What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-05-01 compared with 2025-10-31 · 155 added, 292 removed, 191 unchanged (70% of the section changed)

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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 (metallurgical) coal, oil, iron ore and liquefied natural gas (LNG), and the resultant impact of these commodity price expectations on our customers' spending.

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

This is principally occurring in the United States (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 global recession fears that may result from inflationary pressures and higher interest rates, an economic slowdown 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 Russia/Ukraine and Middle East conflicts, United States (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.

While prices for the commodities that our customers produce stabilized in late 2025 and strengthened in early 2026, there remains continued risk of future volatility, particularly in light of ongoing geopolitical tensions in the Middle East.

The factors that could drive such volatility and underlying activity include the U.S.

and Israeli conflict with Iran, 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, other geopolitical events such as the ongoing conflicts in Russia and Ukraine, U.S.

oil production levels and regulatory implications on such prices.

In Canada, ongoing tensions between the U.S and Canadian governments regarding trade policy may spur Canadian infrastructure projects, including pipelines for LNG or oil, carbon capture installation for oil producing operations and mining for critical minerals.

Recent Commodity Prices.

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(per bbl) WCS

Fourth Quarter through October 24, 2025

189.51 98.54 60.03 48.32

Second Quarter through April 27, 2026

$ 229.39 $ 101.65 $ 97.74 $ 73.40

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3/31/2024 307.68 118.54 77.01 59.48

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, 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 through the third quarter of 2025.

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 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.

Met coal pricing and production growth in the Bowen Basin region is predominantly influenced by global steel production, which remained subdued throughout 2025 and into early 2026.

China and Japan experienced declines in steel production through the first three months of 2026, while India and the U.S.

continue to see consistent positive growth through 2025 and into early 2026.

Global tariff developments and recession fears are weighing on current and near-term global steel production, while the ongoing conflict in the Middle East has contributed to further economic and trade uncertainty.

While there has been no noticeable impact on met coal prices to date, input costs for producers are expected to increase, particularly due to higher diesel prices.

Global steel production decreased by 2.3% for the three months through March 2026 compared to the same period in 2025.

As of April 27, 2026, met coal spot prices were $228.50 per tonne.

Met coal prices strengthened in late 2025, rising above $200 per tonne following a 12-month period of depressed prices which fluctuated between $169 and $197 per tonne.

In early 2026, prices continued to increase, reaching $250 per tonne before moderating to a more stable level between $215 and $230 per tonne as supply and demand conditions became more balanced.

Although met coal prices have risen to over $200 in late 2025, producers continue to re-evaluate production levels with a heightened focus on cost management.

The Middle East conflict has resulted in trade disruption, specifically the seaborne transport of oil and LNG through the Strait of Hormuz, increasing the price of oil, gasoline and diesel, putting further pressure on cost containment if fuel costs continue to stay elevated.

In late 2025, several large and mid-tier met coal producers in Queensland, Australia reported making production cuts and workforce reductions in response to margin pressures.

While met coal prices have settled at a more profitable level in early 2026, additional met coal supply is expected to enter the market from

both Australia and the U.S.

during 2026, which could place downward pressure on pricing towards $200 per tonne.

These supply and demand dynamics may be further impacted by ongoing geopolitical uncertainties, including global tariff developments and the conflict in the Middle East.

Iron ore prices have fluctuated between $97 and $111 through early 2026 and remained buoyant as steel mills replenished their iron ore stocks.

Supply has remained strong, with continued production from Australia and Brazil in early 2026, consistent with trends observed in late 2025.

Iron ore prices are expected to moderate with continued strong supply entering the market in 2026 and weaker steel demand.

WTI crude prices increased during the first quarter of 2026, primarily driven by the U.S.

and Israeli conflict with Iran, including the closure of the Strait of Hormuz, which has disrupted global oil supply.

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 throughout 2025, increasing production despite softer global demand for oil.

