What changed in this filing

/stocks — the workspaceLOADING

Item 7. Management’s Discussion and Analysis

2026-03-03 compared with 2025-02-27 · 177 added, 174 removed, 332 unchanged (51% of the section changed)

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We provide hospitality services to remote workforces in Australia and Canada, including catering and food service, lodging, housekeeping and maintenance at accommodation facilities that we or our customers own.

We provide services that support the day-to-day operations of these facilities, such as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security and logistics.

We also provide services that support the day-to-day operations of these facilities, such as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security and logistics.

We also manage development activities for workforce accommodation facilities, including site selection, permitting, engineering and design and manufacturing and site construction management, along with providing hospitality services once the facility is constructed.

We primarily operate in some of the world’s most active met coal, oil, liquefied natural gas (LNG) and iron ore producing regions, and our customers include mining companies, major and independent oil companies, engineering companies and mining service companies.

We primarily operate in some of the world’s most active metallurgical (met) coal, oil, iron ore and liquefied natural gas (LNG) producing regions, and our customers include mining companies, major and independent oil companies, construction, engineering companies and oilfield and mining service companies.

We operate in two principal reportable business segments – Australia and Canada.

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Overview and Macroeconomic Environment

Demand for our hospitality services is driven primarily by ongoing operations of existing natural resource projects in Australia and Canada.

Demand for the majority of our hospitality services is driven primarily by ongoing operations of existing natural resource projects in Australia and Canada.

Historically, initial demand for our hospitality services has been driven by our customers’ capital spending programs related to the construction and development of natural resource projects and associated infrastructure.

Long-term demand for our services has been driven by natural resource production, maintenance, operation and expansion of those facilities.

In general, industry capital spending programs are based on the outlook for commodity prices, production costs, economic growth, perceived political risk, global commodity supply/demand, reserve replacement requirements, estimates of resource production, annual maintenance requirements and the expectations of our customers' shareholders.

In general, industry capital spending programs are based on the outlook for commodity prices, production costs, economic growth, perceived political risk, global commodity supply/demand, reserve replacement requirements, estimates of resource production, annual maintenance requirements, inclusive of turnaround requirements, and the expectations of our customers' shareholders.

As a result, demand for our hospitality services is sensitive to expected commodity prices, principally related to met coal, oil, iron ore and LNG, and the resultant impact of these commodity price expectations on our customers' spending.

Other factors that can affect our business and financial results include the general global economic environment, including inflationary pressures, supply chain disruptions and labor shortages, volatility affecting the banking system and financial markets, availability of capital to the natural resource industry and regulatory changes in Canada, Australia and other markets, including governmental measures introduced to mitigate climate change.

In addition to these historical demand drivers, there is increasing demand, of relative significance, for our assets and services tied to data center construction.

This is principally occurring in the U.S.

but could begin to occur in Australia and Canada as well.

Other factors that can affect our business and financial results include the general global economic environment, including inflationary pressures, supply chain disruptions and labor shortages, the impact of global tariff changes and other changes to trade policies, volatility affecting the banking system and financial markets, availability of capital to the natural resource industry and regulatory changes in Australia, Canada and other markets, including governmental measures introduced to mitigate climate change.

Commodity Prices

There is continued uncertainty around commodity price levels, driven by many factors, including rising fears of a recession resulting from lingering inflation and higher interest rates, an economic slowdown in China and resultant economic stimulus by the Chinese government, the impact of inflationary pressures, actions taken by Organization of the Petroleum Exporting Countries Plus (OPEC+) to adjust oil production levels, geopolitical events such as the ongoing Russia/Ukraine and Middle East conflicts, U.S.

Both oil prices and met coal prices experienced swings of greater than 10% during 2025, when compared to year end 2024 prices, with each commodity testing multi-year lows during 2025.

While prices for the commodities that our customers

produce have stabilized in late 2025 and early 2026, there is risk of future volatility.

The factors that could drive such volatility and underlying activity include expectations for global macroeconomic stability and growth, inflationary pressures, higher interest rates, economic growth (or contraction) in China and resultant economic stimulus by the Chinese government, the impact of changes to global tariff and trade policies, actions taken by Organization of the Petroleum Exporting Countries Plus (OPEC+) to adjust oil production levels, geopolitical events such as the ongoing conflicts in Russia/Ukraine, Venezuela and the Middle East, U.S.

oil production levels and regulatory implications on such prices.

In particular, these items could

cause our Canadian oil sands and pipeline customers to delay expansionary and maintenance spending and defer additional investments in their oil sands assets and in extreme cases reduce production.

In Canada, recent tensions between the U.S Administration and Canadian leadership have driven an increase in political support to fast-track infrastructure projects which could include pipelines for LNG or oil, carbon capture installation for oil producing operations and mining for critical minerals.

Recent Commodity Prices

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3/31/2023 341.08 117.08 75.96 56.61

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.

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

Energy Information Administration.

In Australia, 84% of our 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.

Following negative growth from July through September 2024, production increased in the last quarter of 2024, reaching similar levels when compared to the same period in 2023.

The turnaround in positive production growth in the last quarter of 2024 was driven by India’s steady steel production and a return to positive steel production growth in China.

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 quarterly year-over-year declines in each quarter of 2025.

China, Europe and Japan all experienced declines in steel production in 2025, while India and the U.S.

continue 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 during 2025 decreased by 2% compared with 2024.

Met coal prices have remained between $169 and $217 per tonne during 2025, since dropping below $200 per tonne in late 2024.

Early in the fourth quarter of 2025 met coal prices remained between $187 and $200 per tonne and increased progressively in December to end 2025 at $216 per tonne.

Despite weaker steel production in late 2025, the rally in prices in December 2025 is the result of limited short-term spot market supply.

