CVEO

Consolidated Financial Results

• Total Q2 2026 revenue: $180 million, 11% increase from $162.7 million in Q2 2025
• Net loss: $2.5 million ($0.23 per diluted share), improved from a $3.3 million net loss ($0.25 per diluted share) YoY
• Adjusted EBITDA: $23.8 million, down slightly from $25 million YoY
• Operating cash flow: $11.6 million, up from a negative $2.3 million YoY
• Capital expenditures: $3.7 million, mostly for maintenance on lodges and villages, down from $4.5 million YoY
• As of quarter-end (pre-convertible offering): total liquidity ~$82 million, total debt ~$209 million, net debt ~$191 million, net leverage ratio 2.1x

Capital Allocation and Share Repurchase

• Post-quarter end, the company completed a 4.5% convertible senior notes offering (due 2031) raising $115 million aggregate principal, with an initial conversion price of $40.51 per share (20% premium to July 1 closing price)
• Proceeds were used to fund concurrent share repurchases and repay revolving credit facility borrowings, restoring undrawn capacity and lowering the company's near-term cost of capital
• 660,297 common shares were repurchased for ~$22.3 million: 111,000 shares completed the April 2025 20% repurchase authorization, 549,000 shares completed 50% of the subsequent 10% authorization
• Management believes Civio shares are undervalued; net share dilution is not expected unless the share price reaches ~$53 per share or higher at settlement
• The company's framework targets returning at least 75% of annual free cash flow to shareholders via share repurchases; ~$36.7 million in shares have been repurchased year-to-date, satisfying 2026 commitments

Operational Regional Highlights

• Australia: Australia remains the core strength of the business, with a well-contracted portfolio generating strong cash flow. Q2 2026 results faced transitory headwinds from cost inflation driven by Middle East seaborne trade dislocation (elevated fuel costs, diesel availability uncertainty) and tight labor markets, which caused customer caution and limited near-term occupancy upside. Metallurgical coal prices remain above $220 per ton, supporting a healthy underlying mine economy, with expected improvement once temporary headwinds dissipate. The integrated services segment targets A$500 million in annual revenue by end of 2027, with continued organic growth progress.
• Canada / North America: The base oil sands business has more upside than downside at current activity levels, supported by government and producer focus on advancing pipeline and carbon capture infrastructure projects. Bidding activity remains robust, with a total bid pipeline of over $1.5 billion in contract value. Civio holds 2,700 strategically located mobile camp rooms and 7,000-8,000 available oil sands lodge rooms, positioned for deployment across Canada, the northern U.S., and Alaska. The new Ontario integrated services contract incurred temporary startup costs, and the company is actively pursuing expansion of North American integrated services.

• For full-year 2026, management maintains all prior guidance ranges: revenue of $675 million to $700 million, adjusted EBITDA of $85 million to $90 million, and capital expenditures of $25 million to $30 million
• Transitory macro-driven headwinds (elevated fuel costs, diesel availability uncertainty) in Australia are expected to persist through the end of 2026, with improved conditions forecast for 2027 and beyond
• Canada is expected to deliver 20% year-over-year revenue growth in H2 2026 compared to H2 2025, driven by continued base business execution and infrastructure/power/data center project activity
• Australia's integrated services business remains on track to reach a A$500 million annual revenue run rate by the end of 2027
• Management expects that at least one meaningful North American opportunity will reach final investment decision (FID) and result in a contract award by the end of 2026; meaningful revenue contributions from large Canadian LNG projects would likely come in 2027 if awarded

Civio operates two business segments.

1. Australia Segment: Q2 2026 revenues were $125.4 million, an 11% increase from $112.7 million in Q2 2025. Adjusted EBITDA came in at $22.6 million, up slightly from $22.3 million year-over-year. This segment contributed 69.7% of total company revenue in Q2 2026. The year-over-year revenue increase was driven almost entirely by a stronger Australian dollar; gains from increased integrated services activity and acquired village contributions were offset by lower owned village occupancy. Transitory cost inflation pressured adjusted EBITDA. Australian-owned village build rooms totaled 675,000 (down from 691,000 YoY), with an average daily rate of $85 (up from $76 YoY, mostly due to currency strength).
2. Canada Segment: Q2 2026 revenues were $54.6 million, up from $50 million in Q2 2025. Adjusted EBITDA was $6 million, down from $6.9 million YoY. This segment contributed 30.3% of total company revenue in Q2 2026. Revenue growth was driven by higher occupancy and the new Ontario integrated services contract. The adjusted EBITDA decrease was caused by temporary startup costs for the new Ontario contract. Canadian build rooms totaled 458,000 (up from 450,000 YoY), with an average daily rate of $96 (up from $94 YoY).

• The timing and conversion of the $1.5 billion North American bid pipeline into contracted revenue is fully dependent on customer FIDs, which are outside of Civio's control, creating uncertainty around revenue and growth timing
• Australia faces ongoing transitory risks from elevated fuel costs and diesel supply uncertainty tied to Middle East seaborne trade dislocation, which has caused customer operational caution and pressured near-term margins and occupancy
• Large infrastructure and camp projects in Canada face additional timing risk from weather window constraints, as winter mobilization in mountainous regions is far more costly than summer deployment
• Australian integrated services growth faces increased competitive pressure as larger market players have targeted the segment, creating headwinds for new contract wins
• Wildfire risk in Canadian regions (British Columbia, Ontario) remains a threat to third-quarter turnaround work and operational continuity
• If North American growth opportunities are delayed, the company will still hold lower-cost fixed-rate debt but will not generate incremental near-term revenue from the expanded balance sheet capacity

Q: What are the different use cases for Civio's 2,700 mobile camp rooms and 7,000-8,000 idle Alberta lodge rooms, and how do project characteristics influence which asset type is used?

A: Mobile rooms are optimized for quick deployment for projects needing 250 to 1,000 rooms, and are best suited for 2-4 year project terms. Multi-story fixed lodge rooms are a better fit for projects requiring more than 1,000 rooms, as mobile rooms would require too much land for larger projects. All assets are concentrated in Western Canada, making them most cost-competitive for projects in Canada, the northern U.S., and Alaska.

Q: How is the North American data center opportunity set progressing, and when can we expect contract awards for major opportunities?

A: All opportunities, including data center and LNG projects, remain dependent on customer FIDs, which are progressing positively. Management expects at least one meaningful contract award by the end of 2026, though it is unclear how much 2026 revenue will result vs. 2027 revenue. Inbound interest for data center-related accommodation work softened after a feverish start to 2026, but the overall $1.5 billion+ opportunity set remains very strong.

Q: What is the split in performance between owned accommodation villages and integrated services in Australia, and what is the outlook for both segments?

A: Owned village occupancy is already very strong, with only above-contract casual occupancy pressured by diesel cost and availability uncertainty, which is expected to resolve for stronger performance in 2027. Integrated services, concentrated in Western Australia, continues to deliver strong organic growth and market share gains, despite increased competition from larger players. The target of A$500 million in annual integrated services revenue by end of 2027 remains achievable.

Q: What does "preserving capacity" for Canadian opportunities mean operationally, and will it hurt near-term margins?

A: Preserving capacity refers mostly to maintaining financial balance sheet flexibility to pursue opportunities when they are awarded. Operationally, Civio is only conducting routine, modest preparation and maintenance of assets, not large speculative pre-spending. No meaningful margin impact is expected prior to contract award; after award, initial transportation and installation work has lower ~10% margins, with higher margins realized once the camp is operational under long-term take-or-pay contracts.