The company reported higher adjusted EBITDA and free cash flow, driven by workforce accommodations and new contract activity.
Dexterra Group posted an 8% year-over-year increase in second-quarter revenue to C$269 million, with adjusted EBITDA up 9% to C$33 million. Free cash flow reached C$22 million, while net debt declined to C$206 million, lowering leverage to 1.5 times adjusted EBITDA.
The growth was fueled by a 10% rise in Support Services revenue and improved margins in Asset Based Services, which hit 40%. Higher-margin rental activity and contributions from the Right Choice acquisition offset weaker wildfire-related work. Adjusted EBITDA margin expanded to 12%, supported by operational efficiencies and inflation management.
Dexterra is targeting U.S. data-center workforce-housing projects and Canadian energy, mining, and infrastructure opportunities. The company renewed its share-repurchase program and expects over 50% adjusted EBITDA-to-free-cash-flow conversion by 2026.