DIRTT Environmental Solutions (TSE:DRT)
TSX:DRT
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DIRTT Environmental Solutions
(TSX:DRT)
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Rating:48Neutral
Price Target:
C$0.82
▼(-7.64% Downside)
Action:ReiteratedDate:02/28/26
The score is held back primarily by weak financial performance (return to losses, negative free cash flow, and elevated/increasing leverage). Technicals are a partial offset with the stock trading above key moving averages and mildly positive momentum, but valuation remains constrained due to a negative P/E and no dividend yield data.
Positive Factors
Modular prefabrication & software-enabled design
DIRTT's integrated modular model and software-enabled configuration create a durable operational advantage: product standardization and digital design reduce on-site time and waste, promote repeatable delivery, and help secure specifications with architects and clients, supporting structural demand and higher long-term execution efficiency.
Negative Factors
Elevated and rising leverage
A materially higher debt-to-equity ratio increases interest and covenant exposure and constrains strategic choices. Elevated leverage reduces financial flexibility for capital allocation, heightens refinancing risk if credit markets tighten, and places lasting pressure on profitability recovery until deleveraging occurs.
Read all positive and negative factors
Positive Factors
Negative Factors
Modular prefabrication & software-enabled design
DIRTT's integrated modular model and software-enabled configuration create a durable operational advantage: product standardization and digital design reduce on-site time and waste, promote repeatable delivery, and help secure specifications with architects and clients, supporting structural demand and higher long-term execution efficiency.
Read all positive factors
DIRTT Environmental Solutions (DRT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$163.07M
Dividend YieldN/A
Average Volume (3M)52.26K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth-2.73%
EPS Growth-155.71%
CountryCA
Employees842
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.03
Shares Outstanding191,852,870
10 Day Avg. Volume74,932
30 Day Avg. Volume52,256
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)4.44
Price to Sales (P/S)0.74
P/FCF Ratio-47.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.05
Revenue Forecast (FY)C$197.40M
DIRTT Environmental Solutions Business Overview & Revenue Model
Company Description
DIRTT Environmental Solutions Ltd. designs, manufactures, and installs prefabricated interior solutions for use in commercial spaces across various industries and businesses in the United States, Canada, internationally. Its ICE software interior ...
How the Company Makes Money
DIRTT makes money primarily by selling complete interior construction projects and related components, typically structured as contract revenue tied to the design, manufacture, and installation of its modular interior systems. Key revenue streams ...
DIRTT Environmental Solutions Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
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.Positive Updates
Increased Sales Pipeline
DIRTT's 12-month forward sales pipeline increased by 12% to $311 million from $278 million at the start of 2025, the first time in over two years exceeding $300 million.
Negative Updates
Revenue Decline
Revenues for Q2 2025 were $38.9 million, a decrease of 6% compared to the same period of 2024, due to delayed customer orders and construction schedule pushouts.
Read all updates
Q2-2025 Updates
Positive
Negative
Increased Sales Pipeline
DIRTT's 12-month forward sales pipeline increased by 12% to $311 million from $278 million at the start of 2025, the first time in over two years exceeding $300 million.
