DIRTT Reports Third Quarter 2026 Financial Results
Key Highlights
- ➤Q3 revenue $44.7 million, up 19% year over year
- ➤Adjusted EBITDA $6.5 million versus $1.2 million year over year
- ➤2026 revenue guidance maintained at $175.0-$185.0 million
- ➤2026 Adjusted EBITDA guidance maintained at $21.0-$25.0 million
- ➤Management expects to finish toward the low end of both guidance ranges
Expert Statements
Benjamin Urban, Chief executive officer of DIRTT Environmental Solutions Ltd.
“Our third-quarter results reflect meaningful improvement in profitability and operating discipline as our transformation efforts take hold. While uncertainty remains across certain segments of the construction industry and customer decision-making timelines remain measured in some markets, we believe the broader market backdrop has become more constructive than it was a year ago. Customer engagement remains active, project planning continues to advance, and we are seeing greater alignment around project schedules and execution timelines. We remain focused on strengthening pipeline quality and forecasting discipline, enhancing commercial execution, and expanding Construction Services, while continuing to advance our streamlined operating model through the Transformation Office. Together, these efforts position DIRTT to drive sustainable growth and create long-term value for shareholders, partners, and employees.”
Fareeha Khan, Chief financial officer of DIRTT Environmental Solutions Ltd.
“During the third quarter, we continued to make progress on our transformation initiatives, delivering meaningful profitability improvement while maintaining a solid liquidity position and disciplined cost management. We are maintaining our 2026 outlook for revenue of $175.0 million to $185.0 million and Adjusted EBITDA (see “– Non-GAAP Financial Measures”) of $21.0 million to $25.0 million, and based on current project timing and revenue conversion, we currently expect to finish toward the low end of both ranges. We remain confident in the underlying health of the business and, with a stronger operating model and improving pipeline quality, we are well positioned to drive further operational improvements, grow the business, and create long-term value for shareholders.””
CALGARY, Alberta, Nov. 04, 2026 (GLOBE NEWSWIRE) -- DIRTT Environmental Solutions Ltd. (“DIRTT”, the “Company”, “we”, “our”, “us” or “ours”) (TSX: DRT; OTCQX: DRTTF), a leader in industrialized construction, today announced its financial results for the three and nine months ended September 30, 2026. All financial information in this news release is presented in U.S. dollars, unless otherwise stated.
Third Quarter 2026 Highlights and Recent Developments * Revenue of $44.7 million in the third quarter of 2026, an increase of 19% from the third quarter of 2025. * Gross profit and gross profit margin for the third quarter of 2026 was $15.7 million or 35.1% of revenue, an increase from $11.5 million or 30.4% of revenue for the same period of 2025. * Net income after tax for the third quarter of 2026 was $17.1 million compared to net loss after tax of $3.5 million for the same period of 2025 resulting in an improvement of $20.6 million year-over-year. In the third quarter, we recognized $13.1 million of deferred tax asset relating to tax losses of our U.S. entity. * Adjusted EBITDA(1) for the third quarter of 2026 was $6.5 million, or 14.6% of revenue, an increase of $5.4 million from $1.2 million or 3.1% of revenue for the third quarter of 2025. Higher Adjusted EBITDA was mainly driven by a $4.1 million increase in Adjusted Gross Profit(1) and a decrease in operating expenses (excluding reorganization costs and stock-based compensation) of $1.3 million. * Following tariff revisions announced by the U.S. Government on April 6, 2026 and June 8, 2026, the Company believes that the import of DIRTT product into the U.S. is no longer subject to certain tariffs under Section 232 of the Trade Expansion Act of 1962 (“Section 232 tariffs”) on steel and aluminum. We incurred $0.3 million in tariffs and tariff mitigation costs for the quarter ended September 30, 2026 compared to $1.9 million in the same period of 2025. * Liquidity, comprising unrestricted cash and available borrowings, was $27.7 million at September 30, 2026, compared to $32.1 million at December 31, 2025. * During the third quarter of 2026, the Company received the third disbursement of net proceeds of $3.7 million from Business Development Bank of Canada to further strengthen our balance sheet. * On August 7, 2026, evidentiary hearings concluded for DIRTT’s action against Falkbuilt, Messrs. Smed and Loberg and several other former DIRTT employees alleging breaches of restrictive covenants, fiduciary duties, employment duties and confidentiality. Final argument is scheduled for November 18, 2026 to November 20, 2026. * On November 3, 2026, subsequent to the quarter-end, the Company, together with DIRTT Environmental Solutions, Inc., amended its existing credit facility with the Royal Bank of Canada, which matures on November 30, 2029 and continues to provide for a C$25.0 million senior secured revolving credit facility. (1) See “Non-GAAP Financial Measures”
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