Q4 2025 Dexterra Group Inc Earnings Call

March 4, 2026

Speaker #2: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on the touch-tone phone.

Speaker #2: To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now like to turn the conference over to Denise Achanu, Chief Financial Officer.

Denise Achonu: Thank you, Betsy. Good morning, and thank you to everyone for joining the call. My name is Denise Achonu, Chief Financial Officer of Dexterra Group Inc. 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 AM Eastern Time. We will be commenting on our Q4 and full year 2025 results with the assumption that you have read the Q4 and full year 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.

Speaker #2: Please go ahead. Thank you, Betsy. Good morning, and thank you to everyone for joining the call. My name is Denise Achanu, Chief Financial Officer of Dextera Group Inc. With me on the call today are Mark Becker, our CEO, and our board chair, Bill McFarland.

Speaker #2: Who will provide some brief introductory comments. After a brief presentation, we will take questions with the call ending by 9:15 Eastern Time. We will be commenting on our Q4 and full-year 2025 results with the assumption that you have read the Q4 and full-year earnings press release, MD&A, and financial statements.

Speaker #2: 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.

Denise Achonu: In yesterday's news release and on slide 2 of the presentation that we have posted to our website, you will find cautionary notes in that regard. 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.

Speaker #2: Before we begin, I would like to make some comments about forward-looking information. In yesterday's news release and on slide 2 of the presentation that we have posted to our website, you will find cautionary notes in that regard.

Speaker #2: We do claim there are protections 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: Good morning. Thank you, Denise, and thank you to everyone for joining the call today. 2025 was a record year for Dexterra. CAD 123 million in EBITDA and net earnings of over CAD 40 million, and the completion of two strategic acquisitions, which significantly advanced our scale and competitive position by strengthening both our US integrated facilities management platform and our industry-leading remote workforce accommodation footprint. We also increased our annual dividend by 14% to CAD 0.40 per share during the year, reflecting the board's confidence in the strength and sustainability of the business, strong free cash flow generation, and our low leverage profile. Management's continued focus on disciplined execution and creating shareholder value was also rewarded by the market with over 60% appreciation in our share price over the last 14 months.

Speaker #3: Good morning. Thank you, Denise, and thank you to everyone for joining the call today. 2025 was a record year for Dextera, 123 million in EBITDA and net earnings of over 40 million dollars, and the completion of two strategic acquisitions which significantly advanced our scale and competitive position by strengthening both our U.S.

Speaker #3: Integrated facilities management platform and our industry-leading remote workforce accommodation footprint. We also increased our annual dividend by 14% to $0.40 per share during the year, reflecting the board's confidence in the strength and sustainability of the business.

Speaker #3: Strong free cash flow generation and our low leverage profile. Management's continued focus on disciplined execution and creating shareholder value was also rewarded by the market with over 60% appreciation in our share price over the last 14 months.

Bill McFarland: As we move into 2026, Dexterra is in an excellent position with an experienced management team led by Mark Becker and a strong and engaged workforce. We will continue to focus on building the business for the long term with the support of our major shareholder, Fairfax, and have created a business that all of our shareholders and stakeholders can be proud of. With that overview, I would like to now pass it over to Mark Becker, our CEO.

Speaker #3: As we move into 2026, Dexterra is in an excellent position, with an experienced management team led by Mark Becker and a strong, engaged workforce.

Speaker #3: We will continue to focus on building the business for the long term. With the support of our major shareholder, Fairfax, and have created a business that all of our shareholders and stakeholders can be proud of.

Mark Becker: Thanks very much, Bill. Let me start by saying, you know, what a year. I just wanna say how proud I am of the Dexterra team and what we accomplished together in 2025. Our 2025 results are the accumulation or culmination of hard work over the recent years and the strong execution of our strategic plan. It's been rewarding to see the market better appreciate our business and its future potential. Looking in detail on slide 5, you know, as I mentioned, 2025 was a very busy and successful year for Dexterra. We generated a record revenue of over CAD 1 billion in revenue, adjusted EBITDA of CAD 123 million that Bill mentioned.

Speaker #3: Without overview, I would like to now pass it over to Mark Becker, our CEO.

Speaker #4: Thanks very much, Bill. Let me start by saying, what a year. I just want to say how proud I am of the Dexterra team and what we accomplished together.

Speaker #4: In 2025, our 2025 results are the accumulation or culmination of hard work over the recent years and the strong execution of our strategic plan.

Speaker #4: It's been rewarding to see the market better appreciate our business and its future potential. So, looking in detail at slide 5, as I mentioned, 2025 was a very busy and successful year for Dexterra.

Mark Becker: We also delivered very strong really strong margins as well. We executed on our strategy and reinforced our commitment to creating long-term value for our stakeholders. I'd like to sincerely thank our dedicated employees across the organization, our clients, our business partners, and our board for their support in reaching this achievement. Our employees' commitment to servicing our clients and delivering operational excellence really made our progress possible. In addition to delivering another year of strong, sustainable, and profitable growth, as Bill talked about, we completed two highly strategic investments in 2025, further strengthening our platform and enhancing our ability to execute our long-term strategy for both of our businesses.

Speaker #4: We generated a record revenue of over a billion dollars in revenue, adjusted EBITDA of $123 million that Bill mentioned, and we also delivered very strong, really, really strong room margins as well.

Speaker #4: We executed on our strategy and reinforced our commitment to creating long-term value for our stakeholders. I'd like to sincerely thank our dedicated employees across the organization, our clients, our business partners, and our board for their support in reaching this achievement.

Speaker #4: Our employees' commitment to servicing our clients and delivering operational excellence really made our progress possible. In addition to delivering another year of strong, sustainable, and profitable growth, as Bill talked about, we completed two highly strategic investments in 2025 for the strengthening of our platform and enhancing our ability to execute our long-term strategy for both of our businesses.

Mark Becker: The addition of Pleasant Valley Corporation, along with the CMI acquisition which we completed in 2024, significantly expands our growing US facility management platform. The PVC distributed delivery model that we expect to leverage across North America is complementary to Dexterra's largely self-performed facility management model. Our partnership with PVC is progressing very well, with our collective efforts aligning on both FM and IFM growth opportunities. As well, the acquisition of Right Choice Camps and Catering also strengthens our leadership position in the Canadian workforce accommodations market by adding to our customer base and strategically located camps, along with high-quality excess equipment, providing capacity for North American growth and enhancing our ability to take advantage of potential nation-building and government infrastructure projects.

Speaker #4: The addition of Pleasant Valley Corporation, along with the CMI acquisition, which we completed in 2024, significantly expands our growing U.S. facility management platform. The PVC distributed delivery model, which we expect to leverage across North America, is complementary to Dexterra's largely self-performed facility management model.

Speaker #4: Our partnership with PVC is progressing very well with our collective efforts aligning on both FM and IFM growth opportunities. As well, the acquisition of RightChoice Camps and Catering also strengthens our leadership position in the Canadian workforce accommodations market by adding to our customer base and strategically located camps along with high-quality excess equipment, providing capacity for North American growth and enhancing our ability to take advantage of potential nation-building and government infrastructure projects.

