Dexterra Group Inc.

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 Eastern Time.

We will be commenting on our Q1 2026 results with the assumption that you have read the Q1 2026 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 2 of the presentation we have posted on our website, 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.

Good morning. Thank you, Denise, and thanks for joining our call today.

Dexterra's results for Q1 2026 showed continued progress, profitable growth, higher adjusted net earnings, growing free cash flow, a smooth integration of recent acquisitions, a strong balance sheet led by a seasoned and reliable management team with a business plan that will build long-term shareholder value. The stars appear to be aligned today as we are experiencing negligible impacts from U.S.

tariffs or the Middle East war and have a growing IFM market in the U.S. and Canada and a market-leading remote services business.

We have experienced significant uplift in our share price over the past year. However, management and the Board continue to believe our shares are undervalued and are trading at a multiple well below many of our competitors.

As we said before, our primary focus is on the long term, and we continue to believe our intrinsic value will be realized over time by shareholders as we deliver on our long-term business plan. With those introductory comments, I'll now pass it over to Mark for his overview.

Great. Thanks very much, Bill and Denise, and good morning to everyone.

Starting off on Slide 5. As Bill mentioned, Q1 has indeed been a very good start to the year.

We generated revenue of $275 million and adjusted EBITDA of $33 million in Q1, and those are increases of 15% and 32%, respectively, from Q1 of last year. Additionally, adjusted EBITDA margins were higher in Q1 at 12% compared to 10.5% in Q1 of 2025, just given the mix of business.

Our strong performance and growth in adjusted net earnings of 10% during the first quarter was driven by strong camp occupancy organic growth and the contributions from PVC and -- right Choice. Results this quarter highlight the successful execution of our growth strategy and resilience of our business.

Onboarding of our 2 strategic acquisition investments has proven successful, and we are optimistic about the growth potential we expect to fully realize from these investments going forward. Right Choice is now fully integrated into Dexterra operations with IT systems and business processes successfully transitioned in early Q1.

Right Choice camps and personnel are now an integral part of Dexterra Camp operations. The optimization of Dexterra and -- right Choice open camps in the Montney is substantially complete, creating new capacity for equipment redeployment across Dexterra's broader workforce accommodations network in support of our new growth opportunities.

Our fleet is about 85% deployed today, and we have a good pipeline of opportunities for new work. We should see our utilization rate continue to build and are closely monitoring and pursuing nation-building opportunities.

With Right Choice now fully integrated, we are no longer reporting revenue or EBITDA contributions from Right Choice on a stand-alone basis. We also continue to invest in our U.S.

business and our U.S. team.

In sales, leadership and IT and finance, we're well positioned to execute on our U.S. strategy.

The PVC investment further expands Dexterra's growth runway and positions the corporation to scale its facilities management platform across the U.S. The partnership is progressing well with PVC with strong leadership engagement and our collective efforts are focused on organic growth.

Our U.S. sales pipeline is growing and winning new mandates is the key focus.

Our Canadian Facilities Management business also continues to build momentum with a solid foundation of long-term business, a continued strong pipeline of new opportunities across the spectrum of IFM segments and developing opportunities in the government and defense space. We continue to monitor macroeconomic conditions and inflation closely.

Dexterra's business is generally insulated from the direct impacts of tariffs as we employ labor on both sides of the border and source a majority of our commodities domestically. The ongoing geopolitical tensions in the Middle East are driving volatility in global energy prices, and we may soon start to see that exert broader inflationary pressures.

We are actively mitigating these impacts through contract inflation terms, repricing mechanisms, supply chain initiatives and operational efficiencies that have been very successful for us to date. We continue to monitor conditions closely.

However, at this point in time, we don't anticipate material impacts to our business. I'm also pleased to report our trailing 12 months return on equity as of the end of Q1 was 15.9%, exceeding our target of 15% and continuing to demonstrate our commitment to delivering strong shareholder value.

With that, I'll turn things back to Denise to provide a more detailed overview of our segment results and financial position.

Thank you, Mark. I'll begin with a detailed look at our business segments, starting with Support Services on Slide 7.

Revenue in Support Services for the first quarter were $234 million, an increase of 18% over Q1 2025. driven primarily from strong camp occupancy across the platform, including the -- Right Choice camps acquired in Q3 2025 and organic growth from our new contracts.

