SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

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 3.0 million Civeo common shares are authorized to be issued under the Civeo Plan.

Share-based compensation expense recognized in the years ended December 31, 2025, 2024 and 2023 totaled $9.4 million, $9.2 million and $11.8 million, respectively. Share-based compensation expense is reflected in Selling, general and administrative expense in our consolidated statements of operations. The total income tax benefit recognized in the consolidated statements of operations for share-based compensation arrangements was approximately $0.5 million, $0.5 million and $0.6 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Phantom Share Units

We grant phantom share unit awards, which vest a third per year over a three-year period. Each phantom share unit is equal in value to one common share. Upon vesting, each recipient will receive a lump sum cash payment equal to the fair market value of a common share on the respective vesting date in respect of each phantom share unit then vesting. These awards are accounted for as a liability that is remeasured at each reporting date until paid.

The following presents the changes in phantom share unit awards outstanding and related information for our employees during the years ended December 31, 2025, 2024 and 2023:


			Number of Awards
Nonvested shares at December 31, 2022			659,288
Granted			229,845
Vested			(335,178)
Forfeited			(33,394)
Nonvested shares at December 31, 2023			520,561
Granted			314,260
Vested			(274,838)
Forfeited			(50,222)
Nonvested shares at December 31, 2024			509,761
Granted			229,155
Vested			(253,352)
Forfeited			(9,721)
Nonvested shares at December 31, 2025			475,843

At December 31, 2025, the balance of the liability for the phantom share units was $5.0 million. For the years ended December 31, 2025, 2024 and 2023, we made phantom share units cash payments of $6.3 million, $6.2 million and $10.4 million, respectively. At December 31, 2025, unrecognized compensation cost related to phantom share units was $6.4 million, as remeasured at December 31, 2025, which is expected to be recognized over a weighted average period of 1.7 years. The weighted average grant-date fair value per share of phantom share units granted during the years ended December 31, 2025, 2024 and 2023 was $21.18, $23.75 and $31.05, respectively.

Performance Share Awards

We grant performance share awards, which cliff vest after three years subject to attainment of applicable performance goals. Awards granted in 2025 and 2024 will be earned in amounts between 0% and 200% of the participant’s target performance share award, based on the payout percentage associated with Civeo’s relative TSR rank among a peer group of other companies and the payout percentage associated with Civeo's three-year growth in EBITDA over the performance period relative to a preset 2027 and 2026 EBITDA target. Awards granted in 2023 will be earned in amounts between 0% and 200% of the participant’s target performance share award, based equally on the payout percentage associated with Civeo’s relative TSR rank among a peer group of other companies and the payout percentage associated with Civeo's cumulative operating cash flow over the performance period relative to a preset target. The grant-date fair value of the portion of the performance awards tied to 2027 and 2026 EBITDA and cumulative operating cash flow is based on target achievement and the closing market price of our common shares on the date of grant. We evaluate the probability of achieving the performance goals throughout the performance period and will adjust share-based compensation expense based on the number of shares expected to vest based on our estimate of the most probable performance outcome. No share-based compensation expense is recognized if the performance criteria are not probable of being achieved.

The fair value of the TSR portion of each performance share award was estimated using a Monte Carlo simulation pricing model that uses the assumptions noted in the following table. The risk-free interest rate is based on the U.S. Treasury yield curve in effect for the expected term of the performance share at the time of grant. The dividend yield on our common shares in 2025 and 2024 is based on the annual dividend and our valuation date stock price. In April 2025, our Board suspended quarterly dividends after the 2025 awards were granted. The dividend yield on our common shares was assumed to be zero for 2023 since we did not pay dividends when the awards were granted. The expected market price volatility of our common shares was based on an estimate that considers the historical and implied volatility of our common shares as well as a peer group of companies over a time period equal to the expected term of the award. The initial TSR performance was based on historical performance of our common shares and the peer group’s common shares.


	2025		2024		2023
Risk-free weighted interest rate	3.9	%	4.9	%	4.4	%
Dividend yield	4.7	%	4.3	%	—	%
Expected volatility	42.6	%	44.0	%	73.0	%
Initial TSR	4.6	%	4.3	%	4.1	%

The following presents the changes in performance share awards outstanding and related information for our employees during the years ended December 31, 2025, 2024 and 2023:


	Number of Awards	Weighted Average Grant Date Fair Value Per Share
Nonvested shares at December 31, 2022	254,034	$	29.81
Granted	86,454	38.45
Performance adjustment (1)	—	—
Vested (1)	—	—
Forfeited	(8,487)	32.67
Nonvested shares at December 31, 2023	332,001	$	32.37
Granted	122,978	24.17
Performance adjustment (2)	(3,833)	—
Vested (2)	(124,099)	22.51
Forfeited	(41,599)	28.65
Nonvested shares at December 31, 2024	285,448	$	22.34
Granted	189,124	21.87
Performance adjustment (3)	(34,616)	—
Vested (3)	(64,790)	17.57
Forfeited	(2,475)	21.87
Nonvested shares at December 31, 2025	372,691	$	17.49

(1)No performance share awards vested in 2023.

(2)Related to 2021 performance share awards that vested in 2024, which were paid out at 97%.

(3)Related to 2022 performance share awards that vested in 2025, which were paid out at 65%.

During the years ended December 31, 2025, 2024 and 2023, we recognized compensation expense associated with performance share awards totaling $2.0 million, $1.8 million and $3.4 million, respectively. At December 31, 2025, unrecognized compensation cost related to performance share awards was $2.7 million, which is expected to be recognized over a weighted average period of 1.9 years.

Restricted Share Awards/ Deferred Share Awards

The following presents the changes in restricted share awards and deferred share awards outstanding and related information for our non-employee directors during the years ended December 31, 2025, 2024 and 2023:


	Number of Awards/Units	Weighted Average Grant Date Fair Value Per Share
Nonvested shares at December 31, 2022	39,032	$	25.62
Granted	50,336	21.02
Vested	(39,770)	25.53

Nonvested shares at December 31, 2023	49,598	$	21.02
Granted	42,125	24.75
Vested	(49,598)	21.02

Nonvested shares at December 31, 2024	42,125	$	24.75
Granted	61,451	21.03
Vested	(42,125)	24.75

Nonvested shares at December 31, 2025	61,451	$	21.03

The weighted average grant-date fair value per share for restricted share awards and deferred share awards granted during 2025, 2024 and 2023 was $21.03, $24.75 and $21.02, respectively. The total fair value of restricted share awards and deferred share awards vested during 2025, 2024 and 2023 was $0.9 million, $1.2 million and $0.9 million, respectively. At December 31, 2025, unrecognized compensation cost related to restricted share awards and deferred share awards was $0.6 million, which is expected to be recognized over a weighted average period of 0.4 years.