Civeo Corporation

Company Overview

Business Model: Civeo Corporation provides comprehensive hospitality services to remote workforces primarily in Australia and Canada. Its core value proposition involves offering catering, food service, lodging, housekeeping, and maintenance at accommodation facilities, which are either owned by Civeo Corporation or its customers. The company also delivers essential support services such as laundry, facility management, water and wastewater treatment, power generation, communication systems, security, and logistics. Civeo Corporation further manages development activities for workforce accommodation facilities, including site selection, permitting, engineering, design, and construction management. Revenue is primarily generated through day-rate contracts for its owned villages and lodges, and integrated services contracts for customer-owned facilities. For the year ended December 31, 2025, 57% of revenue was derived from hospitality services at owned facilities, and 43% from integrated services at customer-owned facilities.

Market Position: Civeo Corporation operates in key metallurgical coal, oil, iron ore, and liquefied natural gas (LNG) producing regions where traditional hospitality infrastructure is often limited. The company holds a leading market position as Australia’s largest independent provider of hospitality services for remote workforces, particularly in the Bowen Basin of central Queensland. In Canada, Civeo Corporation is western Canada’s largest provider of remote workforce hospitality services, with a significant presence in the Canadian oil sands region. As of December 31, 2025, Civeo Corporation owned and operated 26 lodges and villages with approximately 26,500 rooms and managed approximately 19,500 rooms across 24 customer-owned locations. Its competitive advantages stem from its extensive service suite, strategic locations, and long-standing relationships with major, investment-grade energy and mining companies.

Recent Strategic Developments:

• Qantac Acquisition (May 2025): Civeo Corporation acquired Qantac Pty Ltd, including four villages with 1,368 rooms in Australia’s Bowen Basin, for approximately $68 million in cash. This acquisition expanded Civeo Corporation's presence into the Blackwater region.
• Canadian Lodge Rationalization: In 2025, Civeo Corporation reduced the room count at its Sitka Lodge due to the completion of Phase 1 of the Kitimat LNG Facility and the Coastal GasLink Pipeline. Some rooms were relocated to mobile assets, and others were sold.
• U.S. Business Exit: Civeo Corporation completed its exit from the U.S. market by Q4 2024, following the sale of Louisiana accommodation assets in Q1 2023, Louisiana land in Q2 2024, and the closure of its remaining Bakken-support business.
• Share Repurchase Program Expansion: In April 2025, the Board authorized an increase to the share repurchase program, allowing for the repurchase of up to 20.0% of total common shares (approximately 2.7 million shares) with no expiration.
• Dividend Suspension: In April 2025, the Board suspended quarterly dividends on common shares to prioritize capital allocation towards ongoing share repurchases.

Geographic Footprint: Civeo Corporation's operations are concentrated in two primary regions:

• Australia: Accounted for 72% of total revenue in 2025. Operations are primarily in Queensland (Bowen Basin, Gunnedah Basin) and Western Australia (Pilbara region, Goldfields-Esperance region). As of December 31, 2025, Civeo Corporation owned 10,318 rooms across twelve villages, with 8,856 rooms in the Bowen Basin. It also provides integrated services at 23 customer-owned locations, representing over 17,000 rooms.
• Canada: Accounted for approximately 28% of total revenue in 2025. Operations are in Alberta (Athabasca oil sands region) and British Columbia (Kitimat LNG market). As of December 31, 2025, Civeo Corporation owned 16,034 lodge rooms and a fleet of 2,660 mobile asset rooms. It also provides hospitality services at customer-owned facilities.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 23.6% (2025) vs 21.9% (2024)
• Operating Margin: 0.6% (2025) vs 0.2% (2024)
• Net Margin: -3.1% (2025) vs -2.5% (2024)

Investment in Growth:

• R&D Expenditure: Not explicitly disclosed as a separate line item.
• Capital Expenditures: $20.2 million (2025) vs $26.1 million (2024).
  • 2025: $9.0 million for expansion (1.4% of revenue) and $11.2 million for maintenance (1.8% of revenue).
  • 2024: $10.5 million for expansion (1.5% of revenue) and $15.6 million for maintenance (2.3% of revenue).
• Strategic Investments: The Qantac Acquisition in May 2025 for approximately $68 million in cash. Expansion capital expenditures in 2025 and 2024 included costs for the reactivation of Buffalo Lodge in Canada and Wi-Fi infrastructure improvements in Australia.

