Dexterra Group Inc. Announces Results for Q2 2026
Rhea-AI Summary
Dexterra Group (TSX:DXT, OTC:HZN0F) reported Q2 2026 revenue of $269.2 million, up from $249.3 million in Q2 2025, driven by higher workforce accommodation occupancy, organic growth and the Right Choice acquisition, partly offset by lower installation/demobilization and wildfire-related activity.
Adjusted EBITDA rose to $32.8 million from $30.0 million, with margin at 12.2%. Net earnings were $10.3 million (vs. $11.8 million), and Adjusted net earnings were $13.4 million with Adjusted EPS of $0.20 (vs. $0.23). Free Cash Flow improved to $21.8 million from a deficit of $3.7 million, and net debt was $205.8 million, or 1.5x Adjusted EBITDA. Support Services revenue grew 10.3% to $226.5 million and Asset Based Services Adjusted EBITDA margin increased to 40.3%. Dexterra reported trailing twelve‑month Return on Equity of 15.4% and declared a Q3 2026 dividend of $0.10 per share, payable October 15, 2026.
Positive
- Revenue +8.0% YoY to $269.2 million in Q2 2026
- Adjusted EBITDA +9.3% YoY to $32.8 million; margin 12.2%
- Free Cash Flow swing to $21.8 million from $(3.7) million
- Support Services revenue +10.3% YoY to $226.5 million
- ABS Adjusted EBITDA margin increased to 40.3% from 37.6%
- Trailing ROE of 15.4% vs. 14.9% prior year
- Q3 2026 dividend declared at $0.10 per share
Negative
- Net earnings down to $10.3 million from $11.8 million YoY
- Adjusted EPS down to $0.20 from $0.23 in Q2 2025
- ABS six‑month revenue declined 0.9% to $84.2 million
- Workforce installation/demobilization revenue down $5.2 million YoY in Q2
- Net debt increased to $205.8 million vs. $93.4 million in 2025 table
AI-generated analysis. How Rhea-AI works. Not financial advice.
Toronto, Ontario--(Newsfile Corp. - August 4, 2026) - Dexterra Group Inc. (TSX: DXT)
Highlights
Dexterra delivered a strong quarter generating consolidated revenue of
$269.2 million in Q2 2026, compared to$249.3 million for the same period in 2025, with the revenue increase driven by strong workforce accommodation occupancy, organic growth and the addition of Right Choice Camps and Catering Ltd. ("Right Choice"), partially offset by a decrease in ABS revenue due to lower margin workforce accommodation installation and demobilization activity related to the timing of projects.Adjusted EBITDA for the quarter was
$32.8 million (2025 -$30.0 million ), an increase of9.3% compared to Q2 2025 reflecting growth in Support Services revenue, the favourable shift in business mix toward higher-margin workforce accommodation rental revenue within ABS, and the contributions from our investment in Pleasant Valley Corporation ("PVC") of$1.4 million .Free Cash Flow ("FCF") for Q2 2026 was
$21.8 million (deficit of$3.7 million in Q2 2025), reflecting a significant reduction in working capital to optimal levels. The net debt to Adjusted EBITDA ratio is 1.5x.Net earnings were
$10.3 million in Q2 2026, compared to$11.8 million in Q2 2025. Adjusted net earnings were$13.4 million and Adjusted earnings per share ("Adjusted EPS") was$0.20 in Q2 2026, compared to$14.4 million and$0.23 , respectively, in Q2 2025. The recent strategic acquisitions are performing as expected and the Corporation is making strategic investments in people and technology to scale the U.S. business. Recent new business wins are expected to come on stream over the coming quarters, supporting the Corporation's growth objectives.Delivered a Return on Equity of
15.4% (Q2 2025 -14.9% ) on a trailing twelve-month basis.Dexterra declared a dividend for Q3 2026 of
$0.10 per share for shareholders of record at September 30, 2026, to be paid on October 15, 2026.