During the quarter, PVC contributed $1.5 million to adjusted EBITDA. As a reminder, PVC is accounted for under the equity method as we own 40% today and have an option to buy the remaining 60% in 2027.

Accordingly, its revenue is not included in our reported results. We anticipate PVC will be cash flow neutral in the near term as PVC is investing in its proprietary IT system and people to build an even stronger platform to deliver long-term distributed model growth in the U.S.

and Canada. Adjusted EBITDA for Support Services increased by 29% period-over-period to $24 million, while adjusted EBITDA margins increased to 10.4% in Q1 2026, up from 9.5% in Q1 2025.

The improved profitability was the result of strong camp occupancy, contributions from recent acquisitions and organic growth related to new contracts. Adjusted EBITDA margins, excluding PVC, were 9.8%.

We continue to expect adjusted EBITDA margins for Support Services to exceed 9% in the long term. The focus for Support Services remains on delivering profitable organic growth by being disciplined around new projects and through margin improvements and management.

As Mark mentioned, we are effectively managing inflation pressures and in Q1 2026 saw our direct costs as a percentage of revenue decreased 1.4% to 85.3%, a good result that was achieved through a combination of strong supply chain and contract management and improved scale of the business in both Canada and the U.S. Moving on to asset-based services on Slide 8.

Revenue increased 1.2% period-over-period with rental revenue improvement of 11%, driven by higher asset utilization, which was partially offset by lower camp installation activity for clients, which varies based on the timing of projects. However, it is important to note that the camp installation activities are critical to obtaining the long-term equipment rental revenue stream and support services contracts.

You will note that we have expanded our disclosure regarding the composition of asset-based services revenue to provide further transparency. Supplemental 2025 comparative information by quarter for asset-based services revenue components is available on our website on the Investor page under Documents and Filings.

Adjusted EBITDA of $16 million increased 18% compared to Q1 2025, while adjusted EBITDA margins increased to 38% in the first quarter of 2026, up from 33% in the first quarter of 2025. The margin improvement reflects increased rental activity, which generates higher margins compared to camp installation and demobilization revenue.

As Mark mentioned, current market indicators point to growth and increasing utilization of our workforce accommodation fleet over 2026, supporting solid sales momentum. Access matting utilization is also expected to remain broadly in line with 2025 levels.

We remain focused on maximizing asset utilization and returns across the ABS segment through disciplined capital spending and deployment of assets. We continue to expect margins will be at the higher end of our long-term range targeted of 30% to 40% in 2026.

Moving to Slide 9. I would like to highlight that the addition of more open camps with the -- right Choice acquisition has shifted our seasonality profile.

As a result, Q1 and Q2 are now more comparable in terms of their contribution to adjusted EBITDA, with Q2 experiencing a lower post-secondary food service activity. which typically resumes in Q3.

Q3 remains our strongest quarter, now followed by Q4. We're closely managing our corporate expenses.

And in the first quarter of 2026, they declined slightly to $6.9 million or 2.5% of revenue compared to $7.2 million or 3% of sales in the first quarter of 2025. 2026 costs also included investments in our technology and innovation projects.

Going forward, we expect corporate costs to be approximately 2.5% of revenue, even as investments are made in technology and sales resources to support our U.S. business platform as it continues to scale.

On January 2, 2026, a limited fire at one of our camps in the Prince Rupert region of BC resulted in the loss of certain equipment and a temporary disruption of operations. The net financial impact of the insurance recoveries and asset write-off of $4.7 million has been excluded from adjusted EBITDA, adjusted net earnings and adjusted EPS as well as free cash flow.

The camp has returned to normal operations and receivables include approximately $10 million in insurance recoveries. Capital expenditures in the quarter of $9.5 million are higher as they include sustaining capital expenditures of $4 million relating to the fire.

Normalized sustaining capital expenditures are expected to continue to be approximately 1% to 1.5% of revenue on an annualized basis and our replacement expenditures necessary to maintain the existing business. Free cash flow continues to grow on a normalized basis, consistent with our EBITDA growth.

For Q1 2026, free cash flow was $1 million. In Q1 2026, free cash flow included the payment of $6.7 million in long-term incentive plan amounts as the performance share units met the hurdle level for payment for the first time.

The adjusted EBITDA conversion to free cash flow is expected to continue to exceed 50% on an annual basis and similar to prior years. Q3 and Q4 are expected to have the highest conversion to free cash flow.