After pausing increases in the first quarter of 2026, OPEC+ resumed unwinding production cuts beginning in the second quarter of 2026.

Current geopolitical conditions have increased volatility in the oil markets, making it more difficult to forecast spending and activity for Canadian oil producers.

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

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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 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.

As a result of the U.S.

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

Gulf Coast over time.

WCS prices in the first quarter of 2026 averaged $57.16 per barrel compared to an average of $58.27 in the first quarter of 2025.

The WCS Differential increased from an average of $12.50 per barrel at the end of the fourth quarter of 2025 to an average of $15.58 at the end of the first quarter of 2026.

Further, the U.S.

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.

administration implemented and amended several new tariffs during 2025.

Continued implementation or expansion 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.

With near-term higher prices, Canadian oil sands customers are prioritizing production while focusing on capital discipline and reducing downtime, while continuing to strive for lower operating costs and lower headcount.

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.

On May 6, 2025, we completed the Qantac Acquisition, 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 unaudited consolidated financial statements included in Item 1 of this quarterly report for further discussion.

Inflationary Pressures.

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.

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

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

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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 third quarter of 2025, concerns remain that inflationary pressures could return in the future.

administration, and the resulting retaliations by its trading partners, did not materially impact our cost structure in 2025 or into 2026, concerns remain that inflationary pressures could return in the future.

The conflict with Iran and the resulting closure of the Strait of Hormuz has disrupted seaborne trade, specifically the transportation of oil and LNG in the Middle East.

Australia imports the majority of its oil and petroleum products, specifically gasoline and diesel.

The current disruption of trade through the Strait of Hormuz has materially increased gasoline and diesel prices in Australia, resulting in increased inflation expectations and risk of higher fuel and transportation costs.

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.

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.

We continue to experience 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.

Regulated labor costs also 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.

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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.

As such, we continue to expect lower occupancy levels at our Sitka Lodge in the near-term until additional phases of the LNGC project are approved and commence, or further construction activity increases occupancy demand.

From a macroeconomic standpoint, LNG demand has continued to grow, reinforcing the need for the global LNG industry to expand access to natural gas.

Evolving government energy policies around the world have amplified support for cleaner energy supply, creating more opportunities for natural gas and LNG.

The conflicts between Russia/Ukraine and in the Middle East have further highlighted the need for secure natural gas supply globally, particularly in Europe.

The conflicts between Russia and Ukraine and in the Middle East have reinforced the importance for secure natural gas supply globally, particularly in Europe.

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

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Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 Change Percentage 2025 2024 Change Percentage

2026 2025 Change Percentage

Average Australian dollar to U.S.

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dollar $0.7292 $0.6969 $0.032 4.63%

September 30, 2025 December 31, 2024 Change Percentage

March 31, 2026 December 31, 2025 Change Percentage

Australian dollar to U.S.

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Capital Expenditures.

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

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, compared to 2025 capital expenditures of $20.2 million.

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Results of Operations

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

Unless otherwise indicated, discussion of results for the three months ended March 31, 2026, is based on a comparison to the corresponding period of 2025.

Results of Operations – Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

Three Months Ended

September 30,

2026 2025 Change

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Canada 49,649 40,398 9,251

Other — 1,980 (1,980)

Total revenues 172,667 144,044 28,623

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Depreciation and amortization expense 17,308 16,253 1,055

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

Other operating (income) expense (338) 507 (845)

Total costs and expenses 169,544 149,560 19,984

Operating income 6,966 44 6,922

Operating income (expense) 3,123 (5,516) 8,639

Interest expense, net (3,724) (1,593) (2,131)

Other income 10 204 (194)

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

Other income (expense) (61) 347 (408)

Loss before income taxes (662) (6,762) 6,100

Income tax expense (3,141) (3,088) (53)

Net loss (3,803) (9,850) 6,047

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

Net income (loss) attributable to noncontrolling interest 5 (8) 13

Net loss attributable to Civeo Corporation $ (3,808) $ (9,842) $ 6,034

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.

