DIRTT Reports Fourth Quarter 2025 Financial Results and Provides 2026 Guidance

Core Insights - DIRTT Environmental Solutions Ltd. reported financial results for Q4 and the full year 2025, showing a revenue increase and strategic developments aimed at transformation and growth [1][2][3]. Financial Performance - Q4 2025 revenue was $50.9 million, a 4% increase from $48.9 million in Q4 2024, aligning with guidance expectations [2][4]. - Gross profit for Q4 2025 was $18.6 million, representing a gross profit margin of 36.6%, up from 35.9% in Q4 2024 [5]. - The net loss after tax for Q4 2025 was $3.7 million, compared to a net income of $4.0 million in Q4 2024 [16]. - Adjusted EBITDA for Q4 2025 was $6.2 million, or 12.1% of revenue, an improvement from $5.5 million or 11.2% of revenue in Q4 2024 [17]. Strategic Developments - The company appointed Scott Robinson as Executive Chairman and Adrian Zarate as Chief Transformation Officer to drive its transformation plan [2][19]. - DIRTT entered into a financing agreement with the Business Development Bank of Canada for up to C$15 million, with C$5.5 million received to date [2][3]. - A normal course issuer bid was renewed, allowing the company to acquire up to 9,593,878 common shares [2]. Operational Insights - Sales and marketing expenses decreased to $5.4 million in Q4 2025 from $5.8 million in Q4 2024, while general and administrative expenses increased to $8.0 million from $5.1 million [6][7]. - The company recognized a one-time impairment expense of $2.3 million related to the early termination of a lease at its former manufacturing facility [13]. - DIRTT's liquidity stood at $32.1 million as of December 31, 2025, down from $39.3 million a year earlier [2][20]. Future Outlook - The company anticipates revenue for 2026 to be between $194.0 million and $209.0 million, with Adjusted EBITDA expected between $26.0 million and $31.0 million [3][25]. - The broader macroeconomic environment remains supportive, with indicators such as the Dodge Momentum Index showing positive trends [18].