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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on DXT

Dexterra Group's recent performance was driven by strong Q4 2025 earnings, with revenue increasing 3.8% year-over-year to $1.04 billion, driven by strong Support Services revenue growth from new sales, strong market activity levels, and the acquisition of Right Choice Camps and Catering Ltd. The company's acquisition of Right Choice contributed to its revenue growth, while lower ABS revenue partially offset the increase.

1.c. Company Highlights

2. Dexterra's Q4 2025 Earnings: A Closer Look

Dexterra Group Inc. reported revenue of $1 billion for the fiscal year 2025, with the company's Q4 EPS coming in at $0.1175, below analyst estimates of $0.18. The company's full-year revenue growth was driven by its Support Services segment, which saw a significant increase in revenue.

Publication Date: Mar -09

📋 Highlights
  • Record 2025 Performance:: Generated $1.0B in revenue, $123M adjusted EBITDA, and $40M+ net earnings, with a 14% dividend increase to $0.40/share and over 60% share price appreciation.
  • Support Services Strength:: Q4 revenue rose 12% to $231M, while adjusted EBITDA surged 31% to $24M, driven by improved margins despite tariffs and inflation.
  • ABS Profitability:: Asset-Based Services saw 2% revenue decline but 9% higher EBITDA ($15M) and a 37% margin improvement, reflecting operational efficiency.
  • Strategic Financial Positioning:: $25M in free cash flow post-dividends allocated to debt reduction and opportunistic share buybacks under active NCIB.
  • Camps Business Scale:: Supports $600M in revenue, with 40% in energy, 30% in mining, and 30% in infrastructure, showing diversified demand and 90% utilization in Canada.

Segment Performance

The asset-based services business experienced a decline in revenue, but the company's management attributed this to the lumpy nature of the business. The support services segment recorded a revenue growth, driven by the camp management and facilities management businesses. The adjusted EBITDA for Support Services increased by 31% to $24 million, driven by improved profitability and margins.

Outlook and Valuation

Dexterra's guidance for 2026 suggests mid-single-digit growth in both Support Services and Asset-Based Services. Analysts estimate revenue growth at 5.2% for the next year. With a current P/E Ratio of 19.84 and EV/EBITDA of 9.5, the company's valuation appears reasonable. The dividend yield of 2.91% also provides a relatively stable source of return. The company's return on equity (ROE) stands at 14.45%, indicating a decent return on shareholders' capital.

Operational Highlights

The company's camps business continues to perform well, with 22,000 beds under management in Canada and a utilization rate of 90%. The company expects to balance available equipment with the pipeline to support growth targets. The partnership with PVC is also progressing well, with expected growth in equity income in 2026.

Key Takeaways

Dexterra's Q4 2025 earnings report indicates a strong performance, driven by the support services segment. The company's guidance for 2026 suggests continued growth, and the valuation appears reasonable. The dividend yield provides a stable source of return, making the stock an attractive option for investors seeking a combination of growth and income.

3. NewsRoom

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Dexterra Group Inc (HZNOF) Q4 2025 Earnings Call Highlights: Record EBITDA, Strategic ...

Mar -04

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Dexterra Group Q4 Earnings Call Highlights

Mar -04

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Dexterra Group Inc. Announces Results for Q4 and Year Ended December 31, 2025

Mar -03

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How The Dexterra Group (TSX:DXT) Story Is Shifting With New Analyst Valuation Targets

Mar -03

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Dexterra Announces Date of Q4 2025 Results and Conference Call

Feb -17

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How The Dexterra Group TSX DXT Story Is Shifting With The New Fair Value View

Feb -17

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Exploring 3 Undervalued Small Caps In Global With Insider Activity

Feb -10

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Looking At The Narrative For Dexterra Group After The Latest Price Target Reset

Feb -02

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.03%)

6. Segments

Workforce Accommodations, Forestry and Energy Services

Expected Growth: 4.83%

Dexterra Group Inc.'s 4.83% growth is driven by increasing demand for workforce accommodations in remote areas, government investments in forestry management, and rising energy consumption. The company's diversified services, including camp management and forestry operations, position it for continued growth. Additionally, the energy services segment benefits from the increasing need for sustainable energy solutions.

