Canada's Dexterra Q1 revenue rises, beats estimates

Dexterra

06/05/2026 22:22

Overview

Canada support services provider's Q1 revenue rose 15% yr/yr, beating analyst expectations

Q1 adjusted EPS rose to C$0.19 from C$0.18 a year earlier

Company extended NCIB program to allow repurchase of up to 3 mln shares

Outlook

Company expects Support Services Adjusted EBITDA margins to exceed 9% over the long term

Asset Based Services Adjusted EBITDA margins expected to remain between 30% and 40%

Dexterra targets free cash flow conversion above 50% of Adjusted EBITDA annually

Result Drivers

CAMP OCCUPANCY & ORGANIC GROWTH - Co said Q1 revenue growth was driven by strong camp occupancy, organic growth, and new camp additions from the Right Choice acquisition

ASSET BASED SERVICES MARGINS - Higher Asset Based Services margins reflected increased rental activity and favorable business mix

INVESTMENT CONTRIBUTIONS - Investment in Pleasant Valley Corporation contributed C$1.5 mln to adjusted EBITDA

Company press release: ID:nNFC1K18b7

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$275.47 mln
C$267.41 mln (7 Analysts)
Q1 Net Income
C$13.60 mln
Q1 Adjusted EBITDA
C$33.30 mln
Q1 Basic EPS
C$0.22
Q1 Free Cash Flow
C$986,000


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$15.25, about 27.3% above its May 5 closing price of C$11.98

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 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.)