Net debt as at March 31, 2026, was $225 million. The net debt to adjusted EBITDA was 1.7x, well within our comfort level and objective of supporting a strong balance sheet.

The increase in net debt in Q1 2026 was driven by seasonally higher working capital requirements, the 2025 income tax payment, share-based compensation payments mentioned earlier and the impact of the fire incident. We expect our debt to be reduced significantly in the back half of the year with excess free cash flow.

Our $425 million term loan matures in 2029 and has significant unused capacity. We remain committed to delivering strong returns to our shareholders, and we declared a dividend of $0.10 per share payable in July 2026.

In addition, our Board has approved the renewal of our NCIB program as of May 6, 2026, subject to TSX approval, which will allow us to remain opportunistic on share buybacks with the capacity to repurchase up to approximately 3 million shares in the period from May 23, 2026 to May 22, 2027. I will now pass it back to Mark for concluding remarks.

Great.

Thanks, Denise. And before we open it up for questions, as I normally do, we'll provide some comments regarding our outlook and priorities for 2026, which are highlighted on Slide 10.

As we look ahead to the balance of 2026, our key focus remains on strong execution and delivering profitable and predictable results while realizing the full value of our recent acquisitions and building momentum on organic growth. This includes continuing to scale our U.S.

platform and expand FM and IFM opportunities through the complementary delivery model afforded by PBC to us. At the same time, we are deepening and expanding current client relationships and leveraging that to build the pipeline of new growth opportunities in both the U.S.

and Canada. As previously mentioned, the addition of – Right Choice excess equipment also gives us flexibility and supports our sales pipeline.

Our market activity and new sales pipeline remains strong with quality opportunities across the board in all areas of our remote and facility management businesses on both sides of the border. This includes workforce accommodations and potential facility management associated with large U.S.-based data centers, which we have already established initial contracts with one of the hyperscalers in the South U.S., and we're optimistic about more as well opportunities related to potential Canadian nation building projects in energy, mining, infrastructure, including government and defense, which we have a strong history in all of these segments.

We are currently tracking approximately 30 opportunities in the Canadian nation building category, a mixture of workforce accommodations and facilities management, near-term and longer-dated opportunities that represent upside to our growth prospects. As previously mentioned, we'll continue this year to monitor economic conditions and inflation closely with a focus on supporting target margins in the business.

In 2026, we are also expanding the Dexterra brand, replacing some legacy brands, which reflect the evolution of the organization into a strong and integrated support services platform. This initiative is intended to simplify how the corporation presents its capabilities, will improve consistency across client engagement and service delivery and strengthen our market visibility by more clearly reflecting the scale and breadth of our operations across North America.

The transition positions the business for future growth across North America, particularly in complex large-scale and remote service operations without changing the underlying operational execution or service commitments relied upon by our clients. We continue to invest in our people and technology, including a focus on labor management technology to drive innovation, operational efficiency and differentiation.

At the same time, we remain committed to develop and invest in our indigenous partnerships and advancing our sustainability and safety initiatives. In closing, our disciplined approach to capital allocation is a real plus.

Firstly, supporting a reasonable and sustained dividend; second, investing in the business through both sustaining and high-return capital expenditures; third, pursuing accretive acquisition investments, all the while maintaining a strong balance sheet, paying down debt over the remainder of 2026, absent M&A activity and opportunistically buying back shares to support the share price. Overall, we are confident in our ability to execute our strategy, navigate market uncertainty and to deliver long-term shareholder value.

We will be hosting our Annual General Meeting today at 10 a.m. Eastern Time in a virtual-only format.

The management presentation will cover our longer-term strategy. I will take questions on that strategy at the AGM and the webcast, and that presentation will be available on our website in the Events and Presentation page after the AGM.

This concludes our prepared remarks. I'll turn the call back to John for the Q&A portion of the call.

It's Kyle on for Chris. Hoping you can provide an update on your current bed capacity utilization rates as well as any color you can share around your strategy to deploy the remaining capacity and if you see any potential to lean more into pricing given the strengthening demand environment.

Kyle, it's Denise. Thanks for your question.

As we said in our prepared remarks, we're seeing asset utilization at 85%, which is quite strong. We do have some excess capacity of about 1,500 beds to deploy towards those opportunities that Mark mentioned that we're looking at, whether it's nation building or any of the other opportunities that we're looking at in the U.S.

