CALGARY, Alberta, Aug. 26, 2025 (GLOBE NEWSWIRE) -- DIRTT Environmental Solutions Ltd. (TSX: DRT; OTC: DRTTF) ("DIRTT" or the "Company"), a leader in industrialized construction, announced today that the Toronto Stock Exchange ("TSX") has accepted DIRTT’s notice of intention to renew its normal course issuer bid (the "NCIB") for DIRTT's 6.00% convertible unsecured subordinated debentures due January 31, 2026 ("January Debentures") and its 6.25% convertible unsecured subordinated debentures due December 31, ...

Core Viewpoint - DIRTT Environmental Solutions Ltd. has appointed Mr. Adrian Zarate to its Board of Directors, representing its largest shareholder, 22NW Fund, LP, as part of a strategic move to enhance its leadership and support its growth trajectory [1][2]. Group 1: Board Changes - Mr. Adrian Zarate has been appointed to the Board effective July 30, 2025, as the nominee director for 22NW Fund, LP [1]. - Aron English, the current nominee on the Board from 22NW, has expressed gratitude for the opportunity to contribute to DIRTT's turnaround since 2022 and is optimistic about Mr. Zarate's role in continuing this progress [2]. - Scott Robinson, Chair of the Board, acknowledged Aron English's leadership and welcomed Adrian Zarate, emphasizing the focus on capturing more market share and growth for DIRTT [3]. Group 2: Company Background - DIRTT is recognized as a leader in industrialized construction, providing a system of physical products and digital tools that enable organizations to create adaptable interior environments [4]. - The company operates across various sectors, including workplace, healthcare, education, and public sectors, offering solutions that ensure design freedom and greater certainty in cost, schedule, and outcomes [4]. - DIRTT's products are designed to be flexible and adaptable, allowing organizations to reconfigure their spaces as their needs evolve [4].

Core Insights - DIRTT Environmental Solutions Ltd. reported financial results for Q2 2025, highlighting challenges due to macroeconomic conditions and tariff impacts, but remains optimistic about growth strategies and product innovations [1][3][17] Financial Performance - Q2 2025 revenue was $38.9 million, a decrease of $2.3 million or 6% from $41.2 million in Q2 2024 [4][15] - Gross profit margin fell to 27.8% in Q2 2025 from 37.3% in Q2 2024, with gross profit impacted by tariffs amounting to 5.1% of revenue [4][6] - Net loss after tax for Q2 2025 was $6.6 million, compared to a net income of $0.6 million in Q2 2024 [15][20] - Adjusted EBITDA was $(2.0) million in Q2 2025, down from $3.2 million in Q2 2024, reflecting a significant decrease in profitability [16][29] Operational Highlights - The twelve-month forward pipeline increased by 7% from April 1, 2025, surpassing $300 million, indicating a strong project pipeline despite current challenges [3][19] - The introduction of new products, such as a one-hour fire-rated wall, aims to capture additional market sectors including healthcare, hospitality, and multi-family housing [3][19] Cost Management - Tariffs imposed in 2025 have significantly affected gross profit margins, with an additional 25% tariff on aluminum and steel announced in June 2025 [18][19] - The company has implemented various tariff mitigation strategies, including price adjustments and strategic sourcing, to preserve margins [18][19] Market Conditions - The construction industry continues to face challenges such as labor shortages and supply chain pressures, which are impacting DIRTT's operations [19] - Despite macroeconomic uncertainties, the company is focusing on growth and transforming its business to compete more effectively with conventional construction [19][36]

Group 1 - DIRTT Environmental Solutions Ltd. will release its second quarter 2025 financial results on July 30, 2025, after market close [1] - A conference call to discuss the results is scheduled for July 31, 2025, at 8:00 a.m. MST, hosted by the CEO and CFO [2] - A replay of the conference call will be available on the company's website [3] Group 2 - DIRTT is a leader in industrialized construction, providing a system of physical products and digital tools for adaptable interior environments [4] - The company's solutions cater to various markets, including workplace, healthcare, education, and public sectors, offering design freedom and certainty in cost and outcomes [4] - DIRTT's products are designed to be flexible and adaptable, allowing organizations to reconfigure spaces as needs evolve [4]

Group 1 - DIRTT Environmental Solutions Ltd. held its annual general and special meeting of shareholders on June 24, 2025, where the election of directors took place with high approval rates for all nominees [1] - Douglas Edwards received 99.90% of votes for his election, while other nominees also received significant support, with percentages ranging from 98.59% to 99.89% [1] - All other matters voted on by shareholders were approved, and final voting results will be filed on SEDAR and EDGAR [1] Group 2 - DIRTT is recognized as a leader in industrialized construction, providing a system of physical products and digital tools that enable organizations to create adaptable interior environments [2] - The company's solutions cater to various sectors, including workplace, healthcare, education, and public markets, offering design freedom and greater certainty in cost and outcomes [2] - DIRTT's interior construction solutions are designed to be flexible and adaptable, allowing organizations to reconfigure their spaces as needs evolve [2]

