Dexterra Group Inc. Announces Results for Q4 and Year Ended December 31, 2025

Rhea-AI Summary

Dexterra Group (OTC: HZNOF) reported 2025 results: revenue $1.041B (+3.8% vs 2024) and Adjusted EBITDA $122.8M (+14.3%). Q4 revenue was $271.0M (+9.4%) and Q4 Adjusted EBITDA $32.6M (+22%). Free Cash Flow was $60.3M with FCF conversion of 49%.

Key 2025 moves: 40% investment in Pleasant Valley Corporation for $84.0M, acquisition of Right Choice for $69.0M, NCIB purchases of 1.48M shares, and dividend of $0.375 declared with Q1 2026 dividend $0.10 payable April 15, 2026.

Positive

• Revenue of $1.041B in 2025 (+3.8% YoY)
• Adjusted EBITDA $122.8M (+14.3% YoY)
• Q4 revenue growth +9.4% year-over-year
• Strategic investments: $84M PVC stake and $69M Right Choice
• Dividend maintained and increased annual target to $0.40 earlier

Negative

• Free Cash Flow declined to $60.3M (FCF conversion 49%)
• Net debt rose to $199.7M (up from $67.9M in Q4 2024)
• Asset Based Services revenue down 9.9% for 2025

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 by: (a) the change in business mix from increased workforce accommodation equipment utilization which generates higher margins compared to lower camp installation project activity; and (b) the acquisition of Right Choice which contributed $2.6 million. Adjusted EBITDA margin for the year ended December 31, 2025 was 35.4% compared to 29.3% in 2024 as explained above.

For Q4 2025, ABS revenues were $40.4 million, a decrease of 2.2%, primarily the result of lower project revenue from camp installation, access matting rentals and sales, which was partially offset by the contribution from Right Choice of $6.4 million. Adjusted EBITDA for Q4 2025 was $15.1 million, an increase of 8.6% compared to Q4 2024 and the Adjusted EBITDA margin was 37.4% in Q4 2025 compared to 33.7% in Q4 2024. The increase in Adjusted EBITDA margin in Q4 2025 is related to the change in business mix discussed above and the contribution from Right Choice of $2.1 million. Adjusted EBITDA margins for this segment in the future are expected to remain between 30% to 40% depending on the mix of business.

Liquidity and Capital Resources

Net Debt was $199.7 million at December 31, 2025, compared to $205.7 million at Q3 2025, and increased from $67.9 million at the end of Q4 2024. The increase in Net Debt compared to Q4 2024 was largely a result of the investment in PVC and acquisition of Right Choice which added approximately $150 million to debt. Adjusted EBITDA conversion to FCF was 49% in 2025 compared to 70% in 2024. The Net Debt at December 31, 2025 was 1.6x Adjusted EBITDA, demonstrating our commitment to maintaining a strong balance sheet. We expect to continue to maximize FCF conversion targeting greater than 50% of Adjusted EBITDA on an annual basis with Net Debt expected to further reduce in fiscal 2026, absent acquisitions.

Additional Information

A copy of Dexterra's Consolidated Financial Statements ("Financial Statements") for the years ended December 31, 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 March 4, 2026 to discuss the 2025 year-end and fourth quarter results.

To access the conference call by telephone the conference call dial in number is 1-833-752-2807.

A live webcast of the conference call will be accessible on Dexterra's website at ir.dexterra.com/events-presentations by selecting the Q4 2025 Results webcast link. An archived recording of the conference call will be available approximately one hour after the completion of the call until April 4, 2026, by dialing 1- 855-669-9658, passcode 2946867.

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 December 31,						Years ended December 31,
(000's)		2025			2024			2025			2024
Net earnings from continuing operations	$	7,416		$	7,584		$	40,801		$	37,540
Add:
Share based compensation		4,038			1,200			10,104			4,557
Depreciation & amortization		12,123			9,612			42,343			35,205
Equity investment depreciation, amortization and income taxes		2,212			87			2,839			974
Finance costs		4,215			2,364			11,335			13,058
Loss (gain) on disposal of property, plant and equipment		(350	)		15			237			(354	)
Income tax expense		2,253			5,696			13,888			16,097
Other(1)		667			-			1,268			361
Adjusted EBITDA	$	32,574		$	26,558		$	122,815		$	107,438

 

(1) Other includes acquisition expenses for the three months and year ended December 31, 2025 related to the Right Choice acquisition, as well as expenses related to the CMI acquisition for the year ended December 31, 2024.

