Dexterra Group Q3 2025 Earnings Report

Dexterra Group EPS Results

• Actual EPS: C$0.21
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Dexterra Group Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Dexterra Group Announcement Details

• Quarter: Q3 2025
• Date: 11/4/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, November 5, 2025
• Conference Call Time: 8:30AM ET

Dexterra Group (TSE:DXT) is a publicly listed corporation delivering a range of support services for the creation, management, and operation of infrastructure across Canada. Powered by people, we bring best-in-class regional expertise to every challenge and deliver innovative solutions, giving clients confidence in their day-to-day operations. Our activities include a comprehensive range of facilities management services, industry-leading workforce accommodation solutions, innovative modular building capabilities and other support services for diverse clients in the public and private sectors.

Dexterra Group Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Closed two strategic investments — a 40% interest in Pleasant Valley Corporation (PVC) and the acquisition of RightChoice — which management says added nearly $2M of EBITDA in Q3 and will accelerate Dexterra's US IFM growth.
• Positive Sentiment: Delivered strong Q3 results with $35 million of adjusted EBITDA and $38 million of free cash flow, returned ~CAD 7M to shareholders via dividends and buybacks, and achieved the company's 15% ROE target.
• Negative Sentiment: Asset-based services revenue fell to CAD 48M and ABS adjusted EBITDA declined as access-matting utilization slipped from ~90% to ~80%, a headwind the company expects to normalize in Q4 and the medium term.
• Neutral Sentiment: Net debt rose to CAD 206 million after the acquisitions (from CAD 68M at YE 2024); management plans >CAD 20M of debt paydown, a year-end debt/EBITDA target under 1.7x, and highlights a ~200 bps drop in effective interest rate to 6%.
• Positive Sentiment: Outlook remains constructive with support services margins guided to exceed 9% (Q3 was 10.5%), a robust pipeline including nation‑building and defense opportunities, and plans to scale PVC's technology platform and US sales capability.

Presentation

[Operator]

Thank you for standing by. This is the conference operator. Welcome to the Dexterra Group's third quarter 2025 result conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one, on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. I would now like to turn the conference over to Denise Achonu, Chief Financial Officer. Please go ahead.

[Denise Achonu, CFO at Dexterra Group]

Thank you, Steve. Good morning, and thank you to everyone for joining the call. My name is Denise Achonu, Chief Financial Officer of Dexterra Group. With me on the call today are Mark Becker, our CEO, and our Board Chair, Bill McFarland, who will provide some brief introductory comments. After a brief presentation, we will take questions, with the call ending by 9:15 A.M. Eastern time. We will be commenting on our Q3 2025 results with the assumption that you have read the Q3 earnings press release, MD&A, and financial statements. The slide presentation which supports today's comments is posted on our website, and we encourage participants to access the slides and follow along with our presentation. Before we begin, I would like to make some comments about forward-looking information in yesterday's news release and on slide two of the presentation that we have posted to our website.

[Denise Achonu, CFO at Dexterra Group]

You will find cautionary notes in that regard. I will not cover the content of the cautionary notes in any detail. However, we do claim their protection for any forward-looking information that we might disclose on this conference call today. I will now turn it over to Bill McFarland for his introductory comments.

[Bill McFarland, Board Chair at Dexterra Group]

Good morning, and thank you, Denise. Q3 was another strong quarter for Dexterra as management continues to make progress on delivering on the 2025 priorities, including strong operational execution and delivery of results, and importantly, the successful closure of two strategic acquisitions. These two key investments position Dexterra to continue to grow both its business segments in line with our strategy, which includes accelerating growth in the USIFM business and supporting our leading remote workforce accommodation business by making high-return investments when accretive opportunities arise. As we consistently communicated, we are also committed to delivering a return on equity of 15% to shareholders while continuing to build and scale the business over the long term. This includes paying shareholders a dividend and delivering capital appreciation over time. We believe both of the investments will help us meet those goals.

[Bill McFarland, Board Chair at Dexterra Group]

With that overview, I would now like to pass it over to Mark Becker for comments on the Q3 2025 results.