We reported net loss attributable to Civeo for the quarter ended March 31, 2026 of $3.8 million, or $0.34 per diluted share.

Net loss included $1.0 million in severance, $0.5 million related to real estate rationalization efforts in Canada and $0.4 million of shareholder activist related costs.

We reported net loss attributable to Civeo for the quarter ended March 31, 2025 of $9.8 million, or $0.72 per diluted share.

Net loss included $1.0 million of cost saving initiatives in Canada related to severance and two lodge closures.

Consolidated revenues increased $28.6 million, or 20%, in the first quarter of 2026 compared to the first quarter of 2025.

This increase was primarily driven by (i) contributions in Australia from the Qantac Acquisition in the second quarter of 2025, (ii) new integrated services business in Queensland, (iii) higher billed rooms at our Canadian oil sands lodges and (iv) a stronger Australian and Canadian dollar relative to the U.S.

dollar in the first quarter of 2026 compared to the first quarter of 2025.

The Qantac Acquisition generated $7.5 million of revenues in the first quarter of 2026.

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 $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.

Our consolidated cost of sales and services increased $17.9 million, or 16%, in the first quarter of 2026 compared to the first quarter of 2025.

This increase was primarily driven by (i) incremental costs in Australia associated with the Qantac Acquisition in the second quarter of 2025, (ii) new integrated services business in Queensland, including the associated overhead costs and (iii) higher costs in Canada due to increased occupancy levels and higher food and service costs.

In addition, inflation and higher billed days and a stronger Australian and Canadian dollar relative to the U.S.

dollar in the first quarter of 2026 compared to the first quarter of 2025 resulted in an increase in cost of sales and services.

These items were partially offset by reduced costs at certain Canadian lodges and lower indirect costs as a result of cost reduction measures implemented in early 2025.

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

Selling, General and Administrative Expenses.

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.

Selling, general and administrative (SG&A) expenses increased $1.9 million, or 10%, in the first quarter of 2026 compared to the first quarter of 2025.

This increase was primarily driven by the write-off of accounts receivable in Australia due to customer insolvency of $0.8 million and higher compensation expense of $0.7 million, largely due to severance costs incurred in Canada.

In addition, a stronger Australian and Canadian dollar relative to the U.S.

dollar in the first quarter of 2026 compared to the first quarter of 2025.

These items were partially offset by lower office expenses of $0.6 million in the first quarter of 2026 compared to the first quarter of 2025.

Depreciation and Amortization Expense.

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 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.

Depreciation and amortization expense increased $1.1 million, or 6%, in the first quarter of 2026 compared to the first quarter of 2025.

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

dollar in the first quarter of 2026 compared to the first quarter of 2025.

Operating Income (Expense).

Consolidated operating income increased $8.6 million, or 157%, in the first quarter of 2026 compared to the first quarter of 2025, primarily driven by the Qantac Acquisition in Australia, higher activity levels in Canada and gross margin expansion in Canada resulting from cost cutting measures previously implemented.

These items were partially offset by higher depreciation and amortization expense in the first quarter of 2026 compared to the first quarter of 2025.

Interest Expense, net.

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.

Net interest expense increased by $2.1 million, or 134%, in the first quarter of 2026 compared to the first quarter of 2025, primarily related to higher average debt levels, as a result of the Qantac Acquisition and increased share repurchases during 2025.

Income Tax Expense.

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.

Our income tax expense for the three months ended March 31, 2026 totaled $3.1 million, or (474.5)% of pretax loss, compared to an income tax expense of $3.1 million, or (45.7)% of pretax loss, for the three months ended March 31, 2025.

Our effective tax rate for the three months ended March 31, 2026 and 2025 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 (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.

Other comprehensive income increased $3.8 million in the first quarter of 2026 compared to the first quarter of 2025, 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 remained constant in the third quarter of 2025 compared to a 4% increase in the third quarter of 2024.

dollar increased 3.1% in the first quarter of 2026 compared to a 1% increase in the first quarter of 2025.