As of February 26, 2026, met coal spot prices were $235.45 per tonne.

Steel demand is expected to increase marginally in 2025 compared to 2024 driven by continued improvements in demand from India.

Met coal prices stagnated around $200 per tonne during the last quarter of 2024, following a downward price correction in July and August 2004 as steel demand declined coupled with higher overall met coal inventories.

Despite higher steel production from India and China in the last quarter of 2024, prices remained muted with high met coal inventories and steady supply in late 2024 and early 2025.

In early 2025 met coal prices have dropped below $200, with prices averaging $190 in early 2025.

High met coal inventories from buyers are impacting demand, however producers are maintaining strong production levels even at these lower prices.

While high met coal inventories continued to weigh on prices in late 2024 and early 2025, analysts are forecasting prices to trend higher during 2025 to average approximately $230 per tonne for the year.

This will be contingent upon supply-side constraint from weather events and further anticipated Chinese stimulus support and stable demand from India.

Iron ore prices fluctuated during the first quarter of 2024 and weakened through the second half of 2024, with prices range bound between $90 to $100 per tonne.

Analysts expect iron ore prices to average $100 per tonne in 2025, with large producers forecasting steady supply and demand expected to remain muted.

After reaching historic lows in early 2020 during the start of the COVID-19 pandemic, global oil prices increased to above $100 per barrel in the second quarter 2022.

In the second half of 2022 and throughout 2023, oil prices generally declined due to (i) rising fears of a recession resulting from severe inflation and higher interest rates, (ii) resulting lower demand for oil and (iii) increasing U.S.

oil production.

In an effort to support the price of oil amidst demand concerns, OPEC+ countries extended their 2023 oil production cuts throughout 2024.

These production cuts, coupled with the rising

geopolitical risks in the Middle East, resulted in rising oil prices during the first half of 2024.

Oil prices decreased during the second half of 2024 due to increased market concerns over economic growth and demand.

OPEC+ is expected to increase production in 2025, likely putting pressure on global oil prices.

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

In late 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.

While there has been an increase in prices in late 2025, with prospective met coal supply expected to enter the market from both Australia and the U.S.

in 2026, downward pressure on prices towards $200 are forecast in early 2026.

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

Iron ore prices declined to average $96.79 per tonne during 2025, down from the 2024 average of $103.77 per tonne, primarily driven by demand from steel producer restocking activity.

Iron ore supply late in 2025 strengthened due to

favorable weather conditions in Brazil and is expected to strengthen further with additional supply coming to the market in early 2026.

During the fourth quarter of 2025 prices remained buoyant between $99 and $106 despite weaker steel production and increasing market supply.

As further supply continues to enter the market in 2026, downward pressure on prices is forecast.

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 continuing through the fourth quarter of 2025, increasing production despite softer global demand for oil.

The combined impact of these factors reduced WTI prices, which are down approximately 25% through the end of 2025 as compared to the end of 2024.

Forecasts currently have oil prices averaging below $60.00 per barrel in 2026.

In light of this macroeconomic backdrop, our Canadian oil sands customers are increasingly prioritizing capital discipline, pushing for lower operating costs and headcount reductions.

In Canada, WCS crude is the benchmark price for our oil sands customers.

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.

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

Certain expansionary oil pipeline projects have the potential to both drive incremental demand for mobile assets and to improve take-away capacity for Canadian oil sands producers over the longer term, most notably the Trans Mountain Pipeline expansion, which began operating in the second quarter of 2024.

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.

As a result of the U.S.

government’s recent takeover of the Venezuelan oil production, there is a new a concern that Venezuelan heavy crude may displace refinery demand for Canadian heavy crude on the U.S.

WCS prices in the fourth quarter of 2025 averaged $46.73 per barrel compared to an average of $57.50 in the fourth quarter of 2024.

The WCS Differential decreased from $12.92 per barrel at the end of the fourth quarter of 2024 to $12.50 at the end of the fourth quarter of 2025.

As of February 21, 2025, the WTI price was $70.58 and the WCS price was $57.24, resulting in a WCS Differential of $13.34.

Further, the Trump Administration has announced and is in the process of implementing a 10% tariff on energy resources imported to the U.S.

This tariff could widen the WCS differential and reduce Canadian oil producers' production and profits.

Recent Developments .

On February 18, 2025, we entered into a definitive asset purchase agreement with a private seller to acquire four villages with 1,340 rooms in Australia’s Bowen Basin and the associated long-term customer contracts.

Under the terms of the agreement, Civeo would acquire the assets and customer contracts for total cash consideration of A$105 million, or approximately US$67 million, funded with cash on hand and borrowings from its existing revolving credit facility.

The Proposed Acquisition is anticipated to close in the second quarter of 2025, subject to regulatory approvals and customary conditions.

Further, the U.S.

administration implemented and amended several new tariffs during 2025.

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 .

On May 6, 2025, we completed the Qantac Acquisition located in Queensland, Australia, which included four villages with 1,368 rooms in Australia’s Bowen Basin and the associated accommodation assets, land and customer contracts.

Asset Acquisition to the notes to the consolidated financial statements in Item 8 of this annual report for further discussion.

Inflationary Pressures.

During 2023 and 2024, inflationary pressures and supply chain disruptions have been, and continue to be, experienced worldwide.

Price increases resulting from inflation and supply chain concerns have, and are expected to continue to have, a negative impact on our labor and food costs, as well as consumable costs such as fuel.

Since 2023, price increases resulting from pandemic-related inflation and supply chain concerns have, and are expected to continue to have, a negative impact on our labor and food costs, as well as consumable costs such as fuel.

Lingering inflation from the pandemic has recently been exacerbated by changes to global tariffs and trade policies.

