Dexterra Group Inc. Announces Results for Q3 2025
Rhea-AI Summary
Dexterra Group (OTC:HZNOF) reported Q3 2025 consolidated revenue of $281.2M and Adjusted EBITDA of $35.0M, a 9.4% increase versus Q3 2024. Free cash flow was $38.0M in Q3 and net earnings were $12.9M (EPS $0.21). The company completed two strategic transactions: a 40% investment in Pleasant Valley Corporation for $83.5M and the acquisition of Right Choice for $67.5M.
Net debt rose to $205.7M following the transactions; management expects pro forma leverage under 1.7x Adjusted EBITDA by Dec 31, 2025 and declared a $0.10 Q4 2025 dividend.
Positive
- Consolidated revenue of $281.2M in Q3 2025
- Adjusted EBITDA of $35.0M (+9.4% vs Q3 2024)
- Free Cash Flow of $38.0M in Q3 2025
- Completed acquisitions: 40% stake in PVC for $83.5M
- Acquired Right Choice for $67.5M to expand camp services
- Declared dividend of $0.10 per share for Q4 2025
Negative
- Net debt increased to $205.7M at Sept 30, 2025
- Debt rise of ~ $150M attributed to PVC and Right Choice
- Asset Based Services revenue down to $47.6M (−6.4% YoY)
- ABS Adjusted EBITDA margin declined to 33.9% in Q3 2025
News Market Reaction 1 Alert
On the day this news was published, HZNOF declined 0.14%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Toronto, Ontario--(Newsfile Corp. - November 4, 2025) - Dexterra Group Inc. (TSX: DXT)
Highlights
Dexterra delivered strong results in Q3 2025 generating consolidated revenue of
$281.2 million , compared to$269.7 million for the same period in 2024, with Support Services revenue growth driven primarily by new sales and strong market activity levels, as well as the acquisition of Right Choice Camps and Catering Ltd. ("Right Choice").Adjusted EBITDA in the quarter was
$35.0 million (2024 -$32.0 million ), an increase of9.4% over Q3 2024. The increase in Adjusted EBITDA was primarily a result of strong camp occupancy and approximately$1.8 million from the recent investments in Pleasant Valley Corporation ("PVC") and Right Choice.Free Cash Flow ("FCF") for Q3 was
$38.0 million , compared to$11.9 million for the same period in 2024 primarily driven by strong operational results partially offset by changes in non-cash working capital.Net earnings for the quarter were
$12.9 million , compared to$7.7 million for the same period in 2024, and year-to-date net earnings in 2025 were$33.4 million compared to$13.2 million in 2024. Earnings per share was$0.21 in Q3 2025 compared to$0.12 in Q3 2024 and year-to-date was$0.53 per share versus$0.20 in 2024. Our continuing operations delivered a return on equity of15% .As previously announced, Dexterra acquired a
40% stake in privately owned, US-based, facilities management provider PVC for$83.5 million on July 31, 2025, including an option to acquire the remaining60% as early as Q3 2027. PVC offers a range of distributed model facility management services including Integrated Facilities Management ("IFM") primarily to commercial and industrial clients across the United States. The investment in PVC builds on Dexterra's facilities management capability and brings increased scale to the Corporation's US-based business platform. This investment will be accounted for using the equity method and the earnings will be reported under the Support Services segment.Dexterra also closed the previously announced acquisition of
100% of Right Choice on August 31, 2025, a workforce accommodation provider with operations in the strategic Montney / Duvernay gas region in Western Canada, for$67.5 million .Both of the above acquisitions were financed through our credit facility and our debt to leverage ratio is expected to be below 1.7x proforma Adjusted EBITDA by December 31, 2025.
- The Corporation declared a dividend for Q4 2025 of
$0.10 per share for shareholders of record at December 31, 2025, to be paid on January 15, 2026.