Business Segment Analysis

Australia

Financial Performance:

• Revenue: $460.3 million (+7.8% YoY)
• Operating Margin: 11.3%
• Gross Margin: 26.3% (2025) vs 26.1% (2024)
• Key Growth Drivers: The Qantac Acquisition contributed $20.2 million in revenue in 2025. New business in integrated services villages in Western Australia and Queensland also drove growth. Total billed rooms for owned villages increased by 10.3% year-over-year to 2,783,893. Profitability improved across integrated services villages. These gains were partially offset by a 2.3% weakening of the Australian dollar against the U.S. dollar, which decreased reported revenues by $10.5 million.

Product Portfolio:

• Accommodation and Associated Services: Provided at 12 owned villages with 10,318 rooms, offering lodging, catering, housekeeping, maintenance, and resort-style amenities.
• Integrated Services: Provided at 23 customer-owned locations (over 17,000 rooms), including food service, laundry, water and wastewater treatment, facilities management, and mine site office cleaning.

Market Dynamics:

• Competitive Positioning: Civeo Corporation is Australia’s largest independent provider of remote hospitality services, with villages strategically located near long-lived, low-cost mines.
• Key Customer Types: Mining and related service companies in the natural resources industry. Fortescue Metals Group Ltd. accounted for more than 10% of Civeo Corporation's 2025 revenues.
• Market Trends: Demand is primarily driven by natural resource production, maintenance, and operational activities, influenced by metallurgical coal and iron ore prices. There is an increasing trend towards outsourcing accommodations.

Sub-segment Breakdown:

• Bowen Basin (Queensland): Nine villages (Coppabella, Dysart, Moranbah, Middlemount, Nebo, Rosewood, Waratah, Vitrinite, Acacia) with 8,856 rooms. Generated 41% of Australian revenue (29% of consolidated revenue) in 2025, primarily serving metallurgical coal mines.
• Pilbara Region (Western Australia): Karratha village (298 rooms) supports LNG facilities and iron ore operations. Civeo Corporation also provides services at 11 customer-owned locations.
• Gunnedah Basin (New South Wales): Narrabri and Boggabri villages (over 1,000 combined rooms) serve metallurgical and thermal coal mines and coal seam gas.
• Other Western Australia & South Australia: Services provided at ten customer-owned locations supporting nickel, copper, zinc, silver, gold, and lithium production.

Canada

Financial Performance:

• Revenue: $178.6 million (-27.2% YoY)
• Operating Margin: -12.2%
• Gross Margin: 17.1% (2025) vs 15.5% (2024)
• Key Growth Drivers: Gross margin improved due to the non-recurrence of final costs for pipeline projects incurred in 2024 and various cost reduction measures implemented in late 2024 and early 2025, impacting indirect costs.
• Key Challenges: Revenue decreased due to a 29% year-over-year decline in billed rooms at oil sands lodges, as producers focused on reducing operating costs. Occupancy at Sitka Lodge decreased following the completion of the Kitimat LNG Facility and Coastal GasLink Pipeline. Lower food service and other services revenue resulted from reduced client maintenance work compared to 2024. A 2.0% weakening of the Canadian dollar against the U.S. dollar further reduced reported revenues by $3.6 million.

Product Portfolio:

• Accommodation and Associated Services: Provided through 16,034 owned lodge rooms, offering lodging, meals, housekeeping, and facilities management.
• Mobile Facility Rental and Associated Services: A fleet of 2,660 modular, skid-mounted rooms for short- to medium-term projects, including asset rental, food service, housekeeping, and camp management.
• Integrated Services: Provided at customer-owned facilities (typically 500 to 1,500 rooms), offering full hospitality services or specific services like food service only.

Market Dynamics:

• Competitive Positioning: Civeo Corporation is western Canada’s largest provider of remote hospitality services, with lodges strategically located near customer mining and production facilities.
• Key Customer Types: Workforces in Canadian LNG and oil sands markets, and various oil and natural gas drilling, mining, pipeline, and related natural resource applications. Suncor Energy Inc. accounted for more than 10% of Civeo Corporation's 2025 revenues.
• Market Trends: Demand is largely driven by customer capital spending, influenced by long-term oil prices for oil sands projects and global LNG prices. There is an increasing focus on cost reduction and potential government policies discouraging fly-in/fly-out workforces.

