The following is a summary of the Dexterra Group Inc. (HZNOF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Dexterra Group Inc. reported Q3 2024 revenue of $269.7 million, a slight increase of 1.5% year-over-year and 6.4% from the previous quarter.

• Adjusted EBITDA for Q3 2024 was $32 million, down from $38.2 million in Q3 of the prior year, influenced by a normalization in wildfire season intensity.

• The company has improved its free cash flow to $11.9 million from $10.2 million in the same quarter last year.

Business Progress:

• Dexterra has successfully sold its Modular business, focusing on a more streamlined and predictable business model.

• Significant growth in Integrated Facilities Management (IFM), particularly through the acquisition of CMI and the expansion of government service contracts in the U.S.

• The company is reorganizing its business into two new segments: support services and asset-based services, to enhance strategic focus and market understanding.

Opportunities:

• Continued growth driven by the Microsoft Cloud, with a focus on IFM organic growth and strategic acquisitions to enhance capabilities and scale.

• Strengthening market position in the U.S. through expansion and acquiring new contracts for government service opportunities.

• Anticipated ongoing high utilization and favorable market conditions in the WAFES business unit.

Risks:

• Risks are associated with managing inflationary pressures, particularly in labor costs, which may affect future profitability but are currently being mitigated through strategic contract negotiations and client partnerships.

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