DIRTT Environmental Solutions Ltd
TSX:DRT
DIRTT Environmental Solutions Ltd
DIRTT Environmental Solutions Ltd. engages in the manufacturing of customized interiors. The company is headquartered in Calgary, Alberta and currently employs 1,002 full-time employees. The company went IPO on 2013-11-28. The firm combines its three-dimensional (3D) design, configuration and manufacturing ICE software with integrated in-house manufacturing of its prefabricated interior construction solutions and a network of distribution partners. Its ICE Software provides design, drawing, specification, pricing and manufacturing process information, allowing production of custom solutions. Its interior construction solutions include prefabricated, customized interior modular walls, ceilings, and floors; decorative and functional millwork; power infrastructure; network infrastructure; and pre-installed medical gas piping systems. The firm offers interior construction solutions throughout the United States and Canada.
Revenue Miss: Q2 revenue was $38.9 million, down 6% year-over-year and below expectations due to delayed orders and slower construction schedules.
Margin Pressure: Gross profit margin dropped to 27.8% from 37.3% in Q2 2024, mainly from steep tariff costs on aluminum and steel.
Tariff Impact: Tariffs on Canadian and Chinese imports significantly raised costs; management expects these pressures to persist in Q3 but be mostly mitigated by Q4.
Net Loss: The company reported a net loss of $6.6 million, a swing from net income last year, driven by lower gross profit and higher expenses.
Cash & Liquidity: Unrestricted cash fell to $23.1 million, but liquidity remains healthy at $31.1 million, with no draws from the credit facility.
Positive Pipeline: The 12-month forward sales pipeline grew 12% to $311 million, the first time in 2 years it has exceeded $300 million.
Return to Profitability: Management expects positive adjusted EBITDA in Q4 2025 as price increases and tariff mitigation take effect.
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