We are managing inflation risk with negotiated service scope changes and contractual protections.

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 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 just above 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).

LNGC, a joint venture among Shell Canada Energy, an affiliate of Shell plc (40 percent), and affiliates of PETRONAS, through its wholly-owned entity, North Montney LNG Limited Partnership (25 percent), PetroChina (15 percent), Mitsubishi Corporation (15 percent) and Korea Gas Corporation (5 percent), is currently constructing a liquefaction and export facility in Kitimat, British Columbia (Kitimat LNG Facility).

Construction activity of Phase 1 of the Kitimat LNG Facility is nearing completion, with commercial operations expected to begin in mid-2025.

The Coastal GasLink Pipeline was completed in 2024 and entered commercial operations.

The majority of our contracted commitments associated with the Coastal GasLink Pipeline were completed in the fourth quarter of 2023.

Construction activity of Phase 1 of the Kitimat LNG Facility has been completed and commercial operations commenced at the end of June 2025.

The Coastal GasLink Pipeline was completed in 2024.

As such, we expect continued lower occupancy at our Sitka Lodge in the near-term until subsequent phases of the LNGC project are approved and commence, or additional construction activity in the region, drive increased occupancy demand.

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Accordingly, we expect additional investment in LNG supply will be needed to meet the resulting expected long-term LNG demand growth.

McClelland Lake Lodge.

We did not renew our expiring land lease associated with our McClelland Lake Lodge in Alberta, Canada, which expired in June 2023, in order to support our customer’s intent to mine the land where the lodge was located.

In addition, the accompanying hospitality services contract at McClelland Lake Lodge expired in July 2023;

we continued to provide hospitality services to the customer at our other owned lodges through January 31, 2024, under a short-term take-or-pay commitment.

Subsequent to this date, we have continued to provide such services at our other lodges;

however, not pursuant to a take-or-pay commitment.

During the third quarter of 2023, we entered into a definitive agreement to sell our McClelland Lake Lodge assets to a U.S.-based mining project for approximately C$49 million, or $36 million.

Our McClelland Lake Lodge assets were dismantled and completely removed from the existing site in January 2024.

During 2023, we recognized $14.2 million in dismantle costs and received $28.2 million in cash proceeds associated with the sale.

During the first quarter of 2024, the transaction was completed, and we recognized the remaining $1.0 million in dismantle costs and received the remaining $7.8 million in cash proceeds.

United States Business.

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Exchange rates between the U.S.

dollar and each of the Canadian dollar and the Australian dollar influence our U.S.

dollar and each of the Australian dollar and the Canadian dollar influence our U.S.

dollar reported financial results.

Our business has historically derived the vast majority of its revenues and operating income (loss) in Canada and Australia.

Our business has historically derived the vast majority of its revenues and operating income (loss) in Australia and Canada.

These revenues and profits/losses are translated into U.S.

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The following summarizes the fluctuations in the exchange rates between the U.S.

dollar and each of the Canadian dollar and the Australian dollar:

dollar and each of the Australian dollar and the Canadian dollar:

Year Ended December 31,

2025 2024 Change Percentage

Average Canadian dollar to U.S.

dollar $0.730 $0.741 (0.011) (1.5)%

Average Australian dollar to U.S.

dollar $0.645 $0.660 (0.015) (2.3)%

Average Canadian dollar to U.S.

dollar $0.716 $0.730 (0.015) (2.0)%

As of December 31,

2025 2024 Change Percentage

Canadian dollar to U.S.

dollar $0.695 $0.756 (0.061) (8.1)%

Australian dollar to U.S.

dollar $0.667 $0.620 0.048 7.7%

These fluctuations of the Canadian and Australian dollars have had and will continue to have an impact on the translation of earnings generated from our Canadian and Australian subsidiaries and, therefore, our financial results.

Canadian dollar to U.S.

dollar $0.730 $0.695 0.035 5.0%

These fluctuations of the Australian and Canadian dollars have had and will continue to have an impact on the translation of earnings generated from our Australian and Canadian subsidiaries and, therefore, our financial results.

Capital Expenditures.

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.

We currently expect that our 2025 capital expenditures will be in the range of approximately $25 million to $30 million, compared to 2024 capital expenditures of $26.1 million.

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

We currently expect that our 2026 capital expenditures will be in the range of approximately $25 million to $30 million, of which $20 million is anticipated to relate to maintenance and $10 million related to growth and strategic initiatives, including investments in information technology infrastructure to support our business.

This compares to 2025 capital expenditures of $20.2 million, of which $11.2 million is associated with maintenance and $9.0 million related to growth projects, including the reactivation of our Buffalo Lodge in Canada and Wi-Fi infrastructure improvements in Australia.

We may adjust our capital expenditure plans in the future as we continue to monitor customer activity.

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Gain on sale of McClelland Lake Lodge assets, net — (5,744) 5,744

Other operating expense 898 479 419

Other operating (income) expense (987) 898 (1,885)

Total costs and expenses 634,734 680,790 (46,056)

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Other income 683 517 166

Income (loss) before income taxes (5,937) 40,363 (46,300)

Loss before income tax (6,456) (5,937) (519)

Income tax expense (13,620) (12,492) (1,128)

Net income (loss) (18,429) 29,730 (48,159)

Net expense attributable to noncontrolling interest (1,362) (427) (935)

Net income (loss) attributable to Civeo Corporation $ (17,067) $ 30,157 $ (47,224)

Net loss (20,076) (18,429) (1,647)

Net loss attributable to noncontrolling interest (5) (1,362) 1,357

Net loss attributable to Civeo Corporation $ (20,071) $ (17,067) $ (3,004)

We reported net loss attributable to Civeo for 2025 of $20.1 million, or $1.59 per diluted share.

