Dexterra Group Inc. ($DXT)

Good morning, and welcome to the Annual Meeting of Dexterra Group. My name is Bill McFarland, and I'm the Chair of the Board of Dexterra Group. This meeting is being held in a webcast format-only. I'm joined today by Mark Becker, CEO; and Denise Achonu, CFO; and Christos Gazeas, Corporate Secretary of the company. We will start by conducting the formal part of the meeting, and afterwards, Mark Becker will provide a business update, followed by a question period. Mark's presentation will appear on the screen, so you may easily follow along, and it will be posted on the Dexterra website after the meeting. I have a few administrative details to cover before we get started. Registered shareholders and duly appointed proxy holders may vote online during the meeting by clicking the voting icon. If you cannot see the full text of the resolution, please scroll down on your device in order to see the resolution as well as the voting options. If you've already voted by proxy, there is no need to vote again during the meeting since your vote has been recorded in accordance with your proxy instructions. Given the virtual format of the meeting, we have appointed certain individuals to motion and second items of business in advance. In order for us to efficiently address any online questions on the matters to be voted upon, we encourage shareholders who are attending the meeting online and have specific questions on any item of business to submit their questions now. To enter a question or comment, select the messaging icon, compose your question or comment at the bottom of the screen and then click on the arrow icon to submit. Please note that questions submitted during the meeting via the online platform will be moderated before being sent to me. All questions will be addressed before voting closes. I now request that the meeting come to order. With the consent of the meeting, I, Bill McFarland will act as the Chair of the meeting, and Christos Gazeas shall act as Secretary of the meeting. I appoint Kristine Calesso and Matthew Burt of TSX Trust Company to act as scrutineers to report on the number of shareholders and common shares represented at this meeting. The scrutineers will compute the votes on each item of business and report the results to me as Chair. The Secretary has advised that he has received a declaration from the scrutineers, stating that the shareholders have been given notice of this meeting and that the notice, information circular and form of proxy were mailed to the shareholders of record on March 18, 2026, in advance of the time required for such notice. The secretary has also advised that a quorum is present. I further direct that the formal report of the scrutineers be annexed to the minutes of this meeting as a schedule. I now declare that this meeting has been regularly called and is properly constituted for the transaction of business. Voting at today's meeting for those that are entitled to vote and have not already submitted a proxy will be conducted by online ballot for each matter. I now declare the polls open on all items of business. If you submitted a completed proxy in advance of the meeting, you have already voted and are not required to vote again online, unless you want to change your vote. The voting panel on your screen should now display the voting options for registered shareholders and duly appointed proxy holders. The voting panel will remain open until discussion, if any, has concluded on all items of business. I will now then declare voting on all items of business closed. A copy of the minutes of the last Annual Meeting of the shareholders of the corporation held on May 7, 2025, has been signed and filed in the corporate records of the corporation and is available from the Secretary. The first item of business is the presentation of the audited consolidated financial statements of the corporation for the year ended December 31, 2025, and reported thereon by PricewaterhouseCoopers LLP. A copy of such financial statements and the report of the auditors thereon has been mailed to each registered shareholder of record at the close of business on March 18, 2025, who elected to receive the financial statements and report of the auditors. No vote by the shareholders is required or proposed to be taken with respect to the financial statements. The next item of business is the election of directors of Dexterra Group. In accordance with Dexterra Group's advanced notice bylaw, the only individuals entitled to be nominated as directors at this meeting are the persons named as nominees in the management information circular and proxy statement prepared for this meeting as there were no other individuals nominated prior to this meeting. Those nominees are Mark Becker, Tabatha Bull, Mary Garden, David Johnson, Simon Landy, R. William McFarland, Kevin D. Nabholz, Russell Newmark and Toni Rossi. May I have a motion regarding the election of directors?

Mr. Chairman, my name is Denise Achonu, and I am a duly appointed proxy holder. I move that each of the following nominees: Mark Becker, Tabatha Bull, Mary Garden, David Johnson, Simon Landy, R. William McFarland, Kevin D. Nabholz, Russell Newmark and Toni Rossi be hereby separately elected as directors of Dexterra Group, Inc. for the period commencing as of the date hereof and ending at the close of the next Annual Meeting of Shareholders of the corporation or until their successor is elected or appointed.

