Dexterra Group (DXT) AI Stock Analysis

• Market Cap: C$738.97M
• Dividend Yield: 3.02%
• Average Volume (3M): 58.01K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.79
• Revenue Growth: -0.73%
• EPS Growth: 221.74%
• Country: CA
• Employees: 8,157
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.12
• Shares Outstanding: 62,412,670
• 10 Day Avg. Volume: 33,194
• 30 Day Avg. Volume: 58,006
• PEG Ratio: 0.16
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 11.95
• 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$15.25
• Price Target Upside: 28.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.84
• Revenue Forecast (FY): C$1.14B

• Rating: 64 Neutral
• Price Target: C$12.50 ▲(5.57% Upside)
• Action: Downgraded Date: 03/05/26
• Date: Action: Downgraded 03/05/26

The score is driven primarily by improving operating performance and constructive earnings-call guidance, tempered by a meaningful step-up in leverage and weaker recent free-cash-flow trend. Valuation (low-teens P/E and ~3.15% yield) is supportive, while technical indicators point to weak near-term momentum.

Positive Factors

Record scale & improving profitability

Achieving >$1B revenue and record adjusted EBITDA demonstrates durable scale in outsourced support services. Higher ROE (~15%) and improved margins reflect stronger operating leverage and contract economics, which supports sustainable cash generation and competitive positioning across long-term client agreements.

Solid cash generation and conversion

Consistent positive operating cash flow and meaningful free cash flow support durable capital allocation (dividends, buybacks, debt paydown). High FCF-to-income conversion indicates earnings quality and funds strategic priorities without immediate reliance on external financing, bolstering long-term financial flexibility.

Strategic acquisitions and U.S. expansion

Targeted M&A (PVC partnership and Right Choice) expands addressable market, scale and service capacity, enhancing cross-sell opportunities and geographic diversification. These structural moves strengthen the firm's ability to win multi-site contracts and improve long-term growth prospects across facilities and accommodation services.

Negative Factors

Marked increase in leverage

A substantial rise in debt materially increases leverage and reduces balance-sheet flexibility. Acquisition-funded borrowing and net debt near ~1.6x adjusted EBITDA raise interest and refinancing exposure, constraining capacity to absorb demand shocks or pursue opportunistic investments without further deleveraging.

Free-cash-flow decline and working-capital timing

A notable year-over-year FCF decline and a delayed $11M receivable show cash generation is sensitive to working-capital timing. This volatility can slow targeted debt paydown and limits the reliability of cash for dividends or buybacks, increasing execution risk over the medium term.

ABS revenue decline and lumpiness

The ABS segment exhibits project timing-driven revenue volatility and a near-10% decline in 2025. Reliance on camp mobilizations and cyclical sectors (energy, mining, infrastructure) makes top-line and utilization less predictable, complicating forecasting and smoothing of group-level margins over time.

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

Income statement trends are improving (modest TTM revenue growth and better margins/ROE versus 2024), but the balance sheet is a key constraint: debt rose sharply and leverage is meaningfully higher, reducing flexibility. Cash flow remains positive with decent FCF-to-earnings conversion, yet TTM free cash flow fell materially year-over-year, which heightens the importance of sustaining cash generation.

Income Statement

TTM (Trailing-Twelve-Months) revenue is slightly higher (about +2.3% growth), showing resilience after a modest decline in 2024. Profitability has improved versus 2022–2024: TTM net margin is ~3.9% (up from ~2.0% in 2024) and operating profitability is steady with EBIT margin around ~6.7% and EBITDA margin ~10.6%. Offsetting this, margins remain well below the unusually strong 2020 levels, indicating the business is operating in a lower-profit environment than earlier in the cycle.

Balance Sheet

Equity and asset base are solid (TTM equity ~$284M on assets ~$721M), and returns have improved with TTM return on equity ~14.3% versus ~7.1% in 2024. The key weakness is leverage: total debt rose sharply to ~$223M TTM from ~$85M in 2024, pushing debt relative to equity to ~0.80 (up from ~0.31). This higher leverage reduces balance-sheet flexibility if conditions soften.

Cash Flow

Cash generation remains positive: TTM operating cash flow is ~$79.6M and free cash flow is ~$66.3M. Free cash flow conversion is decent relative to earnings (free cash flow is ~83% of net income TTM, improving from ~61% in 2024). However, free cash flow declined meaningfully year-over-year in the TTM period (about -27%), and operating cash flow coverage remains moderate, suggesting less cash cushion than the headline profitability improvement might imply.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04B	1.00B	1.12B	971.52M	733.38M
Gross Profit	144.27M	160.03M	141.02M	90.55M	110.54M
EBITDA	107.02M	101.90M	93.96M	63.44M	74.02M
Net Income	40.51M	19.87M	26.62M	3.43M	24.36M
Balance Sheet
Total Assets	720.67M	524.89M	607.09M	611.40M	531.55M
Cash, Cash Equivalents and Short-Term Investments	0.00	0.00	0.00	-28.09M	-25.07M
Total Debt	223.30M	85.13M	117.30M	122.14M	90.39M
Total Liabilities	436.62M	245.94M	320.07M	324.42M	227.20M
Stockholders Equity	283.81M	278.55M	286.83M	286.79M	304.38M
Cash Flow
Free Cash Flow	60.82M	40.49M	59.89M	56.86M	56.70M
Operating Cash Flow	74.25M	66.92M	80.55M	63.99M	64.49M
Investing Cash Flow	-163.70M	6.82M	-24.05M	-49.84M	-7.99M
Financing Cash Flow	89.45M	-73.74M	-56.50M	-14.15M	-56.49M

Dexterra Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DXT, the sentiment is Negative. The current price of 11.84 is below the 20-day moving average (MA) of 12.48, below the 50-day MA of 12.82, and above the 200-day MA of 10.79, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 38.43 is Neutral, neither overbought nor oversold. The STOCH value of 13.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DXT.

Dexterra Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CGY	66 Neutral	C$867.30M	30.99	6.36%	1.98%	3.69%	92.38%
DXT	64 Neutral	C$738.97M	17.94	14.45%	3.02%	-0.73%	221.74%
KBL	64 Neutral	C$444.19M	23.08	8.31%	3.43%	26.29%	-6.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Dexterra Group Corporate Events

Dexterra Sets March 3 Release Date for Q4 2025 Results and Investor Call

Dexterra Group Inc. will release its fourth-quarter 2025 financial results on March 3, 2026, after markets close, followed by a conference call and webcast the next morning to review the results. The scheduled disclosure and investor call underscore the company’s efforts to maintain transparency with stakeholders and provide insight into recent operational performance and market positioning.

Investors and analysts will be able to access a results presentation on Dexterra’s investor relations website, join the live webcast, or listen to a recorded version of the call available for a limited time. This structured communication process is intended to facilitate broad access to the company’s financial and strategic updates, which may inform market expectations and stakeholder assessments of Dexterra’s trajectory.

The most recent analyst rating on (TSE:DXT) stock is a Buy with a C$14.50 price target. To see the full list of analyst forecasts on Dexterra Group stock, see the TSE:DXT Stock Forecast page.