Dexterra Group (DXT) AI Stock Analysis

• Market Cap: C$806.21M
• Dividend Yield: 3.02%
• Average Volume (3M): 58.01K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.82
• Revenue Growth: -0.73%
• EPS Growth: 221.74%
• Country: CA
• Employees: 8,157
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.21
• Shares Outstanding: 62,352,257
• 10 Day Avg. Volume: 33,194
• 30 Day Avg. Volume: 58,006
• PEG Ratio: -1.03
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 12.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$14.00
• Price Target Upside: 8.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: C$14.50 ▲(12.14% Upside)

The score is driven primarily by improving financial performance and strong free cash flow, supported by a constructive technical trend and a positive earnings update centered on acquisitions and margin progress. Offsetting factors include the recent increase in net debt and only mid-range valuation (P/E ~18.8), which limit upside without continued execution.

Positive Factors

Free Cash Flow Strength

Sustained high free cash flow provides durable financial flexibility: it funds reinvestment, supports debt reduction plans, and enables shareholder returns. Strong cash generation also cushions the business against contract timing swings and underpins strategic M&A integration over the medium term.

Improving Profitability and Returns

Marked improvement in profitability and ROE signals stronger underlying operational performance and better cost management. Higher returns imply the core services and recent integrations are becoming more efficient, supporting sustainable earnings power and reinvestment capacity over coming quarters.

Strategic Acquisitions Expand U.S. Footprint

Targeted acquisitions broaden the addressable market in U.S. integrated facility management and remote accommodations, creating cross-sell opportunities and scale economies. If integrated well, these deals can raise long-term organic growth and diversify revenue away from cyclic asset-based work.

Negative Factors

Higher Net Debt Reduces Financial Flexibility

A sharp rise in net debt from acquisitions weakens balance-sheet flexibility and increases interest and refinancing exposure. Elevated leverage limits the company's ability to absorb project delays or pursue opportunistic investments without executing planned deleveraging, a medium-term execution risk.

Asset-Based Services Volume Sensitivity

Reliance on project-start timing in asset-heavy client sectors creates durable revenue volatility risk. Delays at major clients can depress utilization and utilization-dependent margins for extended periods, making overall top-line growth and forecasting more uncertain over the medium term.

Margin Pressure in Asset-Based Services

Declining segment margins indicate pricing or cost absorption challenges in asset-based operations. Sustained margin erosion would materially hit consolidated cash flow and returns, reducing headroom for debt paydown and reinvestment unless operational or pricing improvements are implemented.

Dexterra Group Business Overview & Revenue Model

Company Description

Dexterra Group Inc. provides support services for the creation, management, and operation of infrastructure in Canada. It operates through three segments: Integrated Facilities Management; Modular Solutions; and Workforce Accommodations, Forestry and Energy Services (WAFES). The Integrated Facilities Management segment delivers operation and maintenance solutions for built assets and infrastructure in the public and private sectors, including aviation, defense, retail, healthcare, business and industry, education, rail, hotels and leisure, and government. The Modular Solutions segment designs, manufactures, transports, and installs multi-unit residential, retail, and commercial modular buildings for housing, commercial, residential, and industrial clients. The WAFES segment provides workforce accommodation, camp management, and catering services; offers tree planting and thinning services; and rents and sells office units, lavatory units, mine dry units, wellsite units, and associated equipment, as well as provides access mat rentals. The company was formerly known as Horizon North Logistics Inc. and changed its name to Dexterra Group Inc. in November 2020. Dexterra Group Inc. was founded in 1985 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Dexterra Group generates revenue through multiple streams aligned with its diverse service offerings. Its facilities management division provides ongoing operations and maintenance services for commercial and industrial clients, earning steady income through long-term contracts. The workforce accommodations sector supplies and manages remote workforce housing, generating revenue from rental and service fees. The modular solutions division earns income by designing, manufacturing, and installing modular buildings for various applications, including educational institutions and healthcare facilities. Additionally, Dexterra's environmental services contribute to earnings through consulting and project management fees. Strategic partnerships and contracts with public and private sector clients, notably in resource-rich regions, also significantly bolster Dexterra's revenue.

Dexterra Group Financial Statement Overview

Summary

Overall fundamentals are improving: profitability and margins strengthened meaningfully versus the prior annual period, and cash generation is a clear strength (TTM operating cash flow ~$109M; free cash flow ~$91M). The main constraint is balance-sheet flexibility, as debt has stepped up versus recent periods despite leverage remaining moderate.