Thank you, Denise. Will someone second the motion?

Mr. Chairman, my name is Christos Gazeas, and I'm a duly appointed proxy holder. I second the motion.

Thank you, Christos. You have now heard the motion. Are there any online questions on this motion, Christos?

Mr. Chairman, there are no questions.

The next item of business is the appointment of the auditor of Dexterra Group. It is proposed that PricewaterhouseCoopers LLP chartered accountants be appointed the auditor of Dexterra Group until the next Annual Meeting of Shareholders or until a successor is appointed. Will someone so move?

Mr. Chairman, my name is Denise Chan. I move that PricewaterhouseCoopers LLP, chartered professional accountants, be appointed auditor of Dexterra Group until the next Annual Meeting of Shareholders or until a successor is appointed at such remuneration as may be fixed by the Board of Directors and the Board of Directors are hereby authorized to fix such remuneration.

Thank you, Denise. Will someone second the motion?

Mr. Chairman, my name is Christos, and I second the motion.

Thank you, Christos. Are there any online questions in relation to this motion?

No questions, Mr. Chairman.

Thank you. If you are a registered shareholder or a duly appointed proxy holder and have not yet submitted your votes, you can do so online by selecting the applicable voting option on the voting panel. As a reminder, if you've already previously submitted a completed proxy, you have already voted and it's not necessary to vote again online. We will pause briefly before closing the polls. The polls are now closed, and I will ask the Secretary to provide the report from the scrutineers.

Mr. Chairman, I have received a report from the scrutineers. The shareholders have voted in favor of each of the items of business to be voted on at this meeting.

Thank you, Christos. Accordingly, I declare the election of each of the nominees to the Board of Directors and the appointment of PricewaterhouseCoopers LLP as the auditor of the corporation, the full text of which are set forth in the information circular of Dexterra Group dated March 18, 2026, to be passed. Following this meeting, a report disclosing the final voting results of this meeting will be filed on SEDAR, and will also -- we will also issue a press release with such results. This now concludes in record time, the formal portion of the meeting. Accordingly, I declare this meeting terminated. On behalf of the Board of Directors of Dexterra Group, Inc., I would like to thank our shareholders, customers, employees, suppliers and communities where we work for their continued support. As the formal portion of the annual meeting has now been completed, I will ask Mark Becker to provide an update on the business. Mark and Denise Achonu, CFO, will answer shareholders' questions following the presentation. After the meeting, we will post a copy of management's presentation on Dexterra Group's website. Please enter your questions during Mark's presentation via the online platform. This will assist in making the Q&A period efficient. To answer a question or comment, select the messaging icon, compose your question or comment at the bottom of the screen and then click on the arrow icon to submit. Questions submitted during the presentation via the online platform will be moderated and/or combined before being submitted by Christos. I would like to now move into the management presentation portion of the meeting. First, on behalf of the Board, let me thank Mark Becker and the leadership team and all of our employees for their tremendous efforts over the past year and the great progress we've made on our strategic business plan in delivering and advancing Dexterra's position as a North American support services leader. It was about 3 years ago that Mark became our CEO and what a difference over that period. The business has grown and thrived. We have built a stronger senior leadership team completed strategic acquisitions and expanded our North American footprint. It has been a busy time, and we've also had some fun along the way. Mark, the AGM is a great opportunity for us to look back and celebrate some of our accomplishments and to focus on the future and where Dexterra is headed. So over to you to tell that story.