Mark Becker: We will have the Right Choice business fully integrated into the Dexterra platform within Q1. The onboarding of people and clients has been seamless for us. Open camp optimization in the Mont-du-Gouverneur region is also underway. We expect to utilize the equipment fleet over the medium term in support of our new growth opportunities. More specifically, in terms of Q4 results, I'm pleased to report that we delivered another quarter of strong financial and operating results with robust market activity levels. Strong margins across the business and contributions from our acquisitions, resulting in adjusted EBITDA of CAD 33 million for Q4 and adjusted EBITDA margins expanding to 12% from 10.7% in Q4 2024, primarily related to our mix of business.

Speaker #4: We will have the RightChoice business fully integrated into the Dexterra platform within Q1, and the onboarding of people and clients has been seamless for us.

Speaker #4: Open camp optimization in the Monty Duvernay region is also underway, and we expect to utilize the equipment fleet over the medium term in support of our new growth opportunities.

Speaker #4: More specifically, in terms of fourth-quarter results, I'm pleased to report that we delivered another quarter of strong financial and operating results, with robust market activity levels.

Speaker #4: Strong margins across the business and contributions from our acquisitions resulted in adjusted EBITDA of $33 million for Q4, and adjusted EBITDA margins expanding to 12% from 10.7% in the fourth quarter of 2024.

Mark Becker: During the quarter, PVC and Right Choice contributed CAD 2 million and CAD 6 million, respectively, to adjusted EBITDA. As we continue to execute our plan to deliver reliable and predictable results and deliver value from our capital allocation priorities, we are pleased to see this reflected in the appreciation of our share price, which has increased significantly. We delivered a return on equity of 15% in 2025 and CAD 34 million of free cash flow to our shareholders through dividends and share buybacks. With that, I'll turn things over to Denise to provide an overview of our segmented results and our financial position.

Speaker #4: Primarily related to our mix of business. During the quarter, PVC and RightChoice contributed $2 million and $6 million, respectively, to adjusted EBITDA. As we continue to execute our plan to deliver reliable and predictable results and deliver value from our capital allocation priorities, we are pleased to see this reflected in the appreciation of our share price, which has increased significantly.

Speaker #4: We delivered a return on equity of 15% in 2025 and $34 million of free cash flow to our shareholders, through dividends and share buybacks.

Denise Achonu: Thank you, Mark. Turning to slide 7, I'll begin with a detailed look at our business segments, starting with support services. Revenue and support services for Q4 was CAD 231 million, an increase of 12% from Q4 2024, driven primarily from strong camp occupancy and the positive impact of the acquisition of Right Choice. As a reminder, PVC is accounted for under the equity method. Accordingly, its revenue is not included in our reported results. Q4 2025 adjusted EBITDA for support services increased by 31% over prior year to CAD 24 million, while adjusted EBITDA margins increased 10% in Q4 2025, up from 9% in Q4 2024. The improved profitability and increased margins were achieved despite the broader impacts of tariffs, inflation, and general economic concerns.

Speaker #4: With that, I'll turn things over to Denise to provide an overview of our segmented results and our financial position.

Speaker #5: Thank you, Mark. Turning to slide 7, I'll begin with a detailed look at our business segments, starting with support services. Revenue and support services for the fourth quarter was of 12% from Q4 2024.

Speaker #5: Driven primarily from strong camp occupancy, and the positive impact of the acquisition of RightChoice. As a reminder, PVC is accounted for under the equity method, and accordingly, its revenue is not included in our reported results.

Speaker #5: Q4 2025 adjusted EBITDA for Support Services increased by 31% over the prior year to $24 million, while adjusted EBITDA margins increased to 10% in Q4 2025, up from 9% in Q4 2024.

Denise Achonu: This was the result of a focused effort on managing our supply chain, effective client contract management, and driving operational efficiencies in the business. PVC contributed CAD 2 million to adjusted EBITDA in Q4, while Right Choice contributed CAD 4 million in what is typically the strongest quarter for its operations. Adjusted EBITDA margins, excluding PVC, were 9.6%. Support services revenue and adjusted EBITDA in 2025 increased 7% and 18% respectively compared to 2024, consistent with the same factors already mentioned earlier. Adjusted EBITDA in 2025 from PVC and Right Choice amounted to CAD 3 million and CAD 5 million respectively. On a same footprint basis, we increased EBITDA by 9% or CAD 7 million in 2025 in a very challenging economic climate.

Speaker #5: The improved profitability and increased margins were achieved despite the broader impacts of tariffs, inflation, and general economic concerns. This was the result of a focused effort on managing our supply chain, effective client-contract management, and driving operational efficiencies in the business.

Speaker #5: PVC contributed 2 million to adjusted EBITDA in the fourth quarter, while RightChoice contributed 4 million, in what is typically the strongest quarter for its operations.

Speaker #5: Adjusted EBITDA margins excluding PVC were 9.6%. Support services revenue and adjusted EBITDA in 2025 increased 7% and 18% respectively. Compared to 2024. Consistent with the same factors already mentioned earlier.

Speaker #5: Adjusted EBITDA in 2025 from PVC and RightChoice amounted to $3 million and $5 million, respectively. So, on a same footprint basis, we increased EBITDA by 9%, or $7 million, in 2025 in a very challenging economic climate.

Denise Achonu: Our 2026 pipeline of new sales opportunities remains strong across all areas of support services, including facility management opportunities on both sides of the border. We expect adjusted EBITDA margins for support services to continue to exceed 9% in the long term. These margins reflect our team's discipline around finding the right new clients where we can deliver profitable revenue growth. The partnership with PVC is progressing well and in line with our expectations. We anticipate our investment in PVC will be cash flow neutral in the near term as we invest in the business and technology to drive strong growth in the US. Moving on to asset-based services on slide 8. Revenue declined 2% year-over-year in Q4 due to lower project revenue related to the timing of camp installations and lower access matting rentals.

Speaker #5: Our 2026 pipeline of new sales opportunities remains strong across all areas of support services, including facility management opportunities, on both sides of the border.

Speaker #5: And we expect adjusted EBITDA margins for Support Services to continue to exceed 9% in the long term. These margins reflect our team's discipline around finding the right new clients where we can deliver profitable revenue growth.

Speaker #5: The partnership with PVC is progressing well and in line with our expectations. We anticipate our investment in PVC will be cash flow neutral in the near term, as we invest in the business and technology to drive strong growth in the U.S.

Speaker #5: Moving on to asset-based services on Slide 8. Revenue declined 2% year over year in the fourth quarter, due to lower project revenue related to the timing of camp installations and lower access matting rentals.

Denise Achonu: This was partially offset by the Right Choice acquisition, which contributed CAD 6 million in revenue during Q4 2025. Adjusted EBITDA of CAD 15 million increased 9% compared to Q4 2024. While adjusted EBITDA margins increased to 37% in Q4 2025, up from 34% in Q4 2024. The margin improvement is related to the change in business mix from higher workforce accommodation equipment utilization, which generates higher margins compared to lower camp installation project activity and ex-contribution from Right Choice. The timing of new camp installation activities varies based on the timing of new contract wins and client-specific timelines. We have a solid pipeline of future work and see good activity levels in oil and gas infrastructure projects, including the potential for Canadian nation-building investments.

Speaker #5: This was partially offset by the RightChoice acquisition, which contributed 6 million in revenue during Q4 2025. Adjusted EBITDA of 15 million increased 9% compared to Q4 2024.

Speaker #5: While adjusted EBITDA margins increased to 37% in the fourth quarter of 2025, up from 34% in the fourth quarter of 2024.