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

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

dollar decreased 2% in the first quarter of 2026 compared to a 0.1% increase in the first quarter of 2025.

Segment Results of Operations – Australian Segment

Three Months Ended

September 30,

2026 2025 Change

Revenues ($ in thousands)

Accommodation revenue (1)

Accommodation and associated services revenue (1)

$ 55,806 $ 46,823 $ 8,983

Food service and other services revenue (2)

Integrated services and other services revenue (2)

67,212 56,823 10,389

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Cost of sales and services ($ in thousands)

Accommodation cost $ 27,779 $ 24,783 $ 2,996

Food service and other services cost 59,469 58,787 682

Accommodation and associated services cost $ 28,057 $ 23,071 $ 4,986

Integrated services and other services cost 60,549 50,651 9,898

Indirect other cost 3,862 2,998 864

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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 in the Company's owned villages.

(3) Average daily rate is based on billed rooms and accommodation revenue in our owned villages.

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

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 2.4% 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.

Our Australian segment reported revenues in the first quarter of 2026 that were $19.4 million, or 19%, higher than the first quarter of 2025.

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

dollar by 10.8% in the first quarter of 2026 compared to the first quarter of 2025 resulted in a $12.0 million period-over-period increase in revenues.

On a constant currency basis, the Australian segment experienced a 7.1% 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 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 2.4% 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.

Excluding the impact of the strengthening 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 $15.7 million, or 21%, in the first quarter of 2026 compared to the first quarter of 2025.

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

dollar by 10.8% in the first quarter of 2026 compared to the first quarter of 2025 resulted in a $9.0 million period-over-period increase in cost of sales and services.

Excluding the impact of the strengthening 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 decreased to 24.8% in the first quarter of 2026 from 26.0% in the first quarter of 2025.

This was primarily driven by reduced occupancy at our Bowen Basin villages in Queensland and increased operating costs arising from challenges in industry-wide shortage of skilled labor.

Segment Results of Operations – Canadian Segment

Three Months Ended

September 30,

2026 2025 Change

Revenues ($ in thousands)

Accommodation revenue (1)

$ 38,684 $ 48,747 $ (10,063)

Mobile facility rental revenue (2)

Food service and other services revenue (3)

6,954 8,866 (1,912)

Total revenues $ 46,031 $ 57,736 $ (11,705)

Cost of sales and services ($ in thousands)

Accommodation cost $ 27,107 $ 38,762 $ (11,655)

Mobile facility rental cost 36 361 (325)

Food service and other services cost 6,547 8,385 (1,838)

Indirect other costs 1,970 2,544 (574)

Total cost of sales and services $ 35,660 $ 50,052 $ (14,392)

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

Average daily rate for owned lodges (4)

$ 100 $ 100 $ —

Total billed rooms for owned lodges (5)

Accommodation and associated services revenue (1)

$ 43,134 $ 33,436 $ 9,698

Average Canadian dollar to U.S.

dollar $ 0.726 $ 0.733 $ (0.007)

(1) Includes revenues related to lodge rooms and hospitality services for owned rooms for the periods presented.

(2) Includes revenues related to mobile assets for the periods presented.

(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 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 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

($ in thousands)

Australia $ 340,778 $ 316,967 $ 23,811

Canada 136,451 204,423 (67,972)

Other — 9,781 (9,781)

Total revenues 477,229 531,171 (53,942)

Costs and expenses:

Cost of sales and services

Australia 250,221 234,217 16,004

Canada 112,342 166,158 (53,816)

Other 287 9,446 (9,159)

Total cost of sales and services 362,850 409,821 (46,971)

Selling, general and administrative expenses 56,762 55,708 1,054

Depreciation and amortization expense 54,092 51,269 2,823

Impairment expense — 7,823 (7,823)

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

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

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

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

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

Other income 476 967 (491)

Income (loss) before income taxes (2,885) 6,201 (9,086)

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

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

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

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.

