Dexterra Gr (TSX:DXT) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.
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Summary
Dexterra Gr reported a record Q3 2026 with annual adjusted EBITDA and strong free cash flow, driven by disciplined execution and profitable growth.
The company achieved a significant milestone with a market capitalization surpassing a billion dollars, reflecting progress in facilities management and workforce accommodations.
Q3 2026 revenue was $291 million, up from $281 million last year, and adjusted EBITDA improved by 9% to $38 million, with a margin increase to 13%.
Strategic initiatives included a successful PBC partnership, scaling the U.S. facilities management platform, and advancing strategic technology initiatives.
Dexterra Gr continues to manage inflationary pressures effectively, maintain a strong balance sheet, and invest in growth with a focus on the U.S. and Canadian markets.
The company is targeting organic growth opportunities in the $300 billion North American outsourced services market and pursuing Canadian nation-building projects.
Capital expenditures were $15 million, with growth capital focused on acquiring and refurbishing workforce accommodation beds.
Dexterra Gr declared a dividend of $0.10 per share, maintaining a strong balance sheet and continuing share repurchases under its NCIB.
Future outlook includes a focus on organic growth, nation-building opportunities, and maintaining strong margins amid macroeconomic uncertainties.
Full Transcript
Carrie (Operator)
Good morning. My name is Carrie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Dexterra Gr third quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. If you would like to ask a question during this time, please simply press star then the number one on your telephone keypad.
If you would like to withdraw your question, please press star one again. As a courtesy to all participants, we do ask that you limit yourself to one question and one follow-up. Thank you. I would now like to turn the call over to Ms. Denise Achonu, Chief Financial Officer. You may begin.
Denise Achonu (Chief Financial Officer)
Thank you, Carrie. Good morning, and thank you to everyone for joining the call. My name is Denise Achonu, Chief Financial Officer of Dexterra Gr. With me on the call today is Mark Becker, our CEO. After a brief presentation we will take questions, with the call ending by 9:15 Eastern Time. We will be commenting on our Q3 2026 results with the assumption you have read the Q3 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 that we have posted to 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 Mark for his introductory comments.
Mark Becker (Chief Executive Officer)
Good morning, and thank you, Denise, and thanks everyone for joining us on the call today. Q3 is traditionally Dexterra Gr’s strongest quarter, and this year was no exception. Record annual adjusted EBITDA and strong free cash flow reflected our disciplined execution of the business plan with profitable growth, expanding margins, a strengthening balance sheet, and growing momentum across both our Canadian and U.S. markets. During the quarter, Dexterra Gr reached an important milestone, surpassing a billion dollars in market capitalization for the first time in the company’s history.
This reflects the significant progress we’ve made over recent years including the growth of our facilities management and our workforce accommodations businesses, strategic acquisitions, disciplined capital allocation, and consistent financial performance. We’re encouraged to see investor recognition of our business and its longer-term growth potential supported by our expansion in the U.S. and the opportunities that are emerging from Canadian nation-building investment.
Referring in more detail to the slides, on slide 4 we continue our positive momentum in 2026 with another strong quarter of operational and financial performance. We delivered revenue of $291 million, up from $281 million last year, and adjusted EBITDA improvement of 9% over Q3 last year to $38 million. Our adjusted EBITDA margin increased to 13% from 12.5%, reflecting improved profitability across both Support Services and Asset-Based Services. Adjusted net earnings per share also increased 12% to $0.28 per share.
We’re pleased with the broad-based performance across the business. Revenue growth was supported by strong workforce accommodation occupancy and rental activity, as well as positive organic growth and contributions from our Right Choice acquisition. This was delivered despite significantly lower wildfire support and workforce accommodation installation and demobilization activity associated with project timing compared to the same quarter last year.
Our improved profitability in Q3 also benefited from a favorable shift towards higher-margin rental revenue in Workforce Accommodations and Access Solutions, operational efficiency gains while maintaining strong customer loyalty and satisfaction, and contributions from our investment in PBC. We achieved this margin improvement while continuing to invest in the long-term growth of our business, including scaling our U.S. facilities management platform, adding key U.S. leadership and expanding our sales and business development teams, as well as advancing our strategic technology roadmap initiatives.
