Stonegate Capital Partners has updated its coverage on Civeo Corporation (NYSE: CVEO) following the company's second-quarter 2026 earnings report. The results exceeded expectations on both revenue and adjusted EBITDA, showcasing the strength of Civeo's core operations and setting a positive trajectory for the remainder of the year.
For the second quarter, Civeo reported revenue of $180.0 million and adjusted EBITDA of $23.8 million, surpassing Stonegate's estimates of $173.1 million and $21.3 million, respectively. Consensus revenue was $172.2 million. The company's net loss improved to $2.5 million from $3.3 million in the prior year period. Operating cash flow turned positive at $11.6 million, compared to a negative $2.3 million in the prior year, confirming that the first-quarter outflow was seasonal in nature. Capital expenditures of $3.7 million remained maintenance-related, indicating disciplined capital allocation.
Although adjusted EBITDA declined year-over-year from $25.0 million, the decrease is attributable to a $3.2 million activist cost addback in the prior period and timing items. On an unadjusted basis, EBITDA increased year-over-year. For the first half of 2026, adjusted EBITDA rose 23% to $46.3 million, underscoring the underlying strength of the business.
Stonegate highlights that the quality of the second-quarter beat is higher than the headline year-over-year decline suggests. The 23% growth in first-half adjusted EBITDA and the normalization of cash conversion indicate that Civeo is executing well operationally. The company's North American growth is increasingly tied to a substantial pipeline of LNG, infrastructure, and data center projects, estimated at approximately $1.5 billion. While meaningful contributions from these projects are more likely to begin in 2027, the pipeline positions Civeo for sustained growth in the coming years.
Another key development is Civeo's recent convertible issuance, which enhances funding flexibility while remaining anti-dilutive below a share price of approximately $53. This strategic move preserves capacity for both camp deployment and selective share repurchases, providing the company with financial agility to pursue growth opportunities while returning value to shareholders.
Investors looking for more details can view the full announcement, including downloadable images and bios, by clicking [here](https://www.stonegateinc.com/civeo-2q26-update).
