Download PDF

1. Company Snapshot

1.a. Company Description

Dexterra Group Inc.provides support services for the creation, management, and operation of infrastructure in Canada.It operates through three segments: Integrated Facilities Management; Modular Solutions; and Workforce Accommodations, Forestry and Energy Services (WAFES).


The Integrated Facilities Management segment delivers operation and maintenance solutions for built assets and infrastructure in the public and private sectors, including aviation, defense, retail, healthcare, business and industry, education, rail, hotels and leisure, and government.The Modular Solutions segment designs, manufactures, transports, and installs multi-unit residential, retail, and commercial modular buildings for housing, commercial, residential, and industrial clients.The WAFES segment provides workforce accommodation, camp management, and catering services; offers tree planting and thinning services; and rents and sells office units, lavatory units, mine dry units, wellsite units, and associated equipment, as well as provides access mat rentals.


The company was formerly known as Horizon North Logistics Inc.and changed its name to Dexterra Group Inc.in November 2020.


Dexterra Group Inc.was founded in 1985 and is headquartered in Mississauga, Canada.

Show Full description

1.b. Last Insights on DXT

Dexterra Group Inc.'s recent performance was driven by strong Q3 2025 results, with consolidated revenue growing to $281.2 million, fueled by new sales, market activity, and the acquisition of Right Choice Camps and Catering. Adjusted EBITDA rose to $35.0 million. The company's earnings growth reversed a five-year decline, with a 6.6% annual increase, and revenue is forecast to grow 7.2% per year. National Bank maintains an outperform rating, with a target price of $15. Additionally, Dexterra's estimated fair value is CA$22.72, suggesting a 49% undervaluation.

1.c. Company Highlights

2. Dexterra's Q3 2025 Earnings: A Strong Performance

Dexterra Group Inc. reported a robust financial performance in Q3 2025, with adjusted EBITDA reaching $35 million. The company's revenue growth was driven by its recent acquisitions, including a 40% interest in Pleasant Valley Corporation (PVC) and the acquisition of Right Choice. The Support Services segment saw a 7% increase in revenue from Q3 2024 and a 14% increase from Q2 2025, with an adjusted EBITDA margin of 10.5%. The company's actual EPS came in at $0.2038, beating estimates of $0.185. The strong performance was attributed to the company's diversified business segments and its ability to deliver predictable and consistent results.

Publication Date: Nov -20

📋 Highlights
  • Strong Q3 Performance:: Achieved $35 million in adjusted EBITDA, driven by recent acquisitions of 40% in PVC and Right Choice.
  • Support Services Growth:: Revenue rose 7% YoY and 14% QoQ, with adjusted EBITDA margin reaching 10.5%, exceeding 9% guidance for 2025.
  • Acquisition Contributions:: PVC added $0.9M EBITDA, while Right Choice (acquired Sept 1) boosted both Support Services and Asset-Based Segments.
  • Debt Management:: Net debt increased to $206M but expects to reduce it by $20M+ by year-end, targeting a <1.7x debt-to-EBITDA ratio.
  • Asset Utilization:: Non-Right Choice equipment utilization >90%, while Right Choice’s assets are being optimized from 50% initial utilization.

Segment Performance

The Support Services segment's adjusted EBITDA margin increased to 10.5%, driven by a blend of IFM margins (8-10%), remote services margins (10-12%), and custodial services margins above 6%. The company's CFO, Denise Achonu, stated that this blend resulted in an above 9% margin for the quarter, with potential for the higher end of the 10% range if occupancy is strong. The asset-based services (ABS) segment saw a decline in margins, but the company expects utilization to remain in the top half of the 50% to 90% range, driving growth in ABS.

Acquisition and Integration

The company's recent acquisitions, including PVC and Right Choice, have contributed to its revenue growth and adjusted EBITDA. The integration of Right Choice is ongoing, with the company optimizing utilization of Right Choice's assets, which were around 50% at acquisition time. The company's partnership with PVC is also off to a strong start, with the company investing in PVC Connect, a distributed technology model.

Outlook and Valuation

Dexterra expects to continue its positive momentum, with analysts estimating revenue growth of 9.5% next year. The company's current valuation metrics, including a P/E Ratio of 19.71 and an EV/EBITDA of 7.48, suggest that the market is pricing in a moderate growth rate. With a dividend yield of 3.3% and a free cash flow yield of 7.96%, the company offers an attractive return profile for investors. The company's ROIC of 11.4% and ROE of 12.5% indicate a strong ability to generate returns on capital.

Debt and Capital Allocation

The company's net debt at September 30, 2025, was $206 million, an increase of $116 million from Q2 2025. However, Dexterra expects to pay down debt by over $20 million by the end of the year and expects its debt-to-EBITDA ratio to be under 1.7x of annualized pro forma adjusted EBITDA by year-end. The company's capital allocation priorities remain unchanged, with a focus on maintaining the newly increased dividend, supporting sustaining and selective high-return capital investments, and remaining opportunistic on share buybacks under the NCIB.