Additionally, we are continuing to effectively manage inflationary pressures throughout the supply chain through supply chain initiatives, contract inflation terms, and price adjustments, with direct costs comprising a lower percentage of revenue for both our business segments when compared to the same period last year. Our partnership with PBC continues to progress well. PBC aligns very well with our growth objectives in the U.S., demonstrating the power of our combined brands. The joint Dexterra Gr–PBC systems and process development is also progressing, including the on-time and on-budget modernization of the proprietary PBC Connect facility management software. Year to date we generated $61 million of free cash flow and continue to strengthen our balance sheet, with our net debt to EBITDA ratio improving to 1.4 times as of September 30th, compared to 1.6 times at the end of 2025.
Our capital-light business model and strength of our balance sheet continues to provide us the financial flexibility to execute on our disciplined capital allocation strategy. Our trailing twelve-month return on equity as of the end of Q3 was 15.4%, achieving our target of 15 and demonstrating our continued commitment to delivering strong shareholder value. With that, I’ll turn things back over to Denise to provide more details on our segmented results and our financial position.
Denise Achonu (Chief Financial Officer)
Thank you, Mark. I’ll begin with a detailed look at our business segments, starting with Support Services on slide 6. Support Services revenue for the third quarter was $253 million, an increase of 8% over Q3 2025, driven primarily by strong workforce accommodation occupancy, continued growth in U.S. facilities management, and the contribution from the Right Choice acquisition completed on August 31, 2025, partially offset by lower-than-normal wildfire support activity.
Organic growth during the quarter was 4.5%. Adjusted EBITDA in Support Services was $29 million, an increase of 18% compared to the prior-year period, and adjusted EBITDA margins expanded to 11.5% from 10.5%. Our 40% investment in PBC, which was acquired on July 31, 2025, contributed $1.3 million to adjusted EBITDA in the quarter compared to $0.9 million in Q3 2025. Excluding PBC, adjusted EBITDA margins were 11%, up from 10% in Q3 2025, due to contributions from higher-margin workforce accommodation contracts, partially offset by investments in sales and operations leadership as we continue to build out and scale our U.S. FM/IFM business.
As a reminder, PBC is accounted for using the equity method as we currently own 40% of the business. As a result, PBC’s revenue is not included in Dexterra Gr’s reported revenue. We continue to expect PBC to be largely cash flow neutral in the near term as we modernize PBC Connect and build the teams and structure to support the long-term growth of its distributed model across the U.S. We have the option to acquire the remaining 60% as early as October 1, 2027, at a multiple similar to our original investment, with a quarter of the purchase price payment deferred until two years after the closing date, tied to retention of key leadership.
Within Support Services, our focus remains on profitable organic growth and disciplined margin management. We continue to invest and expand our facilities management platform across Canada and the U.S. while pursuing growth in workforce accommodation services, catering, and facilities management supporting remote operations. We expect adjusted EBITDA margins to exceed 9% over the medium term. Moving on to Asset-Based Services on slide 7, third quarter revenue was $39 million. Higher-margin rental revenue increased by 2.3%, supported by strong equipment utilization, solid access matting revenue, and a contribution from Right Choice, offset by lower wildfire support camp rental activity. As mentioned earlier, installation and demobilization revenue was lower by $10 million year over year, primarily reflecting the timing of project activity.
As we’ve noted before, this revenue stream is lower margin and varies based on project timing. However, it remains a critical enabler of our market-leading competitive position as a turnkey workforce accommodations provider and is important to securing key contracts and maintaining long-term client relationships. Adjusted EBITDA of $16 million in the third quarter was consistent with the prior year, while adjusted EBITDA margins expanded to 41% from 34% in Q3 2025.
The margin improvement primarily reflected a favorable shift in business mix towards higher-margin rental revenue, which more than offset lower wildfire support activity and installation and demobilization revenue. Looking ahead, we expect utilization of our existing workforce accommodation fleet to build over time. We expect successful conversion of nation-building and our broader workforce accommodation pipeline to drive additional rental demand as well as related installation activity, with a greater proportion of revenue coming from higher-margin rentals.
We expect adjusted EBITDA margins to be overall at the higher end of our 30% to 40% range in 2026. Moving to slide 8, capital expenditures for the third quarter were $15 million and included $12 million in growth capital related to the acquisition of approximately 500 workforce accommodation beds, which are being refurbished for deployment into our growth pipeline. This represents a disciplined, cost-effective, and targeted investment in existing industry assets with attractive expected returns. We generated $38 million in free cash flow in the third quarter, driven by strong profitability and positive improvements in working capital.