Income Statement

TTM (Trailing-Twelve-Months) revenue is essentially flat versus the most recent annual period (about +1%), but profitability has improved meaningfully: net income rose to $40M from $19.9M, and margins expanded (gross margin ~17.3% vs ~16.0%; net margin ~3.5% vs ~2.0%). Longer-term, results show a clear rebound from 2022’s very low profitability, though current margins remain well below 2020 highs, indicating the business is still operating in a more normalized/competitive cost environment than the peak period.

Balance Sheet

Leverage remains moderate with debt at ~$228.5M against equity of ~$284.1M (debt-to-equity ~0.40), and equity has been broadly stable over time. Returns have improved, with return on equity at ~12.5% in TTM (Trailing-Twelve-Months) versus ~7.1% in 2024, reflecting better earnings power. The main weakness is the step-up in absolute debt versus recent annual periods, which reduces balance-sheet flexibility if operating conditions soften.

Cash Flow

Cash generation is a key strength: TTM (Trailing-Twelve-Months) operating cash flow is ~$109.2M and free cash flow is ~$91.0M, with free cash flow up sharply versus the prior annual period. Free cash flow is solid relative to earnings (about 0.73x net income), supporting reinvestment, debt service, and shareholder returns. A watch item is that operating cash flow is still meaningfully below revenue in scale (as reflected in the provided coverage ratio), suggesting working-capital and timing effects can create volatility even when earnings improve.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.02B	1.00B	1.12B	971.52M	733.38M	477.81M
Gross Profit	168.03M	160.03M	141.02M	90.55M	110.54M	98.31M
EBITDA	107.61M	101.90M	93.96M	63.44M	74.02M	105.70M
Net Income	40.00M	19.87M	26.62M	3.43M	24.36M	64.03M
Balance Sheet
Total Assets	752.30M	524.89M	607.09M	611.40M	531.55M	513.52M
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	-28.09M	-25.07M	-26.08M
Total Debt	228.54M	85.13M	117.30M	122.14M	90.39M	111.45M
Total Liabilities	467.63M	245.94M	320.07M	324.42M	227.20M	212.55M
Stockholders Equity	284.06M	278.55M	286.83M	286.79M	304.38M	299.15M
Cash Flow
Free Cash Flow	90.96M	40.49M	59.89M	56.86M	56.70M	67.82M
Operating Cash Flow	109.21M	66.92M	80.55M	63.99M	64.49M	72.81M
Investing Cash Flow	-168.00M	6.82M	-24.05M	-49.84M	-7.99M	-2.36M
Financing Cash Flow	58.78M	-73.74M	-56.50M	-14.15M	-56.49M	-73.03M

Dexterra Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DXT, the sentiment is Positive. The current price of 12.93 is above the 20-day moving average (MA) of 12.81, above the 50-day MA of 12.23, and above the 200-day MA of 10.02, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 57.78 is Neutral, neither overbought nor oversold. The STOCH value of 22.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DXT.

Dexterra Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXT	73 Outperform	C$806.21M	20.23	14.38%	3.02%	-0.73%	221.74%
KBL	71 Outperform	C$436.14M	20.40	8.30%	3.43%	26.29%	-6.47%
CGY	71 Outperform	C$769.43M	37.98	6.36%	1.98%	3.69%	92.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GDI	61 Neutral	C$856.28M	20.38	8.55%	―	-2.83%	179.03%

Dexterra Group Corporate Events

Dexterra Group Reports Strong Q3 2025 Results and Strategic Acquisitions

Dexterra Group Inc. reported strong financial results for Q3 2025, with consolidated revenue of $281.2 million, up from $269.7 million in the same period of 2024. The growth was driven by new sales, strong market activity, and acquisitions, including Right Choice Camps and Catering Ltd. and a 40% stake in Pleasant Valley Corporation. The company’s adjusted EBITDA increased by 9.4% to $35.0 million, and net earnings rose to $12.9 million. These strategic acquisitions enhance Dexterra’s facilities management capabilities and expand its U.S. business platform, positioning the company for further growth.

The most recent analyst rating on (TSE:DXT) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Dexterra Group stock, see the TSE:DXT Stock Forecast page.

Dexterra Group Reports Strong Q3 2025 Results and Strategic Acquisitions

Dexterra Group Inc. reported strong financial results for Q3 2025, with consolidated revenue reaching $281.2 million, driven by new sales, strong market activity, and strategic acquisitions. The company’s adjusted EBITDA increased by 9.4% to $35.0 million, and free cash flow rose significantly to $38.0 million. Dexterra’s acquisition of a 40% stake in Pleasant Valley Corporation and the full acquisition of Right Choice Camps and Catering Ltd. are expected to enhance its market position and operational scale, particularly in the U.S. and Western Canada.

The most recent analyst rating on (TSE:DXT) stock is a Buy with a C$14.00 price target. To see the full list of analyst forecasts on Dexterra Group stock, see the TSE:DXT Stock Forecast page.