As further discussed below, net loss included $5.5 million of shareholder activist related costs and $2.2 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 2024 of $17.1 million, or $1.19 per diluted share.

As further discussed below, net loss included $5.7 million of net gains associated with the sale of McClelland Lake Lodge in Canada and a $11.6 million pre-tax loss resulting from the impairment of fixed assets included in Impairment expense.

We reported net income attributable to Civeo for 2023 of $30.2 million, or $2.01 per diluted share.

As further discussed below, net income included $28.3 million of net gains associated with the sale of the McClelland Lake Lodge in Canada and a $1.4 million pre-tax loss resulting from the impairment of fixed assets included in Impairment expense.

Consolidated revenues decreased $43.3 million, or 6%, in 2025 compared to 2024.

This decrease was primarily due to reduced mobile asset activity from pipeline projects in Canada which were largely completed in 2023 and lower year-over-year occupancy at certain lodges in Canada.

These items were partially offset by increased activity at our Civeo owned villages in the Australian Bowen Basin and new business in our integrated services villages in Western Australia.

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 beginning in the third quarter of 2024 as the Kitimat LNG facility was nearing completion and subsequently commenced operations in the second quarter of 2025, (iii) reduced food service and other services revenue in Canada as client maintenance work in 2024 did not recur to the same extent in 2025 and (iv) a weaker Australian and Canadian dollar relative to the U.S.

dollar in 2025 compared to 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 and Queensland.

The assets from the Qantac Acquisition generated $20.2 million of revenues in 2025.

See below for further discussion of segment results of operations.

Cost of Sales and Services.

Our consolidated cost of sales and services increased $2.4 million, or 0.4%, in 2024 compared to 2023.

This increase was primarily due to increased occupancy at our Civeo owned villages in the Australian Bowen Basin and new business in our integrated services villages in Western Australia and the associated overhead costs.

These items were partially offset by the decrease in cost of sales and services largely driven by reduced mobile asset activity from pipeline projects in Canada which were largely completed in 2023 and lower costs at certain lodges in Canada due to reduced occupancy.

Our consolidated cost of sales and services decreased $44.9 million, or 8.4%, in 2025 compared to 2024.

This decrease was primarily due to (i) lower costs at various lodges in Canada due to reduced occupancy

levels, (ii) reduced costs at various lodges and reduced indirect costs as a result of various cost reduction measures in Canada implemented in late 2024 and early 2025, (iii) 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, (iv) reduced food service and other services costs in Canada as client maintenance work in 2024 did not recur to the same extent in 2025 and (v) a weaker Australian and Canadian dollar relative to the U.S.

dollar in 2025 compared to 2024.

See below for further discussion of segment results of operations.

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SG&A expense increased $2.0 million, or 3%, in 2025 compared to 2024.

This increase was primarily due to higher compensation expense of $5.4 million, higher professional fees of $2.6 million and higher travel and entertainment costs of $0.9 million.

The increase in compensation expense was primarily due to $1.1 million in severance costs related to the departure of our former Chief Financial Officer, other severance costs and increased staff and associated recruitment costs.

These items were partially offset by lower incentive compensation costs of $5.6 million, lower share-based compensation expense of $2.8 million and a weaker Australian and Canadian dollar relative to the U.S.

This increase was primarily due to higher professional fees of $4.9 million due to shareholder activist related costs of $5.5 million in 2025 compared to 2024, partially offset by lower travel and entertainment costs of $1.1 million, down 38% year-of-year, lower office expenses of $1.1 million, lower incentive compensation cost of $0.9 million and a weaker Australian and Canadian dollar relative to the U.S.

dollar in 2025 compared to 2024.

The decrease in share-based compensation expense was primarily due to forfeitures, reduced performance share expense due to a lower probability of achieving performance criteria during 2024 compared to 2023 and changes in our share price during 2024 compared to 2023.

Depreciation and Amortization Expense.

Depreciation and amortization expense decreased $7.1 million, or 9%, in 2024 compared to 2023.

The decrease was primarily due to certain assets becoming fully depreciated in Canada, including the McClelland Lake Lodge, in 2023 and lower depreciation and amortization expense due to a weaker Australian and Canadian dollar relative to the U.S.

dollar in 2024 compared to 2023.

These items were partially offset by higher depreciation and amortization expense due to additional property, plant and equipment placed in service during 2024.

Depreciation and amortization expense increased $4.6 million, or 7%, in 2025 compared to 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 2025 compared to 2024 and reduced depreciation expense resulting from impairments recorded in 2024.

Impairment Expense.

We recorded pre-tax impairment expense of $11.6 million in 2024 associated with long-lived assets in Australia, Canada and the U.S.

We recorded pre-tax impairment expense of $11.6 million in 2024 associated with long-lived assets in Australia and the U.S.

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Gain on Sale of McClelland Lake Lodge Assets, net.

We recorded $5.7 million and $18.6 million in net gains associated with the sale of the McClelland Lake Lodge in 2024 and 2023, respectively.

We recorded $5.7 million in net gains associated with the sale of the McClelland Lake Lodge in 2024.

Operating Income.

Operating income decreased $38.2 million, or 97%, in 2024 compared to 2023 primarily due to reduced mobile asset activity and lower lodge occupancy in Canada, higher impairment expenses and lower gain on sale of McClelland Lake Lodge assets in 2024 compared to 2023.

These items were partially offset by higher activity levels in Australia and lower depreciation and amortization expense in 2024 compared to 2023.

Operating income increased $2.8 million, or 209%, in 2025 compared to 2024 primarily due to higher activity levels in Australia in 2025 compared to 2024 and impairment expenses recorded in 2024.

These items were partially offset by lower lodge occupancy in Canada, higher depreciation and amortization expense and higher SG&A expense in 2025 compared to 2024.