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 $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 $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 $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 $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 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 $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 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 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 (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 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 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

Nine Months Ended September 30,

2025 2024 Change

Revenues ($ in thousands)

Accommodation revenue (1)

Mobile facility rental and associated services revenue (2)

1,038 219 819

Food service and other services revenue (2)

Integrated services and other services revenue (3)

5,477 6,743 (1,266)

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Cost of sales and services ($ in thousands)

Accommodation cost $ 76,740 $ 70,990 $ 5,750

Food service and other services cost 163,283 154,218 9,065

Indirect other cost 10,198 9,009 1,189

Total cost of sales and services $ 250,221 $ 234,217 $ 16,004

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

Average daily rate for owned villages (3)

$ 76 $ 78 $ (2)

Total billed rooms for owned villages (4)

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

Average Australian dollar to U.S.

dollar $ 0.641 $ 0.662 $ (0.021)

(1) Includes revenues related to village rooms and hospitality services for owned rooms for the periods presented.

(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 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 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 3.2% 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 and new business in our integrated services villages in Western Australia and Queensland.

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 3.2% 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.

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 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

Nine Months Ended September 30,

2025 2024 Change

Revenues ($ in thousands)

Accommodation revenue (1)

$ 114,710 $ 180,793 $ (66,083)

Mobile facility rental revenue (2)

1,046 1,473 (427)

Food service and other services revenue (3)

Accommodation and associated services cost (1)

$ 32,124 $ 28,865 $ 3,259

Total revenues $ 136,451 $ 204,423 $ (67,972)

Cost of sales and services ($ in thousands)

Accommodation cost $ 86,590 $ 132,679 $ (46,089)

Mobile facility rental cost 171 4,413 (4,242)

Food service and other services cost 19,257 20,839 (1,582)

Mobile facility rental and associated services cost 679 — 679

Integrated services and other services cost 5,077 6,473 (1,396)

Indirect other costs 2,147 2,307 (160)

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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 in the Company's owned lodges.

(4) Average daily rate is based on billed rooms and accommodation revenue in our owned lodges.

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

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 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 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.

Our Canadian segment reported revenues in the first quarter of 2026 that were $9.3 million, or 23%, higher than the first quarter of 2025.

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

dollar by 4.6% in the first quarter of 2026 compared to the first quarter of 2025 resulted in a $2.2 million period-over-period increase in revenues.

On a constant currency basis, the increase in the Canadian segment was driven by higher billed rooms at our oil sands lodges, up 17% year-over-year.

Producers in the region remain focused on reducing operating costs while also prioritizing maintaining and increasing oil production, resulting in additional personnel at site.

Our Canadian segment cost of sales and services increased $2.4 million, or 6%, in the first quarter of 2026 compared to the first quarter of 2025.

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

dollar by 4.6% in the first quarter of 2026 compared to the first quarter of 2025 resulted in a $1.8 million period-over-period increase in cost of sales and services.

On a constant currency basis, the increase in cost of sales and services in the Canadian segment was largely driven by higher costs at various lodges due to increased occupancy levels and higher food and service costs as a result of inflation and higher billed days, partially offset by reduced costs at certain lodges and reduced indirect costs as a result of various cost reduction measures implemented in early 2025.

Our Canadian segment gross margin as a percentage of revenues increased from 6.8% in the first quarter of 2025 to 19.4% in the first quarter of 2026.

This was primarily driven by operating efficiencies with higher occupancy as well as higher margins as a result of various cost reduction measures implemented in early 2025.

Liquidity and Capital Resources

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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

The following table summarizes our consolidated liquidity position as of March 31, 2026 and December 31, 2025 (in thousands):

March 31, 2026 December 31, 2025

Lender commitments $ 265,000 $ 265,000

Reduction in availability (1)

(18,037) (3,635)

Borrowings against revolving credit capacity (212,276) (182,842)

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Total available liquidity $ 68,422 $ 90,387

(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.