Speaker #5: The margin improvement is related to the change in business mix from higher workforce accommodation equipment utilization, which generates higher margins compared to lower camp installation project activity, and the contribution from RightChoice.

Speaker #5: The timing of new camp installation activities varies based on the timing of new contract wins and client-specific timelines. We have a solid pipeline of future work and see good activity levels in oil and gas infrastructure projects, including the potential for Canadian nation-building investments.

Denise Achonu: In Q4, 2025, access matting utilization was lower compared to the same period last year, which was at record levels. Utilization in Q4, 2025 did increase over Q3 levels and is expected to remain strong in 2026, similar to 2025 levels. ABS revenue of $173 million for 2025 compared to $192 million in 2024, with the decrease due to the reasons mentioned previously, partially offset by an $8 million contribution in revenue from Right Choice. Adjusted EBITDA for the year increased 9% to $61 million from 2024. Adjusted EBITDA margin for the year was 35% compared to 29% in 2024. Right Choice contributed $3 million in adjusted EBITDA in the year.

Speaker #5: In Q4 2025, access matting utilization was lower compared to the same period last year, which was at record levels. However, utilization in Q4 2025 did increase over Q3 levels, and is expected to remain strong in 2026, similar to 2025 levels.

Speaker #5: ABS revenue of $173 million for 2025, compared to $192 million in 2024, with the decrease due to the reasons mentioned previously. This was partially offset by an $8 million contribution in revenue from RightChoice.

Speaker #5: Adjusted EBITDA for the year increased 9% to 61 million from 2024. Adjusted EBITDA margin for the year was 35%, compared to 29% in million in adjusted EBITDA in the year.

Denise Achonu: On a go-forward basis, starting in Q1, we will no longer be reporting the Right Choice numbers separately, as the operations will be fully integrated with the Dexterra Workforce Accommodation platform. We expect adjusted EBITDA margins for this segment to continue to remain between 30% to 40%, depending on business mix. Moving to slide nine. Thanks to our strong profitability and asset-light operating model, we generated CAD 60 million of free cash flows for the full year in 2025. Our adjusted EBITDA conversion to free cash flow of 49% was impacted by the delayed receipt of a customer receivable funded by the Canadian federal government, of which CAD 11 million was collected subsequent to year-end. Our adjusted EBITDA conversion to free cash flow would have been 58% had that amount been collected by year-end.

Speaker #5: On a go-forward basis, starting in Q1, we will no longer be reporting the RightChoice numbers separately, as the operations will be fully integrated with the Dextera Workforce Accommodation Platform.

Speaker #5: We expect adjusted EBITDA margins between 30% to 40%, depending on business mix. Moving to slide 9, thanks to our strong profitability and asset-light light operating model, we generated $60 million of free cash flow for the full year in 2025.

Speaker #5: Our adjusted EBITDA conversion to free cash flow of 49% was impacted by the delayed receipt of a customer receivable funded by the Canadian federal government, of which $11 million was collected subsequent to year-end.

Denise Achonu: Our tax losses are also now almost fully utilized, and in 2026, we are required to make income tax payments and installments for 2025 and 2026. We expect to have adjusted EBITDA conversion to free cash flow in 2026 greater than 50%, with Q3 and Q4 experiencing the highest conversion to free cash flow as a result of the seasonality of the support services business. Management of working capital remains a key focus area, primarily through actively working with our clients for prompt payment of receivables. Corporate expenses for 2025 were CAD 26 million or 2.5% of revenue, compared to 2.3% of revenue in 2024. The increase was mainly related to additional investments in sales resources to drive growth and enterprise information technology to manage the business effectively.

Speaker #5: Our adjusted EBITDA conversion to free cash flow would have been 58% had that amount been collected by year-end. Our tax losses are also now almost fully utilized, and in 2026, we are required to make income tax payments and installments for 2025 and 2026.

Speaker #5: We expect to have adjusted EBITDA conversion to free cash flow in 2026 greater than 50%, with Q3 and Q4 experiencing the highest conversion to free cash flow.

Speaker #5: As a result of the seasonality of the support services business, management of working capital remains a key focus area, primarily through actively working with our clients for prompt payment of receivables.

Speaker #5: Corporate expenses for 2025 were $26 million, or $2.5% of revenue, compared to $2.3% of revenue in 2024. The increase was mainly related to additional investments in sales resources to drive growth and enterprise information technology to manage the business effectively.

Denise Achonu: We expect our corporate cost to continue to approximate 2.5% of revenue in the near term. Net earnings per share of CAD 0.12 for Q4 2025 compared to CAD 0.11 for Q4 2024. During the Q4 as well as the full year, our net earnings were impacted by an increase in share-based compensation expenses related to the strong performance of our share price in 2025. Share-based compensation, which vests over a three-year period, includes restricted share units and performance share units, which are directly tied to total shareholder returns. As a result, in the Q4, the year-over-year increase in share-based compensation expense was CAD 2.1 million after tax, and for the full year, the after-tax increase was CAD 4.2 million.

Speaker #5: We expect our corporate costs to continue to approximate $2.5% of revenue in the near term. Net earnings per share of $0.12 for Q4 2025, compared to $0.11 for Q4 2024.

Speaker #5: During the fourth quarter, as well as the full year, our net earnings were impacted by an increase in share-based compensation expenses related to the strong performance of our share price in 2025.

Speaker #5: Share-based compensation, which stressed over a three-year period, includes restricted share units and performance share units, which are directly tied to total shareholder returns. As a result, in the fourth quarter, the year-over-year increase in share-based compensation expense was $2.1 million after tax, and for the full year, the after-tax increase was $4.2 million.

Denise Achonu: Share-based compensation payments of CAD 6.7 million were made in Q1 2026 related to units that vested in early 2026. To proactively manage the situation going forward, in early 2026, the corporation entered into a total return swap arrangement with a major Canadian financial institution to effectively hedge changes in share-based compensation expense against our share price. This program will help mitigate, in the future, the net earnings impact of changes in our share price to share-based compensation expense. Net debt at 31 December 2025 was 1.6x adjusted EBITDA or CAD 200 million.

Speaker #5: Share-based compensation payments of $6.7 million were made in Q1 2026 related to units that vested in early 2026. To proactively manage the situation going forward, in early 2026, the corporation entered into a total return swap arrangement with a major Canadian financial institution to effectively hedge changes in share-based compensation expense against our share price.

Speaker #5: This program will help mitigate, in the future, the net earnings impact of changes in our share price to share-based compensation expense. Net debt at December 31, 2025, was 1.6 times adjusted EBITDA, or $200 million.

Denise Achonu: The PVC and Right Choice acquisitions added approximately CAD 115 million in debt in 2025. We have entered into a collar swap on our US dollar-denominated debt of $60 million to hedge against interest rate fluctuations. Our CAD 425 million term loan matures in 2029 and has significant unused capacity for future M&A activity. In 2025, we purchased 1.5 million shares at a weighted average share price of CAD 7.88, for a total consideration of CAD 12 million. We paid CAD 23 million in dividends. We remain committed to maintaining a strong balance sheet over the long term and expect to use a portion of our free cash flow in 2026 to pay down debt.

Speaker #5: The PVC in RightChoice acquisitions added approximately $115 million in debt in 2025, and we have entered into a caller swap on our US dollar-denominated debt of $16 million to hedge against interest rate fluctuations.