Sub-segment Breakdown:

• Athabasca Oil Sands Region (Northern Alberta): Generated approximately 80% of Canadian revenue (22% of consolidated revenue) in 2025. Lodges support surface mining and in-situ oil sands projects.
• Southern Athabasca Region: Conklin and Anzac lodges primarily serve in-situ operations and pipeline expansion/maintenance.
• Kitimat, British Columbia: Sitka Lodge (689 rooms) supports the LNG Canada project. Occupancy is expected to remain lower until subsequent project phases commence.
• Mobile Assets: Service the traditional oil and gas sector in Alberta and British Columbia, in-situ oil sands drilling, and pipeline construction crews throughout Western Canada.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Civeo Corporation repurchased $53.6 million (2,310,000 shares) in 2025. The 2025 Share Repurchase Program, authorized in April 2025, allows for the repurchase of up to 20.0% of total common shares (approximately 2.7 million shares) and does not have an expiration date.
• Dividend Payments: $3.4 million in 2025. Quarterly dividends of $0.25 per common share were suspended in April 2025 to prioritize returning capital through share repurchases.
• Dividend Yield: Not applicable for 2025 due to suspension.
• Future Capital Return Commitments: The Board retains discretion to suspend or terminate the share repurchase program or discontinue dividend payments without advance notice.

Balance Sheet Position (as of December 31, 2025):

• Cash and Equivalents: $14.4 million
• Total Debt: $182.8 million
• Net Cash Position: $(168.4) million (Net Debt)
• Credit Rating: Not disclosed.
• Debt Maturity Profile: $182.8 million of revolving credit facilities are scheduled to mature on August 8, 2028.

Cash Flow Generation:

• Operating Cash Flow: $22.3 million (2025) vs $83.5 million (2024).
• Free Cash Flow: $2.1 million (2025) vs $57.4 million (2024).
• Cash Conversion Metrics: Cash used in working capital increased by $28.9 million in 2025 compared to 2024, primarily due to higher cash taxes paid in Australia and the non-recurrence of receivable collections from Canadian mobile asset pipeline projects.

Operational Excellence

Production & Service Model: Civeo Corporation's operational model is designed to provide comprehensive hospitality services throughout the entire lifecycle of customer projects, from initial exploration and construction to long-term production. This includes:

• Integrated Services: Managing customer-owned facilities and delivering end-to-end hospitality services such as catering, food service, lodging, housekeeping, maintenance, laundry, water and wastewater treatment, power generation, communication systems, security, and logistics.
• Owned Villages and Lodges: Operating Civeo Corporation-owned facilities that offer a range of amenities, from essential services to resort-style features like swimming pools, gyms, walking tracks, and taverns.
• Mobile Assets: Deploying modular, skid-mounted accommodations that can be rapidly mobilized and demobilized, scalable to support 200 to 800 people for shorter-term projects like pipeline construction and seasonal drilling programs.
• Operational Philosophy: Built on core values of Safety, Respect, Care, Excellence, Integrity, and Collaboration, with a strong emphasis on employee and guest safety through initiatives like "Making Zero Count."

Supply Chain Architecture: Key Suppliers & Partners:

• Food Suppliers: Primarily Australian companies, with a focus on local sourcing where feasible.
• Indigenous Business Community:
  • Australia: In 2025, Civeo Corporation directed approximately A$17.4 million (up 14% from A$15.3 million in 2024) into Indigenous-owned and operated companies through its membership with Supply Nation.
  • Canada: In 2025, Civeo Corporation purchased over C$20.5 million in goods and services from the Indigenous business community, representing 15% of its total Canadian local spending.
• Joint Venture Partnerships (Australia): Five unincorporated joint venture partnerships with Indigenous landowners in Western Australia, aimed at developing business capacity, project management skills, and employment opportunities.
• Indigenous Partnerships (Canada): Long-term partnerships with First Nations focused on revenue sharing, capacity building, employment, and community investment, including for major projects like the Kitimat LNG Facility, Coastal GasLink Pipeline, and Trans Mountain expansion project.

Facility Network:

• Owned Villages/Lodges: 26 facilities with approximately 26,500 rooms across Australia and Canada.
  • Australia: 12 villages (10,318 rooms) located in Queensland (Bowen Basin, Gunnedah Basin) and Western Australia (Pilbara region).
  • Canada: Lodges (16,034 rooms) in the Northern and Southern Athabasca oil sands region (Alberta) and Kitimat (British Columbia).
• Customer-Owned Facilities: Civeo Corporation provides services at 24 customer-owned locations, totaling approximately 19,500 rooms.
• Mobile Assets: A fleet of 2,660 rooms available in Canada.
• Offices: Leased offices in Perth, Sydney, Brisbane (Australia), Acheson, Edmonton, Calgary (Canada), and Houston (U.S.).

