debt and equity capital markets from time to time to raise additional capital, increase liquidity, fund acquisitions or refinance debt.

The following table summarizes our consolidated liquidity position as of June 30, 2025 and December 31, 2024 (in thousands):

June 30, 2025 December 31, 2024

In the future, we may seek to access the debt and equity capital markets from time to time to raise additional capital, increase liquidity, fund acquisitions or refinance debt.

The following table summarizes our consolidated liquidity position as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025 December 31, 2024

Lender commitments $ 265,000 $ 245,000

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Total available liquidity $ 70,177 $ 202,170

(1) As of June 30, 2025 and December 31, 2024, $37.3 million and $3.6 million, respectively, of our borrowing capacity under the Amended Credit Agreement could not be utilized in order to maintain compliance with the maximum leverage ratio financial covenant in the Amended Credit Agreement.

Cash totaling $10.8 million was used in operations during the six months ended June 30, 2025, compared to $38.3 million provided by operations during the six months ended June 30, 2024.

Net cash used in working capital was $31.3 million during the six months ended June 30, 2025 compared to net cash provided by working capital of $2.4 million during the six months ended June 30, 2024.

The year-over-year increase in cash used in working capital in 2025 compared to 2024 is largely due to an increase in cash taxes paid in Australia in 2025 compared to 2024 and the collection of holdbacks in Canada related to the completion of mobile asset pipeline projects during the six months ended June 30, 2024 that did not repeat in 2025, partially offset by a decrease in cash used by accounts payable and accrued liabilities during the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

Cash was used in investing activities during the six months ended June 30, 2025 in the amount of $74.4 million, compared to cash used in investing activities during the six months ended June 30, 2024 in the amount of $0.1 million.

The increase in cash used in investing activities was primarily due to the Qantac Acquisition and lower proceeds from the sale of property, plant and equipment.

We received net proceeds from the sale of property, plant and equipment of $0.3 million during the six months ended June 30, 2025 compared to $10.6 million during the six months ended June 30, 2024 related to the sale of our McClelland Lake Lodge accommodation assets in Canada and the sale of our Louisiana land in the U.S.

Capital expenditures totaled $9.8 million and $10.9 million during the six months ended June 30, 2025 and 2024, respectively.

(1) As of September 30, 2025 and December 31, 2024, $18.0 million and $3.6 million, respectively, of our borrowing capacity under the Amended Credit Agreement could not be utilized in order to maintain compliance with the maximum leverage ratio financial covenant in the Amended Credit Agreement.

Cash totaling $3.1 million was provided by operations during the nine months ended September 30, 2025, compared to $74.0 million provided by operations during the nine months ended September 30, 2024.

Net cash used in working capital was $36.4 million during the nine months ended September 30, 2025 compared to net cash provided by working capital of $26.8 million during the nine months ended September 30, 2024.

The year-over-year increase in cash used in working capital in 2025 compared to 2024 is largely due to higher cash taxes paid in Australia in 2025 compared to 2024 and the collection of receivables in Canada related to the completion of mobile asset pipeline projects during the nine months ended September 30, 2024 that did not recur in 2025.

These items were partially offset by a decrease in cash used for accounts payable and accrued liabilities during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Cash was used in investing activities during the nine months ended September 30, 2025 in the amount of $85.9 million, compared to cash used in investing activities during the nine months ended September 30, 2024 in the amount of $7.5 million.

The increase in cash used in investing activities was primarily due to the Qantac Acquisition and lower proceeds from the sale of property, plant and equipment, partially offset by lower capital expenditures.

We received net proceeds from the sale of property, plant and equipment of $1.4 million during the nine months ended September 30, 2025 related to accommodation assets in Canada compared to $10.7 million during the nine months ended September 30, 2024 related to the sale of our McClelland Lake Lodge accommodation assets in Canada and the sale of our Louisiana land in the U.S.

Capital expenditures totaled $15.4 million and $18.4 million during the nine months ended September 30, 2025 and 2024, respectively.

