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Dexterra Group
(TSX:DXT)
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Rating:67Neutral
Price Target:
C$16.00
▲(18.69% Upside)
Action:Downgraded
Date:08/07/26
The score is driven primarily by solid fundamentals (improving earnings and strong free-cash-flow generation) tempered by increased leverage and an uneven revenue history. The latest earnings call adds support via continued margin/FCF guidance and improving net debt metrics, while technicals are mixed with near-term weakness despite a longer-term uptrend. Valuation is reasonable but not clearly cheap given the P/E, with the dividend providing some support.
Positive Factors
Strong free cash flow generation
Consistent, sizable free cash flow (~$69M TTM) supports durable capital allocation choices: sustaining capex, dividends, debt paydown and selective M&A. High FCF conversion underpins liquidity and reduces reliance on capital markets, strengthening medium-term financial flexibility.
Negative Factors
Rising leverage versus prior year
A material step-up in leverage reduces financial flexibility and increases refinancing and interest-rate risk over the medium term. Elevated debt levels constrain the company’s ability to pursue opportunistic investments and raise the stakes on cash-generation consistency to meet obligations.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, sizable free cash flow (~$69M TTM) supports durable capital allocation choices: sustaining capex, dividends, debt paydown and selective M&A. High FCF conversion underpins liquidity and reduces reliance on capital markets, strengthening medium-term financial flexibility.
Read all positive factors
Dexterra Group (DXT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$847.18M
Dividend Yield2.91%
Average Volume (3M)58.01K
Price to Earnings (P/E)19.4
Beta (1Y)0.65
Revenue Growth8.97%
EPS Growth27.62%
CountryCA
Employees8,594
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.71
Shares Outstanding62,476,055
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$17.00Price Target Upside26.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.8
Revenue Forecast (FY)C$1.14B
Dexterra Group Business Overview & Revenue Model
Company Description
Dexterra Group Inc., established in 1985 and based in Mississauga, Canada, offers extensive support services essential for the development, upkeep, and operation of infrastructure projects throughout Canada. The company organizes its operations in...
How the Company Makes Money
Dexterra makes money primarily by contracting to deliver outsourced services for clients, earning revenue based on agreed pricing and service levels. Its key revenue streams generally include (1) Facilities Management and related services—multi-si...
Dexterra Group Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call portrayed a predominantly positive operational and financial performance: revenue (+8%), adjusted EBITDA (+9%), strong free cash flow ($22M), improved ABS margins (40%), high fleet utilization (>85%), and a ROE of 15.4% meeting targets. Near-term headwinds included lower wildfire activity reducing some revenue, a $5M decline in installation/demobilization activity, and early-stage timing uncertainty around larger data center opportunities. Investments in PVC are strategic but are equity-accounted and near-term cash neutral. Overall, the company presents solid growth, margin expansion and balance-sheet flexibility while managing timing- and project-driven variability.Positive Updates
Revenue Growth
Consolidated revenue of $269 million, up 8% year-over-year, driven by strong workforce accommodations occupancy, organic growth from new contract wins and contribution from the Right Choice acquisition.
Negative Updates
Lower Wildfire Activity Reduced Revenue in Q2
Wildfire support—historically contributing roughly $20–$25 million annually (split between Q2 and Q3)—was below normal in Q2 (less than half of historical Q2 contribution), creating a year-over-year drag on activity and revenue in both Support Services and Asset Based Services.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Consolidated revenue of $269 million, up 8% year-over-year, driven by strong workforce accommodations occupancy, organic growth from new contract wins and contribution from the Right Choice acquisition.
Read all positive updates
Company Guidance
The company guided that 2026 execution will drive continued profitable, capital‑light growth with specific targets and expectations: Q2 results were revenue $269M (+8%), adjusted EBITDA $33M (+9%) and adjusted margin 12%, with free cash flow $22M and net debt $206M (1.5x adjusted EBITDA); trailing 12‑month ROE was 15.4% (target ≥15%). For 2026 they expect Support Services adjusted EBITDA margins to exceed 9% (Q2: revenue $226M, adj. EBITDA $23M, margin 10%; PVC contributed $1.4M and is 40% owned), Asset Based Services to remain at the upper end of a 30%–40% margin range (Q2: revenue $43M, adj. EBITDA $17M, rental revenue +13%), higher workforce‑rental activity through H2, access matting utilization ~2025 levels, and deployment of ~2,000 available beds in the medium term with fleet utilization >85%. They reaffirmed free‑cash‑flow conversion to exceed 50% for the year, corporate costs of ~2.5% of revenue (Q2: 2.7%), sustaining capex ~1–1.5% of revenue, expected cash taxes ~$12–15M for 2026, a $425M term loan maturing in 2029, an NCIB to repurchase up to 3M shares, a $0.10/share dividend payable Oct‑2026, and a disciplined capital‑allocation priority list (support dividend, sustaining/high‑return capex, debt paydown, accretive M&A).Dexterra Group Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
61
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.10B | 1.04B | 1.00B | 1.12B | 971.52M | 733.38M |
| Gross Profit | 153.05M | 144.27M | 160.03M | 141.02M | 90.55M | 110.54M |
| EBITDA | 112.95M | 108.37M | 101.90M | 93.96M | 63.44M | 74.02M |
| Net Income | 43.95M | 40.51M | 19.87M | 26.62M | 3.43M | 24.36M |
Balance Sheet | ||||||
| Total Assets | 740.02M | 720.67M | 524.89M | 607.09M | 611.40M | 531.55M |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 0.00 | 0.00 | 0.00 | -28.09M | -25.07M |
| Total Debt | 227.99M | 223.30M | 85.13M | 117.30M | 122.14M | 90.39M |
| Total Liabilities | 440.85M | 436.62M | 245.94M | 320.07M | 324.42M | 227.20M |
| Stockholders Equity | 298.76M | 283.81M | 278.55M | 286.83M | 286.79M | 304.38M |
Cash Flow | ||||||
| Free Cash Flow | 69.19M | 60.82M | 40.49M | 59.89M | 56.86M | 56.70M |
| Operating Cash Flow | 89.59M | 74.25M | 66.92M | 80.55M | 63.99M | 64.49M |
| Investing Cash Flow | -163.91M | -163.70M | 6.82M | -24.05M | -49.84M | -7.99M |
| Financing Cash Flow | 74.32M | 89.45M | -73.74M | -56.50M | -14.15M | -56.49M |
Dexterra Group Technical Analysis
Positive
13.48
Price Trends
14.31
Negative
13.39
Positive
12.73
Positive
Market Momentum
-0.31
Positive
42.02
Neutral
43.40
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 13.48 is below the 20-day moving average (MA) of 14.17, below the 50-day MA of 14.31, and above the 200-day MA of 12.73, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 42.02 is Neutral, neither overbought nor oversold. The STOCH value of 43.40 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)
TSE:DXT
Dexterra Group
13.76
4.34
46.04%
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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.