Dexterra Group Inc. Announces Results For Q4 And Year Ended December 31, 2025

2026-03-03 07:05:00

(MENAFN- Newsfile Corp) Dexterra Group Inc. Announces Results for Q4 and Year Ended December 31, 2025

March 03, 2026 5:00 PM EST | Source: Dexterra Group Inc.

Toronto, Ontario--(Newsfile Corp. - March 3, 2026) - Dexterra Group Inc. (TSX: DXT)

Highlights

Dexterra delivered strong results for 2025 with revenue of $1.04 billion, an increase of 3.8% compared to $1.0 billion in 2024, driven by strong Support Services revenue growth from new sales, strong market activity levels, and the acquisition of Right Choice Camps and Catering Ltd. ("Right Choice"), partially offset by lower ABS revenue. For Q4 2025, Dexterra generated consolidated revenue of $271.0 million, an increase of 9.4%, compared to Q4 2024, primarily driven by Support Services revenue growth, including strong camp occupancy levels and contribution from Right Choice.
Adjusted EBITDA for 2025 was $122.8 million, an increase of 14.3% compared to 2024 as a result of strong workforce accommodation occupancy and contributions of $2.8 million and $7.2 million from the investments in Pleasant Valley Corporation ("PVC") and Right Choice, respectively. Adjusted EBITDA for Q4 2025 was $32.6 million, an increase of 22% compared to Q4 2024 driven primarily by the factors mentioned above and contributions from PVC and Right Choice.
Free Cash Flow ("FCF") was $60.3 million for the year ended December 31, 2025, compared to $74.7 million in 2024, representing Adjusted EBITDA conversion to FCF of 49% compared to 70% in the prior year. FCF in 2025 was impacted by the delayed receipt of a customer receivable funded by the Canadian federal government of which $11.2 million was collected subsequent to year end.
For the three months and year ended December 31, 2025, net earnings were $7.4 million and $40.8 million, respectively, compared to $6.9 million and $20.1 million, respectively in 2024. Earnings per share was $0.65 in 2025 compared to $0.31 in 2024. 2024 results included a loss from discontinued operations of $17.4 million. Our operations delivered a return on equity in 2025 of 15%.
Dexterra made two strategic investments in 2025 including a 40% stake in privately owned, US-based, facilities management provider PVC for $84.0 million on July 31, 2025, including an option to acquire the remaining 60% as early as Q3 2027, and, on August 31, 2025, Dexterra closed the acquisition of Right Choice, a workforce accommodation provider with operations in the strategic Montney / Duvernay gas region in Western Canada, for $69.0 million.
In connection with the ongoing Normal Course Issuer Bid ("NCIB"), Dexterra purchased and cancelled 1,483,900 common shares in 2025 at a weighted average price of $7.88 per share for total consideration of $11.7 million.
In Q3 2025, the Board of Directors approved a 14% increase in the annual dividend to $0.40 per share. Dexterra declared $0.375 per share in dividends for 2025 and declared a Q1 2026 dividend of $0.10 per share, payable on April 15, 2026 to shareholders of record as at March 31, 2026.

This news release contains certain measures and ratios, such as Adjusted EBITDA, Adjusted EBITDA as a percentage of revenue, Return on Equity, and Free Cash Flow that do not have any standardized meaning as prescribed by GAAP and, therefore, are considered non-GAAP measures. The method of calculating these measures may differ from other entities and accordingly, may not be comparable to measures used by other entities. See "Non-GAAP measures" and "Reconciliation of Non-GAAP measures" of Dexterra's MD&A for the three months and years ended December 31, 2025 and 2024 details which is incorporated by reference herein.