(1) As of March 31, 2026 and December 31, 2025, zero and $5.3 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 $9.7 million was used in operations during the three months ended March 31, 2026, compared to $8.4 million used in operations during the three months ended March 31, 2025.

Net cash used in working capital was $24.9 million during the three months ended March 31, 2026 compared to net cash used in working capital of $14.7 million during the three months ended March 31, 2025.

The year-over-year increase in cash used in working capital in 2026 compared to 2025 is largely due to increased accounts receivable balances in Australia and Canada.

Cash was used in investing activities during the three months ended March 31, 2026 in the amount of $3.9 million, compared to cash used in investing activities during the three months ended March 31, 2025 in the amount of $5.1 million.

The decrease in cash used in investing activities was primarily due to lower capital expenditures.

We received net proceeds from the sale of property, plant and equipment of $0.2 million during the three months ended March 31, 2026 and 2025.

Capital expenditures totaled $4.1 million and $5.3 million during the three months ended March 31, 2026 and 2025, 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.

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.

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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 $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):

Net cash of $15.9 million was provided by financing activities during the three months ended March 31, 2026 primarily due to net borrowings under our revolving credit facilities of $30.6 million, partially offset by repurchases of our common shares of $14.4 million and payments to settle tax obligations on vested shares under our share-based compensation plans of $0.3 million.

Net cash of $36.6 million was provided by financing activities during the three months ended March 31, 2025 primarily due to net borrowings under our revolving credit facilities of $44.2 million, partially offset by dividend payments of $3.4 million, repurchases of our common shares of $3.3 million, payments to settle tax obligations on vested shares under our share-based compensation plans of $0.7 million and debt issuance costs of $0.1 million.

The following table summarizes the changes in debt outstanding during the three months ended March 31, 2026 (in thousands):

Balance at December 31, 2025 $ 182,842

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Translation (1,124)

Balance at September 30, 2025 $ 187,937

Balance at March 31, 2026 $ 212,276

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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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 (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, and in April 2025, our Board authorized a further increase to repurchase up to 20% 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 in the first quarter of 2025.

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

See Dividends below and Note 12 – Share Repurchase Programs and Dividends to the notes to the unaudited consolidated financial statements included in Item 1 of this quarterly report for further discussion.

Credit Agreement

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 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:

In March 2025, our Board authorized a common share repurchase program (the Share Repurchase Program) to repurchase up to 10.0% of our total common shares which were issued and outstanding at that date, or approximately 1.4 million common shares over a twelve-month period.

In April 2025, our Board authorized an increase to the Share Repurchase Program 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.

In March 2026, our Board authorized an additional repurchase authorization of up to 10.0% of our common shares outstanding upon completion of the April 2025 authorization.

The Share Repurchase Program (including the additional authorizations in April 2025 and March 2026) does not expire.

See Note 11 – Share Repurchase Programs and Dividends to the notes to the unaudited consolidated financial statements included in Item 1 of this quarterly report for further discussion.

Amended Credit Agreement

On April 23, 2026, the Credit Agreement was amended and restated (as amended to date, the Amended Credit Agreement) to, among other things:

• provide for an increase by $20.0 million of the aggregate revolving loan commitments under the Amended Credit Agreement, to an aggregate maximum principal amount of $285.0 million, allocated as follows:

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

subsidiaries, as borrowers;

(B) a $200.0 million senior secured revolving credit facility in favor of Civeo and certain of our U.S.

subsidiaries, as borrowers;

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

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

subsidiaries, as borrowers (the U.S.

(B) a $205.0 million senior secured revolving credit facility in favor of Civeo, as borrower (the Canadian Facility);

and (C) a $70.0 million senior secured revolving credit facility in favor of one of our Australian subsidiaries, as borrowers;

• extend the maturity from August 8, 2028 to April 23, 2030;

• provide for other technical changes and amendments to the Credit Agreement.

As of March 31, 2026, 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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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