Great. Thanks very much, Bill, and I do appreciate all those comments, believe me. And I do agree, it's -- this is -- the AGM is a good time to look back on some of our accomplishments and look forward to our plans and our strategy ahead. So hopefully, we do a good job here and fulfill that mandate to do that. And I guess before we begin, just to make sure I stay on side with Christos and Denise, I will refer you to the forward-looking information slide of the presentation. You will find cautionary notes in that regard. We do claim their protection for any forward-looking information that we might disclose today, and there will be a test at the end of the presentation on all this content. A copy of this presentation will also be posted on the Dexterra website after the meeting. So getting started on Slide 3, the overview. In 2025, Dexterra Group took another significant step forward by advancing its position as a North American infrastructure services leader. In addition to Delivering strong operating results and free cash flow, the company has made significant progress executing on our long-term growth strategy, including the completion of 2 strategic investments, Pleasant Valley Corporation and Right Choice last year. These acquisition investments expanded our North American facilities management platform and capability as well as strengthen our leadership position in the remote services market while maintaining a disciplined approach to our capital allocation. Our expanded business supported by our over 9,000 great employees, our experienced management team and a strong balance sheet position us well to continue executing our strategy and building a strong, sustainable business that delivers long-term shareholder value. Over the last several years, we've successfully executed on our strategy to increase our scale and build a diversified North American provider of infrastructure services through both optimization of the existing business and expansion, and I'm extremely proud of our accomplishments. In 2025, we delivered record results with over $1 billion in revenue, $123 million in adjusted EBITDA and $0.65 earnings per share and generated $60 million in free cash flow. We also achieved our target 15% return on equity while maintaining a strong balance sheet. This performance reflects our continued focus on delivering quality services to our more than 400 customers across Canada and the U.S. and generating strong long-term value for shareholders. We are also beginning to see the fruits of our hard work reflected in our company's valuation with nearly a 50% increase in our share price in 2025, bringing our market cap to over $700 million. As a reminder to everyone, our business is built around 2 core areas: facilities management and remote services. In facilities management, we provide a full services offering to our clients across a diverse range of market segments from soft services such as janitorial, hospitality and food services to hard services like mechanical, electrical and HVAC maintenance. The full to fully integrated solutions that include asset management, building automation and energy optimization. Expanding fully integrated solutions or IFM, are a key strategic focus as this is where we can provide the greatest value to our clients, optimize asset life and reduce facility costs with the highest returns to our business. Our investment in Pleasant Valley Corporation in 2025, along with the CMI acquisition in 2024 has provided significantly expanded and strengthened our U.S. facilities management platform. The PVC distributed delivery model, providing services to clients with many facilities in disparate locations across the U.S. and Canada complements Canada's strength in the self-performed facilities model. This dual offering is very strategic and allows us to provide a more flexible and differentiated service offering to our customers across North America. We are very proud and excited to be part and in partnership with PVC and looking forward to a strong future together. On the remote services side, we operate a leading workforce accommodations platform in Canada, a total of 22,000 beds under management, 12,000 beds under ownership, including operations from coast to coast to coast from the Arctic across a range of market segments in the natural resources development, infrastructure and government. We also provide access matting supporting energy and infrastructure-based projects and clients, and we remain active in forestry and fire support in forestry planting 35 million trees annually. The acquisition of Right Choice in 2025 further strengthened our remote services business, expanded our customer base, adding strategically located open camp operations in the Montney, Duvernay area and increasing our high-quality equipment fleet and availability -- available capacity to support growth, including nation buildings and government infrastructure projects and opportunities. In our Facilities Management business, we operate in a large and growing North American out services market that is currently approximately $300 billion and growing over 10% per year, 90% of which is in the United States, as you can see from the graphic on this slide. The market is expected to continue to expand at a steady pace as companies increasingly look to outsource noncore services to improve efficiency, control costs and enhance operational performance. At the same time, clients are seeking more integrated service solutions, fewer providers and capabilities -- fewer providers, broader capabilities and a more consistent service delivery across multiple locations. Together, these trends provide a strong backdrop for continued industry growth. From a Dexterra perspective, we've been building our facilities management and integrated facility management capabilities, expanding our service offering and investing in a North American platform, positioning us to capture a greater share of this growing market. The competitive environment in the U.S. is more fragmented than Canada, which provides an excellent opportunity for enhanced competitive positioning for Dexterra in our target market segments. Over the past year, we've seen increasing activity around proposed LNG and LPG, oil and gas pipeline and mining projects alongside a growing number of government and defense-related expansion projects tied to what is known in Canada as nation-building initiatives. This includes a focus on Northern defense infrastructure, including significant and long-term investments in the Arctic regions and Canadian horses bases. We have approximately 30 discrete projects identified in our pipeline across all of these sectors, opportunities at different stages from near-term developments to longer-dated opportunities. Opportunities for Dexterra span workforce accommodations to facilities management. With our experience, capability and established presence in all of these market segments, there is significant potential upside opportunity associated with nation building projects for Dexterra. In addition, in the United States, the development of new large-scale data centers in semi- remote locations is increasing the demand for workforce accommodation and facilities management. We are already active in this area and similar to Canadian nation building opportunities, it represents