Fourth Quarter and Annual Financial Summary

		Three months ended December 31,		Years ended December 31,
(000's except per share amounts)		2025		2024		2025		2024
Revenue	$	270,951	$	247,758	$	1,041,250	$	1,003,027
Adjusted EBITDA⁽¹⁾		32,574		26,558		122,815		107,438
Adjusted EBITDA as a % of revenue⁽¹⁾		12.0%		10.7%		11.8%		10.7%
Net earnings⁽²⁾⁽³⁾		7,416		6,915		40,801		20,093
Net earnings per share, basic and diluted⁽³⁾		0.12		0.11		0.65		0.31
Total assets		720,675		524,890		720,675		524,890
Total loans and borrowings ("Net Debt")		199,717		67,859		199,717		67,859
Free Cash Flow⁽¹⁾		24,549		52,701		60,266		74,680

(1) Please refer to the "Non-GAAP measures" section for the definition of Adjusted EBITDA, Adjusted EBITDA as a percentage of revenue and Free Cash Flow and to the "Reconciliation of non-GAAP measures" section for the related calculations.

(2) Acquisition costs in pre-tax earnings for the three months and year ended December 31, 2025, were $0.7 million and $1.3 million, respectively (2024 - $nil and $0.4 million, respectively). Please see "Non-GAAP measures" section for additional details.

(3) Net earnings for the three months and year ended December 31, 2024 includes a net loss from discontinued operations, net of income taxes, of $0.7 million and $17.4 million, respectively. Net earnings per share, basic and diluted, for the three months and year ended December 31, 2024 include a net loss from discontinued operations per share, basic and diluted, of $nil and $0.27, respectively.

Fourth Quarter and Annual Operational Analysis

		Three months ended December 31,			Years ended December 31,
(000's)		2025			2024			2025			2024
Revenue:
Support Services	$	230,582		$	206,472		$	868,306		$	811,180
Asset Based Services		40,369			41,286			172,944			191,847
Total Revenue	$	270,951		$	247,758		$	1,041,250		$	1,003,027
Adjusted EBITDA:
Support Services	$	23,874		$	18,209		$	87,734		$	74,133
Asset Based Services		15,095			13,896			61,199			56,215
Corporate, Other and Inter-segment eliminations		(6,395	)		(5,547	)		(26,118	)		(22,910	)
Total Adjusted EBITDA	$	32,574		$	26,558		$	122,815		$	107,438
Adjusted EBITDA as a % of Revenue
Support Services		10.4 %			8.8 %			10.1 %			9.1 %
Asset Based Services		37.4 %			33.7 %			35.4 %			29.3 %

Support Services

Revenue for the year ended December 31, 2025 was $868.3 million, an increase of 7.0% compared to 2024. The increase was primarily driven by strong camp occupancy, new sales, a full year impact for CMI and the acquisition of Right Choice in 2025 which contributed $19.5 million of revenue.

Adjusted EBITDA for the year ended December 31, 2025 was $87.7 million, an increase of 18.3% compared to 2024, attributable to the factors mentioned above. Adjusted EBITDA from PVC and Right Choice was $2.8 million and $4.6 million, respectively. Adjusted EBITDA margin for the year ended December 31, 2025 was 10.1% compared to 9.1% in 2024. For the year ended December 31, 2025, Adjusted EBITDA margin excluding the equity accounted investment in PVC was 9.8%. Adjusted EBITDA margins are expected to exceed 9% over the long term.

For Q4 2025, Support Services revenues were $230.6 million, an increase of 11.7% over Q4 2024. Adjusted EBITDA was $23.9 million in Q4 2025 compared to $18.2 million for Q4 2024 and Adjusted EBITDA as a percentage of revenue was 10.4% in Q4 2025 compared to 8.8% in Q4 2024. Adjusted EBITDA from PVC and Right Choice for Q4 2025 was $1.9 million and $4.2 million, respectively. Drivers of the increases in revenue and Adjusted EBITDA are consistent with the factors mentioned above. For Q4 2025, Adjusted EBITDA margin excluding PVC was 9.6%.

Asset Based Services

Revenue for the year ended December 31, 2025 was $172.9 million, a decrease of 9.9% compared to 2024. The decrease was primarily driven by lower workforce accommodation installation and access matting revenue, compared to the prior year, which was partially offset by the contribution from Right Choice of $7.9 million.

Adjusted EBITDA for the year ended December 31, 2025 was $61.2 million, an increase of 8.9% compared to 2024. The increase in Adjusted EBITDA was driven

Source: Dexterra Group Inc.

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