We continue to expect to generate the majority of our free cash flow in the back half of 2026, similar to prior years, and we expect our annual adjusted EBITDA-to-free cash flow conversion to exceed 50%. Strong free cash flow conversion allowed us to fund the growth capital investments I mentioned earlier and pay dividends while reducing our net debt to $193 million at quarter end from $206 million at Q2. Net debt to adjusted EBITDA was 1.4 times at the end of Q3 2026.
Our $425 million credit facility matures in 2029 and has significant available capacity plus an uncommitted accordion of $150 million, providing considerable flexibility to support our capital allocation priorities and future growth. We remain committed to maintaining a strong balance sheet with net debt to adjusted EBITDA of less than 2.5 times. Finally, delivering strong returns to shareholders remains a priority. In Q3 2026 we purchased approximately 118,000 shares and continue to maintain our NCIB, which provides flexibility for opportunistic share repurchases and allows for the buyback of up to 3 million shares.
We declared a dividend yesterday of $0.10 per share, payable January 15, 2027. I will now pass it back to Mark for his concluding remarks.
Mark Becker (Chief Executive Officer)
Great, thanks Denise. And before we open up the call for questions, I’ll provide a few comments on outlook and priorities, which are highlighted on Slide 9. As we approach the end of 2026, I am extremely proud of what the team has accomplished to date this year, and as we head into year-end we’ve continued to deliver profitable, predictable results and maintain strong gross margin discipline despite economic and geopolitical uncertainty, and continue to deliver valuable services to our customers. We continue to execute well against our business plan and have positioned the company to capitalize on the growth opportunities ahead.
Looking ahead into 2027, a key focus area for us is organic growth. Our sales pipeline is strong and diverse in Canada and the United States across the breadth of our business. In support of this priority, on the facilities management side, we’re well positioned for FM/IFM growth across North America. We have invested in key U.S. sales and business resources to scale our platform and take advantage of the $300 billion and growing North American outsourced services market, of which 90% is in the U.S. We have new FM and IFM contract wins secured in 2026, including within PVC, and are expecting to mobilize and ramp up those contracts through the first half of 2027.
Across the spectrum of Canadian nation-building opportunities, we’re actively pursuing and submitting bids and proposals on energy projects, pipelines, mining, defense, government infrastructure, power and road development, and data center projects, as well as other opportunities. The scope of the nation-building opportunity set, in a historic context, is much broader than the regional or sector-specific periods of high activity we’ve experienced in the past.
These projects are at varying stages of planning, regulatory, and procurement and, as such, are subject to our clients’ approval processes, so we expect the timing of awards and subsequent revenue will vary and be spread over time. Our significant depth of experience, market leadership, and capacity in turnkey workforce accommodations, hospitality, catering, and facilities management, including government and defense in remote environments, combined with our more than 80 Indigenous community partnerships and Canada-wide market presence, positions us very well to capture our share of this nation-building growth upside as opportunities become available.
In light of the potential opportunity in front of us, as Denise mentioned earlier on, we are prudently investing in additional workforce accommodations capacity, including our recent acquisition of 500 beds this year. We currently have approximately 2,500 fleet beds available that we expect to deploy over the medium term, and we are actively pursuing an additional 1,500 beds of quality market equipment, increasing our deployable capacity by 4,000 total and our overall fleet capacity to 14,000 beds total.
Our in-house refurbishment capacity in our Grande Prairie facility provides us with the opportunity to add this capacity in a very cost-effective, capital-light manner. We expect to acquire these additional beds over the next 12 months, and our balance sheet provides the flexibility to invest ahead of the anticipated demand and secure quality industry capacity before it becomes substantially deployed. In addition, the recently announced federal tax incentives will further enhance the economics of these investments through accelerated tax deductions.
Together, these advantages provide the opportunity to generate attractive returns and quick payback on invested capital, while maintaining our disciplined approach to capital allocation, capital-light business model, and balance sheet strength. We are also continuing to closely monitor the macroeconomic environment and inflationary trends. Our business remains well insulated from the direct impact of tariffs, as we employ our workforce locally and source the majority of our materials and supplies domestically both in Canada and the U.S. While ongoing geopolitical tensions and energy prices may create broad inflationary pressures, we have a number of levers to manage these impacts.
These include contractual inflation pass-through mechanisms, pricing and contract management, supply chain initiatives, and ongoing operational efficiency, all of which have proven effective supporting our target margins. Based on what we see today, we do not expect inflation to have a material impact on our business over the near term, although we’ll continue to monitor the situation closely. As always, we remain committed to our disciplined approach to capital allocation. Our priorities continue to be supporting the dividend, making sustaining and high-return capital investments, maintaining a strong balance sheet with debt to adjusted EBITDA of less than 2.5 times, and looking for accretive acquisitions. We continue to make strategic investments in both enterprise and client-facing technology to drive innovation and improvement, improve operational efficiency, and further differentiate our service offering.