Operational Metrics:

• Average Daily Rates (Owned Villages/Lodges): Australia: $76 (2025) vs $78 (2024); Canada: $97 (2025) vs $97 (2024).
• Total Billed Rooms (Owned Villages/Lodges): Australia: 2,783,893 (2025) vs 2,524,108 (2024) (+10.3% YoY); Canada: 1,550,435 (2025) vs 2,205,700 (2024) (-29.7% YoY).
• Occupancy: Expected continued lower occupancy at Sitka Lodge in the near-term.

Market Access & Customer Relationships

Go-to-Market Strategy: Civeo Corporation's strategy focuses on offering scalable facilities and comprehensive hospitality services to meet the specific needs of remote workforces in the natural resource industry. This enables customers to outsource their accommodation requirements to a single provider, enhancing employee welfare and productivity while allowing customers to concentrate on core resource production. Distribution Channels:

• Direct Sales: Civeo Corporation engages directly with enterprise customers, including mining companies, major and independent oil companies, construction and engineering firms, and oilfield and mining service companies.
• Channel Partners: Not explicitly detailed.
• Digital Platforms: Not explicitly detailed.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: Civeo Corporation maintains long-standing relationships with numerous customers, many of whom are large, investment-grade energy and mining companies or their affiliates.
• Strategic Partnerships: Civeo Corporation has established partnerships with Indigenous communities in Canada and Australia, which are crucial for business development, employment, and community investment.
• Customer Concentration:
  • Fortescue Metals Group Ltd.: Accounted for more than 10% of Civeo Corporation's 2025 revenues.
  • Suncor Energy Inc.: Accounted for more than 10% of Civeo Corporation's 2025 revenues.
  • Imperial Oil Ltd.: Accounted for more than 10% of Civeo Corporation's 2023 revenues.

Geographic Revenue Distribution (2025):

• Australia: 72% of total revenue.
• Canada: 28% of total revenue.
• Growth Markets: Civeo Corporation notes increasing demand for its assets and services tied to data center construction, primarily in the U.S., with potential for future opportunities in Australia and Canada.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The workforce accommodations and hospitality industry serving the natural resource sector is highly competitive and segmented. Few providers offer a full suite of integrated hospitality services. Market demand is significantly influenced by volatile commodity prices (metallurgical coal, oil, iron ore, LNG), customer capital spending, production costs, global economic growth, and evolving regulatory landscapes. Historically, many natural resource companies built and owned their accommodations, but there is a growing trend towards outsourcing these needs for increased capacity or cost efficiencies. Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Customer-Owned Accommodations: Civeo Corporation estimates that existing and potential customers own approximately 50% of the available rooms in the Australian coal mining regions and Canadian oil sands.
• Modular Accommodation Builders: Companies such as ATCO Structures & Logistics Ltd., Alta-Fab Structures Ltd., Fleetwood Australia, and Northgate Industries Ltd.
• Accommodation Owners/Leasers & Facility Managers: Firms like Dexterra Group Inc., Black Diamond Group Limited, ATCO Structures & Logistics Ltd., Ausco Modular (a subsidiary of Modulaire Group), and Target Hospitality Corp., which typically offer shorter-term solutions with a more limited number of rooms.
• Facility Service Companies: Providers such as Aramark Corporation, Sodexo Inc., ISS, Compass Group PLC, and Cater Care Australia Pty. Ltd., which generally do not own accommodation assets but provide hospitality services at third-party or customer-owned facilities.

Emerging Competitive Threats:

• Government Policy Shifts: In Canada, government officials have expressed a preference for increased use of local workforces and permanent housing over fly-in/fly-out models, which could reduce demand for temporary accommodations.
• Market Over-capacity: The risk of decreased pricing or utilization of assets and services if demand declines or if Civeo Corporation and its competitors have capacity exceeding current market demand in certain regions.