This news release contains certain measures and ratios, such as Adjusted EBITDA, Adjusted EBITDA as a % of revenue, 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, 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) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Revenue | $ | 281,228 | $ | 269,749 | $ | 770,299 | $ | 755,269 | ||||
| Adjusted EBITDA(1) | 35,036 | 32,024 | 90,241 | 80,880 | ||||||||
| Adjusted EBITDA as a % of revenue(1) | ||||||||||||
| Net earnings from continuing operations(2) | 12,946 | 13,359 | 33,385 | 29,956 | ||||||||
| Net earnings(2)(3) | 12,946 | 7,666 | 33,385 | 13,178 | ||||||||
| Net earnings from continuing operations per share, basic and diluted | 0.21 | 0.21 | 0.53 | 0.46 | ||||||||
| Total net earnings per share, basic and diluted(3) | 0.21 | 0.12 | 0.53 | 0.20 | ||||||||
| Total assets | 752,299 | 568,671 | 752,299 | 568,671 | ||||||||
| Total loans and borrowings ("Net Debt") | 205,747 | 102,208 | 205,747 | 102,208 | ||||||||
| Free Cash Flow(1) | 38,017 | 11,919 | 35,717 | 21,979 | ||||||||
(1) Please refer to the "Non-GAAP measures" section for the definition of Adjusted EBITDA, Adjusted EBITDA as a % 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 and nine months ended September 30, 2025 were
(3) Net earnings for the three and nine months ended September 30, 2024 included net loss from discontinued operations of
Third Quarter Operational Analysis
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| (000's) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Revenue: | ||||||||||||
| Support Services | $ | 233,596 | $ | 218,882 | $ | 637,724 | $ | 604,708 | ||||
| Asset Based Services | 47,632 | 50,867 | 132,575 | 150,561 | ||||||||
| Total Revenue | $ | 281,228 | $ | 269,749 | $ | 770,299 | $ | 755,269 | ||||
| Adjusted EBITDA: | ||||||||||||
| Support Services | $ | 24,499 | $ | 20,151 | $ | 63,861 | $ | 55,924 | ||||
| Asset Based Services | 16,125 | 17,843 | 46,104 | 42,319 | ||||||||
| Corporate expenses | (5,588 | ) | (5,970 | ) | (19,724 | ) | (17,363 | ) | ||||
| Total Adjusted EBITDA | $ | 35,036 | $ | 32,024 | $ | 90,241 | $ | 80,880 | ||||
| Adjusted EBITDA as a % of Revenue: | ||||||||||||
| Support Services | ||||||||||||
| Asset Based Services | ||||||||||||
Support Services
Revenue for Q3 2025 was
Adjusted EBITDA for Q3 2025 was
For the nine months ended September 30, 2025, Support Services revenues were
Asset Based Services
Revenue for Q3 2025 was
Adjusted EBITDA for Q3 2025 was
For the nine months ended September 30, 2025, ABS revenues were
Liquidity and Capital Resources
Net debt was
Additional Information
A copy of Dexterra's Condensed Consolidated Interim Financial Statements ("Financial Statements") for the three and nine months ended September 30, 2025 and 2024 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, 2025 to discuss the third quarter results.
To access the conference call by telephone the conference call dial in number is 1-844-763-8274.
A live webcast of the conference call will be accessible on Dexterra's website at ir.dexterra.com/events-presentations by selecting the Q3 2025 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, 2025 by dialing 1-855-669-9658, passcode 1032864.
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 September 30, | Nine months ended September 30, | |||||||||||
| (000's) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Net earnings from continuing operations | $ | 12,946 | $ | 13,359 | $ | 33,385 | $ | 29,956 | ||||
| Add: | ||||||||||||
| Depreciation and amortization | 10,950 | 8,890 | 30,220 | 25,593 | ||||||||
| Share based compensation | 1,901 | 1,881 | 6,066 | 3,357 | ||||||||
| (Gain) loss on disposal of property, plant and equipment | 655 | (373 | ) | 587 | (369 | ) | ||||||
| Finance costs | 3,088 | 3,336 | 7,120 | 10,694 | ||||||||
| Income tax expense | 4,565 | 4,808 | 11,635 | 10,401 | ||||||||
| Equity investment depreciation and income taxes | 330 | 123 | 627 | 887 | ||||||||
| Other(1) | 601 | - | 601 | 361 | ||||||||
| Adjusted EBITDA | $ | 35,036 | $ | 32,024 | $ | 90,241 | $ | 80,880 | ||||
(1) Other includes acquisition expenses for the three and nine months ended September 30, 2025 related to the Right Choice acquisition. Other includes acquisition expenses for the nine months ended September 30, 2024 related to the CMI acquisition.
Free Cash Flow
| Three months ended September 30, | Nine months ended September 30, | |||||||||||
| (000's) | 2025 | 2024 | 2025 | 2024 | ||||||||
| Net cash flows from continuing operating activities | $ | 45,008 | $ | 15,863 | $ | 54,132 | $ | 38,331 | ||||
| Sustaining capital expenditures, net of proceeds from the sale of property, plant and equipment and intangible assets | (1,370 | ) | 701 | (2,705 | ) | (1,330 | ) | |||||
| Finance costs paid | (2,847 | ) | (2,969 | ) | (8,431 | ) | (10,179 | ) | ||||
| Lease payments | (2,774 | ) | (1,676 | ) | (7,279 | ) | (4,843 | ) | ||||
| Free Cash Flow | $ | 38,017 | $ | 11,919 | $ | 35,717 | $ | 21,979 | ||||
Return on Equity
| Trailing twelve months ended September 30, | ||||||
| (000's) | 2025 | 2024 | ||||
| Net earnings from continuing operations | 40,970 | 38,291 | ||||
| Average total shareholders' equity(1) | 283,188 | 288,259 | ||||
| Return on Equity | ||||||
(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, 2024 to September 30, 2025 for 2025 and from September 30, 2023 to September 30, 2024 for 2024.
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, asset utilization, camp 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, 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; 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
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/273141
FAQ
What were Dexterra's Q3 2025 total revenue and EPS (HZNOF)?
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