DIRTT Environmental Solutions Conference Summary Company Overview - DIRTT Environmental Solutions is a leader in pre-manufactured modular construction technology with over 20 years of experience and 11 years as a publicly traded company [1][2] - The company operates in the United States and Canada, employing approximately 850 people and managing around 750,000 square feet of manufacturing space [1] - DIRTT has shipped over $2 billion worth of products, with nearly half of the Fortune 500 companies as customers [1][14] Core Business Model and Value Proposition - DIRTT's solutions are chosen for five main reasons: speed, performance, reconfigurability, financial advantages, and sustainability [2][3] - Speed: Schedule compression can reduce project timelines significantly, from months to weeks [2] - Performance: Offers aesthetic and functional benefits, including fire-rated partitions and warranties [2] - Reconfigurability: Solutions can be modified and relocated easily [2] - Financial: Products qualify as personal property, allowing for accelerated depreciation [3] - Sustainability: Engineered to minimize landfill waste and reduce greenhouse gas emissions [3] Technology and Innovation - DIRTT utilizes proprietary ICE software for configuration, visualization, engineering, and automation, enabling mass customization with a 10-day lead time [4][29] - The software is also commercialized as a SaaS platform, with several manufacturers currently using it [4] Market Segmentation and Expansion - Primary verticals include commercial office, healthcare, government, education, aviation, and life sciences [5] - The total addressable market for DIRTT's prefabricated solutions is estimated at $40 billion, with potential expansion into conventional construction through a newly established Construction Services Division [5][9] - DIRTT has diversified its sales channels, now including direct transactions with general contractors, which is expected to enhance growth [9][10] Financial Performance and Growth Strategy - DIRTT has approximately $400 million in manufacturing capacity, with current utilization around $175 million, primarily through furniture dealer partners [9] - The company aims to increase its pipeline and revenue through direct sales to general contractors, which have higher margins compared to traditional channels [10][13] - Self-perform work for general contractors is a key focus, as it represents a higher margin revenue stream [10][13] Recent Developments and Challenges - The company experienced a significant shift in project mix post-COVID, with a decrease in commercial office projects and an increase in healthcare projects [21] - DIRTT is currently in a turnaround phase, focusing on profitability and business transformation, with expectations for continued growth into 2026 [22][24] - Tariffs have impacted operations, but mitigation efforts are expected to lead to positive EBITDA by Q4 [23][24] Future Outlook - DIRTT plans to provide Q4 guidance and insights into its growth strategy in the upcoming earnings release [25] - The introduction of fire-rated partitions has opened new market opportunities in hospitality and multifamily sectors, which were previously inaccessible [18][31] - The company is focused on expanding its project size and value through its construction services channel, with average project values significantly higher than traditional projects [29] Key Metrics - DIRTT's average project value through traditional channels is between $50,000 and $75,000, while projects through the construction services channel average around $2 million [29] - The company has seen a project push-out rate of 18% to 19% per quarter, with Q2 reaching 27% [24]