DIRTT Environmental Solutions Ltd. reported a revenue of $40.3 million for the second quarter of 2026, marking a 4% increase from $38.9 million in the same period of 2025. The company's gross profit for the quarter was $14.0 million, representing a gross profit margin of 34.7%, up from 27.8% in the prior year. This improvement in profitability was attributed to lower tariff costs and a strategic aluminum price surcharge implemented to mitigate rising material costs. The company incurred $0.3 million in tariff-related expenses during the quarter, a significant reduction from $2.0 million in the previous year.

In terms of operational performance, DIRTT's net income for the second quarter was $1.1 million, a notable recovery from a net loss of $6.6 million in the same quarter of 2025. This turnaround was driven by a $3.2 million increase in gross profit, a $2.0 million foreign exchange gain, and reductions in various operating expenses, including a $1.2 million decrease in general and administrative costs. The company also reported an Adjusted EBITDA of $4.7 million, compared to a loss of $2.0 million in the prior year, reflecting improved operational efficiency.

DIRTT's customer base remains stable, with 59 Construction Partners as of June 30, 2026, down from 66 at the end of 2025. The company continues to focus on enhancing its Construction Services channel, which has shown growth in installation projects, contributing to a 20% increase in service revenue for the quarter. The company’s twelve-month forward pipeline, however, decreased by 7% from January 1, 2026, indicating a cautious approach to project qualification and forecasting.

The company has also been active in managing its financial obligations, having repaid the outstanding January Debentures in January 2026. As of June 30, 2026, DIRTT had $14.8 million in cash and $6.7 million in available borrowings under its credit facilities. The company is currently evaluating its liquidity position and plans to maintain sufficient cash flow to support operations and potential growth initiatives. Looking ahead, DIRTT aims to leverage its operational improvements and strategic initiatives to drive sustainable growth and enhance shareholder value.

About DIRTT ENVIRONMENTAL SOLUTIONS LTD

DIRTT designs and manufactures customizable, sustainable interior construction solutions using advanced digital tools and off-site manufacturing. Its core offerings include modular walls, doors, casework, and integrated systems for commercial spaces across North America. Combining speed, quality, and adaptability, DIRTT serves diverse industries with a focus on environmentally conscious, reconfigurable spaces that meet evolving client needs.

This description was generated via AI from an annual report. Updated about 1 year ago.

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