This news release contains certain measures and ratios, such as Adjusted EBITDA, Adjusted EBITDA as a % of revenue, Adjusted net earnings, Adjusted EPS, FCF, and Return on Equity 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 the Corporation's MD&A for the three and six months ended June 30, 2026 and 2025 details which is incorporated by reference herein.
Second Quarter Financial Summary
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (000's except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Revenue | $ | 269,209 | $ | 249,340 | $ | 544,675 | $ | 489,071 | ||||
| Adjusted EBITDA(1) | 32,830 | 30,031 | 66,128 | 55,205 | ||||||||
| Adjusted EBITDA as a % of revenue(1) | ||||||||||||
| Net earnings | 10,310 | 11,818 | 23,913 | 20,439 | ||||||||
| Adjusted Net earnings(1) | 13,417 | 14,398 | 25,530 | 25,366 | ||||||||
| Net earnings per share, basic | 0.16 | 0.19 | 0.38 | 0.33 | ||||||||
| Net earnings per share, diluted | 0.16 | 0.19 | 0.37 | 0.33 | ||||||||
| Adjusted earnings per share(1) | 0.20 | 0.23 | 0.39 | 0.41 | ||||||||
| Total assets | 740,020 | 561,372 | 740,020 | 561,372 | ||||||||
| Total loans and borrowings ("Net Debt") | 205,819 | 93,353 | 205,819 | 93,353 | ||||||||
| Free Cash Flow(1) | 21,753 | (3,734 | ) | 22,739 | (2,300 | ) | ||||||
(1) Please refer to the "Non-GAAP measures" section for the definition of Adjusted EBITDA, Adjusted EBITDA as a percentage of revenue, Adjusted net earnings, Adjusted earnings per share, Free Cash Flow, and to the "Reconciliation of non-GAAP measures" section for the related calculations.
Second Quarter Operational Analysis
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (000's) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Revenue: | ||||||||||||
| Support Services | $ | 226,497 | $ | 205,353 | $ | 460,517 | $ | 404,128 | ||||
| Asset Based Services | 42,712 | 43,987 | 84,158 | 84,943 | ||||||||
| Total Revenue | $ | 269,209 | $ | 249,340 | $ | 544,675 | $ | 489,071 | ||||
| Adjusted EBITDA: | ||||||||||||
| Support Services | $ | 22,981 | $ | 20,484 | $ | 47,355 | $ | 39,362 | ||||
| Asset Based Services | 17,202 | 16,520 | 33,032 | 29,978 | ||||||||
| Corporate expenses | (7,353 | ) | (6,973 | ) | (14,259 | ) | (14,135 | ) | ||||
| Total Adjusted EBITDA | $ | 32,830 | $ | 30,031 | $ | 66,128 | $ | 55,205 | ||||
| Adjusted EBITDA as a % of Revenue: | ||||||||||||
| Support Services | 10.1 % | 10.0 % | 10.3 % | 9.7 % | ||||||||
| Asset Based Services | 40.3 % | 37.6 % | 39.2 % | 35.3 % | ||||||||
Support Services
Revenue for the three months ended June 30, 2026 was
Adjusted EBITDA for the three months ended June 30, 2026 was
For the six months ended June 30, 2026, Support Services revenues were
Asset Based Services
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (000's) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Revenue: | ||||||||||||
| Rental and other | $ | 33,308 | $ | 29,383 | $ | 66,629 | $ | 59,275 | ||||
| Workforce accommodation installation and demobilization | 9,404 | 14,604 | 17,529 | 25,668 | ||||||||
| Total Asset Based Services revenue | $ | 42,712 | $ | 43,987 | $ | 84,158 | $ | 84,943 | ||||
Revenue for the three months ended June 30, 2026 of
Adjusted EBITDA for the three months ended June 30, 2026 was
For the six months ended June 30, 2026, ABS revenues were
Liquidity and Capital Resources
Net debt was
Net Debt at June 30, 2026 was 1.5x Adjusted EBITDA, demonstrating our commitment to maintaining a strong balance sheet and financial flexibility.