[Mark Becker, CEO at Dexterra Group]

Great. Thank you very much, Bill, and good morning, everyone. I guess starting off on slide 5. As Bill talked about, we closed on our two strategic acquisition investments in Q3. We've been focused on effective onboarding and realizing the benefits from both businesses. Our partnership with Pleasant Valley Corporation is progressing very well. With collective efforts focused on our joint strategic objectives, including the growth of our U.S. platform. The investment in PVC enhances our facilities management capabilities, expands our operational scale, and market access within the U.S., where PVC has a very strong track record of growth and profitability and a robust pipeline of opportunities. The PVC technology-enabled distributed delivery model is complementary to our largely self-perform facilities management model. Over time, we expect to leverage these combined capabilities across North America.

[Mark Becker, CEO at Dexterra Group]

We are deeply engaged with the leadership team at PVC, and their commitment to operational excellence and client service provides a strong foundation for the future. We remain confident in the long-term growth trajectory of the business, and we're actively supporting initiatives that will accelerate U.S. growth, including investments in sales capability and technology. With David Lambert now fully embedded as President of Dexterra USA, we are well-positioned and executing with focus and discipline to scale our FM/IFM presence in the U.S. The Right Choice acquisition closed at the end of August, and onboarding is progressing very well in line with our expectations and is providing an immediate lift in revenue and Adjusted EBITDA. The optimization of Right Choice's camps with a total of 2,000 beds in the Montney-Duvernay in Alberta and BC with Dexterra facilities in the region is also well underway.

[Mark Becker, CEO at Dexterra Group]

The Right Choice fleet of high-quality, underutilized equipment provides additional capacity, available for free redeployment across the Dexterra network in support of our new growth opportunities. We expect to complete the integration of the Right Choice business in Q1 of 2026. We expect to be in a position to deploy an available equipment fleet over the medium term on new growth opportunities, including potential nation-building projects across mining, energy, and other infrastructure as Canada reacts to new global dynamics. Turning now to our Q3 results, I'm very pleased to report that we delivered another quarter of strong financial and operating results with robust market activity levels and strong margins across the business, resulting in CAD 35 million in Adjusted EBITDA for Q3. Our operating performance in Q3 was driven primarily by continued strong camp occupancy levels and also the contributions from our recent acquisitions in PVC and Right Choice, which added almost CAD 2 million in EBITDA.

[Mark Becker, CEO at Dexterra Group]

Our strong operating performance allowed us to continue to achieve our target return on equity of 15%. In the quarter, we also returned approximately CAD 7 million to shareholders through a combination of our recently increased dividends and share buybacks. Market response has been quite positive, with our share price continuing to improve over 30% year-to-date and over 10% since we announced the two investments in early August. Finally, our efforts to proactively manage costs and our supply chain initiatives have allowed us to remain resilient to the implications of cross-border trade challenges, as well as providing margin enhancements in a challenging business environment. With that, I'll turn things over to Denise.

[Denise Achonu, CFO at Dexterra Group]

Thank you, Mark. Speaking in more detail on the business segments, starting with support services on slide six. For Q3, revenues from support services were CAD 234 million, an increase of 7% from Q3 2024 and 14% over Q2 2025. Adjusted EBITDA for the quarter was CAD 25 million, compared to CAD 20 million in Q3 2024 and CAD 21 million in Q2 2025. The increase in revenue and profitability over last quarter is attributable to strong camp occupancy across our network, organic growth, normal seasonal forestry activity, and contributions from both PVC and Right Choice. Adjusted EBITDA margin in Q3 2025 was 10.5%, an increase compared to 9.2% in Q3 2024 and 10% in Q2 2025. The Q3 Adjusted EBITDA margin, excluding PVC, which has no related revenue as it is equity accounted for, was 10%.