Capital expenditures in both periods were primarily related to maintenance.

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We continue to monitor the global economy, commodity prices, demand for met coal, crude oil, LNG and iron ore, inflation and the resultant impact on the capital spending plans of our customers in order to plan our business activities, and we may adjust our capital expenditure plans in the future.

Net cash of $92.2 million was provided by financing activities during the six months ended June 30, 2025 primarily due to net borrowings under our revolving credit facilities of $119.2 million to primarily fund the Qantac Acquisition and share repurchases, partially offset by repurchases of our common shares of $22.5 million, dividend payments of $3.4 million, payments to settle tax obligations on vested shares under our share-based compensation plans of $0.6 million and debt issuance costs of $0.4 million.

Net cash of $34.1 million was used in financing activities during the six months ended June 30, 2024 primarily due to net repayments under our revolving credit facilities of $15.8 million, repurchases of our common shares of $9.9 million, dividend payments of $7.4 million and payments to settle tax obligations on vested shares under our share-based compensation plans of $1.1 million.

The following table summarizes the changes in debt outstanding during the six months ended June 30, 2025 (in thousands):

Net cash of $87.6 million was provided by financing activities during the nine months ended September 30, 2025 primarily due to net borrowings under our revolving credit facilities of $140.8 million to primarily fund the Qantac Acquisition and share repurchases, partially offset by repurchases of our common shares of $48.7 million, dividend payments of $3.4 million, payments to settle tax obligations on vested shares under our share-based compensation plans of $0.6 million and debt issuance costs of $0.4 million.

Net cash of $48.3 million was used in financing activities during the nine months ended September 30, 2024 primarily for repurchases of our common shares of $24.1 million, dividend payments of $11.0 million, net repayments under our revolving credit facilities of $9.2 million, debt issuance costs of $3.0 million and payments to settle tax obligations on vested shares under our share-based compensation plans of $1.1 million.

The following table summarizes the changes in debt outstanding during the nine months ended September 30, 2025 (in thousands):

Balance at December 31, 2024 $ 43,299

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Translation 3,841

Balance at June 30, 2025 $ 168,672

Balance at September 30, 2025 $ 187,937

We believe that cash on hand and cash flow from operations will be sufficient to meet our anticipated liquidity needs for the next 12 months.

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On March 24, 2025, we amended our Syndicated Facility Agreement (as amended to date, the Amended Credit Agreement) to increase the Australian revolving commitments by $20.0 million to an aggregate amount of $55.0 million.

As of June 30, 2025, the Amended Credit Agreement provided for a $265.0 million revolving credit facility scheduled to mature on August 8, 2028, allocated as follows:

As of September 30, 2025, the Amended Credit Agreement provided for a $265.0 million revolving credit facility scheduled to mature on August 8, 2028, allocated as follows:

(A) a $10.0 million senior secured revolving credit facility in favor of certain of our U.S.

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and (C) a $55.0 million senior secured revolving credit facility in favor of one of our Australian subsidiaries, as borrower.

As of June 30, 2025, we had outstanding letters of credit of zero under the U.S.

As of September 30, 2025, we had outstanding letters of credit of zero under the U.S.

facility, zero under the Australian facility and $0.9 million under the Canadian facility.

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See Note 8 – Debt to the notes to the unaudited consolidated financial statements included in Item 1 of this quarterly report for further discussion.

In April 2025, we announced the suspension by our Board of quarterly dividends on our common shares to prioritize returning capital to our shareholders through ongoing share repurchases.

In April 2025, our Board suspended quarterly dividends on our common shares to prioritize returning capital to our shareholders through ongoing share repurchases.

The declaration and amount of any potential future dividends will be at the discretion of our Board and will depend upon many factors, including our financial condition, results of operations, cash flows, prospects, industry conditions, capital requirements of our business, covenants associated with certain debt obligations, legal requirements, regulatory constraints, industry practice and other factors the Board deems relevant.

10 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis