Dexterra Group Inc. Announces Results for Q3 2026
Support Services growth and a shift toward higher-margin rentals accompanied increased nine-month cash flow and lower debt.
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Rhea-AI Summary
Dexterra Group (HZNOF) reported higher third-quarter 2026 revenue and earnings, with revenue reaching $291.2 million as Support Services expanded. Revenue compared with $281.2 million a year earlier. Net earnings rose to $14.4 million from $12.9 million, while basic earnings per share increased to $0.23 from $0.21. All amounts are in Canadian dollars.
Adjusted EBITDA, a non-GAAP earnings measure, increased to $38.1 million from $35.0 million. Support Services revenue rose 8.1%, while Asset Based Services revenue fell as installation and demobilization activity declined. Nine-month free cash flow increased to $61.0 million from $35.7 million. Net debt was $193.1 million, down from $199.7 million at year-end, and equaled 1.4 times adjusted EBITDA. Dexterra declared a $0.10-per-share dividend, payable January 15, 2027, to holders of record December 31, 2026.
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Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQ3 revenue increased to $291.2 million from $281.2 million in Q3 2025.
- Moderate pointQ3 net earnings rose to $14.4 million from $12.9 million a year earlier.
- Moderate pointQ3 adjusted EBITDA increased 8.7% to $38.1 million; margin rose to 13.1% from 12.5%.
- Moderate pointNine-month free cash flow increased to $61.0 million from $35.7 million in the corresponding 2025 period.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted EBITDA conversion to free cash flow is expected by Dexterra to exceed 50%.
26 minor points
- Minor pointQ3 basic EPS rose to $0.23 from $0.21; diluted EPS increased to $0.22 from $0.21.
- Minor pointQ3 adjusted net earnings increased to $17.5 million from $15.8 million; adjusted EPS reached $0.28 from $0.25.
- Minor pointNine-month revenue increased to $835.904 million from $770.299 million in the corresponding 2025 period.
- Minor pointNine-month net earnings increased to $38.304 million from $33.385 million in the corresponding 2025 period.
- Minor pointNine-month basic EPS rose to $0.61 from $0.53; diluted EPS increased to $0.60 from $0.53.
- Minor pointNine-month adjusted EBITDA reached $104.228 million versus $90.241 million; margin increased to 12.5% from 11.7%.
- Minor pointNine-month adjusted net earnings reached $43.040 million versus $42.853 million; adjusted EPS remained $0.69.
- Minor pointQ3 free cash flow increased to $38.3 million from $38.0 million a year earlier.
- Minor pointOperating cash flow rose to $45.946 million in Q3 and $72.072 million year-to-date, versus $45.008 million and $54.132 million.
- Minor pointNet debt fell to $193.1 million from $199.7 million at year-end; debt-to-adjusted-EBITDA was 1.4 times.
- Minor pointTrailing twelve-month return on equity improved to 15.4% from 14.5% in Q3 2025.
- Minor pointSupport Services Q3 revenue grew 8.1% to $252.6 million; growth excluding Right Choice was 4.5%.
- Minor pointSupport Services Q3 adjusted EBITDA rose 18% to $28.9 million; margin increased to 11.5% from 10.5%.
- Minor pointSupport Services Q3 margin excluding PVC increased to 10.9% from 10.1% a year earlier.
- Minor pointSupport Services nine-month revenue rose 11.8% to $713.1 million; organic growth excluding Right Choice was 6.4%.
- Minor pointSupport Services nine-month adjusted EBITDA rose 19.4% to $76.3 million; margin increased to 10.7% from 10.0%.
- Minor pointSupport Services nine-month margin excluding PVC increased to 10.1% from 9.9% a year earlier.
- Minor pointUS nine-month revenue excluding PVC grew to $74.4 million from $64.7 million in the corresponding 2025 period.
- Minor pointPVC adjusted EBITDA contributions reached $1.3 million in Q3 and $4.2 million year-to-date, versus $0.9 million for each comparison.
- Minor point. Forward-looking: it has not happened yet and may not happen.PVC new contracts are expected by Dexterra to mobilize and ramp up through the first half of 2027.
- Minor pointAsset Based Services Q3 rental and other revenue grew 2.3% to $32.449 million.
- Minor pointAsset Based Services Q3 adjusted EBITDA margin rose to 41.1% from 33.9% as rental revenue gained share.
- Minor pointAsset Based Services nine-month adjusted EBITDA rose 6.1% to $48.9 million; margin increased to 39.8% from 34.8%.
- Minor point. Forward-looking: it has not happened yet and may not happen.Support Services margin is expected by Dexterra to continue exceeding 9% in the medium term.
- Minor point. Forward-looking: it has not happened yet and may not happen.Asset Based Services margin is expected by Dexterra to remain between 30% and 40% long-term, depending on business mix.
- Minor pointNine-month net insurance recovery contributed $6.248 million to earnings.
Negative
- Moderate pointAsset Based Services Q3 revenue fell to $38.674 million from $47.632 million a year earlier.
- Moderate pointFinance costs rose to $4.037 million in Q3 and $12.087 million year-to-date, versus $3.088 million and $7.120 million.
- Minor pointQ3 installation and demobilization revenue fell $9.7 million year over year, reflecting project timing.
- Minor pointAsset Based Services Q3 adjusted EBITDA declined to $15.9 million from $16.1 million a year earlier.
- Minor pointAsset Based Services nine-month revenue declined 7.3% to $122.8 million versus the corresponding 2025 period.
5 minor points
- Minor pointLower wildfire activity reduced Support Services activity and Asset Based Services camp rentals in Q3.
- Minor pointUS sales and operational support investment partially offset Support Services margin improvement.
- Minor pointCorporate, other and inter-segment adjustments reduced adjusted EBITDA by $6.707 million in Q3, versus $5.588 million.
- Minor pointNine-month corporate, other and inter-segment adjustments reduced adjusted EBITDA by $20.966 million, versus $19.724 million.
- Minor pointShare-based compensation increased to $2.667 million in Q3 and $7.889 million year-to-date, versus $1.901 million and $6.066 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Toronto, Ontario--(Newsfile Corp. - November 4, 2026) - Dexterra Group Inc. (TSX: DXT)
Highlights
Dexterra delivered strong quarterly results, with consolidated revenue of
$291.2 million in Q3 2026, up from$281.2 million in Q3 2025. Revenue growth was supported by solid workforce accommodation occupancy, organic growth across the business, and a full quarter contribution from Right Choice Camps and Catering Ltd. ("Right Choice") which was acquired on August 31, 2025, partially offset by a reduction in lower-margin workforce accommodation installation and demobilization activity due to the timing of projects.Adjusted EBITDA for the quarter was
$38.1 million (2025 -$35.0 million ), an increase of8.7% compared to Q3 2025 reflecting growth in the Support Services business, the favourable shift in business mix toward higher-margin workforce accommodation rental revenue within ABS, and the full quarter contribution from our investment in Pleasant Valley Corporation ("PVC") of$1.3 million (2025 -$0.9 million in Q3 2025).Free Cash Flow ("FCF") for Q3 2026 was
$38.3 million (Q3 2025 -$38.0 million ). FCF for the nine months ended September 30, 2026 was$61.0 million , compared to$35.7 million for the same period in the prior year, reflecting improved profitability and effective working capital management. The Net Debt to Adjusted EBITDA ratio is 1.4x.Net earnings were
$14.4 million in Q3 2026, compared to$12.9 million in Q3 2025. Adjusted net earnings were$17.5 million and Adjusted earnings per share ("Adjusted EPS") was$0.28 in Q3 2026, compared to$15.8 million and$0.25 , respectively, in Q3 2025. The increase is related to business mix and improved profitability across the business.Delivered a Return on Equity of
15.4% (Q3 2025 -14.5% ) on a trailing twelve-month basis.Dexterra declared a dividend for Q4 2026 of
$0.10 per share for shareholders of record at December 31, 2026, to be paid on January 15, 2027.
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 nine months ended September 30, 2026 and 2025 details which is incorporated by reference herein.
Third Quarter Financial Summary
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| (000's except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Revenue | $ | 291,229 | $ | 281,228 | $ | 835,904 | $ | 770,299 | ||||
| Adjusted EBITDA(1) | 38,100 | 35,036 | 104,228 | 90,241 | ||||||||
| Adjusted EBITDA as a % of revenue(1) | ||||||||||||
| Net earnings | 14,391 | 12,946 | 38,304 | 33,385 | ||||||||
| Adjusted net earnings(1) | 17,510 | 15,824 | 43,040 | 42,853 | ||||||||
| Net earnings per share, basic | 0.23 | 0.21 | 0.61 | 0.53 | ||||||||
| Net earnings per share, diluted | 0.22 | 0.21 | 0.60 | 0.53 | ||||||||
| Adjusted earnings per share(1) | 0.28 | 0.25 | 0.69 | 0.69 | ||||||||
| Total assets | 771,927 | 752,299 | 771,927 | 752,299 | ||||||||
| Total loans and borrowings ("Net Debt") | 193,069 | 205,747 | 193,069 | 205,747 | ||||||||
| Free Cash Flow(1) | 38,271 | 38,017 | 61,008 | 35,717 | ||||||||
(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.
Third Quarter Operational Analysis
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| (000's) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Revenue: | ||||||||||||
| Support Services | $ | 252,555 | $ | 233,596 | $ | 713,072 | $ | 637,724 | ||||
| Asset Based Services | 38,674 | 47,632 | 122,832 | 132,575 | ||||||||
| Total Revenue | $ | 291,229 | $ | 281,228 | $ | 835,904 | $ | 770,299 | ||||
| Adjusted EBITDA: | ||||||||||||
| Support Services | $ | 28,918 | $ | 24,499 | $ | 76,273 | $ | 63,861 | ||||
| Asset Based Services | 15,889 | 16,125 | 48,921 | 46,104 | ||||||||
| Corporate, Other and Inter-segment eliminations | (6,707 | ) | (5,588 | ) | (20,966 | ) | (19,724 | ) | ||||
| Total Adjusted EBITDA | $ | 38,100 | $ | 35,036 | $ | 104,228 | $ | 90,241 | ||||
| Adjusted EBITDA as a % of Revenue: | ||||||||||||
| Support Services | 11.5 % | 10.5 % | 10.7 % | 10.0 % | ||||||||
| Asset Based Services | 41.1 % | 33.9 % | 39.8 % | 34.8 % | ||||||||
Support Services
Revenue for the three months ended September 30, 2026 was
Adjusted EBITDA for the three months ended September 30, 2026 was
For the nine months ended September 30, 2026, Support Services revenues were
Asset Based Services
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| (000's) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Revenue: | ||||||||||||
| Rental and other | $ | 32,449 | $ | 31,723 | $ | 99,078 | $ | 90,998 | ||||
| Workforce accommodation installation and demobilization | 6,225 | 15,909 | 23,754 | 41,577 | ||||||||
| Total Asset Based Services revenue | $ | 38,674 | $ | 47,632 | $ | 122,832 | $ | 132,575 | ||||
Revenue for the three months ended September 30, 2026 of
Adjusted EBITDA for the three months ended September 30, 2026 was
For the nine months ended September 30, 2026, ABS revenue was
Liquidity and Capital Resources
Strong FCF conversion allowed the Corporation to fund important growth capital investments and pay dividends to shareholders while reducing debt. Net Debt was
Net Debt at September 30, 2026 was 1.4x 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 nine months ended September 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 November 5, 2026 to discuss the third 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 Q3 2026 Results webcast link.
An archived recording of the conference call will be available approximately one hour after the completion of the call until December 5, 2026, by dialing 1-800-770-2030, passcode 5890556.
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 US.
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 September 30, | Nine months ended September 30, | |||||||||||
| (000's) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net earnings | $ | 14,391 | $ | 12,946 | $ | 38,304 | $ | 33,385 | ||||
| Add: | ||||||||||||
| Share based compensation | 2,667 | 1,901 | 7,889 | 6,066 | ||||||||
| Depreciation & amortization | 10,564 | 10,950 | 35,288 | 30,220 | ||||||||
| Equity investment depreciation, amortization and income taxes | 1,368 | 330 | 4,131 | 627 | ||||||||
| Finance costs | 4,037 | 3,088 | 12,087 | 7,120 | ||||||||
| Loss on disposal of property, plant and equipment | 79 | 655 | 372 | 587 | ||||||||
| Income tax expense | 4,994 | 4,565 | 12,405 | 11,635 | ||||||||
| Insurance recovery, net(1) | - | - | (6,248 | ) | - | |||||||
| Acquisition costs(2) | - | 601 | - | 601 | ||||||||
| Adjusted EBITDA | $ | 38,100 | $ | 35,036 | $ | 104,228 | $ | 90,241 | ||||
(1) Impact of one-time insurance claim includes insurance recovery amounts for the three and nine months ended September 30, 2026 discussed above related to the fire.