[Denise Achonu, CFO at Dexterra Group]

The increase was a result of the factors previously mentioned, our focus on cost control, and continued supply chain efficiency efforts. We expect Adjusted EBITDA margins for support services to continue to exceed 9% for the remainder of 2025 and over the long term. Our pipeline of new sales opportunities remains robust in all areas of support services, including integrated facility management opportunities on both sides of the border. The recent U.S. federal government shutdown is expected to have a limited impact on our U.S. operations, as our government contracts are generally classified as essential services. Moving on to asset-based services on slide seven. Revenue from this business segment was lower in Q3 at CAD 48 million compared to Q3 2024, primarily driven by lower access matting activity due to delays on certain oil and gas project starts by clients.

[Denise Achonu, CFO at Dexterra Group]

We expect this activity to ramp up in Q4, returning to more normalized levels in the medium term. Revenue in Q3 increased 8% compared to Q2 due to higher equipment utilization of workforce accommodation structures and the one-month contribution from Right Choice. Q3 2025 Adjusted EBITDA was CAD 16 million compared to CAD 18 million in Q3 2024 and CAD 17 million in Q2 2025. Adjusted EBITDA margin for Q3 2025 was lower at 34% compared to 35% in Q3 2024 and 38% in Q2 2025 as a result of the same factors previously mentioned, partially offset by the contribution from Right Choice. We have recently secured some medium-term camp rental contracts, which are expected to contribute positively to an outlook of higher margins over the medium term. Adjusted EBITDA margins in this business segment are expected to fluctuate between 30% and 40%, depending on the mix of business.

[Denise Achonu, CFO at Dexterra Group]

Similar and connected to support services, our growth pipeline in asset-based services business remains robust across primarily resource and infrastructure projects. Reinforced by the recent federal budget announcement, there is significant potential opportunities around Canadian nation-building investments. I'll now speak about our recent acquisitions, financial position, and capital markets on slide nine. The results of the two acquisitions have been included in our Q3 results from their respective closing dates. The 40% interest in PVC has been reported as an equity investment and contributed CAD 0.9 million and CAD 0.7 million to Adjusted EBITDA and net earnings, respectively, to our support services segment in Q3. Right Choice has been consolidated with our results since September 1st and is contributing to both the support services and asset-based segments of the business, with a combined uplift in Q3 of CAD 5 million and CAD 0.9 million to revenue and Adjusted EBITDA, respectively.

[Denise Achonu, CFO at Dexterra Group]

Turning now to our financial position, net debt at September 30, 2025, was CAD 206 million compared to CAD 93 million at Q2 2025, and it was CAD 68 million at December 31, 2024. The increase was due to the investment in PVC and the acquisition of Right Choice, which added approximately CAD 150 million to debt. We expect to pay down debt by over CAD 20 million by the end of the year and expect our debt/EBITDA ratio to be under 1.7x of annualized pro forma adjusted EBITDA by year-end, which is well within our comfort zone. We are committed to maintaining a strong balance sheet over the long term. Through the recent interest rate decreases, we have seen our effective interest rate drop by over 200 basis points to 6% in Q3 compared to the same period in the prior year.

[Denise Achonu, CFO at Dexterra Group]

We have also taken out U.S. debt for the PVC acquisition, so our equity investment is effectively hedged from a foreign exchange movement point of view and intend to enter into an interest rate collar to manage interest rates on a go-forward basis. Free cash flow for Q3 2025 was CAD 38 million compared to CAD 12 million for Q3 2024, driven by strong operational results and positive improvements in working capital. As previously communicated, we generate the majority of our free cash flow in the third and fourth quarters. Adjusted EBITDA conversion to free cash flow is expected to continue to exceed 50% for the 2025 fiscal year. On a normalized basis, annual cash taxes are currently running at approximately CAD 15 million, and the majority of our 2025 tax liability will not be payable until early 2026, which results in two years of tax payments in 2026.

[Denise Achonu, CFO at Dexterra Group]

We remain focused on optimizing working capital, primarily through actively working with our clients for prompt payment of receivables. Year-to-date, we have repurchased approximately 1.5 million common shares for total consideration of CAD 12 million under the terms of the NCIB. We plan to remain opportunistic with share buybacks as we still believe our shares are undervalued. Dexterra also declared a dividend for Q4 2025 of CAD 0.10 per share for shareholders of record at December 31, 2025, to be paid on January 15th, 2026. I will now turn it back to Mark for closing comments.

