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

Executive Summary

• Dexterra reported 2025 revenue of $1.04 billion, up 3.8% YoY, and Adjusted EBITDA of $122.8 million, a 14.3% increase.
• Net earnings rose to $40.8 million for the year (EPS $0.65) versus $20.1 million in 2024; Q4 net earnings were $7.4 million (EPS $0.12).
• Completed strategic investments: 40% stake in Pleasant Valley Corp. for $84 M and acquisition of Right Choice Camps & Catering Ltd. for $69 M; also repurchased 1,483,900 shares under its NCIB at $7.88 average price ($11.7 M total).

Key Details

• Revenue: $1,041.3 M in 2025 vs. $1,003.0 M in 2024; Q4 2025 revenue $270.9 M (+9.4%).
• Adjusted EBITDA: $122.8 M (2025) vs. $107.4 M (2024); Q4 2025 $32.6 M (+22%).
• EBITDA Margin: 11.8% of revenue in 2025, up from 10.7% in 2024.
• Free Cash Flow: $60.3 M for 2025 (down from $74.7 M); Q4 2025 FCF $24.5 M.
• Net Debt: $199.7 M at year‑end 2025 (up from $67.9 M end‑2024) reflecting acquisition financing.
• Support Services Revenue: $868.3 M (+7.0% YoY); contributed $19.5 M from Right Choice acquisition.
• Asset Based Services Revenue: $172.9 M (−9.9% YoY); offset partially by Right Choice contribution of $7.9 M.
• Strategic Investments:
• 40% equity stake in Pleasant Valley Corp. for $84.0 M on July 31 2025; option to acquire remaining 60% as early as Q3 2027.
• Acquisition of Right Choice Camps & Catering Ltd. for $69.0 M closed August 31 2025.
• Normal Course Issuer Bid (NCIB): Repurchased and cancelled 1,483,900 common shares at a weighted‑average price of $7.88 per share ($11.7 M total).
• Dividends: Board approved 14% increase to $0.40/share annually; declared $0.375/share for 2025 and Q1 2026 dividend of $0.10/share payable April 15 2026.
• Liquidity Outlook: Net Debt/Adjusted EBITDA = 1.6×; management expects debt reduction in FY 2026 absent further acquisitions and targets >50% FCF conversion of Adjusted EBITDA.
• Conference Call: Scheduled for March 4 2026, 8:30 a.m. ET (dial‑in 1‑833‑752‑2807; webcast at ir.dexterra.com/events-presentations).

Notable Quotes

“Our strong 2025 performance reflects the successful integration of Right Choice and continued demand for our support services across Canada and the U.S., positioning us well for sustained growth.” – Denise Achonu, CFO

Materiality Assessment: Material – Positive (significant year‑over‑year revenue and earnings improvement; major strategic acquisitions; dividend increase).