Dexterra Group Inc. Announces Results for Q3 2025

Executive Summary

• Dexterra Group reported Q3 2025 consolidated revenue of $281.2 M, up 4.3% YoY, and Adjusted EBITDA of $35.0 M (+9.4% YoY).
• Net earnings rose to $12.9 M (EPS $0.21) versus $7.7 M a year earlier; free cash flow surged to $38.0 M.
• The company completed the acquisition of 100% of Right Choice Camps & Catering Ltd. for $67.5 M and confirmed its 40% stake in Pleasant Valley Corp. (PVC) acquired for $83.5 M, both financed through existing credit facilities.

Key Details

• Revenue Highlights
• Total Q3 2025 revenue: $281.2 M (vs. $269.7 M YoY).
• Support Services revenue: $233.6 M (+6.7% YoY, +13.8% QoQ).

• Asset‑Based Services revenue: $47.6 M (−6.4% YoY, +8.3% QoQ).

• Profitability

• Adjusted EBITDA Q3 2025: $35.0 M (vs. $32.0 M YoY).
• Adjusted EBITDA margin: 12.5% of revenue (up from 11.9%).

• Net earnings Q3 2025: $12.9 M; EPS $0.21 (up from $0.12 YoY).

• Free Cash Flow

• Q3 2025 FCF: $38.0 M (vs. $11.9 M YoY).

• Conversion of Adjusted EBITDA to FCF expected >50%.

• Acquisitions & Integration

• Completed acquisition of Right Choice (100%) on Aug 31 2025 for $67.5 M; contribution: ~$3.7 M Q3 revenue, $0.4‑$0.9 M Adjusted EBITDA.

• 40% stake in PVC acquired July 31 2025 for $83.5 M, with option to purchase remaining 60% by Q3 2027; accounted for using equity method.

• Liquidity & Capital Structure

• Net debt at Sep 30 2025: $205.7 M (up from $93.4 M Q2 2025).

• Debt leverage projected < 1.7× pro‑forma Adjusted EBITDA by Dec 31 2025.

• Dividend Declaration

• Declared Q4 2025 dividend of $0.10 per share, payable Jan 15 2026 to shareholders of record Dec 31 2025.

• Guidance & Outlook (Forward‑Looking)

• Adjusted EBITDA margins expected to stay above 9% for the remainder of 2025.
• Continued focus on optimizing working capital, leveraging recent acquisitions, and maintaining a strong balance sheet.

Notable Quotes

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