Competitive Response Strategy:

• Service Diversification: Civeo Corporation has evolved its service delivery to include operating customer-owned locations, providing the same hospitality services offered at its owned villages.
• Strategic Acquisitions: The acquisition of Qantac Pty Ltd enhanced Civeo Corporation's service offering and expanded its geographic footprint.
• Cost Management: Implementation of various cost reduction measures in Canada to maintain profitability.
• Customer-Centric Approach: Focusing on enhancing the guest experience, improving workforce productivity, and reducing the overall cost for customers to house workforces in remote locations.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Commodity Price Volatility: Demand for Civeo Corporation's services is highly sensitive to volatile or low prices for metallurgical coal, oil, iron ore, and LNG. Sustained declines can lead customers to delay or eliminate investments, reduce spending, or curtail existing operations.
• Technology Disruption: While not a primary risk to Civeo Corporation's core business model, the integration of AI capabilities into third-party software products used by Civeo Corporation introduces operational, compliance, cybersecurity, and data integrity risks due to opaque architectures and validation limitations.
• Customer Concentration: Civeo Corporation's dependence on several significant customers (e.g., Fortescue Metals Group Ltd., Suncor Energy Inc.) means that the loss of, or a sustained decrease in demand from, any one of these customers could substantially impact revenues and results of operations.
• Geographic Concentration: The concentration of Civeo Corporation's business in specific regions (Bowen Basin, Canadian oil sands, Pilbara region) increases its exposure to localized political, regulatory, environmental, labor, climate, or natural disaster events, which could disproportionately affect operations and financial results.
• Reduced Accommodations Outsourcing: There is a risk that customers may reduce their reliance on outsourced accommodations, opting to manage these functions internally or only outsource during specific project phases, which could negatively impact Civeo Corporation's financial results and growth prospects.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Supplier Dependency: While not explicitly detailed as a risk, Civeo Corporation's reliance on Australian food suppliers and Indigenous business partners for goods and services could pose risks if these relationships are disrupted.
• Geographic Concentration: Operations in remote areas often face limited local supplies of water, electricity, or natural gas, making them vulnerable to disruptions from adverse events.
• Capacity Constraints: Over-capacity of accommodations assets in certain regions could lead to decreased pricing or utilization of Civeo Corporation's assets and services, adversely impacting operations and profits.
• Increased Operating Costs: Civeo Corporation is vulnerable to rising costs for food, wages, insurance, fuel, and utilities, particularly if it is unable to fully recover these increases through pricing or contractual terms.
• Labor Shortages: A shortage of skilled labor, especially in Australia, can lead to higher wages, increased reliance on more expensive temporary labor, and reduced operational efficiency, negatively affecting profitability.
• Employee and Customer Labor Problems: The risk of strikes, work stoppages, or other slowdowns by Civeo Corporation's employees or its customers' employees could disrupt operations, damage reputation, and adversely affect business and results of operations.
• Food Safety & Compliance: Failure to maintain food safety standards or comply with government regulations related to food, beverages, or serving alcoholic beverages could result in liability, reputational damage, and difficulties in contract renewal or new business acquisition.
• Information Systems Failure: Civeo Corporation relies heavily on its information systems for managing accommodation services, financial data, and operations. Any failure could damage its reputation, disrupt business, or lead to increased costs.
• AI Integration Risks: The integration of AI features by third-party software vendors introduces additional risks, including potential vulnerabilities from opaque model architectures, limitations on independent auditing, and increased dependence on vendor updates, which could lead to operational disruptions or inaccurate outputs.

Financial & Regulatory Risks

Market & Financial Risks:

• Demand Volatility: The cyclical nature of Civeo Corporation's business means demand is highly sensitive to commodity prices and customer capital spending, leading to potential volatility in earnings.
• Foreign Exchange: Civeo Corporation's U.S. dollar reported results are exposed to currency exchange rate fluctuations, primarily between the U.S. dollar and the Australian and Canadian dollars, which can negatively impact reported revenues, net income, and cash flows.
• Credit & Liquidity: Civeo Corporation's indebtedness could restrict its strategic and operational flexibility and increase its vulnerability to adverse economic conditions. Failure to comply with debt covenants could result in the acceleration of all outstanding indebtedness.
• Cyclical Business & Asset Value: The cyclical nature of the business and prolonged downturns can negatively affect the value of long-lived assets and goodwill, potentially leading to significant impairment losses.
• Acquisition Integration Risks: Civeo Corporation faces inherent risks in identifying, acquiring, and integrating businesses (e.g., the Qantac Acquisition), including the potential for substantial indebtedness, equity dilution, and failure to realize anticipated synergies or retain key personnel.

