Record Annual Financial Performance
2025 record results: revenue > $1.0 billion, adjusted EBITDA $123 million, and net earnings > $40 million; return on equity of 15% for 2025.
Strong Free Cash Flow and Conversion
Generated $60 million of free cash flow in 2025; adjusted EBITDA-to-free-cash-flow conversion of 49% (would have been 58% excluding a delayed $11 million government-funded receivable collected after year-end).
Q4 Margin Expansion and EBITDA
Q4 2025 adjusted EBITDA of $33 million; adjusted EBITDA margin expanded to 12% from 10.7% in Q4 2024 (up ~1.3 percentage points).
Support Services Revenue and Profitability Growth
Support Services Q4 revenue $231 million, up 12% year-over-year; Q4 adjusted EBITDA rose 31% YoY to $24 million; full-year Support Services revenue and adjusted EBITDA increased 7% and 18%, respectively. Management expects long-term adjusted EBITDA margins to exceed 9%.
Asset-Based Services (ABS) Margin Improvement
ABS Q4 adjusted EBITDA $15 million, up 9% YoY; Q4 adjusted EBITDA margin increased to 37% from 34% YoY. Full-year ABS adjusted EBITDA rose 9% to $61 million and full-year ABS margin improved to 35% from 29% in 2024.
Strategic Acquisitions and U.S. Expansion
Completed two strategic transactions (Pleasant Valley Corporation partnership/investment and Right Choice Camps & Catering acquisition) that expanded the U.S. FM platform and workforce accommodation capacity; PVC historical revenue ~USD 170 million (40% ownership basis referenced).
Capital Allocation and Shareholder Returns
Board increased annual dividend by 14% to $0.40 per share (noted), paid $23 million in dividends in 2025, purchased 1.5 million shares for $12 million, and returned ~$34 million to shareholders via dividends and buybacks as noted by management.
Operational Scale in Workforce Accommodation
Now manage ~22,000 beds Canada-wide (~12,000 owned assets), Right Choice added ~2,000 beds; utilization in the high-80s with roughly ~1,000 beds available; camp-related business (ABS + Support Services) ~ $600 million and diversified ~40% energy, 30% mining, 30% infrastructure.
Market Recognition and Risk Management
Share price appreciation >60% over the last 14 months; hedging actions taken including a collar on USD debt and a total return swap to mitigate share-based compensation volatility.