Speaker #5: Our $425 million term loan matures in 2029 and has significant unused capacity for future M&A activity. In 2025, we purchased $1.5 million shares at a weighted average share price of $7.88 for a total consideration of $12 million.

Speaker #5: And we paid $23 million in dividends. We remain committed to maintaining a strong balance sheet over the long term and expect to use a portion of our free cash flow in 2026 to pay down debt.

Denise Achonu: Finally, Dexterra paid dividends of thirty-seven and a half cents in 2025 and declared a dividend for Q1 2026 of CAD 0.10 per share for shareholders of record at 31 March 2026 to be paid 15 April 2026. I will now pass it back to Mark for concluding remarks.

Speaker #5: Finally, Dextera paid dividends of $37.5 in 2025 and declared a dividend for Q1 2026 of $0.10 per share. For shareholders of record at March 31, 2026.

Mark Becker: Great. Thanks very much, Denise. Before we open it up for questions as usual, I'll provide some comments regarding our outlook and priorities for 2026 and beyond which are highlighted on slide 10. Our investment and our partnership with PBC continues to progress very well as we continue to build on our shared strategic priorities. We're working jointly to leverage our complementary business models across our US platform and grow our facilities management business. That'll continue to be a key focus for us in 2026 and into 2027. It's worth reinforcing, as part of our outlook, you know, the potential opportunity associated with nation-building and defense-related government investments is significant across Dexterra.

Speaker #5: To be paid April 15, 2026. I will now pass it back to Mark for concluding remarks. Great, thanks very much, Denise. And before we open it up for questions, as usual, I'll provide some comments regarding our outlook and priorities for 2026.

Speaker #5: And beyond, which are highlighted on slide 10. Our investment and our partnership with PVC continues to progress very well, as we continue to build on our shared strategic priorities.

Speaker #5: We're working jointly to leverage our complementary business models across our U.S. platform and grow our facilities management business. So that will continue to be a key focus for us in 2026 and into 2027.

Speaker #5: It's worth reinforcing as part of our outlook the potential opportunity associated with nation-building and defense-related government investments is significant across Dextera. With our well-established defense and government facility management capabilities, we are well-positioned to support increased infrastructure and defense spending.

Mark Becker: With our well-established defense and government facility management capabilities, we are well-positioned to support increased infrastructure and defense spending. Our workforce accommodations business is well-positioned to benefit from increased nation-building investments in energy, mining, and various infrastructure projects. A key point for Dexterra business is our growth, and our upward trajectory is not dependent on this activity. These projects really present potential upside to Dexterra's current growth plans. We continue to monitor trade developments and broader economic conditions. Dexterra remains largely insulated from direct impacts of tariffs as our work labor force and the majority of our supply inputs are domestically sourced. We are further strengthened by our supply chain through our expanded vendor programs. Renegotiation of the Canada-US Mexico Agreement and ongoing US trade actions present broader potential economic risks that could affect client demand, supply chain, or inflation.

Speaker #5: Our workforce accommodations business is well-positioned to benefit from increased nation-building investments in energy, mining, and various infrastructure projects. A key point for Dexterra business is our growth in our upward trajectory is not dependent on this activity; these projects really present potential upside to Dexterra's current growth plans.

Speaker #5: We continue to monitor trade developments and broader economic conditions. Dexterra remains largely insulated from direct impacts of tariffs, as our labor force and the majority of our supply inputs are domestically sourced.

Speaker #5: And we are further strengthened by our supply chain through our expanded vendor programs. Renegotiation of the Canada-US-Mexico Agreement and ongoing US trade actions present broader potential economic risks that could affect client demand, supply chain, or inflation.

Mark Becker: We're closely monitoring these developments and are well prepared to adjust our strategies as needed to mitigate potential impacts. As we demonstrated throughout last year, we remain committed to our capital allocation priorities, which include maintaining our dividend, our increased dividend, supporting sustaining and high return capital investments, pursuing additional accretive acquisitions in the medium term, and paying down debt. Wanna reinforce, though, our near-term focus as it relates to acquisitions is to realize the full benefit from the strategic acquisition investments that we talked about. Additionally, we expect to make strategic investments in sales resources and technology to drive innovation, operational efficiency, and support organic FM growth. Overall, we're excited and confident in our path forward with our expanded business platform.

Speaker #5: We're closely monitoring these developments and are well prepared to adjust our strategies as needed to mitigate potential impacts. As we demonstrated throughout last year, we remain committed to our capital allocation priorities, which include maintaining our dividend—our increased dividend—supporting sustaining and high-return capital investments, pursuing additional accretive acquisitions in the medium term, and paying down debt.

Speaker #5: I want to reinforce, though, our near-term focus as it relates to acquisitions is to realize the full benefit from the strategic acquisition investments that we talked about.

Speaker #5: Additionally, we expect to make strategic investments in sales resources and technology to drive innovation, operational efficiency, and support organic FM growth. Overall, we're excited and confident in our path forward with our expanded business platform, our overarching strategic focus remains the delivery of consistent and predictable results, profitable growth, and our annual 15% return on equity or shareholders.

Mark Becker: Our overarching strategic focus remains the delivery of consistent and predictable results, profitable growth, and our annual 15% return on equity for shareholders. This concludes our prepared remarks. I'll turn the call back to Betsy for the Q&A portion of the call.

Operator: We will now begin the question-and-answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. We ask that you limit yourself to one question and one follow-up. If you have additional questions, please re-enter the question queue. At this time, we will pause momentarily to assemble our roster. The first question today comes from Mark Neville with Canaccord Genuity. Please go ahead.

Speaker #5: This concludes our prepared remarks. I'll turn the call back to Betsy for the Q&A portion of the call.

Speaker #1: We will now begin the question and answer session. To ask a question, you may press star, then one, on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

Speaker #1: If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. We ask that you limit yourself to one question and one follow-up.

Speaker #1: If you have additional questions, please re-enter the question queue. At this time, we will pause momentarily to assemble our roster. The first question today comes from Mark Neville with Canaccord Genuity.

Mark Neville: Hey, good morning, Mark, Denise, Bill. Maybe first question. If I could just maybe just pick on asset-based business for a second. Obviously really good profitability, but it's been a couple quarters now where revenues have been down. Obviously, there's some moving parts in the business and with Right Choice, the integration and maybe some consolidation of the business. Just trying to level set maybe expectations for 2026 around revenue trends.

Speaker #1: Please go ahead.

Speaker #6: Hey, good morning, Mark, Denise, Bill. Maybe first question. If I could just maybe just pick on asset-based business for a second. Obviously, really good profitability, but it's been a couple of cores now where revenues have been down.

Speaker #6: Obviously, there's some moving parts in the business, and with Right Choice, the integration, and maybe some consolidation of the business. Just trying to level-set maybe expectations for 2026 around revenue trends.

Mark Becker: Yeah, thanks Mark for the question. First of all, welcome to the party. We're glad to have you on board as part of our analyst community. You know, I'd say in general, you know, Denise talked about this as part of her remarks. You know, ABS side of our business, I mean, there is some lumpiness, there is some timing related to our camp-based work within ABS. You know, what Denise had talked about was, you know, camp mobilizations versus ongoing turnkey contracts that we have in place and the timing of those kinda impacts the ABS revenue, it also impacts the EBITDA as well.

Speaker #5: Yeah. Thanks, Mark, for the question and first of all, welcome to the party. Glad to have you on board as part of our analyst community.

