Canada's DIRTT Environmental Solutions Q3 revenue rises on higher volumes, lower tariff costs

DIRTT Environmental Solutions

Wed 22:11

Overview
Canada industrialized construction firm's Q3 revenue rose 19% yr/yr
Net income after tax turned positive, aided by a $13.1 mln deferred tax asset recognition
Adjusted EBITDA rose to $6.5 mln, driven by higher gross profit and lower operating expenses

Outlook
DIRTT maintains 2026 revenue guidance of $175.0 mln to $185.0 mln, expects to finish near low end
Company maintains 2026 Adjusted EBITDA outlook of $21.0 mln to $25.0 mln, sees results near low end

Result Drivers
LOWER TARIFF COSTS AND HIGHER VOLUMES - Co said improved gross profit margin was mainly due to reduced tariff costs and higher sales volumes, which offset rising material costs
COST CONTROL - Co attributed lower sales and marketing expenses to reduced salaries, benefits, and commissions
SERVICE REVENUE GROWTH - Co said increased service revenue contributed to overall revenue growth

Company press release: ID:nGNX2B3Y6X

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$0.09
 
Q3 Net Income After Tax
 
$17.12 mln
 
Q3 Gross Profit
 
$15.71 mln
 
Q3 Operating Expenses
 
$11.33 mln
 
Q3 Operating Income
 
$4.38 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$1.05, about 26.5% above its November 3 closing price of C$0.83
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
Nov 4 - Canada's Linamar Q3 sales rise on industrial demand, market-share gains
Nov 4 - Canada says midterms won't change trade stance, sees talks with US officials
Nov 4 - Emerson Electric Q4 sales beat estimates on broad-based demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)