Group 1 - DIRTT Environmental Solutions Ltd. has been approved to trade on the OTCQX Best Market, starting today under the symbol "DRTTF" [1] - The upgrade to OTCQX from the Pink market is expected to enhance the marketability of DIRTT's securities and attract U.S. institutional investors, wealth advisors, and individual investors [2] - Trading on the OTCQX Market is anticipated to increase trading volume and liquidity for DIRTT [2] Group 2 - DIRTT is a leader in industrialized construction, providing a system of physical products and digital tools for high-performing, adaptable interior environments [3] - The company's solutions cater to various sectors including workplace, healthcare, education, and public sector markets, offering total design freedom and greater certainty in cost, schedule, and outcomes [3] - DIRTT's interior construction solutions are designed to be flexible and adaptable, allowing organizations to reconfigure their spaces as their needs evolve [3]

Company Overview - DIRTT Environmental Solutions Ltd is a leader in industrialized construction, providing a system of physical products and digital tools that enable organizations to create high-performing, adaptable interior environments [4] - The company's solutions are applicable in various sectors, including workplace, healthcare, education, and public sector markets, offering total design freedom and greater certainty in cost, schedule, and outcomes [4] Market Transition - DIRTT Environmental Solutions Ltd has upgraded to trade on the OTCQX Best Market from the Pink market, which is a significant step for enhancing transparency for U.S. investors [1][3] - The company will now trade under the symbol "DRTTF" on the OTCQX, allowing U.S. investors to access current financial disclosures and real-time quotes [2] Compliance and Standards - To qualify for the OTCQX, companies must meet high financial standards, adhere to best practice corporate governance, and comply with applicable securities laws, which underscores the importance of transparency and reliability in trading [3]

Core Insights - DIRTT Environmental Solutions Ltd. reported a revenue of $41.3 million for Q1 2025, reflecting a 1% increase from $40.8 million in Q1 2024 [4][6] - The company experienced a net loss of $0.7 million in Q1 2025, compared to a net income of $3.0 million in the same period last year [16][20] - Adjusted EBITDA for Q1 2025 was $2.1 million, or 5.1% of revenue, down from $2.7 million, or 6.5% of revenue in Q1 2024 [17][20] Financial Performance - Gross profit for Q1 2025 was $14.5 million, with a gross profit margin of 35.2%, down from 35.9% in Q1 2024 [7][16] - The company incurred $0.6 million in tariffs and related costs, which negatively impacted gross profit margin by 1.4% of revenue [4][7] - Liquidity at the end of Q1 2025 was $36.0 million, a decrease from $39.3 million at the end of 2024 [4][20] Operational Developments - DIRTT signed a lease with the Texas Medical Center Innovation Factory to establish a DIRTT Experience Centre as part of its healthcare strategy [3] - The company has increased its full pipeline by 21% from December 31, 2024, to March 31, 2025, indicating growth in project opportunities [5] - DIRTT is implementing mitigation strategies to address tariff-related challenges, including leveraging its Savannah manufacturing facility [18] Cost Management - Sales and marketing expenses decreased by $0.7 million to $5.2 million in Q1 2025, driven by reductions in various cost categories [8] - General and administrative expenses increased by $0.9 million to $5.5 million, primarily due to higher professional services and litigation costs [9] - The company is focusing on cost controls and efficiency improvements to support its revenue growth strategy [5][19] Market Outlook - DIRTT has withdrawn its annual guidance due to uncertainties surrounding tariffs and macroeconomic conditions affecting project decision-making [5][19] - Despite near-term challenges, the twelve-month forward-looking pipeline is up 8% year-over-year, indicating potential for future growth [19] - The company remains confident in its strategic priorities and expects to generate positive Adjusted EBITDA in 2025 [19][20]

Group 1 - DIRTT Environmental Solutions Ltd. will release its first quarter 2025 financial results on May 7, 2025, after market close [1] - A conference call to discuss the results is scheduled for May 8, 2025, at 8:00 a.m. MST, hosted by the CEO and CFO [2] - DIRTT is a leader in industrialized construction, providing adaptable interior environments for various sectors including workplace, healthcare, education, and public [3] Group 2 - DIRTT's system combines physical products and digital tools, offering design freedom and certainty in cost, schedule, and outcomes [3] - The company's solutions are designed to be flexible and adaptable, allowing organizations to reconfigure spaces as needs evolve [3] - DIRTT is headquartered in Calgary, Alberta, Canada, and trades on the Toronto Stock Exchange under the symbol "DRT" [3]