Dexterra Group (TSE:DXT)
TSX:DXT
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Dexterra Group
(TSX:DXT)
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Rating:64Neutral
Price Target:
C$12.50
â–²(2.97% Upside)
Action:DowngradedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Dexterra Group (DXT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$757.69M
Dividend Yield3.02%
Average Volume (3M)58.01K
Price to Earnings (P/E)17.9
Beta (1Y)0.74
Revenue Growth-0.73%
EPS Growth221.74%
CountryCA
Employees8,157
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.12
Shares Outstanding62,412,670
10 Day Avg. Volume33,194
30 Day Avg. Volume58,006
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)2.56
Price to Sales (P/S)0.70
P/FCF Ratio11.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$15.25Price Target Upside25.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.84
Revenue Forecast (FY)C$1.14B
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 ...
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 inc...
Dexterra Group Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized multiple positive developments: record revenue (> $1B), record adjusted EBITDA ($123M), improved margins across segments, successful strategic acquisitions (PVC and Right Choice), strong free cash flow ($60M) and shareholder returns (dividend increase and buybacks), and material share price appreciation. Offsetting items include ABS revenue lumpiness and a year-over-year ABS revenue decline, timing-related working capital impacts (delayed $11M receivable), increased share-based compensation expense, and incremental acquisition-related debt. Overall, the positives (record profitability, margin expansion, cash generation, acquisitions strengthening growth platform, and strong market response) materially outweigh the operational and timing headwinds flagged.Positive Updates
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.
Negative Updates
ABS Revenue Decline for the Year
ABS revenue declined from $192 million in 2024 to $173 million in 2025 (≈ -9.9% year-over-year) due to timing of camp installations and lower access matting rentals despite margin gains.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
The company reiterated 2026 guidance focused on profitable, predictable growth with several quantitative targets and assumptions: management expects adjusted EBITDA conversion to free cash flow to be greater than 50% in 2026 (with Q3 and Q4 highest due to Support Services seasonality) versus a 49% conversion in 2025 (would have been 58% if an $11M receivable had been collected), and free cash flow generation and capital allocation will prioritize dividend maintenance, sustaining capex of ~1–1.5% of revenue, opportunistic buybacks and debt paydown (net debt was 1.6x adjusted EBITDA or ~$200M at Dec‑31, 2025; the PVC and Right Choice deals added ≈$115M of debt; $425M term loan matures 2029); segment targets are mid‑single‑digit revenue growth for Support Services and low‑single‑digit for ABS with Support Services margins expected to exceed 9% long‑term and ABS adjusted EBITDA margins to remain in the 30–40% range; corporate costs are expected to stay around 2.5% of revenue; other metrics referenced include 2025 revenue >$1B, adjusted EBITDA $123M, Q4 adjusted EBITDA $33M (12% margin), Q4 Support Services revenue $231M (+12% YoY) and adjusted EBITDA $24M (+31% YoY), Q4 ABS adjusted EBITDA $15M (37% margin), PVC equity contribution (40% ownership; historical revenue ~US$170M and ~8% margins) and Right Choice/PVC FY contributions (~$5M and $3M respectively), a ROE target of ~15%, continued investment in technology (expensed, within ~2.5% corporate spend), and continued use of hedges (USD debt collar, total return swap on share‑based comp).Dexterra Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| 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
Positive
12.14
Price Trends
12.43
Negative
12.21
Negative
10.88
Positive
Market Momentum
-0.12
Negative
51.73
Neutral
68.75
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 12.14 is above the 20-day moving average (MA) of 11.90, below the 50-day MA of 12.43, and above the 200-day MA of 10.88, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 51.73 is Neutral, neither overbought nor oversold. The STOCH value of 68.75 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | C$810.03M | 30.99 | 6.36% | 1.98% | 3.69% | 92.38% | |
64 Neutral | C$757.69M | 17.94 | 14.45% | 3.02% | -0.73% | 221.74% | |
64 Neutral | C$461.26M | 23.08 | 7.09% | 3.43% | 26.29% | -6.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
TSE:DXT
Dexterra Group
12.14
4.71
63.48%
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70.55
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Dexterra Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Dexterra Sets March 3 Release Date for Q4 2025 Results and Investor Call
Neutral
Feb 18, 2026
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 undersco...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.