In addition, 2024 included a net gain on sale of McClelland Lake Lodge assets.

Interest Expense, net.

Net interest expense decreased $5.2 million, or 40%, in 2024 compared to 2023 primarily related to lower average debt levels during 2024 compared to 2023, which decreased approximately 35%.

Other Income.

Consolidated other income decreased $13.4 million, or 96%, in 2024 compared to 2023.

Other income in 2023 included $9.7 million in reimbursements associated with the dismantlement of the McClelland Lake Lodge.

In addition, 2023 included gains related to the sale of our Acadian Acres accommodation assets in the U.S.

and a gain on the settlement of asset retirement obligation in Canada.

Other income in 2024 included $0.7 million in gains on sale of various assets in Canada and Australia.

Net interest expense increased $3.5 million, or 45%, in 2025 compared to 2024, primarily related to higher average debt levels, partially offset by lower interest rates on credit facility borrowings in 2025 compared to 2024.

Income Tax Expense.

Our income tax expense for 2024 totaled $12.5 million, or (210.4)% of pretax loss, compared to an expense of $10.6 million, or 26.3% of pretax income for 2023.

Our effective tax rate for 2024 was lower than the Canadian federal statutory rate of 15% primarily due to pre-tax losses in Canada with no corresponding tax benefit.

Our effective tax rate for 2023 was higher than the Canadian federal statutory rate of 15%, primarily due to pre-tax income in Australia being taxed at the higher Australian income tax rate of 30%.

Our income tax expense for 2025 totaled $13.6 million, or (211.0)% of pretax loss, compared to an expense of $12.5 million, or (210.4)% of pretax loss for 2024.

Our effective tax rate for 2025 and 2024 was lower than the Canadian federal statutory rate of 15% primarily due to pre-tax losses in Canada and the U.S.

with no corresponding tax benefit.

Full valuation allowances are maintained against net deferred tax assets in both Canada and the U.S.

In 2024, the tax benefit in Canada was offset by an increase to the valuation allowance of $8.5 million and a deferred tax benefit in Australia was offset by an increase to the valuation allowance of $0.6 million.

In 2023, tax expense in Canada and the U.S.

was offset by a valuation allowance release of $1.7 million and $0.8 million, respectively.

In 2025, the tax benefit in Canada and the U.S.

was offset by an increase to the valuation allowance of $10.6 million.

Other Comprehensive Income (Loss).

Other comprehensive income decreased $28.6 million in 2024 compared to 2023 primarily as a result of foreign currency translation adjustments due to changes in the Canadian and Australian dollar exchange rates compared to the U.S.

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

dollar decreased 8.1% in 2024 compared to a 2.4% increase in 2023.

Other comprehensive income increased $37.8 million in 2025 compared to 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 decreased 9.0% in 2024 compared to a 0.2% increase in 2023.

dollar increased 7.7% in 2025 compared to a 9.0% decrease in 2024.

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

dollar increased 5.0% in 2025 compared to an 8.1% decrease in 2024.

Segment Results of Operations – Australian Segment

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Revenues ($ in thousands)

Accommodation and other services revenue (1)

Accommodation and associated services revenue (1)

$ 211,761 $ 196,684 $ 15,077

Food service and other services revenue (2)

Integrated services and other services revenue (2)

248,534 230,272 18,262

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Cost of sales ($ in thousands)

Accommodation and other services cost $ 94,344 $ 85,461 $ 8,883

Food service and other services cost 208,627 148,599 60,028

Accommodation and associated services cost $ 103,275 $ 94,344 $ 8,931

Integrated services and other services cost 222,259 208,627 13,632

Indirect other cost 13,923 12,403 1,520

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Gross margin as a % of revenues 26.3 % 26.1 % 0.02 %

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)

2,783,893 2,524,108 259,785

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

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

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

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

Our Australian segment reported revenues in 2025 that were $33.3 million, or 8%, higher than in 2024.

The increase in the Australian segment was driven by increased activity at our Civeo owned villages in the Bowen Basin and new business in our integrated services villages in Western Australia.

Billed rooms in Civeo-owned villages were up 6.4% in 2024 due to increased activity in the Bowen Basin, Western Australia and Gunnedah Basin coupled with recent contract renewals and extensions.

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

dollar by 2.3% in 2025 compared to 2024 resulted in a $10.5 million period-over-period decrease in revenues.

On a constant currency basis, the Australian segment experienced a 10.3% 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 and Queensland.

Our Australian segment cost of sales and services increased $24.1 million, or 8%, in 2025 compared to 2024.

The increase in cost of sales and services was largely driven by increased occupancy at our Civeo owned villages in the Bowen Basin 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 decreased from 27.8% in 2023 to 26.1% in 2024.

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

The reduced gross margin was partially offset by improved profitability across our integrated services villages in 2024.

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

dollar by 2.3% in 2025 compared to 2024 resulted in a $7.7 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 Queensland and the associated overhead costs.

Our Australian segment gross margin as a percentage of revenues increased from 26.1% in 2024 to 26.3% in 2025.

This was primarily driven by increased relative contribution from our accommodation business associated with the Qantac Acquisition and improved profitability across our integrated services villages in 2025.

