Financial Analysis

COMMITMENTS AND CONTINGENCIES We are a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning our commercial operations, products, employees and other matters, including warranty and product liability claims as a result of our products or operations. Although we can give no assurance about the outcome of pending legal and administrative proceedings and the effect such outcomes may have on us, management believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by insurance, will not have a material adverse effect on our consolidated financial position, results of operations or liquidity.

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DEBT As of June 30, 2026 and December 31, 2025, long-term debt consisted of the following (in thousands): June 30, 2026 December 31, 2025 U.S. revolving credit facility; weighted average interest rate of 8.9% for the six month period ended June 30, 2026 $ 9,000 $ Canadian revolving credit facility; weighted average interest rate of 5.9% for the six month period ended June 30, 2026 147,777 132,787 Australian revolving credit facility; weighted average interest rate of 7.2% for the six month period ended June 30, 2026 51,818 50,055 Total debt $ 208,595 $ 182,842 Credit Agreement As of March 31, 2026, our Syndicated Facility Agreement, the Credit Agreement, provided for a $265.0 million revolving credit facility scheduled to mature on August 8, 2028, 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. 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 …

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The following table disaggregates our revenue by our two reportable segments (Australia and Canada) into major categories for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Australia Accommodation and associated services revenues $ 57,373 $ 52,682 $ 113,179 $ 99,505 Integrated services and other services revenues 68,073 59,990 135,285 116,813 Total Australia revenues 125,446 112,672 248,464 216,318 Canada Accommodation and associated services revenues $ 44,082 $ 42,590 $ 87,216 $ 76,026 Mobile facility rental and associated services revenues 367 434 1,405 653 Integrated services and other services revenues 10,122 6,998 15,599 13,741 Total Canada revenues 54,571 50,022 104,220 90,420 Total revenues $ 180,017 $ 162,694 $ 352,684 $ 306,738

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SHARE-BASED COMPENSATION Certain key employees and non-employee directors participate in the Amended and Restated 2014 Equity Participation Plan of Civeo Corporation (the Civeo Plan). The Civeo Plan authorizes our Board and the Compensation Committee of our Board to approve and grant awards of options, awards of share appreciation rights, awards of restricted shares, performance share awards, phantom share units and dividend equivalents, awards of deferred shares, and share payments to our employees and non-employee directors. Approximately 3.5 million Civeo common shares are authorized to be issued under the Civeo Plan. Outstanding Awards Phantom Share Units. On March 5, 2026, we granted 132,804 phantom share units under the Civeo Plan, which vest in three equal annual installments beginning on March 5, 2027. We also granted 44,187 phantom share units under the Canadian Long-Term Incentive Plan, which vest in three equal annual installments beginning on March 5, 2027. Phantom share units are settled in cash upon vesting. During the three months ended June 30, 2026 and 2025, we recognized compensation expense associated with phantom share units totaling $2.2 million and $1.5 million, respectively. During the six months ended June 30, 2026 and 2025, we recognized compensation expense associated with phantom share units totaling $4.6 million and $3.3 million, respectively. At June 30, 2026, unrecognized compensation cost related to phantom share units was $11.9 million, as reme …

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FAIR VALUE MEASUREMENTS Our financial instruments consist of cash and cash equivalents, receivables, payables and debt instruments. We believe that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values. As of June 30, 2026 and December 31, 2025, we believe the carrying value of our floating-rate debt outstanding under our revolving credit facilities approximates fair value because the terms include short-term interest rates and exclude penalties for prepayment. We estimated the fair value of our floating-rate revolving credit facilities using significant other observable inputs, representative of a Level 2 fair value measurement, including terms and credit spreads for these loans. During the second quarter of 2025, we acquired accommodation assets, land and customer contracts and recorded them at fair value. Determining the fair value of assets acquired and liabilities assumed required the exercise of judgment, which included the use of a multi-period excess earnings income approach to determine the fair value of the customer relationships. Specifically, the fair value of the customer relationships was determined by calculating the present value of expected cash flows by applying a discount rate that represents the estimated rate that market participants would require for such intangible assets. The expected cash flows and related discount rate are significant unobservable inputs categorized within Level 3 of th …