Regulatory & Compliance Risks:

• Industry Regulation: Civeo Corporation's operations are significantly affected by extensive and complex Australian and Canadian laws and regulations related to the oil, natural gas, and mining industries, worker safety, and environmental protection. Changes could increase compliance costs, impose operational restrictions, or reduce demand for services.
• Environmental Laws: Stringent environmental laws and regulations (e.g., Australia's EPBC Act, Canada's proposed Oil Sands Mining Effluent Regulations, Air Quality Management, and Impact Assessment Act) may require costly compliance actions or adversely affect customer operations.
• Climate Change Regulation: Civeo Corporation is exposed to regulatory and financial risks from climate change and ESG initiatives, including GHG emission reduction targets, carbon pricing systems (e.g., Australia's Safeguard Mechanism, Canada's GGPPA, TIER, and Output-Based Pricing System), and mandatory climate-related disclosure requirements, which could increase costs or reduce demand for services.
• Geopolitical Events: Ongoing geopolitical conflicts (e.g., Russia/Ukraine, Venezuela, Middle East) and international trade policies (e.g., tariffs) can influence commodity prices, customer spending, and global economic conditions, indirectly affecting Civeo Corporation's business.
• Abandonment and Remediation: Regulatory changes in Alberta and British Columbia (e.g., AER's Liability Management Framework, BCER's Comprehensive Liability Management Plan) are increasing the focus on remediation and reclamation, potentially leading to additional costs or liabilities for customers' operations.
• Legal Proceedings: Civeo Corporation is involved in various pending or threatened claims, lawsuits, and administrative proceedings. While management believes ultimate liability will not be material, there is a risk of uninsured or underinsured claims.

Geopolitical & External Risks

Geopolitical Exposure:

• Geographic Dependencies: Civeo Corporation's operations in Australia and Canada are subject to the distinct political and regulatory environments of those countries, which may differ significantly from the U.S.
• Trade Relations: Changes in U.S. or foreign trade policies, including the imposition or expansion of tariffs and other protectionist measures, could adversely impact Civeo Corporation's future net income, cash flows, and financial condition.
• Sanctions & Export Controls: Not explicitly detailed as a direct risk to Civeo Corporation's operations.
• Public Health Crises: Public health crises, pandemics, and epidemics (e.g., COVID-19) can adversely affect worldwide economic activity, demand for natural resources, customer operations, and labor availability, impacting Civeo Corporation's business and financial results.

Innovation & Technology Leadership

Research & Development Focus: Not explicitly disclosed as a separate R&D focus area. Core Technology Areas:

• Information Systems: Civeo Corporation relies on its information systems to manage accommodation services, including administrative functions, financial and operational data, ordering, and point-of-sale processing. These systems are crucial for optimizing facility utilization, occupancy, and average daily rates.
• AI Capabilities: Civeo Corporation's third-party software vendors are integrating AI capabilities into their products. Civeo Corporation has adopted risk-mitigation principles aligned with the National Institute of Standards and Technology Artificial Intelligence Risk Management Framework (NIST AI RMF) to assess, monitor, and govern the behavior, security, and reliability of these AI-enabled systems.

Intellectual Property Portfolio: Not explicitly detailed. Technology Partnerships: Not explicitly detailed.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: Not explicitly detailed beyond the names of the Chief Executive Officer and Chief Financial Officer. Board Composition: Civeo Corporation's Board of Directors has a classified structure, which is scheduled to be phased out by the 2027 annual general meeting of shareholders. The Board has established corporate governance policies, including Corporate Governance Guidelines, a Corporate Code of Business Conduct and Ethics, and a Financial Code of Ethics for Senior Officers. The Audit Committee is responsible for overseeing technology and cybersecurity risks, receiving quarterly updates from the Chief Information Security Officer and executive management.

Human Capital Strategy

Workforce Composition (as of December 31, 2025):

• Total Employees: Approximately 2,100 full-time employees and 600 hourly employees, totaling around 2,700 employees.
• Geographic Distribution: 76% of employees are located in Australia, 23% in Canada, and 1% in the U.S. (despite U.S. operations closing in Q4 2024, this 1% likely represents corporate or support staff).
• Skill Mix: The business is labor-intensive, requiring a significant number of employees for housekeeping, janitorial, and food service functions across its locations.

Talent Management: Acquisition & Retention:

• Hiring Strategy: Civeo Corporation strives to offer competitive compensation, benefits, and services, including short- and long-term incentive packages, defined contribution plans, healthcare benefits, and wellness and employee assistance programs.
• Retention Metrics: Management actively monitors market compensation and benefits to attract, retain, and promote employees, aiming to reduce turnover and associated costs.
• Employee Value Proposition: Safety is a central component of Civeo Corporation's corporate culture, demonstrated through its "Making Zero Count" initiative, which prioritizes eliminating harm to employees, contractors, and guests.