significant growth -- significant upside to our growth plans. Technology continues to be an increasing part in how we operate and deliver value to our clients. We are making strategic investments in this area in an ongoing effort to improve both our value proposition to clients and our internal efficiency. Our current focus internally has been on workforce and human capital management systems. These tools are helping us to better plan and allocate labor, streamline workflows and improve overall productivity, which is particularly important as we continue to scale the business across our broader footprint and people are about 50% of our costs today. We're also developing the proprietary client-facing distributed model platform, PVC Connect, as part of our partnership and our investment with PVC. This is important as we expand and scale our distributed facilities management capabilities and manage complex multisite client locations across North America. In addition, we're beginning to incorporate more advanced tools, including AI-driven solutions into how we operate. For example, initiatives like Runway, which is our AI predictive analytical and task management software, helps us improve labor management and productivity, allowing for more real-time decision-making in the field. And lastly, we're also deploying autonomous cleaning technologies in many environments to improve consistency, enhance quality and optimize our labor utilization. These innovation initiatives are managed through our iLab platform. iLab brings together our engineering, our data and operational expertise to develop and implement client-facing solutions that are practical, scalable and directly tied to tangible outcomes. Our leadership team is an important contributor to our success as our business is all about the people. As you can see from this slide, we have an extremely experienced senior management team in the industry that combines deep industry experience with a strong track record of execution and importantly, a shared focus on long-term value creation. We work closely and collaboratively together, and that alignment has been an important part of how we've been able to scale the business, delivering strong profitability and returns. Beyond our experience, what really underpins is how this team exemplifies and leads our company culture and values. It is just not about the leaders as we have a workforce of 9,000 people that make a difference every day. Our culture and values are an important part of the Dexterra story as they underpin how we operate every day and have been a key factor in the success of our company to date. We call it the Dexterra difference. At the core of it is our values. They provide the overarching guide on how we make decisions, how we work with clients and how we think about outcomes, not just for the business, but for our employees, our communities and business partners as well as our shareholders. Accountability, diversity, trust and partnership are embedded in how we run the company and how we build long-term relationships and deliver values to our clients. Our values also reinforce our mindset that service is everything that what we do matters and how we deliver it matters. Closely connected to that is our culture, which is how those values are brought to life day-to-day. We operate in a decentralized model, an entrepreneurial mindset, encouraging our teams to take business ownership, act with initiative and focus on long-term value. At the same time, we emphasize accountability, collaboration and open communication, ensuring we remain results focused while maintaining a balanced long-term perspective. This culture has been an important driver of our performance. It allows us to execute reliably and consistently and is a source of true competitive advantage. It helps us adapt as the business evolves and supports our growth ambitions. A key tenet that we brought forward proudly from our major shareholder, Fairfax, is the concept of, first and foremost, doing well as a company allows us to do good in our communities. It is a mindset that we exemplify as a core part of our business. Today, we have approximately 80 indigenous partnerships across Canada. These are active long-term relationships that support both our business and our communities. They are built around shared business participation, local employment training and opportunities, supplier development and overall community support engagement. Another important component is the Outland Youth employment program. This program has in place -- been in place for over 25 years and focuses on providing indigenous use with skills, development, work integrated learning and pathways into long-term employment, combining classroom learning with industry-based experience. More broadly, we continue to make progress across communities and the environment, increasing community contributions and allocating approximately 1% of earnings to community initiatives. Last, but certainly not least, we are focused on improving our safety and environmental performance, including reductions in incidents and energy use. Looking at our financial performance over the past 5 years, this slide highlights the significant progress we've made in expanding our business and building shareholder value. Since 2020, we've doubled the size of the company, delivering over 15% compound annual growth rate in both revenue and adjusted EBITDA, bringing revenue to over the $1 billion mark in 2025. Our profitable business growth reflects a combination of strong organic growth across our core services as well as the impact of targeted strategic acquisitions that have added both key capabilities and expanded our North American platform. Our diversification also has helped us deliver predictability and reliability to our business and our results. In addition to our top line growth, we've optimized our profitability profile, including through high inflation periods via operational efficiency and discipline, strategic supply chain management, maximize asset utilization, and we are starting to see the benefits of scale as we've expanded the platform. And we focus on the true bottom line. Our capital-light strategy helps maximize our net earnings and return on equity. Today, our company has a strong financial foundation, which gives us flexibility and protection for unforeseen events. We've been very deliberate on building a company that generates high free cash flow supporting both growth and strong shareholder returns, including a dividend that's grown with the business. Our goal is to continue to deliver 50% plus EBITDA to free cash flow conversion going forward. Our credit facility of $425 million due in 2029 and our net debt of about 1.6x adjusted EBITDA at the end of 2025 also provides flexibility. Lastly, we sincerely appreciate Fairfax Financial's continued investment and support aligned with our commitment to deliver long-term growth and value for our shareholders. Looking forward, this new slide in our external presentation brings additional context to the strategic path that we've been on the last 5 years and a view of our growth ambitions going forward. That journey began in 2020 with what we call Dexterra 1.0 with the acquisition of Horizon North to create Dexterra Group. Over the past 3 to 4 years, our focus was on building and refining