Read all positive 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
Income Statement
34
Negative
Balance Sheet
38
Negative
Cash Flow
27
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 171.81M | 174.31M | 181.93M | 172.16M | 147.59M |
| Gross Profit | 50.48M | 64.38M | 59.54M | 28.16M | 23.46M |
| EBITDA | 5.69M | 25.79M | -391.00K | -37.77M | -45.42M |
| Net Income | -14.70M | 14.77M | -14.58M | -54.96M | -53.67M |
Balance Sheet | |||||
| Total Assets | 102.32M | 118.22M | 124.32M | 143.65M | 199.44M |
| Cash, Cash Equivalents and Short-Term Investments | 20.54M | 29.29M | 24.74M | 10.82M | 60.31M |
| Total Debt | 62.48M | 52.32M | 89.75M | 98.86M | 104.12M |
| Total Liabilities | 73.83M | 75.63M | 117.22M | 125.66M | 131.67M |
| Stockholders Equity | 28.48M | 42.59M | 7.10M | 17.99M | 67.77M |
Cash Flow | |||||
| Free Cash Flow | -2.65M | 4.16M | 11.79M | -48.33M | -45.33M |
| Operating Cash Flow | -195.36K | 7.34M | 14.82M | -44.26M | -31.21M |
| Investing Cash Flow | -3.79M | -1.90M | 7.66M | -4.02M | -14.14M |
| Financing Cash Flow | -5.07M | -415.00K | -11.61M | -874.00K | 62.45M |
DIRTT Environmental Solutions Technical Analysis
Negative
0.89
Price Trends
0.86
Negative
0.91
Negative
0.86
Negative
Market Momentum
-0.01
Positive
47.25
Neutral
49.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DRT, the sentiment is Negative. The current price of 0.89 is above the 20-day moving average (MA) of 0.88, above the 50-day MA of 0.86, and above the 200-day MA of 0.86, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 49.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DRT.
DIRTT Environmental Solutions Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$15.58B | 5.72 | 56.38% | 0.09% | 13.97% | 715.65% | |
70 Outperform | C$2.80B | 130.21 | 1.66% | 2.38% | 25.68% | ― | |
69 Neutral | C$13.96B | 30.82 | 15.28% | 0.67% | 11.73% | 41.17% | |
64 Neutral | C$2.10B | 33.32 | 21.42% | 2.88% | 6.26% | 0.52% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | C$42.15M | 7.34 | -1.10% | ― | 9.30% | -151.79% | |
48 Neutral | C$163.07M | -8.61 | -43.41% | ― | -2.73% | -155.71% |
* Industrials Sector Average
TSE:DRT
DIRTT Environmental Solutions
0.85
-0.21
-19.81%
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DIRTT Environmental Solutions Corporate Events
Business Operations and Strategy
DIRTT Sees Strong February Demand as Clients Seek Flexible Interior Construction
Positive
Mar 24, 2026
DIRTT Environmental Solutions reported strong commercial activity in February as organizations increasingly seek faster and more adaptable interior construction solutions. Projects during the month included work for LinkedIn and Ohio State Univers...
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial DisclosuresLegal ProceedingsPrivate Placements and Financing
DIRTT Posts Higher Q4 Revenue but Swings to Loss as Transformation and Refinancing Accelerate
Negative
Feb 26, 2026
DIRTT Environmental Solutions reported fourth-quarter 2025 revenue of $50.9 million, up 4% year over year, with gross margin improving to 36.6%, but it swung to a net loss of $3.7 million from a prior-year profit despite stronger adjusted EBITDA o...
Business Operations and StrategyFinancial Disclosures
DIRTT Sets Date for Q4 2025 Results and Investor Call
Neutral
Feb 18, 2026
DIRTT Environmental Solutions said it will release its fourth quarter 2025 financial results on February 25, 2026, after markets close, followed by a webcast and conference call on February 26 hosted by CEO Benjamin Urban and CFO Fareeha Khan. The...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
DIRTT Reshapes Governance as 726 Entities Take 15% Stake and Board Seat
Positive
Feb 17, 2026
DIRTT Environmental Solutions has entered into a new support and standstill agreement with its largest shareholder, 22NW Fund, and the 726 Entities, coinciding with the 726 Entities’ acquisition of a 15% stake in the company from WWT Opportu...
Business Operations and StrategyFinancial Disclosures
DIRTT Sees Year-End Surge in Commercial Activity as Projects Shift to Execution
Positive
Jan 22, 2026
DIRTT Environmental Solutions reported strong commercial activity in December 2025 as clients moved projects from planning to execution, particularly across healthcare, public sector, and workplace environments. The company’s performance is ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.