Dexterra Group Inc.

Dexterra reported Q2 2026 revenue of $269 million, up 8% year over year, and adjusted EBITDA of $33 million, up 9%. Adjusted margins were 12%, free cash flow was $22 million, and net debt ended the quarter at $206 million versus $225 million at March 31, 2026, equal to 1.5x adjusted EBITDA. Support Services revenue was $226 million, up 10%, with adjusted EBITDA of $23 million and 10% margins; excluding Right Choice, revenue growth was 5% year over year. Asset Based Services revenue was $43 million, adjusted EBITDA was $17 million, and margin improved to 40% from 38%. For 2026, management expects adjusted EBITDA conversion to free cash flow to exceed 50%, corporate costs to approximate 2.5% of revenue, sustaining capex to approximate 1% to 1.5% of revenue on an annualized basis, and net debt to decline over the balance of the year absent significant investments or acquisition activity.

Mark Becker said the business carried positive momentum from Q1, with growth coming from workforce accommodation occupancy, new contract wins, and the Right Choice acquisition. He emphasized that Dexterra is adding scale while improving profitability, and that the company is focused on realizing the full value of recent acquisitions rather than pursuing broad M&A. His tone was upbeat but measured, especially on new U.S. data center work and nation-building opportunities, which he described as significant but still developing.

Denise Achonu walked through a quarter of solid top-line and margin performance, citing $269 million of revenue, $33 million of adjusted EBITDA, and $22 million of free cash flow. She noted Support Services adjusted EBITDA margin of 10% and Asset Based Services margin of 40%, with PVC contributing $1.4 million to adjusted EBITDA and remaining cash flow neutral near term as it invests in software and team growth. She also highlighted $3.6 million of capex, including $2 million tied to a Q1 fire expected to be recovered through insurance, and said cash taxes for 2026 should be around $12 million to $15 million.

Analysts focused on U.S. data center opportunities, asking how much had already been contracted, what the timing and size could be, and whether the work would mostly involve support services or asset rentals. Management said Dexterra is already active on 1 project and 2 U.S. projects, described the opportunity set as potentially significant, and said the bulk of the partnership contribution would come from Support Services. Questions also centered on wildfire season, the scale of the new U.S. PVC-related contracts, M&A versus smaller high-return investments, and the hurdle rate for new or refurbished beds; management said the current focus is on proving up recent acquisitions, targeting quick returns on incremental bed investments, and generally seeing those projects as 2 to 4 years max, with closer to 2 years more realistic.