3. NewsRoom

Card image cap

3 TSX Stocks Trading At Estimated Discounts Up To 43.7%

Dec -02

Source:

Card image cap

TSX Stocks That May Be Trading Below Estimated Value In December 2025

Dec -01

Source:

Card image cap

TSX Value Picks Featuring Badger Infrastructure Solutions And Two More Stocks With Estimated Discounts

Nov -26

Source:

Card image cap

3 TSX Stocks Estimated To Be Trading At Discounts Of Up To 48.9%

Nov -25

Source:

Card image cap

Is There An Opportunity With Dexterra Group Inc.'s (TSE:DXT) 49% Undervaluation?

Nov -25

Source:

Card image cap

Dexterra Group (TSX:DXT) Earnings Growth Reverses Five-Year Decline, Reinforcing Bullish Narratives

Nov -06

Source:

Card image cap

Dexterra Group Inc (HZNOF) Q3 2025 Earnings Call Highlights: Strong EBITDA and Strategic ...

Nov -05

Source:

Card image cap

Dexterra Group Inc. Announces Results for Q3 2025

Nov -04

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.03%)

6. Segments

Workforce Accommodations, Forestry and Energy Services

Expected Growth: 4.83%

Dexterra Group Inc.'s 4.83% growth is driven by increasing demand for workforce accommodations in remote areas, government investments in forestry management, and rising energy consumption. The company's diversified services, including camp management and forestry operations, position it for continued growth. Additionally, the energy services segment benefits from the increasing need for sustainable energy solutions.

Integrated Facilities Management

Expected Growth: 9.33%

Dexterra Group Inc.'s Integrated Facilities Management growth of 9.33% is driven by increasing demand for outsourced facilities management, cost savings, and enhanced operational efficiency. Additionally, the company's expertise in managing complex facilities, investments in technology, and strategic acquisitions have contributed to its growth.

Modular Solutions

Expected Growth: 9.9%

Dexterra Group Inc.'s Modular Solutions segment growth of 9.9% is driven by increasing demand for modular construction, government initiatives promoting sustainable infrastructure, and the company's strategic expansion into new markets. Additionally, the segment benefits from cost savings and efficiency gains through modular design and manufacturing, leading to higher margins and profitability.

Corporate and Other

Expected Growth: 4.83%

Dexterra Group Inc.'s Corporate and Other segment growth of 4.83% is driven by strategic cost savings initiatives, improved operational efficiencies, and a focus on high-margin services. Additionally, the company's investments in digital transformation and innovation have enhanced its competitiveness, leading to increased demand for its services.

7. Detailed Products

Industrial Services

Dexterra Group Inc. provides industrial services including maintenance, repair, and operations (MRO) support to various industries such as oil and gas, mining, and power generation.

Facilities Management

Dexterra Group Inc. offers facilities management services, including janitorial, landscaping, and snow removal, to commercial and industrial clients.

Workforce Accommodations

Dexterra Group Inc. provides workforce accommodations, including camp management, catering, and hospitality services, to remote work sites and industrial projects.

Modular Solutions

Dexterra Group Inc. designs, manufactures, and installs modular buildings and facilities for various industries, including oil and gas, mining, and education.

Emergency Response

Dexterra Group Inc. offers emergency response services, including spill response, fire suppression, and rescue services, to industrial clients.

8. Dexterra Group Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Dexterra Group Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Dexterra Group Inc. is high due to the concentration of buyers and the availability of alternative products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Dexterra Group Inc. is low due to the availability of multiple suppliers and the lack of concentration in the supply market.

Threat Of New Entrants

The threat of new entrants for Dexterra Group Inc. is medium due to the moderate barriers to entry and the availability of resources.

Intensity Of Rivalry

The intensity of rivalry for Dexterra Group Inc. is high due to the high level of competition and the presence of multiple players in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.39%
Debt Cost 8.91%
Equity Weight 74.61%
Equity Cost 8.91%
WACC 8.91%
Leverage 34.03%

11. Quality Control: Dexterra Group Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dexterra

A-Score: 6.9/10

Value: 5.9

Growth: 6.1

Quality: 5.6

Yield: 6.0

Momentum: 9.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
K-Bro Linen

A-Score: 6.1/10

Value: 5.4

Growth: 5.9

Quality: 5.1

Yield: 5.0

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Cass Information Systems

A-Score: 5.8/10

Value: 5.1

Growth: 4.7

Quality: 6.8

Yield: 6.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Calian

A-Score: 5.3/10

Value: 6.5

Growth: 5.8

Quality: 3.8

Yield: 4.0

Momentum: 4.5

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
ARC Document Solutions

A-Score: 5.2/10

Value: 5.7

Growth: 3.2

Quality: 4.0

Yield: 7.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Civeo

A-Score: 4.0/10

Value: 6.8

Growth: 3.2

Quality: 2.3

Yield: 3.0

Momentum: 3.0

Volatility: 5.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.98$

Current Price

11.98$

Potential

-0.00%

Expected Cash-Flows