Additional Information
A copy of Dexterra's Condensed Consolidated Interim Financial Statements ("Financial Statements") for the three and six months ended June 30, 2026 and 2025 and related Management's Discussion and Analysis ("MD&A") have been filed with the Canadian Securities Regulatory authorities and are available on SEDAR at sedarplus.ca and Dexterra's website at dexterra.com. The Financial Statements have been prepared in accordance with International Financial Reporting Standards and the reporting currency is in Canadian dollars.
Conference Call
Dexterra will host a conference call and webcast to begin promptly at 8:30 a.m. Eastern Time on August 5, 2026 to discuss the second quarter results.
To access the conference call by telephone the conference call dial in number is 1-800-715-9871.
A live webcast of the conference call will be accessible on Dexterra's website at https://ir.dexterra.com/events-presentations by selecting the Q2 2026 Results webcast link.
An archived recording of the conference call will be available approximately one hour after the completion of the call until September 4, 2026 by dialing 1-800-770-2030, passcode 9194621.
About Dexterra
Dexterra employs more than 9,000 people, delivering a range of support services for the creation, management, and operation of infrastructure across Canada and the U.S.
Powered by people, Dexterra brings best-in-class regional expertise to every challenge and delivers innovative solutions, giving clients confidence in their day-to-day operations. Activities include a comprehensive range of integrated facilities management services, industry-leading workforce accommodation solutions, and other support services for diverse clients in the public and private sectors.
For further information contact:
Denise Achonu, CFO
Head office: Airway Centre, 5925 Airport Rd., Suite 1000
Mississauga, Ontario L4V 1W1
Telephone: (905) 270-1964
You can also visit our website at dexterra.com.
Reconciliation of non-GAAP measures
The following provides a reconciliation of non-GAAP measures to the nearest measure under GAAP for items presented throughout the news release:
Adjusted EBITDA
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (000's) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net earnings | $ | 10,310 | $ | 11,818 | $ | 23,913 | $ | 20,439 | ||||
| Add: | ||||||||||||
| Share based compensation | 2,667 | 2,187 | 5,222 | 4,165 | ||||||||
| Depreciation & amortization | 11,555 | 9,692 | 24,724 | 19,270 | ||||||||
| Equity investment depreciation, amortization and income taxes | 1,403 | 147 | 2,763 | 297 | ||||||||
| Finance costs | 3,979 | 1,973 | 8,050 | 4,032 | ||||||||
| Loss (gain) on disposal of property, plant and equipment | 69 | (97 | ) | 293 | (68 | ) | ||||||
| Income tax expense | 2,847 | 4,311 | 7,411 | 7,070 | ||||||||
| Insurance recovery, net(1) | - | - | (6,248 | ) | - | |||||||
| Adjusted EBITDA | $ | 32,830 | $ | 30,031 | $ | 66,128 | $ | 55,205 | ||||
(1) Impact of one-time insurance claim includes insurance recovery amounts for the six months ended June 30, 2026 discussed above related to the fire.
Adjusted net earnings and Adjusted EPS
| Adjusted net earnings | Adjusted EPS | |||||||||||
| Three months ended June 30, | Three months ended June 30, | |||||||||||
| (000's except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net earnings/EPS | $ | 10,310 | $ | 11,818 | $ | 0.16 | $ | 0.19 | ||||
| Amortization of intangible assets related to acquisitions | 1,532 | 1,265 | 0.02 | 0.02 | ||||||||
| Share based compensation | 2,667 | 2,187 | 0.04 | 0.03 | ||||||||
| Income tax on adjustments | (1,092 | ) | (872 | ) | (0.02 | ) | (0.01 | ) | ||||
| Adjusted net earnings/Adjusted EPS | $ | 13,417 | $ | 14,398 | $ | 0.20 | $ | 0.23 | ||||
| Adjusted net earnings | Adjusted EPS | |||||||||||
| Six months ended June 30, | Six months ended June 30, | |||||||||||
| (000's except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net earnings/EPS | $ | 23,913 | $ | 20,439 | $ | 0.38 | $ | 0.33 | ||||
| Amortization of intangible assets related to acquisitions | 3,018 | 2,427 | 0.05 | 0.04 | ||||||||
| Share based compensation | 5,222 | 4,165 | 0.08 | 0.07 | ||||||||
| Net insurance claim(1) | (6,248 | ) | - | (0.10 | ) | - | ||||||
| Income tax on adjustments | (375 | ) | (1,665 | ) | (0.02 | ) | (0.03 | ) | ||||
| Adjusted net earnings/Adjusted EPS | $ | 25,530 | $ | 25,366 | $ | 0.39 | $ | 0.41 | ||||
(1) Impact of one-time net insurance claim includes insurance recovery income for the six months ended June 30, 2026 related to the fire.