In closing, we’re confident in our strategy and our ability to grow and win in the marketplace, and we’re well positioned to continue delivering profitable growth and long-term shareholder value. This concludes our prepared remarks, and I’d like to thank you all for attending our call today. I’ll turn the call back to Carrie for the Q&A portion of the call.
Carrie (Operator)
Thank you. And at this time I would like to remind everyone, if you would like to ask a question, please press the star then the number one on your telephone keypad. We ask that you limit yourself to one question and one follow-up. We’ll pause for just a moment to compile the Q&A roster. Your first question will come from Kyle McPhee with ATB Capital Markets.
Kyle McPhee (Analyst)
Hello, thanks for taking my questions. Good morning. So for the Support Services segment, I’m hoping you can help us understand some of the moving parts as it relates to organic revenue growth. Looks like you reported organic revenue growth to the segment at 4.5%. Can you ballpark what it would have been for the remote services, or remote workforce services, side of the segment versus the urban facility management platform in the segment? You know, were they both in that mid single-digit organic growth range, or was there a big difference by platform?
It’s pretty hard for us to figure out, notably given I think wildfire noisier over year — it seems like that was a drag.
Denise Achonu (Chief Financial Officer)
Morning, Kyle. Yeah, so again we look at our Support Services in aggregate, and yes, overall 4.5% organic growth. It would have been — you’re right — it would have been a little bit higher had we had more normal levels of wildfire support. That said, for both our FM business and our workforce accommodation remote services, the organic growth was within our expectations, which was that mid single-digit organic growth level for the quarter.
Kyle McPhee (Analyst)
Okay, so kind of in and around where it was for the total segment. Okay, that’s helpful. And then—
Denise Achonu (Chief Financial Officer)
I don’t think there’s anything too significant on either side that would drive one way low and one way high. I mean, I think we were kind of hitting what we expected to hit in terms of growth on both sides of the business within Support Services.
Kyle McPhee (Analyst)
Okay, and then as my follow-up here before passing the line: your Support Services margin percentage was very strong in Q3, with and without the impact of PVC accounting. Was that strength — the lift for margins — was it mainly from the remote workforce side, probably benefiting from very strong occupancy and OPEX leverage, or was it also from urban facility management?
Denise Achonu (Chief Financial Officer)
Yeah, I would agree that it’s fair — you’re spot on, Kyle. It is that high occupancy in the workforce accommodation space that helped drive that higher margin. Again, if you look at our quarterly profile, you’ll always see kind of Q3 is our strongest quarter, as Mark mentioned, and that’s also from a margin profile perspective. And so that’s really what drove that higher margin. But, you know, just going into the medium term, we do expect Support Services margins to be in that 9% range that we’ve referred to.
Kyle McPhee (Analyst)
Okay, thank you, I’ll pass it on.
Carrie (Operator)
And once again, ladies and gentlemen, for any questions or comments, please press star then the number one on your telephone keypad. Your next question will come from Trevor Reynolds with Acumen Capital.
Trevor Reynolds (Analyst)
Hey guys, I was wondering if you can talk about or touch on maybe the backlog or the bid pipeline that you are seeing today on the remote side of the business.
Mark Becker (Chief Executive Officer)
Yeah, happy to do that. And, you know, I think we don’t really quote numbers around size of the backlog, but what I would say specifically on the remote side, broadly it’s pretty substantial, and as we’re all talking about, kind of the nation-building opportunities are built within that. So the one thing I would say about our opportunity set within that — and it’s as probably large as we’ve ever seen it in terms of the pipeline opportunities. In our case, I think it’s a very broad set of opportunities and with a lot of geographical coverage — everything from west coast, east coast, to north coast.
And we’ve kind of got everything across mining, energy infrastructure, government, and defense within that space. That both covers workforce accommodations as well as remote facilities management-type activity within that space. So, pretty substantial opportunities, and I think it’s going to well support what we would see in our growth profile. I think our confidence around ability to win, to deliver what we expect for growth in both the Support Services and the ABS side of the business — there’s well size of pipeline to support that, and I would say with upside. I think with the amount and breadth of scope, as I talked about, for nation-building opportunities, it could well drive an upside.
