Dexterra Group Inc. Announces Results for Q3 2025

Core Insights - Dexterra Group Inc. reported strong financial results for Q3 2025, with consolidated revenue of $281.2 million, an increase from $269.7 million in Q3 2024, driven by new sales and market activity, as well as acquisitions [4][3] - The company achieved an Adjusted EBITDA of $35.0 million, reflecting a 9.4% increase compared to Q3 2024, attributed to strong camp occupancy and contributions from recent investments [4][3] - Net earnings for Q3 2025 were $12.9 million, significantly higher than $7.7 million in Q3 2024, with earnings per share rising to $0.21 from $0.12 [4][3] Financial Performance - Revenue for the nine months ended September 30, 2025, reached $770.3 million, up from $755.3 million in the same period of 2024 [3] - Adjusted EBITDA for the nine months was $90.2 million, an increase of 11.8% year-over-year, with a margin of 11.7% compared to 10.7% in 2024 [3][4] - Free Cash Flow for Q3 2025 was $38.0 million, a substantial increase from $11.9 million in Q3 2024, driven by strong operational results [4][5] Operational Highlights - Support Services revenue for Q3 2025 was $233.6 million, a 6.7% increase from Q3 2024, primarily due to strong camp occupancy and the acquisition of Right Choice, which contributed $3.7 million [8][4] - Asset Based Services revenue decreased to $47.6 million, down 6.4% from Q3 2024, mainly due to lower access matting activity [12][4] - The company’s total assets increased to $752.3 million from $568.7 million year-over-year, reflecting growth from acquisitions and operational expansion [5][4] Acquisitions and Investments - Dexterra acquired a 40% stake in PVC for $83.5 million and 100% of Right Choice for $67.5 million, enhancing its facilities management capabilities [4][3] - Both acquisitions were financed through the company's credit facility, with a projected debt leverage ratio below 1.7x proforma Adjusted EBITDA by December 31, 2025 [4][15] - The investment in PVC is expected to enhance Dexterra's scale in the U.S. market, while Right Choice strengthens its position in workforce accommodation [4][3] Shareholder Returns - The company declared a dividend of $0.10 per share for Q4 2025, payable on January 15, 2026, to shareholders of record as of December 31, 2025 [4][3] - Return on equity for continuing operations was reported at 15% for the trailing twelve months ended September 30, 2025, up from 13% in 2024 [23][4]