Canada's Dexterra Q2 revenue slightly misses estimates, FCF rises

Dexterra (Alberta)

04/08/2026 22:09

Overview
Canada support services firm's Q2 revenue rose 8% yr/yr, slightly missing analyst expectations
Adjusted EPS for Q2 fell to C$0.20 from C$0.23 a year earlier
Company saw higher free cash flow and continued U.S. business investments

Outlook
Dexterra expects adjusted EBITDA margins for Support Services to exceed 9% over the long term
Company expects Asset Based Services adjusted EBITDA margins to remain between 30% and 40% long term
Dexterra expects adjusted EBITDA conversion to free cash flow to exceed 50% for the year

Result Drivers
WORKFORCE ACCOMMODATION OCCUPANCY - Co said higher occupancy and organic growth in workforce accommodations drove revenue growth
BUSINESS MIX SHIFT - Co attributed higher ABS margins to increased proportion of workforce accommodation rental revenue versus installation/demobilization activity
ACQUISITIONS - Contributions from Right Choice and Pleasant Valley Corporation supported revenue and EBITDA growth

Company press release: ID:nNFC8GFB6C

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
C$269.21 mln
C$270.51 mln (5 Analysts)
Q2 Net Income
 
C$10.31 mln
 
Q2 Adjusted EBITDA
 
C$32.83 mln
 
Q2 Basic EPS
 
C$0.16
 
Q2 Free Cash Flow
 
C$21.75 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$19.50, about 25.2% above its July 31 closing price of C$15.58
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads
Aug 4 - Canada's Sienna Senior Living Q2 revenue rises on acquisitions and occupancy growth
Aug 4 - Canada's Martinrea Q2 revenue misses, hurt by lower OEM production volumes
Aug 4 - TrueBlue Q2 adjusted EPS beats estimates as on-demand business returns to growth

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.)