Speaker #5: I'd say, in general—and Denise talked about this as part of her remarks—on the ABS side of our business, there is some lumpiness. There is some timing related to our account-based work within ABS.

Speaker #5: And what Denise had talked about was cap mobilizations versus ongoing turnkey contracts that we have in place and the timing of those kind of impacts ABS revenue.

Mark Becker: I think the way I would look at it, generally speaking, and then the other thing I'd mention too is, you know, the access matting part of our business as well, had a really, you know, strong utilization record year in 2024 in Q4. We still have strong access matting utilizations, and we expect that to continue through this year, is what we're seeing from our clients, so strong utilizations there. I think the way I would look at it is, you know, we try to talk about our overall growth of mid-single digits in the support services business, you know, over time.

Speaker #5: It also impacts the EBITDA as well. I think the way I would look at it, generally speaking—and the other thing I'd mention too is the access matting part of our business as well.

Speaker #5: And a really strong utilization record year in 2024 and Q4 or quarter. We still have strong access matting utilizations, and we expect that to continue through this year as what we're seeing from our clients.

Speaker #5: So, strong utilizations there. But I think the way I would look at it is, we try to talk about our overall growth of mid-single digits in the support services business.

Mark Becker: You know, we would say the same thing about ABS business, the low single-digit growth in revenue over ABS, and then the 30, 40% kinda margin yield, EBITDA yield, adjusted EBITDA yield in that business. I think, you know, we do see some lumpiness. We do see some variability in ABS around revenue and even E-ABS or margins as well. I think, you know, sticking to the broad annual numbers, we would kinda see, you know, that broader guidance sort of play out, is the way I would say it and the way I would look at it, just how things are play out in terms of the workforce accommodations business.

Speaker #5: Over time, and we would say the same thing about ABS business, the low single digit growth in revenue over ABS, and then the 30, 40 percent kind of margin yield, EBITDA yield, adjusted EBITDA yield in that business.

Speaker #5: I think we do see some lumpiness. We do see some variability in ABS around revenue and even ABS or margins as well. I think sticking to a broad annual numbers, we would kind of see that broader guidance sort of play out is the way I would say it.

Speaker #5: And the way I would look at it, just how things play out in terms of the workforce accommodations business.

Mark Neville: Got it. If I can just ask a follow-up, just to change lanes here. Just on capital, you know, buyback activity is a bit muted, Q4, balance sheet's in great shape. Just curious, you know, with the integrations ongoing, is the thought to maybe bring debt down a bit further? Or, is there a thought to maybe get back on the market, in terms of the buyback? Thanks.

Speaker #6: Got it. If I can just ask a follow-up, just to change lanes here, just on capital. Buyback activity is a bit muted Q4. Balance sheet's in great shape.

Speaker #6: Just curious, with the integrations ongoing, is the thought to maybe bring debt down a bit further or is there a thought to maybe get back on the market?

Mark Becker: Yeah. I think, you know, we'll stay opportunistic around share buybacks. I mean, our NCIB is still active. You know, from what we've seen, the share price appreciation in our stock, and I think, the way we would continue to look at it is, you know, PVC second phase buyout is coming, and, you know, kind of post-dividend. We got $25 million in free cash flow conversion, and that's so far is going against our debt. You know, all else being equal, as we talked about, we want to focus on getting full value from the PVC investment and acquisition and the second-phase buyout that is coming towards us and also, you know, the Right Choice acquisition.

Speaker #6: In terms of the buyback, thanks.

Speaker #5: Yeah, and I think we want to — we'll stay opportunistic around share buybacks. I mean, our NCIB is still active, and we've seen the share price appreciation in our stock.

Speaker #5: And I think the way we would the way we would continue to look at it is PVC, second-phase buyout is coming and kind of post-dividend.

Speaker #5: We got 25 million dollars in free cash flow conversion and that's so far as going against our debt. All else being equal and as we talked about, we want to focus on getting full value from the PVC investment and acquisition and the second-phase buyout that is coming.

Mark Becker: You know, stay focused on that. You know, all else being equal and short of any other acquisitions, you know, notionally we would be, you know, providing free cash flow that would work against our balance sheet, work down our debt in that period, is the way I would look at it.

Speaker #5: Coming towards us and also the Right Choice acquisition. Stay focused on that. So all else being equal and short of any other acquisitions, notionally, we would be providing free cash flow that would work against our balance sheet and work down our debt in that period is the way I would look at it.

Operator: The next question comes from Chris Murray with ATB Capital Markets. Please go ahead.

Chris Murray: Yeah, thanks. Good morning, folks. Mark, this is a bit of a broader question, but can we talk a little bit about, you know, the camps business and how you think that that's gonna evolve over the next little while? I guess the question is more around, kind of your positioning in the broader, both maybe Canadian and North American market. I think you previously told us that, you know, Dexterra had about 8,000 beds. First Choice brought another 2,000. You'd always alluded to the fact that utilization was sort of north of 90%. I guess a couple of pieces of this question. One, you know, what kind of capacity do you have for some of these new opportunities?

Speaker #1: The next question comes from Chris Murray with APB Capital Markets. Please go ahead.

Speaker #6: Yeah. Thanks. Good morning, folks. Mark, maybe this is a bit of a broader question, but can we talk a little bit about the camps business and how you think that that's going to evolve over the next little while?

Speaker #6: And I guess the question is more around your positioning in the broader Canadian, and maybe North American, market. I think you've previously told us that Dexterra had about 8,000 beds.

Speaker #6: First Choice brought in another 2,000. And you'd always alluded to the fact that utilization was sort of north of 90%. So I guess a couple of pieces of this question.

Chris Murray: I know you've been able to redeploy some equipment from Western Canada, Eastern Canada, and seem to do something similar with First Choice. Does the size of the opportunity change your thinking at all about investing further in this segment? I appreciate it's got probably lower returns on capital, but I'm just trying to understand, you know, how to think about how you see the market evolving with what seems like a pretty big wave of demand with infrastructure and defense spending coming.

Speaker #6: One, what kind of capacity do you have for some of these new opportunities? I know you've been able to redeploy some equipment from Western Canada and Eastern Canada and seem to do something similar with First Choice.

Speaker #6: And does the size of the opportunity change your thinking at all about investing further in this segment? I appreciate it's got probably lower returns on capital, but I'm just trying to understand how to think about how you see the market evolving with what seems like a pretty big wave of demand with infrastructure and defense spending coming.

Mark Becker: Yeah. Morning, Chris, and good question. You know, I think just to level set on the numbers, you know, we got about 22,000 beds under management Canada-wide, of which our own assets is actually more like 12,000 beds. We were at 10, we picked up another 2,000 beds with the Right Choice acquisition. We're about, you know, high 80s utilization combined with the Right Choice assets in play now. Kind of puts, you know, 90% or something a little bit north of 1,000 beds sort of available. The other thing I would point out is, you know, we do have long-term contracts. We do have camps that are on long-term arrangements. We also have project-based work that's happening that frees up equipment.

Speaker #5: Yeah, more interest in good question. I think just to level set on the numbers, we've got about 22,000 beds under management Canada-wide, of which our own assets is actually more like 12,000 beds.

Speaker #5: So we're at 10. We picked up another 2,000 beds with the Right Choice acquisition. And we're about high 80s utilization combined with the Right Choice assets in play now.

Speaker #5: So kind of puts 90% or something a little bit north of 1,000 beds sort of available. The other thing I would point out is we do have long-term contracts.