our business platform, diversifying in apps, establishing a national presence in remote services and expanding our facilities management and hospitality offerings through capability-focused acquisitions. We also streamlined and refocused our business through the divestiture of our Modular Solutions business. This phase laid a strong foundation for the current Dexterra with the business scaling to over $1 billion in revenue and over $120 million in adjusted EBITDA. As we move forward through 2024 and 2025, our strategy shifted to what we call Dexterra 2.0 with an emphasis on scaling our platform across North America and facilities management and continuing to build our remote services business while maintaining a strong emphasis on consistency and predictable performance. Key acquisition investments in this phase have been in the acquisition of CMI in 2024, soon to be rebranded Dexterra Government Services, our initial 40% investment in Pleasant Valley Corporation and the acquisition of Right Choice Camps and Catering in 2025. Our focus today is to deliver value from -- full value from these acquisitions, build organic growth momentum on the strength of our expanded North American platform. Broadly, we are expecting revenue in the range of $1.5 billion over the medium term. Looking even further ahead, the foundation is being laid for Dexterra 3.0, which captures our longer-term growth ambition of having a North American platform at greater scale through organic and further acquisition growth. Through this stage of our journey, we see a path to over $2 billion in revenue and over $200 million in EBITDA. This ambition is underpinned by the size of our growing North American FM outsourced services market, which is expected to exceed $500 billion by 2030. Through this journey, Dexterra will continue to be a differentiated leader in client-centric service and innovation, delivering long-term value creation for shareholders. From an investment perspective, we continue to develop as an increasingly scaled and competitive facilities management provider in North America and continue to build and leverage our leading position in remote services. At our core is a strong and committed leadership team, bringing a capital-light service-based model supported by strong long-term client relationships and strong free cash flow generation. Combined with a strong and well-managed balance sheet and disciplined capital allocation gives the ability and flexibility to reinvest in the business and pursue accretive growth. Our growth strategy is deliberate, focused on organic expansion through capability and technology investments alongside selective high-return opportunities that strengthen the platform. We remain committed to delivering attractive shareholder value -- shareholder returns over the long term, including return on equity, dividends and long-term value creation. Looking ahead, our outlook reflects a continuation of the same successful formula that has successfully driven our performance to date. This includes steady organic growth in the mid-single-digit range in Support Services, supported by ongoing demand for outsourced and integrated solutions and adjusted EBITDA margins over 9%. In Asset-based services, we expect organic growth in the low single digits with adjusted EBITDA margins in the 30%, 40% range dependent on business mix. Across the business, we continue to deliver free cash flow conversion above 50%, sustaining capital requirements in the range of 1% to 1.5% of revenue and remain on -- remaining opportunistic on high-return growth capital, maintaining a strong balance sheet and continue to deliver our 15% return on equity target. And lastly, our priorities in the short term for 2026. For the balance of the year, as always, first and foremost, we remain focused on execution. That means continuing to deliver strong, predictable and profitable results and maintaining an operating discipline that has been a key driver of our performance to date. At the same time, we're focused on continuing to scale our U.S. platform. We see a meaningful opportunity to expand our facilities management and integrated services offering in that market, and we've been building the capabilities and pipeline to support that growth. A third priority is building utilization of our workforce accommodations fleet and mobilization of the Right Choice excess equipment in support of our sales pipeline. In 2026, we're also expanding the Dexterra brand, replacing some of our 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. This transition positions the business for future growth across North America, particularly in complex large-scale and remote services environment without changing the underlying operational execution or service commitments relied upon by our clients. We're also staying very mindful of the current economic environment. There continues to be a level of market uncertainty, including elevated energy prices and general inflation risks, geopolitical tensions and overall macroeconomic conditions. We are actively managing and monitoring -- monitoring and managing our business, including costs, labor productivity, supply chain optimization, contract pricing and monitoring our client service levels closely with the aim to continue to deliver our planned growth and profitability of the business. Our market activity and new sales pipeline remains strong with quality opportunities across the board in all areas of remote and facilities management business on both sides of the border. This includes workforce accommodations and potential facility management associated with large U.S. data center projects as well as opportunities related to Canadian potential nation building projects in energy, mining, infrastructure, including government and defense expansions. We are currently tracking approximately 30 opportunities in the Canadian nation building category with a mixture of near-term and longer-dated opportunities that present potential upside to our growth prospects. Another critical area is continued investment in our business. That includes investing in our people, technology and in partnerships, all of which support our ability to grow and to build competitive differentiation over time. And finally, we remain firmly focused on delivering strong shareholder value through disciplined capital allocation, including supporting our dividend, sustaining high and high return capital expenditures, accretive M&A, paying down debt, achieving 15% return on equity and staying opportunistic on share buybacks. In closing, I want to sincerely thank our employees for your commitment, professionalism and the services everything mindset that you bring to work every day. It is the foundation of our results, our reputation and our business success to date. Thank you as well to our shareholders for your continued support and confidence in our strategy and to Bill and our Board of Directors for your stewardship and guidance as we continue to scale the business. I'm both honored and very excited about the future, and I'm confident in the senior leadership team and Dexterra's path forward as we continue to build long-term value and a company all stakeholders are proud to be associated with. And with that, I'll turn things back over to Christos, who will monitor the Q&A part of the meeting.