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

Segment Results of Operations – Canadian Segment

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Revenues ($ in thousands)

Accommodation and other services revenue (1)

Accommodation and associated services revenue (1)

$ 150,651 $ 214,774 $ (64,123)

Mobile facility rental revenue (2)

Mobile facility rental and associated services revenue (2)

1,587 1,523 64

Food service and other services revenue (3)

Integrated services and other services revenue (3)

26,316 28,790 (2,474)

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Cost of sales and services ($ in thousands)

Accommodation and other services cost $ 164,089 $ 195,843 $ (31,754)

Mobile facility rental cost 4,940 49,073 (44,133)

Food service and other services cost 27,201 21,821 5,380

Accommodation and associated services cost $ 114,964 $ 164,089 $ (49,125)

Mobile facility rental and associated services cost 345 4,940 (4,595)

Integrated services and other services cost 24,489 27,201 (2,712)

Indirect other cost 8,193 10,905 (2,712)

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Gross margin as a % of revenues 17.1 % 15.5 % 1.6 %

Average daily rate for lodges (4)

Average daily rate for owned lodges (4)

$ 97 $ 97 $ —

Total billed rooms for lodges (5)

Total billed rooms for owned lodges (5)

1,550,435 2,205,700 (655,265)

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

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

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dollar by 2.0% in 2025 compared to 2024 resulted in a $3.6 million period-over-period decrease in revenues.

Excluding the impact of the weaker Canadian exchange rate, the revenue decrease was driven by (i) reduced mobile asset activity from pipeline projects which were largely completed in 2023, (ii) lower billed rooms at our oil sands lodges due to the timing and extent of maintenance activity by our customers, (iii) reduced occupancy associated with the sale of the McClelland Lake Lodge and (iv) reduced occupancy at our Sitka Lodge as the Kitimat LNG facility nears completion.

Excluding the impact of the weaker Canadian exchange rate, the revenue decrease was driven by (i) lower billed rooms at our oil sands lodges, down 29% year-over-year, as producers in the region remain focused on reducing operating costs, (ii) reduced occupancy at our Sitka Lodge beginning in the third quarter of 2024 as the Kitimat LNG facility was nearing completion and subsequently commenced operations in the second quarter of 2025 and (iii) lower food service and other services revenue as client maintenance work in 2024 did not recur to the same extent in 2025.

Our Canadian segment cost of sales and services decreased $59.1 million, or 29%, in 2025 compared to 2024.

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dollar by 2.0% in 2025 compared to 2024 resulted in a $3.1 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 was driven by lower costs related to the reduced mobile asset activity from pipeline projects which were largely completed in 2023 and lower costs at various lodges due to reduced occupancy levels.

Our Canadian segment gross margin as a percentage of revenues decreased from 21.5% in 2023 to 15.5% in 2024.

This decrease was primarily driven by reduced mobile asset activity from pipeline projects which were largely completed in 2023.

In addition, margin at our lodges were lower due to reduced efficiencies at lower occupancy levels.

Excluding the impact of the weaker Canadian exchange rate, the decrease in cost of sales and services 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 2024 did not recur to the same extent in 2025.

Our Canadian segment gross margin as a percentage of revenues increased from 15.5% in 2024 to 17.1% in 2025.

This was primarily driven by final costs for pipeline projects in 2024 that did not recur in 2025 and various cost reduction measures implemented in late 2024 and early 2025 impacting indirect costs.

Liquidity and Capital Resources

Our primary liquidity needs are to fund capital expenditures, which in the past have included expanding and improving our hospitality services, developing new lodges and villages and purchasing or leasing land, to pay dividends, to repurchase common shares and for general working capital needs.

Our primary liquidity needs are to fund capital expenditures, which in the past have included expanding and improving our hospitality services, developing new lodges and villages and purchasing or leasing land, to repurchase common shares, to pay dividends and for general working capital needs.

In addition, capital has been used to repay debt and fund strategic business acquisitions.

Historically, our primary sources of funds have been available cash, cash flow from operations, borrowings under our 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.

Historically, our primary sources of funds have been available cash, cash flow from operations, borrowings under

our Credit Agreement and proceeds from equity issuances.

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 summarizes our material future cash requirements at December 31, 2025, and the effect such obligations are expected to have on our liquidity and cash flow over the next five years (in thousands):

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Reductions in availability (1)

(5,344) (3,635)

Borrowings against revolving credit capacity (182,842) (43,299)

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Total available liquidity $ 90,387 $ 202,170

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

(1) As of December 31, 2025 and 2024, $5.3 million and $3.6 million, respectively, of our borrowing capacity under the Credit Agreement could not be utilized in order to maintain compliance with the maximum leverage ratio financial covenant in the Credit Agreement.

Cash totaling $22.3 million was provided by operations during 2025 compared to $83.5 million provided by operations during 2024.

During 2024 and 2023, $31.8 million was provided by working capital and $1.6 million was used in working capital, respectively.

The year-over-year increase in cash provided by working capital in 2024 compared to 2023 is largely due to the collection of holdbacks in Canada related to the completion of mobile asset pipeline projects during 2024 compared to 2023, partially offset by decreased accounts payable and accrual balances.

During 2025 and 2024, $28.9 million was used in working capital and $31.8 million was provided by working capital, respectively.

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 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 2025 compared to 2024.

Cash used in investing activities during 2025 totaled $90.1 million compared to cash used in investing activities during 2024 of $14.9 million.

The increase in cash used in investing activities was primarily due to 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 $11.0 million during 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., compared to $16.7 million during 2023 primarily related to the sale of our McClelland Lake Lodge accommodation assets in Canada and Louisiana accommodation assets in the U.S.

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 $2.2 million during 2025 related to the sale of accommodation assets in Canada compared to $11.0 million during 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 $20.2 million and $26.1 million during 2025 and 2024, respectively.

Capital expenditures in both periods were primarily related to maintenance.

In addition, our 2024 capital expenditures included approximately $2.9 million related to customer-funded infrastructure upgrades in Australia compared to $10.0 million in 2023.

In addition, our 2024 capital expenditures included approximately $2.9 million related to customer-funded infrastructure upgrades in Australia.