We expect that to really grow to above 90%, which is similar to where we've been in the past.

Okay. Then shifting over to FM.

-- looked like strong levels of organic growth in the quarter. Can you talk about what drove that?

And if mid-single-digit growth remains an appropriate way to think about things for the balance of the year? I'll jump in q1u7e3u7e3.

Sure. Yes.

Overall, I would say, Kyle, I mean, as we've talked about, our pipeline remains strong, kind of both sides of the border. Certainly, with our new platforms that we've established in the U.S., that gives us kind of a broader range of opportunities in the facilities management space, both on self-perform model as well as now the distributed model and our partnership with BBC, and that really kind of builds our ability to bring on our organic growth and kind of hit our organic growth targets.

So I would say quarter-over-quarter, probably nothing specific other than we are bringing on what we are expecting to bring on in the support services space, which also includes the support services elements of the remote business as well. So I would just say overall pipeline and kind of hitting the targets as we see on a broader long-term scale of this mid-single-digit target.

Congrats on the quarter. So with the split between the U.S.

and Canada here for the opportunities in workforce accommodation and facilities management, where would you say you're spending most of your time? And with a hyperscaler already signed versus nation building, maybe taking a little bit longer, how are you thinking about sequencing?

Yes. I would say, Zach, we've got kind of 2 broad business areas, and we've got 2 -- we're a decentralized model.

So we've got a President on both sides of the border of the FM space. We have Jeff Litchfield in the remote space, kind of taking advantage of that decentralized model to make sure we are kind of prosecuting all the market elements that we're going after.

So I would say the timing is set a lot by our clients and the development side of things. We are excited about the data center opportunity in the U.S., and it's great to be part of the ecosystem for that, so that we expect to grow, and that's under Jeff Litchfield's organization.

And then in the facility management space, Sanjay Gomes and his team continues to kind of prosecute organic growth, including the nation building stuff, which includes defense and government, which we're seeing opportunities there, and we have a long history on that side. And then now with David Lambert, creating our U.S.-based team on the facility management space, supported by CMI, supported by PVC, kind of building out and prosecuting that pipeline.

So that's kind of how I'd answer our approach and how we're kind of balancing as you say, the kind of the opportunities on a few different fronts.

Beauty. And then for the follow-up, fuel and food inflation, obviously, more and more of a worry in the markets.

Can you go into more detail on your strategy for dealing with this given the logistics heavy nature of your business?

Yes. And good question, Zach.

And we certainly learned a lot, and you've been around with us for a while, and we went through the hyperinflation times post pandemic and learned a lot. We've -- our contracts have never been in better shape around things like inflation, support and inflation management.

Both -- there's direct impact of fuel on our business, particularly the remote business because there's a lot of fuel gets used up there. But in a lot of cases, those are pass-through costs to our clients.

If they're not pass-through costs, we tend to have the ability to pass them through inflation terms in our contracts just because energy fuel itself can be just a volatile price all the time, right? The other aspect, I would say, Zach, if you really look at our contracts now, combination of our contracts that have inflation terms in them or are in some cycle of repricing, either through renewal or new contracts, which allows us to kind of update pricing on those fronts.

And we've done a lot around labor to make sure we are protected on the labor front. Majority of our contracts, majority of our clients are kind of covered that way.

It doesn't mean we don't need to work very hard on this front, and we are working very hard on this front. And a key thing that we've always talked about is the supply chain side of our business and our strategic supply chain efforts around protecting us from tariffs and also managing inflation is also a key part of it.

So very active, but we're in very good shape. And from what we see today, we just don't see material impacts in the near term.

Maybe just a few follow-ups. Just on the workforce space, the 85% utilization, like what's a realistic sort of upside number to get that to that sort of sustainable yes.

Yes, it's great having you aboard, Mark. And yes, we've -- what we would kind of say because we always do have equipment moving from project to project and Denise talked about 1,500 beds closer to 2,000 these days kind of available to bring to bear if you do the math.

Generally, we would say kind of north of 90% is a really strong utilization for camp equipment. The other thing I would say, Mark, we are seeing and particularly maybe as an example, the data centers in the U.S., we are sourcing equipment from other places to support kind of that growth because it's not all coming out of our fleet.

So really, we are looking to maximize our fleet and then looking for access around bringing equipment to bear both in Canada and particularly in the U.S. on some of these larger opportunities.