Great. Just a reminder for those online, you may submit your questions through the Lumi platform. And with that, I do have a couple of questions. Mark, first question is for you. Can you provide more clarity regarding the expected timing of your medium- and long-term growth goals?

Yes, I can definitely do that. I would say, generally, we are focused more on achieving the quality and quantum of our goals more so than specific time lines. However, I guess, having said that, we'd be happy to achieve our medium-term Dexterra 2.0 goals over the next 2 or 3 years. Well, our Dexterra 3.0 goals are beyond that, but still within the foreseeable future. Obviously, my preference on Dexterra 2.0 goals would be in the shorter version of that, but that's kind of what we see. I think it's important also to recognize that growth, particularly where acquisitions are involved is not always linear. It can be variability, faster, slower depending on timing of opportunities and broader market conditions. We're also doing this while maintaining a strong balance sheet and certainly not over-leveraging the company. I think also the business segments are synergistic and complementary in nature. For example, workforce accommodations can often support projects and clients in the early stages of projects and development, following up with facilities management and IFM opportunities in the longer term. And I guess some good examples around that would be some of what we're seeing around nation building projects in Canadian defense and government as well as some of the data center work in the U.S.

Thanks, Mark. Next question. This one is for Denise. Denise, what is the expected contribution from acquisitions versus organic growth going forward?