And, you know, certainly our ability to capture is quite strong. We have a lot of confidence in our ability to capture our share of those upside opportunities. It’s really just going to depend on a lot of what’s happening with client approvals, regulatory approvals with these projects, and procurement processes. We are very active as well on bidding and contracting on that front across all of those market segments that I mentioned. It’s really just going to be a matter of when we start to see awards coming out through the system. And I think, potentially — and certainly on the workforce accommodation side of things — we could see mobilizations into 2027, or early stages of awards in the near term that would drive mobilizations of new camp occupancy and new camp opportunities.
Really why we’re prudently adding incremental capacity within our workforce accommodations fleet to support these opportunities. And we could see them as kind of the early half or the back half of 2027 when they start to come across and mobilize in 2027. But again, it’s going to be variable based on what we see there.
Trevor Reynolds (Analyst)
Great, good insight. And then maybe just can you touch on the rates and kind of how you’re bidding these projects in terms of how the market looks like it’s going to be fully utilized over the next coming years, and how you’re balancing that with how you’re pricing these initial bids that are going up?
Mark Becker (Chief Executive Officer)
Yeah, it’s quite, as I mentioned, it’s quite a, quite a range, quite a wide range of opportunities, I’d say as it relates to pricing. I mean, we’ve already seen some pricing positivity specifically I would say around what I would call our elastic segments, you know, open camps, turnkey opportunities and, you know, opportunities involving equipment rental where there tends to be a little more elasticity in what you’d see in the pricing. I think what I would say, Kyle, though, you know, we’ve got a, that’s going to ride quite a bit with the, I would say the tightness of equipment availability in the market is how we’ll see that change over time.
And obviously we’re monitoring that pretty closely. Things like the service side of the business, the catering, the operations for the camps, facilities management, even inside of workforce accommodations, you know, it’s a little more inelastic in terms of pricing. But we’ve already seen some pricing uplift in what we’re putting forward and even just what we’re contracting in those kind of elastic segments. And then I think as contract awards come out, as equipment starts to get deployed, we’ll start to see, you know, increasing pricing across those kind of elastic segments.
Carrie (Operator)
Your next question will come from Prashant Kamath with National Bank.
Prashant Kamath (Analyst)
Hi, good morning. Prashant here, calling in for Zach. Just a quick question. You mentioned previously that you were hoping to win some data center work in Texas. Can you give us an update on how that’s going and your thoughts on how midterm results could affect that vertical?
Mark Becker (Chief Executive Officer)
Yeah. Morning, Prasad. Thanks for the question. We are, you know, we’re active on both our locations in the US on the data center work. It’s workforce accommodations that we have in Louisiana as well as West Texas. And, you know, we’re also bidding on new projects within the Canadian space. So within our pipeline, our nation-building pipeline, we’ve got at least a couple of projects that are attracting a workforce accommodations requirement and as well facilities management.
It will be a little more staggered on the data center side of things, but I think in terms of how it’ll change and grow over time, it kind of, I would say, remains to be seen. Again, we’ve got activity on workforce accommodations in those US locations that require kind of remote camp services. It’ll remain to be seen in addition how much additional is required. But there is a possibility for additional services that we would provide those locations, those areas and those sites.
So we’re still very active on that. And then I think new projects within Canada we’ll see. We’ve also got an operating data center in the US that we’re very active on a facilities management bid currently that we’re quite excited about. So we’ll kind of see how that plays out. I would say in general, Prasad, it’s still another one of our market segments amongst kind of the broad list that we have that around workforce accommodations and facilities management that we’re still going to be very active on business development and bidding on.
Prashant Kamath (Analyst)
Awesome. Thanks for the color. I guess the last one for me here. Should we expect any of the Q3 installation and demobilization revenue shortfall to return in Q4 or in the first half of 2027, or is the recovery further out?
Mark Becker (Chief Executive Officer)
Yeah, I think there would be some in Q4 is kind of what we see in the plan. We do have projects that will have mobilization, workforce accommodations mobilization potentially in Q4. I think we’ll see it more in 2027 is what I would say for sure and probably increasing through the year. Again, as part of this whole context that we’ve been talking about today around deploying workforce accommodations equipment, kind of the, you know, the mobilization and installation activities, kind of the first, the first, the first front end of those contracts that come into play before you kind of get things up on rental and get projects in place and operating.
So I think what I would say in general you will see mobilization and deployment costs and contract opportunities next year probably increasing through 2027.
Prashant Kamath (Analyst)
Okay, great. Thanks for the color.
Carrie (Operator)
You have a follow-up question from Kyle McPhee with ATB Capital Markets.