We expect our capital expenditures for 2026 to be in the range of $25 million to $30 million, which excludes any unannounced and uncommitted projects, the spending for which is contingent on obtaining customer contracts or commitments or attractive risk-adjusted economics.

Whether planned expenditures will actually be spent in 2025 depends on industry conditions, project approvals and schedules, customer room commitments and project and construction timing.

fund these capital expenditures with available cash, cash flow from operations and revolving credit borrowings under our Credit Agreement.

Whether planned expenditures will actually be spent in 2026 depends on industry

conditions, project approvals and schedules, customer room commitments and project and construction timing.

We expect to fund these capital expenditures with available cash, cash flow from operations and revolving credit borrowings under our Credit Agreement.

The foregoing capital expenditure forecast does not include any funds for strategic acquisitions, which we could pursue should the transaction economics be attractive enough to us compared to the current capital allocation priorities of returning capital to shareholders.

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Other capital expenditures below relate to routine capital spending for support equipment, upgrades to infrastructure at our lodge and village properties and spending related to our manufacturing facilities, among other items.

Based on management’s judgment of capital spending classifications, we believe the following represents the components of capital expenditures for the years ended December 31, 2024 and 2023 (in millions):

Based on management’s judgment of capital spending classifications, we believe the following represents the components of capital expenditures and the associated percentage of revenue for the years ended December 31, 2025 and 2024 (in millions):

Year Ended December 31,

Expansion Maint Total Expansion Maint Total

Expansion % Rev Maint % Rev Total % Rev Expansion % Rev Maint % Rev Total % Rev

Lodge/village $ 5.2 0.8 % $ 9.4 1.5 % $ 14.6 2.3 % $ 7.3 1.1 % $ 13.2 1.9 % $ 20.5 3.0 %

Mobile assets — — — 1.3 — 1.3

Other 3.8 0.6 1.8 0.3 5.6 0.9 3.2 0.5 2.4 0.4 5.6 0.8

Total $ 9.0 1.4 % $ 11.2 1.8 % $ 20.2 3.2 % $ 10.5 1.5 % $ 15.6 2.3 % $ 26.1 3.8 %

Expansion lodge and village spending in 2024 was related to costs associated with the customer-supported reactivation of our Buffalo Lodge in Canada and customer-funded infrastructure upgrades at three Australian villages.

Expansion lodge and village spending in 2023 was largely related to customer-funded infrastructure upgrades at three Australian villages.

Expansion lodge and village spending in 2025 was primarily related to final costs associated with the reactivation of our Buffalo Lodge in Canada, as well as purchases supporting new contracts at our integrated services business and the Qantac Acquisition in Australia.

Expansion lodge and village spending in 2024 was primarily related to costs associated with the customer-supported reactivation of our Buffalo Lodge in Canada and customer-funded infrastructure upgrades at three Australian villages.

Maintenance lodge and village spending in 2025 and 2024 was primarily associated with routine maintenance projects at our major properties.

Mobile asset spending in 2023 was primarily related to an asset storage yard purchased in Canada.

Other maintenance and expansion spending in 2025 was primarily related to Wi-Fi infrastructure at certain Australian villages, miscellaneous equipment and supplies to support the day-to-day operations at our accommodation facilities and information technology infrastructure to support our business.

Other maintenance and expansion spending in 2024 was primarily related to miscellaneous equipment and supplies to support the day-to-day operations at our accommodation and laundry facilities, purchases to support new contacts at our integrated services business in Australia and information technology infrastructure to support our business.

Other maintenance and expansion spending in 2023 was primarily related to miscellaneous equipment and supplies to support the day-to-day operations at our accommodation and laundry facilities and information technology infrastructure to support our business.

Cash used in financing activities during 2024 of $65.2 million was primarily due to (i) repurchases of our common shares of $29.6 million, (ii) dividend payments of $14.4 million, (iii) net repayments under our revolving credit facilities of $17.1 million, (iv) debt issuance costs of $3.0 million and (v) payments to settle tax obligations of $1.1 million.

Cash used in financing activities during 2023 of $86.8 million was primarily due to (i) net repayments under our revolving credit facilities of $37.8 million, (ii) repayments of term loan borrowings of $29.9 million, (iii) repurchases of our common shares of $11.6 million and (iv) dividend payments of $7.4 million.

Cash provided by financing activities during 2025 of $74.7 million was primarily due to net borrowings under our revolving credit facilities of $132.8 million primarily to fund the Qantac Acquisition and share repurchases, partially offset by (i) repurchases of our common shares of $53.6 million, (ii) dividend payments of $3.4 million, (iii) payments to settle tax obligations of $0.6 million and (iv) debt issuance costs of $0.4 million.

Cash used in financing activities during 2024 of $65.2 million was primarily due to (i) repurchases of our common shares of $29.6 million, (ii) net repayments under our revolving credit facilities of $17.1 million, (iii) dividend payments of $14.4 million, (iv) debt issuance costs of $3.0 million and (v) payments to settle tax obligations of $1.1 million.

The following summarizes the changes in debt outstanding during 2025 (in thousands):

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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.

If our plans or assumptions change, including as a result of changes in our customers' capital spending or changes in the price of and demand for natural resources, or are inaccurate, or if we make acquisitions, we may need to raise

additional capital.

Acquisitions have been, and our management believes acquisitions will continue to be, an element of our long-term business strategy.

The timing, size or success of any acquisition effort and the associated potential capital commitments are unpredictable and uncertain.

Selectively pursuing strategic organic and inorganic growth opportunities that fit with our current capital allocation priorities of returning capital to shareholders has been, and our management believes will continue to be, an element of our long-term business strategy.

The timing, size or success of any growth opportunities and the associated potential capital commitments are unpredictable and uncertain.

We may seek to fund all or part of any such efforts with proceeds from debt and/or equity issuances or may issue equity directly to the sellers.

