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Dexterra Group (DXT) investor relations material

Dexterra Group Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary6 Aug, 2025

Executive summary

  • Q2 2025 delivered resilient performance with strong EBITDA from Support Services and Asset Based Services, and a 15% return on equity.

  • Two major acquisitions: 40% stake in Pleasant Valley Corporation (US$58.3M) and full acquisition of Right Choice Camps & Catering ($67.5M), both expected to drive future growth.

  • Annual dividend increased 14% to $0.40 per share, reflecting confidence in business strength and cash flow.

  • $9 million returned to shareholders via dividends and share buybacks in Q2 2025.

  • Maintained a target return on equity of 15% and continued share buybacks.

Financial highlights

  • Q2 2025 consolidated revenue was $249.3M, slightly down from $253.6M in Q2 2024, with Support Services growth offset by lower ABS revenue.

  • Adjusted EBITDA for Q2 2025 was $30M, up 2.6% year-over-year, with margin at 12%.

  • Free cash flow for Q2 2025 was a deficit, expected to normalize in H2; annual EBITDA to free cash flow conversion expected to exceed 50%.

  • Net debt at June 30, 2025 was $93M, up from $67.9M at December 31, 2024, mainly due to working capital investments.

  • Share price increased ~15% in the quarter and is up substantially year-over-year.

Outlook and guidance

  • Focus on integrating recent acquisitions and realizing their benefits.

  • Adjusted EBITDA conversion to free cash flow expected to exceed 50% for fiscal 2025, with strongest conversion in Q3 and Q4.

  • Debt to EBITDA ratio expected to be under 1.75x by year-end, with $30M–$40M debt paydown planned.

  • Targeting mid-single digit annual growth in support services in Canada, and closer to 10% in the U.S.

  • Dividend level to be maintained, with continued focus on high-return investments and opportunistic share buybacks.

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Frequently asked questions

Dexterra Group Inc. is a Canadian company that provides a range of support services, including facilities management, workforce accommodations, and modular solutions. The company serves industries such as energy, mining, construction, defense, and government. Dexterra's services include facilities maintenance, remote workforce housing, modular construction, and catering, focusing on delivering integrated solutions for clients in remote and urban environments. The company is headquartered in Mississauga, Canada, and its shares are listed on the TSX.

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