Mark Becker: We generally kind of are looking forward, the pipeline's very strong for us, across the board for us in the business, but workforce accommodations as well, including demand for camp assets. You know, part of the rationale around the Right Choice acquisition is the excess equipment that was available. We do wanna bring that to bear. We're gonna balance that out with what we have in terms of other equipment coming available. The other thing I would say, too, is, you know, there is the ability to procure market equipment as well as needed, you know, within our sustaining growth and capital Spend within the year.

Speaker #5: We do have camps that are on long-term arrangements. We also have project-based work that's happening that frees up equipment. So we generally, kind of, are looking forward.

Speaker #5: The pipeline's very strong for us. Across the board for us in the business. But workforce accommodations as well, including demand for camp assets. Part of the rationale around the Right Choice acquisition is the excess equipment that was available.

Speaker #5: We do want to bring that to bear. We're going to balance that out with what we have in terms of other equipment coming available.

Speaker #5: The other thing I would say too is there is the ability to procure market equipment as well as needed. Within our sustaining growth and capital spend within the year.

Mark Becker: Our goal is to really ensure based on the pipeline that we've got, what we see coming, that we're gonna be able to support our growth and the growth targets that I've talked about, in terms of being able to have equipment available to support our growth.

Speaker #5: So our goal is to really ensure, based on the pipeline that we've got, what we see coming that we're going to be able to support our growth and the growth targets that I've talked about in terms of being able to have equipment available to support our growth.

Chris Murray: Okay. Maybe to ask another sort of related question is on, you know, kind of defense and infrastructure. You mentioned that, for the support services group, you were looking to, you know, pursue some contracts additionally in there. You talked about I think the term you used in the pipeline was robust. Can you maybe describe what you're seeing in terms of the opportunity set maybe more granularly? Would that get you into a growth rate, you know... I mean, historically, we've talked about a growth rate in this business, you know, kind of in the teens or higher, would that be something that you think is achievable over the next couple of years?

Speaker #6: Okay. And then, maybe to ask another sort of related question—on kind of defense and infrastructure. You mentioned that for the Support Services group, you were looking to pursue some contracts additionally in there.

Speaker #6: You talked about, I think the term you used in the pipeline was robust. Can you maybe describe what you're seeing in terms of the opportunity set maybe more granularly?

Speaker #6: And would that get you into a growth rate? I mean, historically, we've talked about a growth rate in this business kind of in the teens or higher.

Chris Murray: If there's any granularity you could give us on sort of like the where you're actually looking at some of these opportunities, that would be helpful.

Speaker #6: But would that be something that you think is achievable over the next couple of years? And if there's any granularity you can give us on sort of where you're actually looking at some of these opportunities, that would be helpful.

Mark Becker: Yeah. I think I've heard you right. I mean, you're asking about the government defense space, for us, which really can feed into facility management contracts, you know, as well as even workforce combinations, potentially. We do have quite a history in Canada around defense and government support. What we've seen, you know, and I would say through last year and continuing well into this year is a lot of activity on that front around opportunities, coming, you know, under development. I would say opportunities that have been around for a while, some new opportunities that are coming, a lot of them, Arctic-based, you know, Arctic defense-based, infrastructure, Canadian Forces-based defense infrastructure. There's quite a bit of activity that we're seeing on that front.

Speaker #5: Yeah. So I think if I heard you right, I mean, you're asking about the government defense space for us, which really can feed into facility management, contracts, as well as even workforce accommodations potentially.

Speaker #5: And we do have quite a history in Canada around defense and government support. What we've seen and I would say through last year and continuing well into this year is a lot of activity on that front around opportunities.

Speaker #5: Coming under development, I would say opportunities that have been around for a while. Some new opportunities that are coming. A lot of them Arctic-based.

Mark Becker: You know, I think it's really gonna depend on how it all comes to fruition. You know, there's a lot of activity around putting in proposals and supporting expanded projects. You know, certainly we're well-positioned, as you pointed out, to kinda support opportunities there. We feel really good about that. You know, again, our mid-single digit, I guess, sorta growth profile. I mean, obviously I would agree with you that, you know, depending what we see there, that could be upside to what we see in terms of growth.

Speaker #5: Arctic defense-based infrastructure. Canadian forces-based defense infrastructure. So there's quite a bit of activity that we're seeing on that front. And I think it's really going to depend on how it all comes to fruition.

Speaker #5: There's a lot of activity around putting in proposals and supporting expanded projects. And certainly, we're well positioned, as you pointed out, to kind of support opportunities there.

Speaker #5: We feel really good about that. Again, our mid-single-digit, I guess, sort of growth profile—I mean, obviously, I would agree with you that depending on what we see there, that could be upside to what we see in terms of growth.

Mark Becker: g sure we're really well-positioned that we are, you know, getting our eligibility in and getting and we are eligible for these contracts and these projects, kinda well, well in play, because there's really a lot of opportunity for us on that front.

Speaker #5: And we're just making sure we're really well positioned that we are getting our eligibility in and getting and we are eligible for these contracts and these projects.

Operator: The next question comes from Zachary Evershed with National Bank Financial. Please go ahead.

Speaker #5: Kind of well in play because there's really a lot of opportunity for us on that front.

Zachary Evershed: Hey, good morning, everyone. Congrats on the quarter.

Speaker #3: The next question comes from Zachary Evershed with National Bank Financial. Please go ahead.

Mark Becker: Great. Thanks. Thanks so much, Zach.

Zachary Evershed: On the investment in technology that you guys are talking about, will that be capitalized? What's your CapEx budget looking like for 2026?

Speaker #7: Hey, good morning, everyone. Congrats on the quarter.

Speaker #5: Great. Thanks so much, Zach.

Denise Achonu: Good morning, Zach. Yeah. The investments that we're making in technology, specifically this year relate to around workforce management and human capital management systems. Really systems that will allow us to ensure that we're optimizing our labor performance on a go-forward basis, and therefore optimizing margins, 'cause as you know, labors are one of our most, our highest cost, I would say. As it relates to that system, no, we are expensing it, so we are not capitalizing it, recognizing that we are implementing it over a number of years. This year, next year, we'll be experiencing that cost.

Speaker #7: On the investment in technology that you guys are talking about, will that be capitalized? And what's your CapEx budget looking like for 2026?

Speaker #8: Good morning, Zach. Yeah, so the investments that we're making in technology, specifically this year, relate to around workforce management and human capital management systems.

Speaker #8: So really, systems that will allow us to ensure that we're optimizing our labor performance on a go forward basis and therefore optimizing margins because, as you know, labor is our one of our most our highest cost, I would say.

Speaker #8: So as it relates to that system, no, we are expensing it. So we're not capitalizing it. Recognizing that we are implementing it over a number of years.

Denise Achonu: Even though we're expensing it, we do expect, as I mentioned in my comments around corporate expenses to remain within that 2.5% of revenue that I mentioned. It is contained within that number. In terms of your other question around capital, for 2026, again, expecting that to kind of remain within what we've, you know, said in the past, you know, sustaining capital kinda 1% to 1.5% of revenue. That's what we're expecting for 2026.

Speaker #8: So this year and next year, we'll be experiencing that cost. Even though we're expensing it, we do expect, as I mentioned in my comments around corporate expenses, to remain within that 2.5% of revenue that I mentioned.

