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DIRTT Environmental Solutions
(TSX:DRT)
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Rating:47Neutral
Price Target:
C$0.84
▲(0.84% Upside)
Action:Reiterated
Date:07/31/26
The score is primarily held back by weak financial performance—ongoing losses, negative free cash flow, and execution risk despite improving revenue and gross margin. Technicals are modestly supportive with price above key short- and medium-term moving averages, but the long-term trend is mixed. Valuation remains constrained by negative earnings and no provided dividend yield.
Positive Factors
Revenue growth & margin improvement
Sustained ~20% YoY revenue growth with improving gross margin indicates strengthening demand and better production or pricing discipline. Over 2–6 months this supports operating leverage potential and makes a path to durable profitability more plausible if the trend continues.
Negative Factors
Ongoing net losses
Persistent negative net margins (~-10% TTM) and inconsistent profitability (profitable in 2024, then losses in 2025 and TTM) undermine capital accumulation and raise execution risk. Without consistent operating profits, long‑term reinvestment and shareholder returns remain uncertain.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & margin improvement
Sustained ~20% YoY revenue growth with improving gross margin indicates strengthening demand and better production or pricing discipline. Over 2–6 months this supports operating leverage potential and makes a path to durable profitability more plausible if the trend continues.
Read all positive factors
DIRTT Environmental Solutions (DRT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$157.41M
Dividend YieldN/A
Average Volume (3M)27.18K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth-1.55%
EPS Growth-357.20%
CountryCA
Employees758
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-0.05
Shares Outstanding194,332,600
10 Day Avg. Volume19,279
30 Day Avg. Volume27,176
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)4.44
Price to Sales (P/S)0.74
P/FCF Ratio-47.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.07
Revenue Forecast (FY)C$197.40M
DIRTT Environmental Solutions Business Overview & Revenue Model
Company Description
DIRTT Environmental Solutions Ltd. specializes in crafting, producing, and fitting custom-engineered interior systems for commercial properties. Serving clients throughout the United States, Canada, and internationally, the company's core technolo...
How the Company Makes Money
DIRTT makes money primarily by selling and delivering prefabricated interior construction solutions for customers’ building projects. Revenue is generated through (1) product sales/manufacturing of DIRTT’s modular interior components (e.g., wall s...
DIRTT Environmental Solutions Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with significant challenges posed by revenue decline, decreased profit margins, and increased costs due to tariffs. However, the company is optimistic about its growth prospects, given the expansion of its sales pipeline and strategic innovations. Despite the current financial setbacks, DIRTT is focusing on operational efficiency and safety, while expanding product offerings and market reach.Positive Updates
Increased Sales Pipeline
DIRTT's 12-month forward sales pipeline increased by 12% to $311 million from $278 million at the start of 2025, the first time in over two years exceeding $300 million.
Negative Updates
Revenue Decline
Revenues for Q2 2025 were $38.9 million, a decrease of 6% compared to the same period of 2024, due to delayed customer orders and construction schedule pushouts.
Read all updates
Q2-2025 Updates
Positive
Negative
Increased Sales Pipeline
DIRTT's 12-month forward sales pipeline increased by 12% to $311 million from $278 million at the start of 2025, the first time in over two years exceeding $300 million.
Read all positive updates
Company Guidance
During the second quarter of 2025, DIRTT Environmental Solutions faced macroeconomic challenges, including tariff-driven costs and delayed contracts, leading to a 6% decrease in revenue to $38.9 million compared to the same period in 2024. The gross profit margin fell from 37.3% to 27.8%, significantly impacted by tariffs on exports to the U.S. and lower revenue volumes. Operating expenses rose by 6% to $15.2 million, primarily due to increased litigation and compensation costs, while net loss after tax was $6.6 million, a stark contrast to the previous year's net income of $0.6 million. The adjusted EBITDA showed a $2 million loss, down from a $3.2 million gain in 2024. The company ended the quarter with $23.1 million in unrestricted cash, and its 12-month forward sales pipeline increased by 12% to $311 million. Looking ahead, DIRTT expects to mitigate tariff impacts by the fourth quarter and anticipates a return to positive adjusted EBITDA, driven by strategic growth initiatives and a strong sales pipeline.DIRTT Environmental Solutions Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
50
Neutral
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 170.43M | 171.81M | 174.31M | 181.93M | 172.16M | 147.59M |
| Gross Profit | 56.78M | 50.48M | 64.38M | 59.54M | 28.16M | 23.46M |
| EBITDA | 9.37M | 5.69M | 25.79M | -391.00K | -34.66M | -45.98M |
| Net Income | -9.43M | -14.70M | 14.77M | -14.58M | -54.96M | -53.67M |
Balance Sheet | ||||||
| Total Assets | 87.75M | 102.32M | 118.22M | 124.32M | 143.65M | 199.44M |
| Cash, Cash Equivalents and Short-Term Investments | 15.05M | 20.54M | 29.29M | 24.74M | 10.82M | 60.31M |
| Total Debt | 36.87M | 45.92M | 52.32M | 89.75M | 98.86M | 104.12M |
| Total Liabilities | 62.07M | 73.83M | 75.63M | 117.22M | 125.66M | 131.67M |
| Stockholders Equity | 25.68M | 28.48M | 42.59M | 7.10M | 17.99M | 67.77M |
Cash Flow | ||||||
| Free Cash Flow | -746.08K | -2.65M | 4.16M | 11.79M | -48.33M | -45.33M |
| Operating Cash Flow | 2.07M | -195.36K | 7.34M | 14.82M | -44.26M | -31.21M |
| Investing Cash Flow | -3.28M | -3.79M | -1.90M | 7.66M | -4.06M | -14.14M |
| Financing Cash Flow | -6.68M | -5.07M | -415.00K | -11.61M | -847.99K | 62.45M |
DIRTT Environmental Solutions Technical Analysis
Negative
0.83
Price Trends
0.82
Negative
0.79
Positive
0.84
Negative
Market Momentum
>-0.01
Positive
45.35
Neutral
34.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DRT, the sentiment is Negative. The current price of 0.83 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.82, and below the 200-day MA of 0.84, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 34.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DRT.
DIRTT Environmental Solutions Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | C$13.96B | 33.31 | 7.89% | 0.09% | 14.82% | -82.14% | |
73 Outperform | C$11.44B | 22.98 | 15.26% | 0.92% | 9.97% | 15.80% | |
71 Outperform | C$3.89B | 65.04 | 13.41% | 1.20% | 7.38% | -39.80% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | C$3.09B | -49.52 | -6.76% | 1.70% | 21.48% | -323.81% | |
49 Neutral | C$45.13M | -51.64 | -1.79% | ― | 12.79% | 45.29% | |
47 Neutral | C$157.41M | -11.93 | -34.25% | ― | -1.55% | -357.20% |
* Industrials Sector Average
TSE:DRT
DIRTT Environmental Solutions
0.81
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12.50%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.