Free Cash Flow

		Three months ended December 31,						Years ended December 31,
(000's)		2025			2024			2025			2024
Net cash flows from continuing operating activities	$	33,461		$	58,150		$	87,593		$	96,481
Sustaining capital expenditures, net of proceeds from the sale of property, plant and equipment and intangible assets		(624	)		(1,424	)		(3,329	)		(2,754	)
Finance costs paid		(4,910	)		(1,986	)		(13,341	)		(12,165	)
Lease payments		(3,378	)		(2,039	)		(10,657	)		(6,882	)
Free Cash Flow	$	24,549		$	52,701		$	60,266		$	74,680

 

Return on Equity

		Years ended December 31,
(000's)		2025			2024
Net earnings from continuing operations	$	40,801		$	37,540
Average total shareholders' equity(1)		281,504			282,984
Return on Equity (%)		15 %			13 %

 

(1) Average total shareholders' equity is calculated as the average of beginning total shareholders' equity and ending total shareholders' equity for the year.

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 50% ownership interest may impact the liquidity of the common shares; cash flow may not be sufficient to fund its ongoing activities at all times; loss of key personnel; the failure to receive or renew permits or security clearances; significant legal proceedings or regulatory proceedings/changes; environmental damage and liability is an operating risk in the industries in which Dexterra operates; climate changes could increase Dexterra's operating costs and reduce demand for its services; liabilities for failure to comply with public procurement laws and regulations; any deterioration in safety performance could result in a decline in the demand for its products and services; failure to realize anticipated benefits of acquisitions and dispositions; inability to develop and maintain relationships with Indigenous communities; the seasonality of Dexterra's business; inability to restore or replace critical capacity in a timely manner; reputational, competitive and financial risk related to cyber-attacks and breaches; failure to effectively identify and manage disruptive technology; economic downturns can reduce demand for Dexterra's services; its insurance program may not fully cover losses. Additional risks and uncertainties are described in Note 23 to the Financial Statements contained in its most recent Annual Report filed with securities regulatory authorities in Canada and available on SEDAR at sedarplus.ca. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Dexterra is under no obligation and does not undertake to update or alter this information at any time, except as may be required by applicable securities law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/286110

FAQ

What were Dexterra (HZNOF) full-year 2025 revenue and Adjusted EBITDA?

Dexterra reported $1.041 billion in revenue and $122.8 million Adjusted EBITDA for 2025. According to the company, revenue rose 3.8% year-over-year and Adjusted EBITDA increased 14.3% driven by Support Services growth and acquisitions.

How did Dexterra (HZNOF) perform in Q4 2025 versus Q4 2024?

Q4 2025 revenue was $271.0 million, up 9.4%, and Adjusted EBITDA was $32.6 million, up 22%. According to the company, gains were led by Support Services, camp occupancy and contributions from Right Choice and PVC.

What acquisitions and investments did Dexterra (HZNOF) complete in 2025?

Dexterra invested $84.0 million for a 40% stake in Pleasant Valley Corporation and acquired Right Choice for $69.0 million in 2025. According to the company, these moves expand facilities and workforce accommodation capabilities.

Why did Dexterra (HZNOF) free cash flow fall in 2025 and what was the conversion rate?

Free Cash Flow was $60.3 million in 2025, with Adjusted EBITDA conversion of 49%. According to the company, FCF was impacted by a delayed customer receivable funded by the federal government, with $11.2M collected after year end.

What is Dexterra's (HZNOF) net debt position and leverage at year-end 2025?

Net Debt was $199.7 million at December 31, 2025, representing 1.6x Adjusted EBITDA. According to the company, the increase versus 2024 mainly reflects the PVC investment and Right Choice acquisition adding about $150M to debt.