But I think north of 90% is what we would say would be very strong utilization. That's what we've seen in the past.

Yes. I think you called out in the MD&A somewhere a couple of million dollars of CapEx in that business.

Would that be tied to sort of this U.S. data center opportunity?

Or is it something more broad?

Yes. I would say, generally speaking, when we get into these big projects around the data centers and those kinds of things, we're looking to kind of the clients one example, we're currently working on the clients are actually putting the money forward for the camp equipment that's required.

We do try to stick kind of the low capital model, and that's kind of what we still continue to prosecute because we just find that's the most advantageous for us and gives us the highest free cash flow conversion and kind of the highest return on equity as a business.

Great. Maybe just one last one.

Just I appreciate you don't want to sort of separate Right Choice anymore, but the 18% growth in Support Services, do you have sort of a rough number of what's kind of organic?

Sure. So what we, I guess, disclosed when we purchased -- Right Choice last year, $75 million in revenue, et cetera.

So against that, they're performing very well and exceeding our expectations. I would say, for this quarter, our performance around organic growth is very much in line with our expectations.

So that mid-single-digit organic growth is what we achieved for this quarter. And then as we mentioned, we're not able to really start separating Right Choice, but I think a good indicator would be to go back to what we disclosed when we initially purchased it to kind of bridge that gap.

But again, both are very happy this quarter with our organic growth as well as the way Right Choice is performing.

So last quarter for Support Services, we saw sales investments impact some of the bottom line. Wondering how the spending is trending this period and how we should think about this for the rest of the year?

Can you say it again, Sean, which investments, sorry?

Sorry, the sales investments going on at Support Services. I was just wondering how those trended in the period and how we should think about it for the rest of 2026?

Yes. I think -- and I'll let Denise comment here, too.

But I think we've been pretty kind of clear on where we see kind of our overall kind of our overheads trending at that kind of 2% and 2.5% sort of mark. Some of that, Sean, for sure, is in the U.S.

as David Lambert built out the team, the sales resources, we're building our sales teams in the U.S. that are kind of helping kind of build out these new platforms and kind of prosecute these pipelines that we've got now in the U.S.

And we do kind of incorporate and roll that into our overall kind of overhead spending targets. I think probably what you might be seeing as well, Sean, to agree is you're seeing kind of the benefits of scale because as we do get bigger, we are able to kind of absorb some of these initial kind of upfront investments and stay within our overhead targets.

I don't know if you'd add anything, Denise, to that.

Yes. Sean, we would expect to maintain as we maintain the margins we've shared before, so within kind of the support services above that 9%, and that contains any additional investments we've made in sales.

Then we've also, as part of corporate expenses provided, we expect that to be about 2.5% of revenue. And so that the investments we're making are contained within those expectations, and we don't see that changing.

Okay. Awesome.

And then just quickly on asset-based. Looking out for the basis of the year with this new segmentation details that you guys are providing, are you expecting kind of a similar mix that what we saw in Q1 to trend for this year?

Or yes, just thinking about the pipeline, any details?

In terms of asset-based services?

Yes.

So like Yes. In terms of the mix, again, I'd refer you to the -- what we provided on our website just in terms of the supplemental for prior year, just in case as you kind of compare organic growth and within ABS organic growth, again, kind of low single digits.

Related to the margins, again, as we mentioned, we're expecting to be kind of within that higher end of the 30%, 40% range, again, driven by business mix because we are seeing that higher rental revenue in Q2 and for the balance of the year. And I think that's kind of why we showed that breakout.

And we did see last year some higher mobilization efforts around camps and now you see the benefits of that with the kind of higher rental rates, the higher end of the 30% to 40% range because those cans are mobilized. But part of the reason, Sean, we wanted to make sure we do that split out kind of pricing strategy is here with the expected outlook on WFS expected to take up a lot of the spare capacity in the market.

Just kind of what [Audio Gap] -- how you guys are looking at that moving forward here?

Yes. I mean we're always looking at that, Trevor.

But I would say, generally speaking, in workforce and particularly kind of in energy markets, I would say that we see in Canada, even mining, we are seeing prices increasing, and we are increasing pricing, and that ties in both kind of our margin target management as well as the point I think you're making and asking about is the nature of the market. So we are seeing an increase in pricing in those areas for sure.