Free Cash Flow
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (000's) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net cash flows from operating activities | $ | 29,238 | $ | 3,257 | $ | 26,126 | $ | 9,124 | ||||
| Sustaining capital expenditures, net of proceeds from the sale of property, plant and equipment, intangible assets, and insurance proceeds received | 1,875 | (894 | ) | (3,724 | ) | (1,335 | ) | |||||
| Finance costs paid | (3,709 | ) | (3,681 | ) | (7,251 | ) | (5,584 | ) | ||||
| Lease payments | (3,523 | ) | (2,416 | ) | (7,141 | ) | (4,505 | ) | ||||
| Income tax payments related to prior periods(1) | 893 | - | 11,849 | - | ||||||||
| Net insurance claim(2) | (3,021 | ) | - | 2,880 | - | |||||||
| Free Cash Flow | $ | 21,753 | $ | (3,734 | ) | $ | 22,739 | $ | (2,300 | ) | ||
(1) Following the utilization of most of the Corporation's tax loss carryforwards in 2024, a portion of the Corporation's 2025 tax liability was deferred and paid in 2026, which, when combined with 2026 tax installment payments, results in two years of cash tax payments occurring in 2026.
(2) Includes the net impact of one-time insurance claim related to the fire.
Return on Equity
| Trailing twelve months ended June 30, | ||||||
| (000's) | 2026 | 2025 | ||||
| Net earnings from continuing operations | $ | 44,276 | $ | 41,383 | ||
| Average total shareholders' equity(1) | 288,322 | 278,498 | ||||
| Return on Equity | 15.4 % | 14.9 % | ||||
(1) Average total shareholders' equity is calculated as the average of beginning total shareholders' equity and ending total shareholders' equity over the period from June 30, 2025 to June 30, 2026.
Forward-Looking Information
Certain statements contained in this news release may constitute forward-looking information under applicable securities law. Forward-looking information may relate to Dexterra's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "continue"; "forecast"; "may"; "will"; "project"; "could"; "should"; "expect"; "plan"; "anticipate"; "believe"; "outlook"; "target"; "intend"; "estimate"; "predict"; "might"; "potential"; "continue"; "foresee"; "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding Dexterra's future operating results and economic performance, including return on equity and Adjusted EBITDA margins; capital allocation priorities, acquisition strategy; its capital light model, market and inflationary environment expectations, including energy price fluctuations, asset utilization, workforce accommodation occupancy levels, its leverage, FCF, wildfire activity expectations, expected benefits from the Right Choice and PVC acquisitions, investments in technology, U.S. tariff impacts, and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions, including expected growth, market recovery, supply chain mitigation efforts, results of operations, performance and business prospects and opportunities regarding Dexterra. While management considers these assumptions to be reasonable based on information currently available to Dexterra, they may prove to be incorrect. Forward-looking information is also subject to certain known and unknown risks, uncertainties and other factors that could cause Dexterra's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information, including, but not limited to: the ability to retain clients, renew existing contracts and obtain new business; an outbreak of contagious disease that could disrupt its business; the highly competitive nature of the industries in which Dexterra operates; outsourcing of services trends; reliance on suppliers and subcontractors; cost inflation; including energy pricing, U.S. tariff impacts; U.S. government shutdown, volatility of industry conditions could impact demand for its services; a reduction in the availability of credit could reduce demand for Dexterra's products and services; Dexterra's significant shareholder may substantially influence its direction and operations and its interests may not align with other shareholders; its significant shareholder's approximate
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