Integrated Facilities Management

Expected Growth: 9.33%

Dexterra Group Inc.'s Integrated Facilities Management growth of 9.33% is driven by increasing demand for outsourced facilities management, cost savings, and enhanced operational efficiency. Additionally, the company's expertise in managing complex facilities, investments in technology, and strategic acquisitions have contributed to its growth.

Modular Solutions

Expected Growth: 9.9%

Dexterra Group Inc.'s Modular Solutions segment growth of 9.9% is driven by increasing demand for modular construction, government initiatives promoting sustainable infrastructure, and the company's strategic expansion into new markets. Additionally, the segment benefits from cost savings and efficiency gains through modular design and manufacturing, leading to higher margins and profitability.

Corporate and Other

Expected Growth: 4.83%

Dexterra Group Inc.'s Corporate and Other segment growth of 4.83% is driven by strategic cost savings initiatives, improved operational efficiencies, and a focus on high-margin services. Additionally, the company's investments in digital transformation and innovation have enhanced its competitiveness, leading to increased demand for its services.

7. Detailed Products

Industrial Services

Dexterra Group Inc. provides industrial services including maintenance, repair, and operations (MRO) support to various industries such as oil and gas, mining, and power generation.

Facilities Management

Dexterra Group Inc. offers facilities management services, including janitorial, landscaping, and snow removal, to commercial and industrial clients.

Workforce Accommodations

Dexterra Group Inc. provides workforce accommodations, including camp management, catering, and hospitality services, to remote work sites and industrial projects.

Modular Solutions

Dexterra Group Inc. designs, manufactures, and installs modular buildings and facilities for various industries, including oil and gas, mining, and education.

Emergency Response

Dexterra Group Inc. offers emergency response services, including spill response, fire suppression, and rescue services, to industrial clients.

8. Dexterra Group Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Dexterra Group Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Dexterra Group Inc. is high due to the concentration of buyers and the availability of alternative products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Dexterra Group Inc. is low due to the availability of multiple suppliers and the lack of concentration in the supply market.

Threat Of New Entrants

The threat of new entrants for Dexterra Group Inc. is medium due to the moderate barriers to entry and the availability of resources.

Intensity Of Rivalry

The intensity of rivalry for Dexterra Group Inc. is high due to the high level of competition and the presence of multiple players in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.39%
Debt Cost 8.91%
Equity Weight 74.61%
Equity Cost 8.91%
WACC 8.91%
Leverage 34.03%

11. Quality Control: Dexterra Group Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dexterra

A-Score: 6.9/10

Value: 5.8

Growth: 6.1

Quality: 5.4

Yield: 6.0

Momentum: 9.0

Volatility: 9.0

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K-Bro Linen

A-Score: 5.9/10

Value: 6.0

Growth: 5.9

Quality: 5.1

Yield: 5.0

Momentum: 4.0

Volatility: 9.3

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Cass Information Systems

A-Score: 5.7/10

Value: 5.2

Growth: 4.7

Quality: 6.7

Yield: 6.0

Momentum: 3.0

Volatility: 8.7

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Calian

A-Score: 5.3/10

Value: 4.9

Growth: 6.1

Quality: 4.9

Yield: 4.0

Momentum: 5.5

Volatility: 6.3

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ARC Document Solutions

A-Score: 4.3/10

Value: 4.8

Growth: 3.2

Quality: 4.1

Yield: 5.0

Momentum: 6.0

Volatility: 2.7

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Civeo

A-Score: 4.3/10

Value: 8.4

Growth: 3.2

Quality: 2.3

Yield: 2.0

Momentum: 4.5

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.92$

Current Price

11.92$

Potential

-0.00%

Expected Cash-Flows