Dexterra Group (DXT) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 results with revenue over $1.04 billion, Adjusted EBITDA of $123 million, and net earnings exceeding $40 million, driven by strong operational execution and strategic acquisitions.

• Completed and integrated acquisitions of Pleasant Valley Corporation (PVC) and Right Choice, expanding U.S. and Canadian platforms and contributing to growth.

• Delivered robust shareholder returns through share price appreciation of over 60% in 14 months, buybacks totaling $11.7 million, and a 14% dividend increase to $0.40 per share.

• Strategic investments included a 40% stake in PVC and the acquisition of Right Choice, totaling $153 million.

Financial highlights

• Q4 2025 revenue was $271 million, up 9% year-over-year; Adjusted EBITDA for Q4 was $33 million with margins expanding to 12% from 10.7% in Q4 2024.

• Full-year Adjusted EBITDA reached $123 million, up 14.3% from 2024; Free Cash Flow was $60 million, impacted by delayed government receivable.

• Net earnings per share for Q4 2025 were $0.12, up from $0.11 in Q4 2024; full-year EPS rose to $0.65 from $0.31.

• Return on equity was 15% in 2025.

Outlook and guidance

• Strong pipeline for 2026 in support and asset-based services, with Adjusted EBITDA margins expected to exceed 9% in support services and remain 30%-40% in asset-based services.

• Anticipates continued growth in U.S. facilities management, benefits from nation-building and government infrastructure projects, and targets a 15% annual ROE.

• Adjusted EBITDA conversion to Free Cash Flow expected to exceed 50% in 2026; Net Debt expected to decrease absent further acquisitions.