[Mark Becker, CEO at Dexterra Group]

Great. Thanks very much, Denise. Summing things up with our outlook and priorities going forward on slide 11. First priority is continuing to build on our positive momentum on delivering predictable and consistent results, steady organic growth, and realizing the full benefit from our acquisition investments. Secondly, our partnership with PVC is off to a very strong start, and we are working together towards our shared strategic goals, including IFM-centric growth and building out the Dexterra U.S.-based platform. Integration of Right Choice into our existing operations and deployment of camp equipment towards new growth opportunities is also a priority. From an outlook perspective, we continue to closely monitor trade implications and economic conditions in light of ongoing market uncertainties. Dexterra is naturally insulated from the direct impacts of trade tariffs as our labor and a large majority of our supply commodities are domestically sourced.

[Mark Becker, CEO at Dexterra Group]

We are, however, continuing to proactively make adjustments to our supply channels, including optimizing and expanding our volume discounts and vendor rebates and are hedging our foreign exchange and interest rates as Denise discussed. We continue to monitor economic and industry indicators and are staying closely connected to our clients. At this time, we're not seeing indications of changes to industry activity levels or client plans for the balance of 2025 and 2026. We have a healthy pipeline of new sales opportunities in all areas of our business, particularly with our recent acquisitions. As Denise mentioned, the potential around nation-building project investments is significant across all our businesses, including Dexterra having a well-established platform of defense and government facilities management capabilities, including IFM, that's well suited to the potential for defense expansion and investments. Our capital allocation priorities moving forward are really unchanged over the medium term.

[Mark Becker, CEO at Dexterra Group]

Number one is maintaining the newly increased dividend. Secondly, supporting, sustaining, and selective high-return capital investments. Three, accretive acquisitions while maintaining our strong balance sheet. Four, remaining opportunistic on share buybacks under the NCIB. We are excited and confident on our path forward with our expanded business platform. Our overarching strategic focus remains the delivery of consistent and predictable results, profitable growth, and a return on equity for shareholders of 15%. This concludes our prepared remarks. I'll turn the call back to Steve for the Q&A portion of the call.

[Operator]

Thank you. We will now begin the question and answer session. In the interest of fairness, you are asked to limit yourself to two questions, then rejoin the queue if you have additional questions. To join the question queue, you may press star, then one on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw a question, please press star, then two. We will pause for a moment as callers join the queue. The first question comes from Frederic Bastien with Raymond James. Please go ahead.

[Frederic Bastien, Analyst at Raymond James]

Good morning, everybody, and great results.

[Mark Becker, CEO at Dexterra Group]

Great. Thanks very much, Fred.

[Frederic Bastien, Analyst at Raymond James]

I know it's early days, but. Do you have plans in motion to relocate some of Right Choice's underutilized assets to areas where you're seeing strong demand or maybe are short on assets?

[Mark Becker, CEO at Dexterra Group]

Yeah. I mean, that's definitely not only kind of the Right Choice plan, but it's kind of how we manage our workforce accommodations business, kind of Canada-wide, coast to coast to coast, as you know. I think proactively relocating, we tend to kind of land the contracts and then relocate the equipment to support the contracts. It's typically how we do that. We expect that kind of protocol to continue. There's really not a lot of utility, I guess I could say it that way, in relocating equipment in advance. It's really as you land the contracts, as you land the new projects, relocate it on the basis of the new work.

[Frederic Bastien, Analyst at Raymond James]

Okay. That's helpful. My second question. The results are very strong despite the delayed project starts on the ABS side. Are you able to quantify the impact that this had on results?