And just maybe kind of how you're seeing the demand increase here. There's obviously been lots of chatter in the market about the major projects, but things have moved a little bit slower than, I think, originally anticipated.

Just kind of what your sense is in terms of being able to get to that -- when you expect to be at that kind of 90% plus utilization?

Yes. I think the way we'd like to talk about it, Trevor, is kind of build over time for sure and bringing kind of what's currently got 2,000 beds, and we're going to have other beds available.

And as I said, we're going to access other capacity of equipment that we can bring to bear outside our fleet and those kinds of things. I'd say over time, I'd agree with you.

And I think, generally speaking, some of the larger nation building projects are getting going. We're seeing good traction with them.

We're seeing a lot happening on those fronts. But a lot of the, I guess, kind of the reality related to when things like workforce accommodations would be on the ground, it's kind of into that late '27, '28, '29 kind of range, right?

And I'd even say we're seeing a lot of activity on the defense side, but a lot of that takes time to kind of bring to bear. Some of it involves base expansions that builders are going to do.

There's expansions that are going to happen and then we can support those in the short term for the workforce accommodations scenario and then longer term, supporting those with facilities management opportunities. So we kind of -- we're kind of able to take advantage of both the short term and long term.

But I would say some of the really big stuff and some of the things around pipelines and those kinds of things can be a little bit longer dated.

Just a quick follow-up. Negotiations for the fire insurance settlement are ongoing.

What's the expected range of outcomes there and the timing to put that to bed?

Yes. So as I'm sure you can appreciate, these things sometimes take time.

We're really fortunate that we were able to really set up the new camp quite quickly. And so that's back to operations.

In the meantime, we're still negotiating with the insurance company. And obviously, we're talking about a range in terms of outcomes.

We feel very confident with the range that we have in Q2 -- I'm sorry, in Q1. That said, there may be a little bit of upside.

But again, because we've got our adjusted net earnings and adjusted EPS, it will be very clear when we call that out to the extent there's anything that we need to adjust for that happens in Q2. But we do expect that we should be able to wrap this up by the time we report Q2.

You get your healthy dose of Raymond James today. That's good to see that WSP call.

As you near the first anniversary of the -- right Choice and PVC acquisitions, how would you evaluate their performance so far versus the underwriting and synergy assumptions that you had at closing?

Yes. Good question, Fred.

Starting with -- right Choice. I mean the -- right Choice onboard has just been really, really great.

As we talked about, they're kind of -- everything is fully integrated into the Dexterra remote services system now. People are all onboarded together.

Systems are all onboarded. We've been able to take advantage of kind of the Montney optimization.

I mean we've closed some of our open camps, and we've closed some of the -- Right Choice open camps just to get that kind of optimized version in the Montney, which was a key part of this acquisition and obviously, freeing up the equipment, excess equipment that we brought over, which was about half the equipment in the -- Right Choice situation being available now for redeployment, which is very active as we talked about. So Right Choice, I would say, kind of right on what we're expecting in terms of value benefit and return from that acquisition.

And PVC is going great. I think a lot of the collaboration, the work together, the developing that distributed model platform, obviously, in the U.S., we've got a long history there, but then even start looking at backdrafting that into Canada is going very, very well.

And that -- the PVC front is a lot about using that to kind of prosecute a bigger pipeline of work. And we're seeing a really strong pipeline of work from PVC and even bringing opportunities from Dexterra into PVC and PVC opportunities and clients into the Dexterra world.

So I would say also very much on track with what we would have expected with PVC as well.

That's great, encouraging and nice to hear. Speaking of M&A, where do you need to see leverage go down to before returning to the acquisition trail?

Or does it matter, are you ready to go back again at this point?

Yes. And I think we've talked about this for sure, like with the rate choice and it's gone really well, as I said, but PVC is a bigger deal for sure with us and around the facilities management.

We really want to make sure we focus on the full onboarding on these latest acquisitions, getting full value from them, making sure we're going to realize the organic growth that these acquisitions represent as a prime focus in the M&A space, Fred. So I think our focus is going to be on making sure we do get good value from the acquisitions we've made, particularly the ones in 2025.

But even to that extent, that would also include our government services business in the U.S. through CMI from 2024, just making sure we do get good value as a priority compared to other M&A opportunities.

Never say never. And as I've said many times, you can't always control your opportunities around M&A.

But I think how I'd leave it with you is those are kind of our focus and priorities around the team and what we're focused on right now.