Civeo Corporation

Greetings, and welcome to the CIVIO Corporation first quarter 2026 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Regan Nielsen, Vice President, Corporate Development and Investor Relations. Please go ahead.

Thank you, and welcome to CIVIO's first quarter 2026 earnings conference call. Today, our call will be led by Bradley Dodson, CIVIO's President and Chief Executive Officer, and Colin Gary, CIVIO's Chief Financial Officer and Treasurer. Before we begin, we would like to caution listeners regarding forward-looking statements. To the extent that our remarks today contain anything other than historical information, please note that we're relying on the safe harbor protections afforded by federal law. These forward-looking statements speak only as of the date of our earnings release and this conference call. We undertake no obligation to update or revise these statements except as required by law. Any such remarks should be read in the context of the many factors that affect our business, including risks and uncertainties disclosed in our forms 10-K, 10-Q, and other SEC filings.

I'll now turn the call over to Bradley. Thank you, Reagan, and thank you all for joining us today on our first quarter of 2026 earnings call. I'll start with some key takeaways for the quarter and summarize our consolidated and regional performance. After that, Collin will provide further financial and segment-level detail, and I'll conclude prepared remarks with our outlook for 2026. We will then open the call for questions. There are four key takeaways from the call today. First, we delivered a strong start to 2026, outperforming our expectations. For the quarter, consolidated revenue was up 20% and adjusted EBITDA was up 78%. Revenue growth was driven by a mixture of improved occupancy across the Canadian assets in both the oil sands and LNG markets, continued growth in our Australian integrated services business, contributions from acquired villages in Australia, improvements in our mobile camp fleet utilization, We also benefited from foreign currency improvements. This was all complemented by strong incremental margins in Canada as a result of our cost reduction initiatives that we took last year. The second key takeaway is we continue to execute on our disciplined and balanced capital allocation strategy, recurring capital and shareholders while enhancing CIVIO's financial flexibility. Third, We remain confident in the revenue trajectory of the business as a whole and are raising the lower end of our revenue guidance. The midpoint of the revised guidance implies 8% revenue growth for the year. Our confidence stems from continued momentum in the Australian integrated services platform and an increasingly robust bid pipeline for North America asset and service deployment. As of today, we are actively bidding on projects with total contract values in excess of $1.5 billion, which is the strongest we've seen to date. While much of this growth is dependent on customers reaching final investment decisions, which is outside of our control, we are excited about the opportunities that these present for later in 2026 and going into 2027. The last key point The cost impacts of the ongoing conflict in Iran and associated dislocations of global energy in raw materials trade will likely have an impact on our margins. Australia is highly dependent on normalized global seaborne energy trade for diesel and other fuels. As a result of this, the potential associated impact on inflation, energy prices, and the impacts of those variables on our customers' activities we are anticipating temporary inflationary impacts to our adjusted EBITDA. Thus, we are maintaining our initial guidance of $85 million to $90 million of adjusted EBITDA for 2026. I'll start with some operational results for the quarter. On a consolidated basis, our first quarter results reflect strong year-over-year growth, with revenues increasing 20% and adjusted EBITDA increasing 78%. compared to the prior year period. In Australia, performance was strong for the first quarter, supported by the full quarter contribution from the villages we acquired in May 2025, as well as continued revenue growth in our integrated services business. In Canada, we delivered strong year-over-year improvement with higher occupancy across key lodges and meaningful margin expansion. Importantly, this reflects both improved activity levels and the continued benefit of structural cost improvements we implemented last year. From a macro perspective, our operating environment remains dynamic. Money prices, including oil and metallurgical coal, have been volatile and customer spending remains disciplined in both Australia and Canada. We are focused, therefore, on maintaining our flexibility as conditions continue to evolve.