[Mark Becker, CEO at Dexterra Group]

Yeah. I mean, the way I would quantify it, we have been running access matting at 90% utilization. Q3, a lot closer to 80%. We're already seeing things pick up here in Q4. I think just from an outlook perspective, I think Q4 will look more of a normal profile in terms of what our overall outlook for the year would have been. Kind of back to more normal utilizations. Including things like the seasonality profile that we see between the quarters and in Q4. Of course, we've got the addition of PVC as well as Right Choice on top of there. I think a return to a more normal Q4 is kind of what we're seeing.

[Operator]

Thank you. The next question comes from Zachary Evershed with National Bank Capital Markets. Please go ahead.

[Zachary Evershed, Analyst at National Bank Capital Markets]

You're at the quarter, guys. Good morning.

[Mark Becker, CEO at Dexterra Group]

Good morning, Zach.

[Zachary Evershed, Analyst at National Bank Capital Markets]

In the remote business, obviously. Early days for nation-building. We just got the budget yesterday. Can you give us some more granular details on sequential growth trends in the various verticals, infrastructure, resource, and no benefit to relocating the assets prior to winning contracts? Can you give us an update on how those bids are going to fill the underutilized beds from Right Choice?

[Mark Becker, CEO at Dexterra Group]

Yeah. Happy to do that, Zach. I just say generally a lot of opportunity. I'd have to say a lot of some of the early opportunities that we're seeing are notionally things that we have seen already, like the existing projects. I think everyone that's in the business kind of understands that. It does kind of run the gamut of the business segment. We're seeing everything from energy-based and oil and gas-based opportunities, pipeline opportunities, mining opportunities, as well as infrastructure opportunities. If anything, I could say things are picked up, I guess, in terms of pace of activity around contracting is what I would say.

[Mark Becker, CEO at Dexterra Group]

The only thing I would say might be a little bit different, Zach, would be we're really seeing a rejuvenation of defense-related infrastructure projects, things that we've seen before, but maybe expanded and certainly brought back to the forefront. That is very active for us on the pipeline as well. I would really just characterize it, Zach, as we're seeing it all around and kind of across the board in our verticals. We're pretty excited about the opportunities. It's really going to be a matter of when these projects really come to fruition and land and our opportunity and timing around that.

[Zachary Evershed, Analyst at National Bank Capital Markets]

Great color. Thanks. Question two. Your outlook for support services specifically mentions over 9% for the rest of 2025. And prior statements were to exceed 9% over the long term. Would you say that the prior guidance still stands, or are you just clarifying the level for Q4?

[Denise Achonu, CFO at Dexterra Group]

Morning, Zach. I would say our prior guidance stands. Over 9% is really what we're expecting. What I would say, though, is that can fluctuate based on occupancy. In Q3, we had strong occupancy, and that took us over to that 10% range. Again, based on where occupancy ends, we could end up on the higher end of that range. Our guidance remains unchanged related to the support services margin.

[Operator]

Thank you. If you have a question, please press star, then one. The next question comes from Carol Adu-Bobie with Scotiabank. Please go ahead.

[Carol Adu-Bobie, Equity Research Associate at Scotiabank]

Hi. This is Carol on behalf of Jonathan Goldman. Thanks for taking my questions. I wanted to ask you, how should we think about the sustainability of the support services margin? Just following up on the previous long-term target, you were able to execute on 10.5% this quarter. Could you elaborate on that?

[Denise Achonu, CFO at Dexterra Group]

Sure. Thanks, Carol. It really is driven by a couple of things. Within that support services group, we've got our IFM margins, which are typically kind of in the 8%-10% range. We've got work on our remote services, which is typically in the 10%-12% range. Let's say custodial above 6%+. And those are our target margins that we aim for. That all blends out to, again, that kind of above 9%, which is our current outlook. Again, it can vary based on mix of business and occupancy. In Q3, we had really strong occupancy across our camp business. As a result, we hit that 10%. Again, I would say we're very comfortable saying above 9%. Again, it's driven by business mix and occupancy.

[Carol Adu-Bobie, Equity Research Associate at Scotiabank]

Okay. Thank you. Could you also elaborate on some of the drivers of the year-to-year decline in ABS margins? It looks like the Right Choice margins were actually similar to your legacy business, but at the time of the acquisition, it seems like they were significantly higher.

