02:33 PM EDT, 06/20/2024 (MT Newswires) -- Dexterra Group ( HZNOF ) held its AGM on June 20.

Management is guiding for revenue of ~$1 billion with Adj. EBITDA of $100 million in 2024e, implying 7.8% revenue growth vs. 2023, writes National Bank's Zachary Evershed. This is expected to be driven by a strong pipeline of organic growth opportunities, market share capture in remote services, and integration in support services.

The outlook does not depend on an outsized wildfire season, but is in line with consensus calls for $1.04 billion in revenue (NBF: $972.5 million) and comes in above the Street's $95.2 million Adj. EBITDA forecast (NBF: $93.4 million). The company also outlined a 4-5 year goal of growing the business to at least $1.6 billion in revenue with at least $150 million in EBITDA.

Evershed notes that the evolution of the business mix sees a focus on support services on the top line, complemented by a significant profitability contribution from asset-based services. "The capital efficient and predictable support services business generates a lower EBITDA margin profile (6-7%), but provides a steady base onto which the more volatile but higher margin (25-30%) asset-based services can add torque," he adds.

Dexterra Group ( HZNOF ) is rated Outperform, with a $9 target.

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