Dexterra Group (TSE:DXT)
TSX:DXT
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Dexterra Group
(TSX:DXT)
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Rating:75Outperform
Price Target:
C$14.00
â–²(15.61% Upside)
Action:Reiterated
Date:05/11/26
The score is driven primarily by improving profitability and solid financial trajectory, reinforced by a positive earnings call with strong growth and margin expansion plus expectations for better cash conversion. Technicals are constructive with the stock trading above major moving averages. Valuation is supportive (P/E ~14 and ~3.1% yield), while the main constraints are higher leverage and uneven/softer cash flow trends.
Positive Factors
Improving profitability and margins
Profitability has meaningfully improved versus earlier years, with TTM net and EBIT margins recovering and steady-to-improving gross margin. Sustained margin expansion supports durable cash generation and reinvestment capacity across contract-based services over the medium term.
Negative Factors
Rising leverage and debt trend
Leverage has risen materially versus prior years, reducing balance-sheet flexibility. Higher debt levels constrain optionality for opportunistic investment and increase sensitivity to cash conversion; deleveraging plans are noted but execution risk persists over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and margins
Profitability has meaningfully improved versus earlier years, with TTM net and EBIT margins recovering and steady-to-improving gross margin. Sustained margin expansion supports durable cash generation and reinvestment capacity across contract-based services over the medium term.
Read all positive factors
Dexterra Group (DXT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$812.65M
Dividend Yield3.02%
Average Volume (3M)58.01K
Price to Earnings (P/E)17.9
Beta (1Y)0.76
Revenue Growth6.54%
EPS Growth44.56%
CountryCA
Employees8,157
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.74
Shares Outstanding62,415,752
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$14.25Price Target Upside17.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.78
Revenue Forecast (FY)C$1.15B
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 primarily makes money by delivering outsourced services under contractual arrangements, earning revenue based on agreed pricing structures tied to the scope, duration, and performance requirements of each contract. Key revenue streams gen...
Dexterra Group Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: revenue and adjusted EBITDA grew materially (15% and 32% respectively), margins expanded across segments, acquisitions (Right Choice and PVC) are integrating well and contributing to growth, and ROE exceeded target. Key near-term weaknesses included low Q1 free cash flow (impacted by one-time incentive payments and seasonality), an ongoing insurance settlement from a camp fire, modest year-over-year ABS revenue growth (1.2%), and exposure to potential inflationary pressures. Management expects improved free cash flow conversion and debt reduction in the back half of 2026 and remains confident in the growth pipeline and balance sheet, so the positive operational momentum and financial performance outweigh the manageable near-term headwinds.Positive Updates
Revenue Growth
Total revenue of $275 million in Q1 2026, up 15% year-over-year, reflecting broad demand across Support Services and Asset-Based Services.
Negative Updates
Low Free Cash Flow in Q1
Free cash flow of $1 million in Q1 2026 was low; Q1 included a $6.7 million long-term incentive payment and seasonally higher working capital, though conversion is expected to improve later in the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $275 million in Q1 2026, up 15% year-over-year, reflecting broad demand across Support Services and Asset-Based Services.
Read all positive updates
Company Guidance
Management guided to continued disciplined, profitable growth and capital allocation in 2026, anchored by strong Q1 results: revenue $275M (+15% YoY), adjusted EBITDA $33M (+32%) with a 12% margin (vs. 10.5%), adjusted net earnings +10% and trailing-12‑month ROE 15.9% (target 15%). Segment guidance includes Support Services revenue $234M (+18%), adj. EBITDA $24M (+29%) and a 10.4% margin (9.8% excl. PVC), with Support Services margins expected to exceed 9% long term; PVC (40% ownership, option on remaining 60% in 2027) contributed $1.5M to adj. EBITDA and is expected to be near-term cash‑flow neutral. Asset‑Based Services revenue was +1.2% with rental revenue +11%, adj. EBITDA $16M (+18%) and a 38% margin, with ABS margins expected at the high end of the 30–40% range; fleet utilization ~85% with ~1,500–2,000 spare beds and a target north of 90% over time. Financial and capital priorities: Q1 free cash flow $1M (included $6.7M LTIP payout), adj. EBITDA→FCF conversion expected >50% annually, Q1 CapEx $9.5M (incl. $4M fire-related), normalized sustaining CapEx ~1–1.5% of revenue, receivables include ~$10M insurance recoveries (asset write‑off $4.7M excluded from adjusted metrics), net debt $225M (net debt/adj. EBITDA 1.7x) with a $425M term loan maturing 2029 and available capacity, plan to pay down debt in H2, dividend $0.10/share payable July 2026 and NCIB to repurchase up to ~3M shares.Dexterra Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.08B | 1.04B | 1.00B | 1.12B | 971.52M | 733.38M |
| Gross Profit | 161.12M | 144.27M | 160.03M | 141.02M | 90.55M | 110.54M |
| EBITDA | 113.74M | 107.02M | 101.90M | 93.96M | 63.44M | 74.02M |
| Net Income | 45.43M | 40.51M | 19.87M | 26.62M | 3.43M | 24.36M |
Balance Sheet | ||||||
| Total Assets | 751.26M | 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 | 247.68M | 223.30M | 85.13M | 117.30M | 122.14M | 90.39M |
| Total Liabilities | 459.80M | 436.62M | 245.94M | 320.07M | 324.42M | 227.20M |
| Stockholders Equity | 291.14M | 283.81M | 278.55M | 286.83M | 286.79M | 304.38M |
Cash Flow | ||||||
| Free Cash Flow | 48.14M | 60.82M | 40.49M | 59.89M | 56.86M | 56.70M |
| Operating Cash Flow | 67.32M | 74.25M | 66.92M | 80.55M | 63.99M | 64.49M |
| Investing Cash Flow | -169.27M | -163.70M | 6.82M | -24.05M | -49.84M | -7.99M |
| Financing Cash Flow | 101.95M | 89.45M | -73.74M | -56.50M | -14.15M | -56.49M |
Dexterra Group Technical Analysis
Positive
12.11
Price Trends
12.43
Positive
12.54
Positive
11.53
Positive
Market Momentum
0.16
Positive
54.76
Neutral
42.19
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 12.11 is below the 20-day moving average (MA) of 13.11, below the 50-day MA of 12.43, and above the 200-day MA of 11.53, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 42.19 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)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$812.65M | 17.88 | 16.00% | 3.02% | 6.54% | 44.56% | |
68 Neutral | C$1.00B | 30.24 | 10.35% | 1.98% | 11.71% | 76473.68% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | C$539.26M | 27.83 | 7.12% | 3.43% | 44.38% | -7.06% |
* Industrials Sector Average
TSE:DXT
Dexterra Group
13.02
4.51
53.09%
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Dexterra Group Corporate Events
Financial DisclosuresShareholder Meetings
Dexterra Schedules Q1 2026 Results Release and Virtual AGM
Neutral
Apr 7, 2026
Dexterra Group Inc. has scheduled the release of its first-quarter 2026 financial results for May 6, 2026, after markets close, followed by a conference call and webcast on May 7 to review the performance with investors. The company will also hold...
Business Operations and StrategyFinancial Disclosures
Dexterra Sets March 3 Release Date for Q4 2025 Results and Investor Call
Neutral
Feb 18, 2026
Dexterra Group Inc. will release its fourth-quarter 2025 financial results on March 3, 2026, after markets close, followed by a conference call and webcast the next morning to review the results. The scheduled disclosure and investor call undersco...
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.