[Denise Achonu, CFO at Dexterra Group]

Yeah. For the Right Choice business, we are expecting margins to be very much similar to our current profile. Obviously, it is contributing both to our support services and asset-based segments. What we are seeing are margins kind of within what our normal targets would be. So ABS, between 30%-40%. Support services in that remote space, 10%-12%. In terms of where they have landed for the quarter, very much in line with our expectations as it relates to the Right Choice.

[Mark Becker, CEO at Dexterra Group]

I think on ABS, Carol, as well. I think we're pretty clear in our feedback in Q3. I mean, it's really around matting. Utilization, as I talked about on Fred's question. We do see that 30%-40% range of margin within ABS. When utilization is high on matting, which is high-margin work, it tends to be towards the top end. When it goes back towards 80%, which is still a pretty good utilization, it can back it off a bit. I think that's where you're seeing the fluctuation around ABS. I would say we're still seeing lots of opportunity around ABS. We've seen the activity pick up in Q4, as I mentioned. We still see things in that 30%-40% range. On high activity, it tends to be towards the higher end of the range.

[Operator]

Thank you. The next question comes from Trevor Reynolds with Acumen Capital. Please go ahead.

[Trevor Reynolds, VP of Research and Equity Analyst at Acumen Capital]

Morning, guys. Just you guys mentioned some new medium-term contracts, I think, for the asset-based services side of things. I just wondered if you guys can kind of provide an update on what your utilization level is on your camp assets right now.

[Mark Becker, CEO at Dexterra Group]

Yeah. Good question, Trevor. And I would say it this way on kind of the non-Right Choice equipment, we're still in that over 90% range. I think as we communicated, the Right Choice asset utilization was a little more in that 50% range at acquisition time. The optimization, though, around our open camps, for example, in the Montney-Duvernay, between the Right Choice camps and our camps, is well underway now, where we are consolidating opportunities between camps that are in the same region and the same clients in a lot of situations. Freeing up those assets then to redeploy.

[Mark Becker, CEO at Dexterra Group]

What you'll see from us going forward, because we're really optimizing everything, you're going to see things blend together. For example, we are closing some Horizon North or some Dexterra camps, keeping some Right Choice camps open and redeploying different equipment. It's going to be more of a blend. You'll see us report those utilizations, but you'll see that ramp up over the medium term as we deploy our inventory to new opportunities. Obviously, it's going to be in the top half of the 50%-90% range as we deploy that equipment on new opportunities.

[Trevor Reynolds, VP of Research and Equity Analyst at Acumen Capital]

Okay. Great. Maybe on the PVC side of things, maybe just how that integration is going and what the timeframe is to kind of rolling out that PVC Connect across the company and scaling that up. Maybe any update you can provide on that?

[Mark Becker, CEO at Dexterra Group]

Yeah, for sure. The integration and the onboarding is going really, really well. It is a joint venture at this point in time. We are working very closely together, as I mentioned, with PVC. I would say, and this dates back into CMI as well as PVC, it is all about building that U.S. platform for us and opening up the robust opportunity pipelines, which we have seen. As you mentioned, kind of backdrafting the distributed model with our self-performed model, both in Canada and the U.S. and across North America. I think one of the early focus areas with PVC, and no different than we did with CMI starting last year, is really getting those opportunity pipeline going for new opportunities. We are seeing lots of opportunities. We want to land some new work, want to generate a bit of growth momentum with that business.

[Mark Becker, CEO at Dexterra Group]

Definitely, we are investing, as we talked about, in PVC Connect, which is the distributed technology model. That work is well underway as well. Between this year and into next year, we will be investing in PVC Connect. To your point, looking at how we can then backdraft that into Canadian opportunities and Dexterra opportunities. The only other thing I would say, Trevor, we are really investing in our U.S. sales team. It is an important piece. Obviously, we have got David Lambert on board now. We have got another senior executive leader that is working directly with PVC, but also bringing on a new sales leader. We have got sales individuals.

