Horizon North Logistics Stock Earnings Reports

Dexterra reported a strong Q3 2025 driven by robust operating performance, high occupancy in its accommodation/camp business, and contributions from two strategic acquisitions (40% interest in Pleasant Valley Corporation (PVC) and the acquisition of Right Choice). Consolidated adjusted EBITDA for Q3 was $35 million, with Support Services revenue up 7% year-over-year to $234 million and Asset-Based Services revenue of $48 million (softness from lower access matting activity). Recent acquisitions added nearly $2 million of EBITDA in the quarter and provide strategic scale in the U.S. IFM market (PVC) and additional camp/equipment capacity (Right Choice). Net debt rose to $206 million after the acquisitions (from $93M in Q2 2025) but management expects to reduce debt by over $20 million by year-end and target a pro forma debt/EBITDA below 1.7x. Free cash flow was strong at $38 million for Q3 and adjusted EBITDA-to-FCF conversion is expected to exceed 50% for FY2025. Management reiterated a capital allocation framework prioritizing the newly increased dividend, selective high-return investments, accretive M&A, and opportunistic share buybacks. Guidance/targets reiterated: Support Services margins above 9% (Q3 was 10.5%) and Asset-Based Services margins expected to fluctuate 30–40% depending on mix. Management is optimistic about medium-term growth opportunities from potential nation-building and defense-related projects in Canada and increased U.S. IFM opportunities via PVC, while noting exposure to project timing (matting utilization) and continuing supply-chain and rate-management actions (FX and interest rate hedging).