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DIRTT streamlines footprint with lease termination, cost savings

Story Highlights
  • DIRTT exited its Rock Hill, South Carolina lease on December 30, 2025, paying a US$1 million termination fee after closing the facility in 2023.
  • The lease termination removes about US$10.5 million in rent obligations, brings a one-time US$2.3 million impairment charge, and is expected to yield US$1.6 million in annual cost savings from 2026.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
DIRTT streamlines footprint with lease termination, cost savings

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The latest update is out from DIRTT Environmental Solutions ( (TSE:DRT) ).

DIRTT Environmental Solutions has finalized the early termination of its 15-year lease for a former manufacturing facility in Rock Hill, South Carolina, effective December 30, 2025, after permanently closing the plant in September 2023 and shifting its production capacity to Calgary. The company paid a US$1 million early termination fee to exit remaining undiscounted rent obligations of about US$10.5 million, expects recurring annual cost savings of approximately US$1.6 million from January 2026, and will recognize a one-time, non-cash impairment charge of roughly US$2.3 million on leasehold improvements, a move management says will streamline its real estate footprint, lower ongoing operating expenses, and be accretive to earnings over time.

The most recent analyst rating on (TSE:DRT) stock is a Hold with a C$0.85 price target. To see the full list of analyst forecasts on DIRTT Environmental Solutions stock, see the TSE:DRT Stock Forecast page.

Spark’s Take on TSE:DRT Stock

According to Spark, TipRanks’ AI Analyst, TSE:DRT is a Neutral.

DIRTT Environmental Solutions is facing significant financial and operational challenges, as evidenced by declining revenue and profitability margins, and increased leverage. Technical indicators suggest bearish momentum, and the negative P/E ratio highlights valuation concerns. Improvements in cash flow metrics provide a slight positive outlook, but overall, the stock is currently not attractive.

To see Spark’s full report on TSE:DRT stock, click here.

More about DIRTT Environmental Solutions

DIRTT Environmental Solutions Ltd. is a Calgary-based leader in industrialized construction, providing a system of physical products and digital tools to create high-performing, adaptable interior environments. The company serves workplace, healthcare, education, and public sector markets across North America, operating four specialized manufacturing facilities in Calgary, Alberta, and a major production plant in Savannah, Georgia.

YTD Price Performance: 1.10%

Average Trading Volume: 54,076

Technical Sentiment Signal: Buy

Current Market Cap: C$176.5M

See more data about DRT stock on TipRanks’ Stock Analysis page.

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