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INCOME TAXES Our operations are conducted through various subsidiaries in a number of countries throughout the world. We have provided for income taxes based upon the tax laws and rates in the countries in which operations are conducted and income is earned. We operate in three jurisdictions, Australia, Canada and the U.S., where statutory tax rates range from 15% to 30%. Our effective tax rate will vary from period to period based on changes in earnings mix between these different jurisdictions. We compute our quarterly taxes under the effective tax rate method by applying an anticipated annual effective rate to our year-to-date income, except for significant unusual or extraordinary transactions. Income taxes for any significant and unusual or extraordinary transactions are computed and recorded in the period in which the specific transaction occurs. As of June 30, 2026 and 2025, Canada and the U.S. were considered loss jurisdictions for tax accounting purposes and were removed from the annual effective tax rate computation for purposes of computing the interim tax provision. Our income tax expense for the three months ended June 30, 2026 totaled $3.5 million, or 349.7% of pretax income, compared to income tax expense of $3.6 million, or 1222.4% of pretax income, for the three months ended June 30, 2025. Our effective tax rate for the three months ended June 30, 2026 and 2025 was impacted by Canada and the U.S. being considered loss jurisdictions that were removed from the …

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REVENUE The following table disaggregates our revenue by our two reportable segments (Australia and Canada) into major categories for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Australia Accommodation and associated services revenues $ 57,373 $ 52,682 $ 113,179 $ 99,505 Integrated services and other services revenues 68,073 59,990 135,285 116,813 Total Australia revenues 125,446 112,672 248,464 216,318 Canada Accommodation and associated services revenues $ 44,082 $ 42,590 $ 87,216 $ 76,026 Mobile facility rental and associated services revenues 367 434 1,405 653 Integrated services and other services revenues 10,122 6,998 15,599 13,741 Total Canada revenues 54,571 50,022 104,220 90,420 Total revenues $ 180,017 $ 162,694 $ 352,684 $ 306,738 Our payment terms vary by the type and location of our customer and the services offered. The time between invoicing and when our performance obligations are satisfied is not significant. Payment terms are generally within 30 days and in most cases do not extend beyond 60 days. We do not have significant financing components or significant payment terms. As of June 30, 2026, for contracts that are greater than one year, the table below discloses the estimated revenues related to performance obligations that are unsatisfied (or partially unsatisfied) and when we expect to recognize the revenue. The table only includes revenue expected to be recognized from contracts where …

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SEGMENT AND RELATED INFORMATION We report segment information based on the management approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. Our Chief Executive Officer is the chief operation decision maker (CODM). We have identified two reportable segments, Australia and Canada, which represent our strategic focus on hospitality services and workforce accommodations. Prior to the fourth quarter of 2025, Corporate, other and eliminations selling, general and administrative expenses includes corporate information technology (IT) expenses managed on a worldwide basis that were not allocated to individual segments in Australia and Canada. To better align segment operating income (loss) to the profitability measure used by our CODM, these shared general and administrative costs are now allocated to Australia and Canada beginning with the year ended December 31, 2025. For the three and six months ended June 30, 2025, we allocated corporate IT expenses to Australia and Canada of $2.0 million and $4.0 million to conform with the presentation for the three and six months ended June 30, 2026. Financial information by business segment for each of the three and six months ended June 30, 2026 and 2025 is summarized in the following table (in thousands): Three Months Ended June 30, 2026 Australia Canada Corporate, other and eliminations Total Revenues $ 125,446 $ 54,571 …

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SUBSEQUENT EVENT On July 7, 2026, we issued $100.0 million in aggregate principal amount of 4.50% Convertible Senior Notes due 2031 (the Firm Notes) in a private unregistered offering. On July 14, 2026 we issued an additional $15.0 million in aggregate principal amount of 4.50% Convertible Senior Notes due 2031 (together with the Firm Notes, the Convertible Notes) pursuant to the exercise in full by the initial purchasers of their option to purchase additional notes. The Convertible Notes bear interest at a rate of 4.50% per annum, payable semi-annually in arrears on February 1 and August 1 of each year, beginning on February 1, 2027. The Convertible Notes will mature on August 1, 2031, unless earlier repurchased or redeemed by us or converted pursuant to their terms. In connection with the issuance of the Convertible Notes, we entered into an indenture (the Indenture) with U.S. Bank Trust Company, National Association, as trustee. We received approximately $110.8 million in net proceeds, of which approximately $22.3 million was used to repurchase 660,297 of our common shares. We used the remainder of the net proceeds from the offering to repay outstanding borrowings under our Amended Credit Agreement. We may not redeem the Convertible Notes prior to August 1, 2029, except in the event of a tax redemption or a cleanup redemption as described below. The Convertible Notes will be redeemable, in whole or in part (subject to certain limitations described below), at our option at …

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