Speaker #8: So it is contained within that number. In terms of your other question around capital, for 2026, again, expecting that to kind of remain within what we've said in the past.

Mark Becker: Probably, Denise, the only thing I would add is, you know, our investment in with PVC and PVC Connect, which is our client-facing technology, that's part of the key, you know, our partnership with PVC Connect around the distributed model. There's gonna be investments in that, but that's gonna be within the partnership as well. I think somewhere in our MD&A or we know where our flagging kinda net neutral cash flow, you know, from PVC, because we're gonna be supporting that investment, which ultimately, you know, post-Phase 2 buyout will ultimately own that software. It's a key part of the distributed model platform for PVC.

Speaker #8: Sustaining capital kind of one to one and a half percent of revenue. So that's what we're expecting for 2026.

Speaker #5: Probably Denise, the only thing I would add is our investment in with PVC and PVC Connect, which is our client-facing technology that's part of the key our partnership with PVC Connect around the distributed model.

Speaker #5: There's going to be investments in that. But that's going to be within the partnership as well. And I think somewhere in our MD&A or where our flagging kind of net neutral cash flow from PVC.

Speaker #5: Because we're going to be supporting that investment, which ultimately post-phase two buyout will ultimately own that software. And it's a key part of the distributed model platform for PVC.

Zachary Evershed: That's helpful. Thanks. Following up on maybe the margins and support services, it looks like the contribution from RightChoice in the support services segment was quite high on a margin basis versus the rest of the segment. Can you comment on what's driving that, please?

Speaker #7: That's helpful, thanks. And then, following up on maybe the margins and support services, it looks like the contribution from RightChoice in the support services segment was quite high on a margin basis versus the rest of the segment.

Mark Becker: Yeah. Open camps are our high margin, right? We do get kind of good. You know, if you look at RightChoice's platform of activity that they had, we're certainly taking advantage in the Montney to kind of optimize that between our camps and the RightChoice camps. Pretty much the entire RightChoice platform is kind of high margin, high margin business. We're going to see that contribution add to us. Kind of blend out the usage of that equipment and other turnkey opportunities across our network of workforce accommodations as we leverage those assets.

Speaker #7: Can you comment on what's driving that, please?

Speaker #5: Yeah, open caps are high margin, right? So we do get kind of good, and if you look at RightChoice’s platform of activity that they had—and we're certainly taking advantage in the Montney to kind of optimize that between what was our caps and the RightChoice caps.

Speaker #5: But pretty much the entire RightChoice platform is kind of high margin business. So we're going to see that contribution add to us. And kind of blend out the usage of that equipment and other turnkey opportunities across our network of workforce accommodations as we leverage those assets.

Operator: The next question comes from Frederic Bastien with Raymond James. Please go ahead.

Frederic Bastien: Hey, good morning, guys. I just wanted to dig into the US IFM a little bit more and the opportunity set there. You know, we've been hearing some reports of private company hesitation, a little bit of government funding headwinds out in the markets. We're also, you know, seeing some large publicly traded FM peers finish the year quite strong. Do you guys have any on what you're seeing for client budgets and overall outsourcing demand?

Speaker #3: The next question comes from Sean Jack with Raymond James. Please go ahead.

Speaker #9: Hey, morning, guys. So I just wanted to dig into the USIFM a little bit more and the opportunities set there. We've been hearing some reports of private company hesitation a little bit of government funding headwinds out in the markets.

Speaker #9: But we're also seeing some large, publicly traded FM peers finish the year quite strong. Do you guys have any comment on what you're seeing for client budgets and overall outsourcing demand?

Mark Becker: Yeah. Good question, Sean. Like, high activity, you know, I would say, you know, we talk about this in a lot of our investor meetings and calls. You know, the kind of outsourced services business in North America is like $275 billion and growing at 6% to 8% a year, which 90% of that's in the US. We, you know, I guess, experientially see that in our pipeline. You know, with the platform that we have now around CMI within government services, PBC being distributed model a lot more related to commercial and light industrial space.

Speaker #5: Yeah, good question, Sean. High activity. I would say, and we talk about this in a lot of our investor meetings and calls, the kind of outsourced services business in North America is like $275 billion and growing at 6 to 8 percent a year, of which 90% of that's in the US.

Speaker #5: We I guess experience really see that in our pipeline. With the platform that we have now around CMI within government services, PVC being distributed model, a lot more related to commercial and light industrial related industrial space.

Mark Becker: I would say we are seeing kind of a lot of activity, a lot of outsourcing activity, a lot of bidding activity, you know, we're excited about that. You know, I think we've, you know, it's about CAD 50 million or 5% of our business is government. But still, we do see activity even within governments. Certainly as I, as I said, you know, within the commercial light industrial. Not really seeing any pullbacks yet at all. In fact, kinda more towards the opportunity that we're seeing, that we've been flagging more, kinda more broadly in terms of our U.S. growth profile.

Speaker #5: I would say we are seeing kind of a lot of activity—a lot of outsourcing activity, a lot of bidding activity. And we're excited about that.

Speaker #5: And I think we've—it's about $50 million, or 5% of our business, is government. But still, we do see activity even within government. And certainly, as I said, within the commercial light industrial, not really seeing any pullbacks yet at all.

Speaker #5: In fact, kind of more towards the opportunity that we're seeing, that we've been flagging more broadly in terms of our U.S. growth profile.

Frederic Bastien: Okay. Perfect. Thanks for that. Second one, just thinking about the fleet optimization that's happening with Right Choice and APS at the moment, should we expect to see margins improve at all in the short term because of this exercise, or is this just more about freeing up capacity for new projects?

Speaker #9: Okay, perfect. Thanks for that. And then second one, just thinking about the fleet optimization that's happening with RightChoice and ATS at the moment, should we expect to see margins improve at all in the short term because of this exercise?

Mark Becker: I think a lot of it is freeing up freeing up capacity for new projects. You know, I think we are seeing a lot of activity in the mining and open camps, which as I mentioned a minute ago, is high margin. You know, you've seen our margins be a bit higher because of workforce accommodations activity and occupancy, which a lot of that is within open camps. A lot of that's within turnkey camps, which tends to be higher margin. That is kind of a key driver of what you're seeing overall in terms of our workforce accommodations or support services margins. You know, from what everything we're seeing from clients, we expect that to continue.

Speaker #9: Or is this just more about freeing up capacity for new projects?

Speaker #5: I think a lot of it is freeing up capacity for new projects. I think we are seeing a lot of activity in the Montney and open camps, which, as I mentioned a minute ago, is high margin.

Speaker #5: So you've seen our margins be a bit higher because of workforce accommodations activity and occupancy. Which a lot of that is within open camps.

Speaker #5: A lot of that’s within turnkey camps. It tends to be higher margin, so that is kind of a key driver of what you’re seeing overall in terms of our workforce accommodations or support services margins.

Mark Becker: You know, Sean, I'd really say, you know, having the equipment available, which we've talked about so much, is kinda the key part of that. I think the activity levels and the industry activity levels, the size of our pipeline is really gonna be the key driver of our margins within the remote business.

Speaker #5: And from what everything we're seeing from clients, we expect that to continue. Sean, I'd really say having the equipment available, which you've talked about so much, is kind of the key part of that.

Speaker #5: I think the activity levels and the industry activity levels, the size of our pipeline, is really going to be the key driver of our margins within the remote business.

