DIRTT reported Q4 earnings 50.9 million dollars (above 4% yoY) with gross margins growing 36.6%But posted a net loss 3.7 million dollars Mainly because 7.6 million dollars At the time of reordering and defective charges Adjusted EBITDA You got up 6.2 million dollars.
Liquids sit in it 32.1 million dollars All (incl 20.3 million dollars Unlimited cash and 11.8 million dollars ABL capacity not drawn; DIRTT has secured an offer letter with BDC 15 million dollars (1st tranche received CAD 5.5M) and FY 2026 revenue guidance $194M–$209M with $26M–$31M At Adjusted EBITDA, excluding unexpected tariff changes.
Management emphasized the development of change initiatives – including startups DIRTT Construction Services And a more streamlined partner strategy — and recent commercial successes (notably with Google and U-Haul) — have been cited as driving the move, while the eight-week Fox Bullet trial is underway.
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DIRTT Environmental Solutions (TSE:DRT) used its fourth-quarter 2025 earnings call to highlight what management described as a “return to normalcy” in sales and earnings strength, in addition to advancing transformational initiatives aimed at improving the company’s long-term revenue and profit profile.
Chief Transformation Officer Adrian Zarat opened the call with the customary reminder about forward-looking statements and non-GAAP measures. CEO Benjamin Urban said the company believes its turnaround initiatives are gaining traction and are expected to create “structural improvements” in DIRTT’s long-term revenue and earnings potential.
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CFO Fariha Khan reported fourth quarter earnings 50.9 million dollarsabove 4% from the same period in 2024.
DIRTT’s Gross profit margin You have increased 36.6% than revenues 35.9% In the fourth quarter of 2024. Khan also noted a significant sequential improvement over the third quarter of 2025, when the gross margin was 30.4%Attributed the quarter-over-quarter increase to “coordinated acquisition of tariff reductions”.
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Operating expenses for the quarter, excluding management of most items characterized as special or non-recurring (restructuring expenses, stock-based compensation, impairment charges, legal regulations, and other non-recurring operating expenses) 14.1 million dollarswhich Khan said was consistent with last year’s quarter. Higher professional fees and operational support costs are offset by lower general and administrative costs as well as lower technology and development costs, she added.
Bottom line, DIRTT posted a Net loss after tax of $3.7 millionCompare with Net income after tax of $4 million In the fourth quarter of 2024. Khan said the net loss was primarily d 7.6 million dollars An increase in general and administrative restructuring costs and impairment charges, partially offset by a $0.9 million non-cash gain Relating to Termination of Rock Hill Facility Lease. She also pointed out that $0.3 million foreign exchange loss The US dollar is tied to a stronger Canadian dollar.
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Adjusted EBITDA It was for a quarter 6.2 million dollarsfrom above 5.5 million dollars In the same quarter last year.
DIRTT ends with a quarter 20.3 million dollars In unlimited money, down 5.8 million dollars From September 30, 2025. Khan said the money was used in the operation 4.3 million dollarsThere was cash used in investing activities 1.2 million dollarsand cash used in financing activities 0.3 million dollars. She said the financing flow primarily reflected long-term debt repayments, employee tax payments related to RSUs, and share repurchases under the company’s normal course of issuer bids.
Khan also pointed to improvements in working capital performance. Reduced to days inventory outstanding (DIO). 53.7 days from 61.4 daysand improved the cash conversion cycle to an average of three months 47.2 days from 49 days By the end of September 2025.
All were liquids 32.1 million dollars Until December 31, 2025, inclusive 11.8 million dollars Available under the Company’s Asset Based Lending (ABL) credit facility. Khan said that DIRTT has not yet taken the ABL facility.
On capital structure performance, Khan said DIRTT had minimal performance on its NCIB loans and share NCIB programs during the quarter, but it repaid the January debentures in January 2026 using off-balance sheet cash. She also said the company executed a letter of offer with BDC. 15 million dollars All funds, and that is the first installment 5.5 million dollars It was previously received in February.
Looking ahead, management released 2026 financial guidance $194 million to $209 million on revenue and $26 million to $31 million In Adjusted EBITDA. Khan said the guidance range reflects DIRTT’s current assessment of tariff impacts, but does not include the potential impact of “unexpected tariffs or trade policy changes”. She added that the company will update the guidance if and when the impact becomes measurable.
City said the company’s fourth-quarter results came within its previously published outlook, noting revenue and adjusted EBITDA. 50.9 million dollars and 6.2 million dollarsIn order, against instruction $48 million to $52 million on revenue and $5 million to $7 million In Adjusted EBITDA. He also said the company was coming off “its highest-earning month in two years.”
Urban attributed the recent performance and momentum to commercial successes, a change in distribution strategy, and a new operating model. He said DIRTT recently announced another project with Google, a “10-year-plus legacy customer,” for the company’s Toronto office, and also noted a “major new contract” with U-Haul. Urban said the deal reflects DIRTT’s focus on expanding repeat and new business relationships.
On distribution, Urban described an evolution in tracking and delivering the DIRTT project. He said the company created a solutions team last year to explore broader revenue opportunities, and formalized the group in the third quarter. DIRTT Construction Services to reflect its full scope. Urban said the group offers services including:
He added that the goal is to move DIRTT “from manufacturing to a multi-commercial, pre-built indoor construction company.” Urban said DIRTT Construction Services is designed to complement the existing partner distribution channel by helping partners select bids and win major projects, fill capacity gaps in partner teams, and pursue projects in markets without partner coverage, in sectors that require special expertise, or support the company’s national account strategy.
Urban also said that DIRTT has optimized its partner network through “great stratification and targeted resource allocation” and identified its highest potential partners while increasing investment in these relationships to expand the pipeline and improve conversion to revenue.
Separately, he said DIRTT introduced a new operating model that focuses on process standardization and operational discipline, aimed at reducing complexity and unlocking capacity across the business. Urban said these actions are designed to expand DIRTT’s significant market share, increase operating profitability, and support its structurally superior revenue strength.
Urban provided a brief update on the Falk Bullet case, saying the 8-week trial covering multiple charges began on February 2, 2026, and was continuing at the time of the call. He said DIRTT is tracking the damage that has occurred in Canada, the United States and abroad.
No analysts or investors entered the queue during the question-and-answer portion of the call. Shahri concluded by thanking the participants and said he had no further comments.
Dirtt Environmental Solutions Ltd is a manufacturer of custom indoor products. The company integrates its (3D) design, layout, and manufacturing software (ICE or ICE Software) with its in-house developed internal construction solutions and distribution partner (DP) network. It provides services to various sectors including healthcare, education, business and other sectors. DIRTT conducts its operations through the United States and Canada, generating most of its revenue in the United States.
The article “DIRTT Environmental Solutions Q4 Earnings Highlights” was originally published by MarketBeat.