[Mark Becker, CEO at Dexterra Group]

We're really bringing that team together under that whole US umbrella because it's going to be really important to make sure we get full value from these acquisitions, that we have a strong sales team, strong business development that can bring kind of the joint Dexterra PVC capabilities to bear and really, as I said, bring on new work and really get us some growth momentum going.

[Operator]

Thank you. The next question comes from Sean Jack with Raymond James Limited. Please go ahead.

[Sean Jack, Senior Equity Research Associate at Raymond James]

Hey. Morning, guys. Just wondering, outside of the IFM. Wondering what the effect of this nation-building sentiment is doing to pricing right now.

[Mark Becker, CEO at Dexterra Group]

Yeah. Good question. Sean, haven't seen a ton of inflation at this point. As we talked about, we're pretty insulated, and we've done a lot of things around supply chain. I guess around nation-building specifically, I mean, we all know the more frothy the opportunity set is, it tends to drive pricing up. We'll keep our eyes on that. Again, we got to see these projects really come to bear. There's a lot of contracting activity, a lot of discussions going on around projects, as I mentioned, a lot of projects getting pulled ahead. I think, Sean, it remains to be seen what impact on pricing around things like turnkey camps and camp rates that that'll drive. I.

[Mark Becker, CEO at Dexterra Group]

Margins as well, more broadly. I think it's just going to be around the pace of nation-building projects, how quickly they come on, where they are, and what sector they're in. Generally speaking, if we do see, or as we see, I guess, nation-building projects come on, you can expect that. We tend to have an uplift towards pricing is what I would say.

[Sean Jack, Senior Equity Research Associate at Raymond James]

All right. Perfect. That's helpful. I just wanted to circle back. There's been some comments on the opportunities coming up specifically from resource and from mining. Just wondering how Dexterra is positioning itself to win Canadian defense contracts that are going to be coming up soon. There's been a lot of talk about that around the budget as well. Any thoughts on that would be great.

[Mark Becker, CEO at Dexterra Group]

Sorry. Can you repeat that, Sean? I didn't quite catch you.

[Sean Jack, Senior Equity Research Associate at Raymond James]

Oh. So just wondering how Dexterra is positioning itself to win. A lot of this work that's coming up from the Canadian defense sector that are expected to be coming up soon. Is there a specific plan to kind of position itself there, or any color would be great?

[Mark Becker, CEO at Dexterra Group]

Yeah. For sure. I mean, we've got history definitely in Canada around both defense. I mean, we're at a number of Canadian Forces bases across Canada in the FM/IFM space. So we've been a player in that for long beyond that I've been involved with the company. As well as federal government infrastructure around the FM/IFM space. So we're kind of a well-established player, and I would say a known player. And as I mentioned earlier, some of these projects we're hearing about, we've heard about before. There's things around runway expansions on remote bases, base expansions, remote locations.

[Bill McFarland, Board Chair at Dexterra Group]

We've heard about them before. We're connected. We're familiar with the supply chain protocols around defense and government in Canada. I'd say, Sean, we're really well plugged into that. Also, Indigenous relationships matter. In a lot of these locations, we're pretty well connected with existing business and potential new business. I feel like our exposure and our visibility around this, and our candidacy around this, is pretty positive, is what I would say.

[Sean Jack, Senior Equity Research Associate at Raymond James]

All right. That's perfect. Thanks, guys.

[Operator]

Thank you. As there are no further questions, this concludes the question and answer session and today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day. Thank you.

Participants

Executives

• Denise Achonu, CFO
• Mark Becker, CEO
• Bill McFarland, Board Chair

Analysts

• Trevor Reynolds, VP of Research and Equity Analyst at Acumen Capital
• Sean Jack, Senior Equity Research Associate at Raymond James
• Carol Adu-Bobie, Equity Research Associate at Scotiabank
• Frederic Bastien, Analyst at Raymond James
• Zachary Evershed, Analyst at National Bank Capital Markets