(2) Includes acquisition expenses for the three and nine months ended September 30, 2025 related to the Right Choice acquisition.
Adjusted net earnings and Adjusted EPS
| Adjusted net earnings | Adjusted EPS | |||||||||||
| Three months ended September 30, | Three months ended September 30, | |||||||||||
| (000's except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net earnings/EPS | $ | 14,391 | $ | 12,946 | $ | 0.23 | $ | 0.21 | ||||
| Acquisition costs | - | 601 | - | 0.01 | ||||||||
| Amortization of intangible assets related to acquisitions | 1,536 | 1,263 | 0.03 | 0.02 | ||||||||
| Share based compensation | 2,667 | 1,901 | 0.04 | 0.02 | ||||||||
| Income tax on adjustments | (1,084 | ) | (887 | ) | (0.02 | ) | (0.01 | ) | ||||
| Adjusted net earnings/Adjusted EPS | $ | 17,510 | $ | 15,824 | $ | 0.28 | $ | 0.25 | ||||
| Adjusted net earnings | Adjusted EPS | |||||||||||
| Nine months ended September 30, | Nine months ended September 30, | |||||||||||
| (000's except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net earnings/EPS | $ | 38,304 | $ | 33,385 | $ | 0.61 | $ | 0.53 | ||||
| Acquisition costs | - | 601 | - | 0.01 | ||||||||
| Amortization of intangible assets related to acquisitions | 4,554 | 3,690 | 0.07 | 0.06 | ||||||||
| Share based compensation | 7,889 | 6,066 | 0.13 | 0.10 | ||||||||
| Net insurance claim(1) | (6,248 | ) | - | (0.10 | ) | - | ||||||
| Income tax on adjustments | (1,459 | ) | (889 | ) | (0.02 | ) | (0.01 | ) | ||||
| Adjusted net earnings/Adjusted EPS | $ | 43,040 | $ | 42,853 | $ | 0.69 | $ | 0.69 | ||||
(1) Impact of one-time net insurance claim includes insurance recovery income for the nine months ended September 30, 2026 related to the fire.
Free Cash Flow
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| (000's) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net cash flows from operating activities | $ | 45,946 | $ | 45,008 | $ | 72,072 | $ | 54,132 | ||||
| Sustaining capital expenditures, net of proceeds from the sale of property, plant and equipment, intangible assets, and insurance proceeds received | (2,759 | ) | (1,370 | ) | (6,485 | ) | (2,705 | ) | ||||
| Finance costs paid | (3,771 | ) | (2,847 | ) | (11,022 | ) | (8,431 | ) | ||||
| Lease payments | (3,503 | ) | (2,774 | ) | (10,644 | ) | (7,279 | ) | ||||
| Income tax payments related to prior periods(1) | 1,489 | - | 13,338 | - | ||||||||
| Net insurance claim(2) | 869 | - | 3,749 | - | ||||||||
| Free Cash Flow | $ | 38,271 | $ | 38,017 | $ | 61,008 | $ | 35,717 | ||||
(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 September 30, | ||||||
| (000's) | 2026 | 2025 | ||||
| Net earnings from continuing operations | $ | 45,721 | $ | 40,970 | ||
| Average total shareholders' equity(1) | 296,420 | 283,188 | ||||
| Return on Equity | 15.4 % | 14.5 % | ||||
(1) Average total shareholders' equity is calculated as the average of beginning total shareholders' equity and ending total shareholders' equity over the period from September 30, 2025 to September 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"; "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, US 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, US tariff impacts; US 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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FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Dexterra Group's Q3 2026 earnings results?
Dexterra reported $14.4 million in net earnings for Q3 2026, compared with $12.9 million in Q3 2025. Basic earnings per share rose to $0.23 from $0.21. Adjusted earnings per share, a non-GAAP measure, increased to $0.28 from $0.25. Amounts are in Canadian dollars.
When will Dexterra Group pay its Q4 2026 dividend?
Dexterra's $0.10-per-share Q4 2026 dividend is payable on January 15, 2027, to shareholders of record on December 31, 2026.
What margin and cash-flow outlook did Dexterra give with its Q3 2026 results?
Dexterra expects Support Services adjusted EBITDA margins to continue exceeding 9% in the medium term and Asset Based Services margins to remain between 30% and 40% over the long term, depending on business mix. Full-year adjusted EBITDA conversion to free cash flow is expected to exceed 50%.