Operator: The next question comes from Jonathan Goldman with Scotiabank. Please go ahead.

Operator: Hey, good morning, team. Thanks for taking my questions. Just a couple housekeeping ones from me. Can you give us an update on how big your camps business is in support services today, and how much of it is exposed to mining versus oil and gas versus infrastructure, and others? Just curious how big that business is today. Thanks.

Speaker #3: The next question comes from Jonathan Goldman, Wisconsin Bank. Please go ahead.

Speaker #9: Hey, good morning, team. And thanks for taking my questions. Just a couple of housekeeping ones for me. Can you give us an update on how big your camps business is within support services today?

Denise Achonu: Morning, Jonathan. Just in terms of your first question, our camps business, that would be the ABS as well as the support services components of that, is about CAD 600 million. Of that, it kinda breaks down to about 40% of that's energy, oil and gas, 30% mining, and then about 30% infrastructure.

Speaker #9: And how much of it is exposed to mining versus oil and gas versus infrastructure and others? Just curious how big that business is today.

Speaker #9: Thanks.

Speaker #4: Good morning, Jonathan. So just in terms of your first question—our camps business, so that would be the ABS as well as the support services components of that—is about $600 million.

Speaker #4: And of that, it kind of breaks down to about 40% of that’s energy, oil and gas; 30% mining; and then about 30% infrastructure.

Operator: Okay. Thank you for that.

Jonathan Goldman: Okay. Thank you for that.

Denise Achonu: Again, we've.

Operator: Sorry.

Jonathan Goldman: Sorry.

Denise Achonu: Yeah. Over the last few years, we've really been diversifying. If you looked at this a few years ago, it would've been, you know, probably a lot more, over 50% oil and gas. You know, we've been very deliberately kind of diversifying not only just East-West, but also across various industries as well.

Speaker #9: Okay. Thanks for that.

Speaker #4: Yeah, over the last few years—yeah, over the last few years, we've really been diversifying. So, if you looked at this a few years ago, it would have been probably a lot more—over 50% oil and gas.

Speaker #4: And we've been very deliberately kind of diversifying not only just east-west but also across various industries as well.

Operator: Got it. Secondly, how should we think about a normalized run rate for PBC equity income in 26?

Jonathan Goldman: Got it. Secondly, how should we think about a normalized run rate for PBC equity income in 26?

Denise Achonu: When we issued the press release and announced the acquisition, we did give, you know, some high-level historical numbers around, I think, you know, revenues are about $170 million US. Again, it's an IFM FM business, so margins on that would be kind of in or around 8% to 8%. Using that with our 40% ownership can give you an idea as to what we're expecting. You can build a little bit of growth, obviously, 'cause we're, as we've mentioned, we're focused on growing our US platform and partnering with PBC for that. Expecting some growth in 2026 on those numbers as well.

Speaker #9: Got it. And secondly, how should we think about a normalized run rate for PVC equity income in '26?

Speaker #4: So, when we issue the press release and announce the acquisition, we did give some high-level historical numbers around revenues—about $170 million US.

Speaker #4: Again, it's an IFM-FM business. So margins on that would be kind of in or around 8%. So using that with our 40% ownership can give you an idea as to what we're expecting.

Speaker #4: And you can build a little bit of growth, obviously, because as we've mentioned, we're focused on growing our US platform and partnering with PVC for that.

Operator: As a reminder, to ask a question, please press star then one to join the question queue. The next question comes from Zachary Evershed with National Bank Financial. Please go ahead.

Speaker #4: So, expecting some growth in 2026 on those numbers as well.

Speaker #3: As a reminder, to ask a question, please press star then one to join the question queue. The next question comes from Zachary Evershed with National Bank Financial.

Zachary Evershed: Hey again. Just double-clicking on the nation building tailwind, some of the workforce accommodation peers are indicating that those could hit the P&L later in 2026 or early in 2027. Can you comment on your pipeline, any RFPs that you're seeing right now in terms of timing?

Speaker #3: Please go ahead.

Speaker #10: Hey, again. Just double-clicking on the nation building tailwind. Some of the workforce accommodation peers are indicating that those could hit the P&L later in 2026 or early in 2027.

Mark Becker: Yeah, I think it would be kind of across the spectrum is what I would say, Zach. I think we've got some near-term things, you know, Ksi Lisims LNG project, PRGT pipeline, which I know you're well aware that are flagging more near-term timing. We're seeing other things that are further out in timing. I would almost say, and again, we got to see these things play out. We got to see these things come to bear, we've got kind of a spectrum of near-term, meaning things that you might see some proceeds in 2026, picking up more in 2027, 2028 is what we're seeing. Certainly kind of a full spectrum of projects all the way from LNG, oil and gas pipeline, as well as certainly mining for sure, and then the government side as well.

Speaker #10: Can you comment on your pipeline and any RFPs that you're seeing right now in terms of timing?

Speaker #5: Yeah, I think it would be kind of across the spectrum, is what I would say, Zach. I think we've got some near-term things: Kylisms, LNG project, PRGT pipeline—which, I don't know if you're well aware, but they're flagging more near-term timing.

Speaker #5: We're seeing other things that are further out in timing, so I would almost say—and again, we've got to see these things play out.

Speaker #5: We got to see these things come to bear. But we've got kind of a spectrum of near-term, meaning things that you might see—some we might see, some we might see some proceeds in 2026.

Speaker #5: And then picking up more in 2027, 2028 is what we're seeing. But certainly kind of a full spectrum of projects right all the way from LNG, oil and gas, pipeline, as well as certainly mining for sure.

Zachary Evershed: Good call. Thanks. Then on the economics, what's it looking like for purchasing new build workforce accommodation equipment versus rack rates? Is it getting closer to making sense for a new entrant?

Speaker #5: And then the government side as well.

Speaker #10: Good caller. Thanks. And then on the economics, what's it looking like for purchasing new build workforce accommodation equipment versus rack rates? Is it getting closer to making sense for a new entrant?

Mark Becker: Yeah, I think, you know, we still have to. New build is still a very expensive proposition in Canada. There is equipment available, and I did flag it as part of my comments. There is market equipment available. Zach, I think you know we do focus on higher quality equipment. We're a higher quality provider of workforce accommodations equipment. There is equipment out there that is higher quality that we can get through the market. There's a little bit of refurb that really just falls within our current numbers. We can bring that to bear. I think for us, our first place we're going to go is kind of market equipment before we start looking at anything related to new build is what I would say. Betsy, are you there? Hello?

Speaker #5: Yeah, I think we still have to—new build is still a very expensive proposition in Canada. There is equipment available, and I did flag it as part of my comments that there is market equipment available.

Speaker #5: And Zach, I think you know we do focus on higher quality equipment. We're a higher quality provider of workforce accommodations equipment. There is equipment out there that is higher quality that we can get through the market.

Speaker #5: A little bit of refurb that really just falls within our current numbers. We can bring that to bear. So I think for us, our first place we're going to go is kind of market equipment before we start looking at anything related to new build is what I would say.

Speaker #5: Betsy, are you there? Hello? Okay. I think we've got all of our questions covered. And I'm hearing there's no more questions in the queue.

Mark Becker: Okay, I think we've got all of our questions covered. I'm hearing there's no more questions in the queue. We'll wrap it up today. Thanks everyone for joining us.

Speaker #5: So we'll wrap it up today. And thanks, everyone, for joining us.

Operator: The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.

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