Civeo Q3 revenue beats estimates on stronger oil sands activity, contract win; raises outlook

Overview

• Hospitality services provider's Q3 revenue rose yr/yr, beating analyst expectations

• Adjusted EBITDA for Q3 rose 5% yr/yr

• Company raised full-year 2026 revenue and Adjusted EBITDA guidance

Outlook

• Civeo raises 2026 revenue guidance to $710 mln-$720 mln from $675 mln-$700 mln

• Company lifts 2026 adjusted EBITDA forecast to $89 mln-$92 mln from $85 mln-$90 mln

• Civeo increases 2026 capital expenditure guidance to $30 mln-$35 mln from $25 mln-$30 mln

Result Drivers

• OIL SANDS TURNAROUND - Higher occupancy at Canadian oil sands lodges, due to stronger-than-expected turnaround activity, drove Canadian revenue and profit growth

• AUSTRALIAN DOLLAR & CONTRACTS - Revenue growth in Australia was supported by a stronger Australian dollar, contractual rate increases, and increased shutdown activity, partly offset by lower occupancy in the Bowen Basin

• INTEGRATED SERVICES & CONTRACT WINS - Growth in Canada also benefited from new integrated services contracts and recent wins for mobile fleet room deployments

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the real estate rental, development & operations peer group is "buy."

• Wall Street's median 12-month price target for Civeo Corp is $39.00, about 29.1% above its October 28 closing price of $30.22

Reuters Recommended Reads

• Oct 28 - Canada's Athabasca Oil Q3 production rises after turnarounds

• Oct 27 - Canada's Trican Well Service Q3 profit rises on higher activity, Iron Horse contribution

• Oct 28 - Oilfield services firms lean on Middle East rebound but risks persist

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)