[Management View]
Civeo Corporation reported strong operational performance in Q3 2025, with increased adjusted EBITDA in both Australia and Canada despite macroeconomic headwinds. The Australian segment benefited from the Bowen Basin acquisition, while Canadian operations saw margin expansion due to cost-reduction initiatives.

[Outlook]
The company projects Australian integrated services to target AUD 500 million revenue by 2027. Canadian lodge occupancy is expected to be flat to slightly up in 2026, with potential improvements in mobile camp demand. Civeo plans to use 100% of annual free cash flow for share buybacks until the current authorization is complete.

[Financial Performance]
Total revenue for Q3 2025 was $170.5 million, with consolidated adjusted EBITDA of $28.8 million. The Australian segment saw a 7% revenue increase, while Canadian revenues decreased due to lower billed rooms but improved EBITDA from cost-cutting.

[Q&A Highlights]
Question 1: Bradley, when you package the guidance for 2026, it feels like it equates to something flattish year-over-year. Is that accurate?
Answer: No, I expect it to be up year-over-year. While there are dynamic factors in both markets, we anticipate growth in integrated services and stabilization in Canadian lodge occupancy. The key will be infrastructure projects that could utilize our mobile camps.

Question 2: Regarding mobile camp assets, are you looking at opportunities in the U.S. related to new energy sectors like lithium mining?
Answer: Yes, we are actively pursuing opportunities in North America, including data centers and infrastructure projects. We have 2,500 mobile camp rooms deployable and are exploring various sectors.

Question 3: On capital allocation, is there a preference for acquisitions versus buybacks?
Answer: We are committed to completing the current buyback authorization. However, we will consider project-based acquisitions supported by customer contracts, ensuring we maintain a net leverage ratio around two times.

Question 4: Can you discuss growth opportunities in Australia beyond natural resources?
Answer: We feel confident about reaching the AUD 500 million target by 2027. We are expanding our customer base and geographic footprint, and while acquisitions could enhance growth, we believe we can achieve this organically.

Question 5: On mobile camp opportunities, is this more of a 2027 story, or are there chances in 2026?
Answer: It depends on customer project approvals. We expect some contribution in 2026, likely in the second half, with more significant impacts in 2027 and beyond.

Question 6: Regarding staffing in Australia, how are you addressing challenges?
Answer: Staffing remains a challenge, particularly for chefs. We have recruitment programs and have adjusted rosters and travel allowances to attract talent. We are making progress but are not yet at pre-COVID levels.

Question 7: How applicable are Canadian cost-cutting measures to Australia?
Answer: The cost-cutting in Canada is specific to its market conditions. While we always seek efficiencies, the cost structures and climates differ significantly between Canada and Australia.

[Sentiment Analysis]
Analysts and management maintained a cautiously optimistic tone, acknowledging macroeconomic challenges while expressing confidence in strategic growth initiatives and cost management.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-------------------------------|---------|---------|
| Total Revenue | $170.5M | N/A |
| Adjusted EBITDA | $28.8M | N/A |
| Australian Revenue | $124.5M | $116.6M |
| Canadian Revenue | $46M | $57.7M |
| Australian Billed Rooms | 763,000 | N/A |
| Canadian Billed Rooms | 383,000 | 484,000 |

[Risks and Concerns]
Key risks include macroeconomic headwinds in Canada, labor challenges in Australia, and potential impacts from fluctuating commodity prices. The company is focused on mitigating these through strategic cost management and capital allocation.

[Final Takeaway]
Civeo demonstrated resilience in Q3 2025, leveraging strategic acquisitions and cost-cutting measures to drive performance amidst challenging conditions. The company remains focused on growth in integrated services and mobile camp utilization, with a disciplined approach to capital allocation. While macroeconomic uncertainties persist, Civeo's strategic initiatives position it well for future growth and shareholder value enhancement.