Kyle McPhee (Analyst)
Hello again. So for the urban facility management platform, you’ve been investing in headcount and resources to support organic growth, notably in the US. Is the platform now where you want it, well positioned to be capturing wins, maybe accelerate organic growth? Or do you still have some heavy lifting to do to get the platform where you want it?
Mark Becker (Chief Executive Officer)
Yeah, good question. And as you pointed out, Kyle, I think it was really important to get our sales and business development team established and, to be honest, our whole US leadership team in the States up and running. And they are up and running. So we’ve got a kind of a full team. We’ve got an executive sales leader and a sales team that’s really supporting everything in the US from pvc, CMI as well as, you know, self-perform IFM. And I would say for the near to midterm, I think we’ve got the resources we need.
And also in Canada we’ve added some resources as well on that front and on both sides of the border we’re actually seeing some good traction now on new projects which we’re quite happy and positive to see about that are going to start ramping up activity. It’s kind of a good signal for us that we do have the right resources in place, at least for the near to midterm, that that’s going to deliver the kind of growth targets that we’re expecting in IFM.
Kyle McPhee (Analyst)
Okay, appreciate those comments. And then so you’ve indicated your capex figure, the 12 million growth capex. You’ve bought some more fleet capacity. How much of the 12 million growth capex was for the 500 units you purchased, if you’re willing to share that? And looking for some comments on how meaningful the refurb spend will be.
Mark Becker (Chief Executive Officer)
Yeah, it’s basically all of it, but it does include the refurb. The refurb costs are within that. And, you know, as we go forward, I think, you know, similar kind of levels we would see, including refurb costs. Refurb costs are, we’re still getting decent quality equipment out there and, you know, our standards are high quality for equipment. So on the kinds of sort of per bed costs and per module costs that we’re seeing, that includes our refurb cost.
We do that in-house, as I mentioned, within our Grand Prairie facility. So it does vary kind of from equipment to equipment. But generally those costs that we’re seeing include the refurb costs.
Kyle McPhee (Analyst)
Okay, so the 500 units you already bought, you’ve paid for them and refurbished them. That was all in the 12 million. Just to clarify.
Denise Achonu (Chief Financial Officer)
Kyle, what I would add to that is it depends, right? Sometimes what we do buy we’re able to then utilize as is, requires very little refurb. Sometimes it requires a little bit more. So what I would say is you can think about there being a couple million in addition, let’s say, to get to fully refurb of the 500 we purchased.
Kyle McPhee (Analyst)
Okay, that helps. Thank you. That’s it for me.
Carrie (Operator)
And once again, ladies and gentlemen, for any questions or comments, please press star, then the number one on your telephone keypad. You have a follow-up from Trevor Reynolds with Acumen Capital.
Trevor Reynolds (Analyst)
Hey, guys, thanks for taking that question again. Just on following on to Kyle’s questions there. So the additional 1,500 beds that you’re pursuing, can we expect similar capex for those beds that has been spent on the 500 already?
Mark Becker (Chief Executive Officer)
Yeah. On a kind of a ratio basis, you can follow the same math. To Denise’s point, that 12 million that’s already spent was to actually acquire the 500 beds we got. There’s a couple million bucks of refurb that will add to that. And then I think that’s a decent sort of factor that you can use for the rest of the beds is what I would suggest.
Trevor Reynolds (Analyst)
Great, thanks. And then are you able to just quantify how much the wildfire support activity was off relative to kind of a normal year?
Mark Becker (Chief Executive Officer)
It’s about half or even a little less is what I would say. It’s probably a very, very low year. We had some activity, but not. And we’ll just see how that plays out into 2027.
Trevor Reynolds (Analyst)
Great. And I think you guys have said in the past that a typical year was about 25 million.
Mark Becker (Chief Executive Officer)
That’s right. That’s right. Yeah. As we’ve kind of proven out, you can get quite a wide range because it does depend on how much fire activity there is. It can be low, it can be higher than that, but that’s generally what we target or what would be a nominal amount for the year.
Trevor Reynolds (Analyst)
Perfect. Thank you.
Carrie (Operator)
There are no further questions at this time. Now I’d like to turn the call back over to Mr. Mark Becker, CEO, for any closing remarks.
Mark Becker (Chief Executive Officer)
Yeah. Just thanks, everybody, for attending our call today and look forward to connecting with everyone at our next quarterly update. Have a great day.
Carrie (Operator)
Thank you for your participation. This does conclude today’s conference. You may now disconnect.
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