That's a great question. I'd have to say, overall, it's a balanced approach. We're looking for steady organic growth, providing that strong foundation, also complemented by, as Marcus mentioned during his comments, selective high-quality acquisitions that enhance our capabilities, our resources and continue to scale the platform. From an organic growth standpoint, we expect our growth rate to remain broadly consistent with our outlook, which we've described in the presentation, although they can vary from year-to-year, so not necessarily linear, but some of the timing of when contracts come on can vary. That said, depending on broader economic factors, sometimes these can be hard to predict. But basically, it means that about $50 million of organic growth annually based on our footprint today. And then in terms of acquisitions, the potential purchase of the remaining 60% of PDC would add approximately CAD 250 million in revenue and CAD 12 million EBITDA today to our consolidated results. Beyond that, it will depend on the specific size, timing of acquisitions, which we don't always control and can't predict, but the focus is on the right ones when they do become available.

Thanks, Denise. Actually, next question is for you as well. It's AI related. Question is, can you provide a bit more color around AI? How are you incorporating it into your business? And specifically, do you see any risk of disruption from these technologies?

Thanks, Christos. Definitely a little bit of a hot topic lately. Generally, we view AI and technology more broadly as an enabler of performance rather than disruption. Today, we don't believe AI will reduce our head office workforce numbers, but it will result in people doing different work. As mentioned -- as Mark mentioned during his presentation, we're already applying technology across our businesses in client-facing tools and how we operate, including labor optimization, workforce management and predictive analytics. Our iLab team work closely with operations to identify practical applications such as dynamic scheduling and automation in the field. That said, our business is a people-driven business and technology enhances how we deliver services, but it doesn't replace the need for skilled teams and strong execution. And so we don't see any significant disruption risk. Overall, we view AI as an opportunity to improve efficiency and service quality. And we're being very thoughtful and disciplined on how we adopt it.

Thank you. Next question is actually a comment and a question. The comment is that the U.S. market differs meaningfully from Canada and introduces additional risks. The question component is, how are you approaching and mitigating these risks as you execute your growth strategy? And I think that question is for Mark.

Yes. I mean U.S. market does -- you have to say, does differ meaningfully from Canada and does introduce additional risks. You also have to say there's a lot of similarity, certainly as it relates to our business between Canada and the U.S. and relates to our clients between Canada and the U.S. Definitely, market size, as I talked about in the presentation, a large and growing facilities management outsourced services market in the U.S., $300 billion now, growing to $500 billion plus. And 90% of that is in the U.S. So it's definitely something that's worthwhile for us to kind of expand our platform and has been a key part of our strategy. And how we're getting there, how we got there, how we're getting there and we're continuing to build scale is really through the acquisitions and the great acquisitions like CMI in the government services area, which we have a strong history in Canada. Now we have a strong platform in the U.S. around government and defense services. And obviously, our investment and our partnership with PVC, really leveraging our history around self-perform facilities management models, PVC is distributed facilities management model and kind of leveraging that both ways on both sides of the border, that would be an example of something that's pretty unique on whether you're in Canada or in the U.S. And some of that growth and scaling by acquisitions really is about established customer relationships, reputations in the market segment, having the capabilities and history, having the talent and resources, definitely very different than building from scratch, but definitely kind of a complementary approach where we are building that scale, building that platform by acquisition and then complementing that by building organic growth on top of that. And we're also opening a U.S. headquarters. So David Lambert, our U.S.-based business unit President is building. We've got a new office that's going in, in Denver, Colorado. And he's building a dedicated U.S.-based leadership team, including a U.S.-based sales EVP who recently started with us. We've got a new financial leader in the U.S., really giving that ability to lead our overall platform and how we're bringing all those elements that I talked about together, but also U.S.-based people that really understand the market, understand the legal complexities and everything about the U.S. market is kind of supporting that. And then just universal to the business is just leveraging all of that both ways on each side of the border, systems, processes, tools and technology, we leverage consistently. And I guess fairly tactically, but quite important, just FX exchange risk -- we have hedged our exposure to the U.S. dollar through a U.S.-based leverage vehicle, and we'll look to manage those risks as we grow.

Thanks, Mark. Mr. Chairman, there are no more questions online.

Thank you, Christos. So in closing, I'd like to thank everyone for attending the annual meeting. As Mark noted, we are all super excited about the future of Dexterra, and we look forward to staying connected with all of our stakeholders and appreciate your continued support. I'll now wish everyone a wonderful day. Thank you.