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In addition, any additional debt service requirements we take on could be based on higher interest rates and shorter maturities and could impose a significant burden on our results of operations and financial condition, and the issuance of additional equity securities could result in significant dilution to shareholders.

In September 2024, our Board authorized a common share repurchase program to repurchase up to 5.0% of our total common shares which are issued and outstanding, or 710,556 common shares, over a twelve-month period.

In addition, our Board declared quarterly dividends of $0.25 per common share to shareholders beginning in the third quarter of 2023.

Dividend payments of $14.3 million and $7.4 million were made to shareholders in 2024 and 2023, respectively.

In September 2024, our Board authorized a common share repurchase program (the Share Repurchase Program) to repurchase up to 5.0% of our total common shares which are issued and outstanding at that date, or 0.7 million common shares, over a twelve-month period.

In March 2025, our Board authorized an increase to the Share Repurchase Program to repurchase up to 10.0% of our total common shares which are issued and outstanding at that date, or 1.4 million common shares, and in April 2025, our Board authorized a further increase to repurchase up to 20.0% of our total common shares which are issued and outstanding at that date, or approximately 2.7 million common shares (the 2025 Share Repurchase Program).

The 2025 Share Repurchase Program does not expire.

In addition, our Board declared quarterly dividends of $0.25 per common share to shareholders beginning in the third quarter of 2023 through the first quarter of 2025.

Dividend payments of $3.4 million, $14.3 million and $7.4 million were made to shareholders in 2025, 2024 and 2023, respectively.

These dividends are eligible dividends pursuant to the Income Tax Act (Canada).

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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 December 31, 2024, we had outstanding letters of credit of $0.3 million under the U.S.

As of December 31, 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 10 - Debt to the notes to the consolidated financial statements in Item 8 of this annual report for the terms of the Credit Agreement and further discussion regarding our debt.

We intend to pay regular quarterly dividends on our common shares, with all future dividend payments subject to quarterly review and approval by our Board.

The declaration and amount of all 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.

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.

In addition, our ability to pay cash dividends on common shares is limited by covenants in the Credit Agreement.

Future agreements may also limit our ability to pay dividends, and we may incur incremental taxes if we are required to repatriate foreign earnings to pay such dividends.

The amount per share of our dividend payments may be changed, or dividends may be suspended, without advance notice.

If any dividends are declared in the future, the amount per share of our dividend payments may be changed, or dividends may again be suspended, without advance notice.

The likelihood that dividends will be reduced or suspended is increased during periods of market weakness.

There can be no assurance that we will continue to pay a dividend in the future.

There can be no assurance that we will pay any dividends in the future.

Critical Accounting Policies and Estimates

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Factors such as proximity to each other, commonality of customers, common monitoring by management and operating decisions being made to optimize these lodges as a group result in these lodges being treated as a single asset group for the purposes of our impairment assessments.

Our Australia segment consists of eight villages in several regions within the country, as well as our integrated services assets and land banked assets.

Our Australia segment consists of various villages in several regions within the country, as well as our integrated services assets and land banked assets.

These properties are grouped in the following asset groups:

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◦ Middlemount – Bowen Basin, Queensland

◦ Rosewood – Bowen Basin, Queensland

◦ Waratah – Bowen Basin, Queensland

◦ Vitrinite – Bowen Basin, Queensland

◦ Acacia – Bowen Basin, Queensland

• Various non-operational sites acquired as part of Civeo’s land-banking strategy

In general, the villages are operated on a village by village basis, except for the villages located in the Bowen Basin (Moranbah, Dysart, Nebo, Coppabella and Middlemount) and the Gunnedah Basin (Narrabri and Boggabri).

In general, the villages are operated on a village-by-village basis, except for the villages located in the Bowen Basin (Moranbah, Dysart, Nebo, Coppabella, Middlemount, Rosewood, Waratah, Vitrinite and Acacia) and the Gunnedah Basin (Narrabri and Boggabri).

The villages in the Bowen and Gunnedah Basins contain significant levels of interdependency that allow these assets to be combined into cash generating units (asset groups).

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Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

We transfer control and recognize a sale based on a periodic (usually daily) room rate each night a customer stays in our rooms or when the services are rendered.

We transfer control and recognize a sale based on a periodic (usually daily) room rate each night when a customer stays in our rooms or when the services are rendered.

In some contracts, rates may vary over the contract term.

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Our customers typically contract for hospitality services under take-or-pay contracts with terms that range from several months to multiple years.

Our contract terms generally provide for a rental rate for a reserved room and an occupied room rate that compensates us for services provided.

Our contract terms generally provide a rental rate for a reserved room and an occupied room rate that compensates us for services provided.

We typically contract our facilities to our customers on a fee per day basis where the goods and services promised include lodging and meals.

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Revenues exclude taxes assessed based on revenues such as sales or value added taxes.

Cost of services includes labor, food, utility costs, cleaning supplies, and other costs of operating our accommodations facilities.

Cost of services includes labor, food, utility costs, cleaning supplies, and other costs of operating our accommodations assets.

Cost of goods sold includes all direct material and labor costs and those costs related to contract performance, such as indirect labor, supplies, tools and repairs.

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We follow the liability method of accounting for income taxes in accordance with current accounting standards regarding the accounting for income taxes.

Under this method, deferred income taxes are recorded based upon the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws in effect at the time the underlying assets or liabilities are recovered or settled.

Under this method, deferred income taxes are recorded based upon the differences between the

financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws in effect at the time the underlying assets or liabilities are recovered or settled.

When our earnings from foreign subsidiaries are considered to be indefinitely reinvested, no provision for Canadian income taxes is made for these earnings.

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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-K

Item 7. Management’s Discussion and Analysis