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DIRTT Environmental Solutions (DRT) AI Stock Analysis
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DIRTT Environmental Solutions
(TSX:DRT)
The score is held back primarily by weak financial performance—ongoing losses, negative free cash flow, and still-meaningful leverage—despite improving revenue and gross margin. Technical indicators are broadly neutral with only modest downside bias, while valuation is constrained by the negative P/E and lack of dividend support.
DIRTT Environmental Solutions (DRT) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 157.41M
- Dividend Yield
- ―
- Average Volume (3M)
- 26.04K
- Price to Earnings (P/E)
- -11.8
- Beta (1Y)
- 0.35
- Revenue Growth
- -1.55%
- EPS Growth
- -357.20%
- Country
- Canada
- Employees
- 758
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Engineering & Construction
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 technology...
How the Company Makes Money
DIRTT primarily makes money by selling modular interior construction solutions and related services for building fit-outs and renovations. Revenue is generated through (1) product sales of prefabricated interior components and systems that are manufa...
DIRTT Environmental Solutions Earnings Call Summary
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.
Q2-2025 Updates
Positive Updates
Negative 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
Revenue is up ~20% year over year with improved gross margin, indicating better operating momentum. However, profitability remains weak (TTM net margin around -10%), results have been inconsistent across years, leverage is still meaningful (debt > equity), and free cash flow is negative despite positive operating cash flow.
Income Statement
42NeutralBalance Sheet
50NeutralCash Flow
38Negative| 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 | 5.58M | 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
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DRT, the sentiment is Neutral. The current price of 0.81 is above the 20-day moving average (MA) of 0.80, below the 50-day MA of 0.81, and below the 200-day MA of 0.81, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 51.33 is Neutral, neither overbought nor oversold. The STOCH value of 85.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DRT.
DIRTT Environmental Solutions Risk Analysis
DIRTT Environmental Solutions disclosed 33 risk factors in its most recent earnings report. DIRTT Environmental Solutions reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksDIRTT Environmental Solutions Peers Comparison
Overall Rating
TSE:ATRL85Outperform
TSE:BDT76Outperform
TSE:STN73Outperform
TSE:ARE63Neutral
TSE:AEP51Neutral- TSE:DRT45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:ATRL | 85Outperform | CAD 13.66B | 32.95 | 7.89% | 0.09% | 14.82% | -82.14% |
| TSE:BDT | 76Outperform | CAD 3.77B | 62.97 | 13.41% | 1.24% | 7.38% | -39.80% |
| TSE:STN | 73Outperform | CAD 11.34B | 22.78 | 15.26% | 0.95% | 9.97% | 15.80% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| TSE:ARE | 63Neutral | CAD 3.38B | -63.94 | -5.32% | 1.56% | 23.05% | -682.62% |
| TSE:AEP | 51Neutral | CAD 40.12M | -45.90 | -1.79% | ― | 12.79% | 45.29% |
| TSE:DRT | 45Neutral | CAD 157.41M | -11.81 | -34.25% | ― | -1.55% | -357.20% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:DRT | Dirtt Environmental Solutions Ltd. | 0.81 | -0.26 | -24.30% | |
| TSE:STN | Stantec | 100.93 | -51.63 | -33.84% | |
| TSE:ATRL | Atkinsrealis | 86.33 | -11.46 | -11.72% | |
| TSE:ARE | Aecon Group Inc. | 49.23 | 18.85 | 62.06% | |
| TSE:AEP | Atlas Engineered Products | 0.56 | -0.18 | -24.32% | |
| TSE:BDT | Bird Construction | 68.01 | 38.68 | 131.91% |
DIRTT Environmental Solutions Corporate Events
DIRTT to Unveil Q3 2026 Results and Host Investor Webcast
NeutralDIRTT Environmental Solutions plans to release its third quarter 2026 financial results on November 4, 2026, after markets close, underscoring its ongoing engagement with capital markets and transparency for investors. The company will host a webcast...
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.
Date of analysis: Nov 01, 2026