Canada's DIRTT Environmental Solutions Q1 revenue rises, maintains FY revenue forecast

DIRTT Environmental Solutions

06/05/2026 22:21

Overview

Canada industrialized construction firm's Q1 revenue rose 3% yr/yr

Gross profit margin and adjusted EBITDA declined due to higher aluminum and tariff costs

Net loss widened mainly due to increased reorganization expenses

Outlook

DIRTT maintains 2026 revenue guidance of $194.0-$209.0 mln

Company expects 2026 Adjusted EBITDA between $26.0 mln and $31.0 mln

DIRTT says impact from macroeconomic headwinds has diminished due to mitigation actions

Result Drivers

HIGHER INPUT COSTS - Gross profit and adjusted gross profit were negatively impacted by rising aluminum prices, higher tariff costs, and lower margins on installation projects

REORGANIZATION EXPENSES - Net loss widened mainly due to a $2.2 mln increase in reorganization costs related to the company's transformation plan

COST OPTIMIZATION - Operating expenses (excluding reorganization and stock-based compensation) decreased by $0.9 mln, reflecting cost optimization efforts

Company press release: ID:nGNX34fVsQ

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Income
-$3.27 mln
Q1 Basic EPS
-$0.02
Q1 Gross Profit
$13.001 mln
Q1 Operating Expenses
$16.27 mln
Q1 Operating Income
-$3.26 mln


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

Wall Street's median 12-month price target for DIRTT Environmental Solutions Ltd is C$1.50, about 87.5% above its May 5 closing price of C$0.80

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 192 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)