Dexterra Group Inc. Announces Results for Q1 2026

Press Release

Toronto, Ontario — (– May 6, 2026) – Dexterra Group Inc. (TSX: DXT)

Highlights

Dexterra delivered a strong start to the year generating consolidated revenue of $275.5 million in Q1 2026, compared to $239.7 million for the same period in 2025, with the revenue increase driven by strong camp occupancy, organic growth, and new camp additions related to the acquisition of Right Choice Camps and Catering Ltd. (“Right Choice”) in Q3 2025.
Adjusted EBITDA for the quarter was $33.3 million (2025 – $25.2 million), an increase of 32.3% compared to Q1 2025 reflecting profitable revenue growth, increased Asset Based Services margins due to business mix, and contributions from our investment in Pleasant Valley Corporation (“PVC”) of $1.5 million.
Free Cash Flow (“FCF”) for Q1 2026 was $1.0 million ($1.2 million in Q1 2025), including the payment of $6.7 million in Long-term incentive plan (“LTIP”) amounts in Q1 2026 (Q1 2025 – $0.9 million).
Net earnings were $13.6 million in Q1 2026, compared to $8.6 million in Q1 2025, including insurance recoveries of $4.7 million after-tax related to a fire at one of the Corporation’s camps. Adjusted net earnings were $12.1 million and Adjusted EPS was $0.19 in Q1 2026, compared to $11.0 million and $0.18, respectively, in Q1 2025. Our operations delivered a return on equity of 15.9% (Q1 2025 – 15.1%) on a trailing twelve month basis.
The Board has approved the extension of the NCIB program as of May 6, 2026, subject to TSX approval. This will allow the Corporation to opportunistically repurchase up to approximately 3 million shares in the period from May 23, 2026 to May 22, 2027.
Dexterra declared a dividend for Q2 2026 of $0.10 per share for shareholders of record at June 30, 2026, to be paid on July 15, 2026.

This news release contains certain measures and ratios, such as Adjusted EBITDA, Adjusted EBITDA as a % of revenue, Adjusted net earnings, Adjusted EPS, FCF, and Return on Equity that do not have any standardized meaning as prescribed by GAAP and, therefore, are considered non-GAAP measures. The method of calculating these measures may differ from other entities and accordingly, may not be comparable to measures used by other entities. See “Non-GAAP measures” and “Reconciliation of Non-GAAP measures” of the Corporation’s MD&A for the three months ended March 31, 2026 and 2025 details which is incorporated by reference herein.

First Quarter Financial Summary
First Quarter Operational Analysis

Support Services

Revenue for the three months ended March 31, 2026 was $234.0 million, an increase of 17.7% over Q1 2025, primarily driven by strong camp occupancy including the Right Choice camps acquired in Q3 2025, and organic growth related to new contracts.

Adjusted EBITDA for the three months ended March 31, 2026 was $24.4 million, an increase of 29.1% over Q1 2025, and is attributable to the same factors mentioned above as well as Adjusted EBITDA from PVC of $1.5 million (40% interest acquired in Q3 2025). Adjusted EBITDA margin for the three months ended March 31, 2026 was 10.4% compared to 9.5% in Q1 2025. Adjusted EBITDA margin excluding the equity accounted investment in PVC was 9.8%. Adjusted EBITDA margins are expected to exceed 9% over the long term.

Asset Based Services

Revenue for the three months ended March 31, 2026 was $41.4 million, an increase of 1.2% over Q1 2025, driven by higher workforce structure revenue and utilization of equipment including the use of the Right Choice assets, partially offset by lower camp installation and demobilization activity which varies based on timing of projects.

Adjusted EBITDA for the three months ended March 31, 2026 was $15.8 million, an increase of 17.6% over Q1 2025. Adjusted EBITDA margin for Q1 2026 was 38.2% compared to 32.9% in Q1 2025. Adjusted EBITDA and margins were higher in Q1 2026 reflecting increased rental activity which generates higher margins compared to installation and demobilization activity. Adjusted EBITDA margins for this segment in the future are expected to remain between 30% and 40% depending on the mix of business.

Liquidity and Capital Resources
Net debt was $224.6 million at March 31, 2026 compared to $199.7 million at December 31, 2025. The increase in Net Debt was primarily driven by higher working capital requirements, income tax payments related to 2025 of $11.0 million, share based compensation liabilities of $6.7 million settled in Q1 2026, and the impact of the fire incident previously discussed, as equipment replacement and camp installation for the site commenced ahead of the receipt of insurance proceeds.

The Net Debt at March 31, 2026 was 1.7x Adjusted EBITDA, demonstrating our commitment to maintaining a strong balance sheet and financial flexibility. We expect to continue to maximize FCF conversion targeting greater than 50% of Adjusted EBITDA on an annual basis with Net Debt expected to further reduce in fiscal 2026, absent acquisitions.

Additional Information
A copy of Dexterra’s Condensed Consolidated Interim Financial Statements (“Financial Statements”) for the three months ended March 31, 2026 and 2025 and related Management’s Discussion and Analysis (“MD&A”) have been filed with the Canadian Securities Regulatory authorities and are available on SEDAR at sedarplus.ca and Dexterra’s website at dexterra.com. The Financial Statements have been prepared in accordance with International Financial Reporting Standards and the reporting currency is in Canadian dollars.

Conference Call
Dexterra will host a conference call and webcast to begin promptly at 8:30 a.m. Eastern Time on May 7, 2026 to discuss the first quarter results. To access the conference call by telephone the conference call dial in number is 1-800-715-9871. A live webcast of the conference call will be accessible on Dexterra’s website at https://ir.dexterra.com/events-presentations by selecting the Q1 2026 Results webcast link. An archived recording of the conference call will be available approximately one hour after the completion of the call until June 6, 2026 by dialing 1-800-770-2030, passcode 1141346.

About Dexterra
Dexterra employs more than 9,000 people, delivering a range of support services for the creation, management, and operation of infrastructure across Canada and the U.S.

Powered by people, Dexterra brings best-in-class regional expertise to every challenge and delivers innovative solutions, giving clients confidence in their day-to-day operations. Activities include a comprehensive range of integrated facilities management services, industry-leading workforce accommodation solutions, and other support services for diverse clients in the public and private sectors.

For further information contact:
Denise Achonu, CFO
Head office: Airway Centre, 5925 Airport Rd., Suite 1000
Mississauga, Ontario L4V 1W1
Telephone: (905) 270-1964

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