Overview
Canada support services firm's Q4 revenue slightly missed analyst expectations
Adjusted EBITDA for Q4 2025 grew 22% yr/yr, driven by strategic acquisitions
Outlook
Dexterra expects adjusted EBITDA margins to exceed 9% over the long term
Result Drivers
SUPPORT SERVICES GROWTH - Revenue increase driven by strong camp occupancy and contributions from Right Choice acquisition
ADJUSTED EBITDA INCREASE - Q4 2025 adjusted EBITDA rose 22% due to strong workforce accommodation occupancy and contributions from PVC and Right Choice
ASSET BASED SERVICES DECLINE - Q4 2025 ABS revenue decreased 2.2% due to lower project revenue, offset by Right Choice contribution
Company press release: ID:nNFC257Mpt
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Miss*
C$270.95 mln
C$271.40 mln (5 Analysts)
Q4 Net Income
C$7.42 mln
Q4 Adjusted EBITDA
C$32.57 mln
Q4 Basic EPS
C$0.12
Q4 Free Cash Flow
C$24.55 mln
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"
Wall Street's median 12-month price target for Dexterra Group Inc is C$14.00, about 7.5% above its March 2 closing price of C$13.02
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)