Diversity & Development:

• Diversity Metrics: Civeo Corporation acknowledges the significance of a diverse workforce, composed of individuals from various backgrounds, experiences, and perspectives.
• Development Programs: The company invests in employee training and career development, offering e-learning modules, in-person training sessions, nationally certified programs, and licensed training from external partners. Emphasis is placed on safety, customer service, and leadership development.
• Culture & Engagement: Civeo Corporation places high importance on cultivating and strengthening relationships with Indigenous communities in Canada and Australia, recognizing these relationships as vital to its business success.

Environmental & Social Impact

Environmental Commitments: Climate Strategy:

• Emissions Targets: Civeo Corporation notes that Australia has emissions reduction targets of 43% below 2005 levels by 2030 and net zero by 2050. Canada aims for a 40% reduction below 2005 levels by 2030 and net-zero by 2050. Civeo Corporation's specific emissions targets are not explicitly stated.
• Carbon Neutrality: Civeo Corporation's specific carbon neutrality commitments are not explicitly stated.
• Renewable Energy: Civeo Corporation's specific renewable energy adoption and sourcing strategies are not explicitly stated.

Supply Chain Sustainability:

• Supplier Engagement: All Civeo Corporation's food suppliers in Australia are Australian companies, with efforts to source locally where possible.
• Responsible Sourcing: Through its membership with Supply Nation, Civeo Corporation directed approximately A$17.4 million in 2025 (up 14% from A$15.3 million in 2024) into Indigenous-owned and operated companies in Australia. In Canada, Civeo Corporation procured over C$20.5 million in goods and services from the Indigenous business community in 2025.

Social Impact Initiatives:

• Community Investment:
  • Australia: Civeo Corporation's community relations program focuses on engaging with local regional communities, partnering with local municipalities to improve and expand municipal infrastructure, and providing support to local community groups through sponsorships and in-kind contributions.
  • Canada: Civeo Corporation's operations work closely with First Nations to develop mutually beneficial partnerships focused on revenue sharing, capacity building, employment, and community investment and support.
• Product Impact: Not explicitly detailed.
• Indigenous Partnerships:
  • Australia: Civeo Corporation has five unincorporated joint venture partnerships with Indigenous landowners in Western Australia, aiming to develop business capacity, project management skills, and expertise, while providing local employment opportunities and training.
  • Canada: Civeo Corporation has long-term Indigenous partnerships in the oil sands region and British Columbia (tied to projects like the Kitimat LNG Facility, Coastal GasLink Pipeline, and Trans Mountain expansion project), providing procurement, employment, training, and ancillary business opportunities. Civeo Corporation received the Eagle Award from the Fort McMurray First Nation Economic Development Corporation in 2024 and the Fort McKay Metis National President's Award in 2021. It also earned Gold level Partnership Accreditation in Indigenous Relations certification in 2023 and 2019.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Civeo Corporation's operations are directly affected by seasonal weather patterns. In Australia, the rainy season (November to April) can lead to disruptions from cyclones, monsoons, and flooding. In Canada, a portion of operations occurs during winter months when freezing conditions are necessary for customer activity, while the spring thaw restricts operations in the second quarter. Customer maintenance activities in the oil sands region typically occur in the second and third quarters. Operations are also susceptible to wildfires.
• Economic Sensitivity: Demand for Civeo Corporation's hospitality services is highly sensitive to expected commodity prices (metallurgical coal, oil, iron ore, and LNG) and their impact on customer capital spending. Industry capital spending programs are influenced by commodity price outlook, production costs, economic growth, perceived political risk, global supply/demand, and reserve replacement requirements.
• Industry Cycles: The natural resource industry is cyclical. New construction and expansion projects are typically deferred or canceled during periods of lower commodity prices. Spending on existing producing assets is generally less sensitive to short- and medium-term commodity price decreases, provided projects remain cash flow positive.

Planning & Forecasting: Civeo Corporation continuously monitors the global economy, commodity prices, demand for natural resources, inflation, and trade policy to inform its business activities and adjust capital expenditure plans.

Regulatory Environment & Compliance

Regulatory Framework: Civeo Corporation's business is significantly influenced by Australian and Canadian laws and regulations at the federal, provincial, state, and local levels, particularly those pertaining to the oil, natural gas, and mining industries, worker safety, and environmental protection. Industry-Specific Regulations:

• Environmental Protection: Civeo Corporation is subject to stringent and complex environmental laws and regulations governing the discharge of materials into the environment and environmental protection.
  • Australia: Regulated by the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), state and territory environmental and land use controls, and local government laws. Significant amendments to the EPBC Act, expected by November 2026, will introduce national environmental standards, an independent National Environmental Protection Agency, and requirements for major projects to disclose GHG emissions.
  • Canada: Subject to federal and provincial environmental jurisdiction. This includes proposed Oil Sands Mining Effluent Regulations (currently without definitive plans), air quality management frameworks (e.g., Reduction in the Release of Volatile Organic Compounds Regulations, Alberta's Directive 060, British Columbia's Drilling and Production Regulation), and the Impact Assessment Act (IAA) for major projects, which has faced constitutional challenges and subsequent amendments.
• Climate Change Legislation:
  • Australia: Mandatory climate-related disclosures under Australian Accounting Standard Board S2 Climate-related Disclosures (AASB S2) and the 'Safeguard Mechanism' (effective July 1, 2023) for large emitters.
  • Canada: Commitments under the Paris Agreement, Federal Methane Regulations (with stricter controls by 2028/2030), the Greenhouse Gas Pollution Pricing Act (GGPPA) which includes a carbon price ($95/tonne CO2e in December 2025, rising to $170/tonne by 2030), Alberta's Technology Innovation and Emissions Reduction Regulation (TIER), and British Columbia's Output-Based Pricing System. The Canadian Net-Zero Emissions Accountability Act (2021) legally binds the government to achieve net-zero emissions by 2050.
• Wildlife Protection: Canada's Species at Risk Act (SARA) and Alberta’s Wildlife Act may impose conservation measures (e.g., caribou range plans) that could limit oil and gas developments.
• Abandonment and Remediation: The Alberta Energy Regulator (AER) oversees closure requirements through its Liability Management Framework (AB LMF), Directive 067, and Directive 088. The British Columbia Energy Regulator (BCER) has a Comprehensive Liability Management Plan and Dormancy and Shutdown Regulation.
• Building Canada Act (BCA): The federal government passed the BCA in 2025 to streamline approval processes for major projects, potentially leading to increased resource development opportunities in Alberta and British Columbia.

Trade & Export Controls:

• Export Restrictions: Not explicitly detailed as a direct risk to Civeo Corporation's operations.
• Sanctions Compliance: Not explicitly detailed as a direct risk to Civeo Corporation's operations.

Legal Proceedings: Civeo Corporation is a party to various pending or threatened claims, lawsuits, and administrative proceedings. Management believes that any ultimate liability from these proceedings, if not covered by indemnity or insurance, will not have a material adverse effect on its consolidated financial position, results of operations, or liquidity.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: Civeo Corporation's effective tax rate was (211.0)% of pretax loss in 2025 and (210.4)% in 2024. This rate was lower than the Canadian federal statutory rate of 15% primarily due to pre-tax losses in Canada and the U.S. for which no corresponding tax benefit was recognized.
• Geographic Tax Planning: Full valuation allowances are maintained against net deferred tax assets in both Canada and the U.S. A partial valuation allowance is maintained in Australia for deferred tax assets related to certain capital assets. Civeo Corporation has no undistributed earnings of foreign subsidiaries that would be subject to income tax upon distribution to Canada.
• Tax Reform Impact: Civeo Corporation is subject to potential changes in tax laws in Australia, Canada, and the U.S., including those stemming from the OECD's two-pillar plan for international taxation. Canada imposed a 2% tax on share repurchases effective January 1, 2024, which may impact the tax efficiency of Civeo Corporation's share repurchase program.

Insurance & Risk Transfer

Risk Management Framework: Civeo Corporation has implemented and maintains mechanisms, controls, technologies, systems, and processes designed to prevent or mitigate data loss, theft, misuse, or other security incidents. These measures are modeled on frameworks such as the Center for Internet Security (CIS) controls and the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF).

• Insurance Coverage: Civeo Corporation maintains insurance to cover many potential losses, including cyber risk insurance. It is subject to various self-retentions and deductibles under its policies, and there is a risk that a judgment could be rendered against it in cases where it is uninsured or underinsured.
• Risk Transfer Mechanisms: Not explicitly detailed beyond insurance coverage.