CALGARY, Alberta, Feb. 25, 2026
DIRTT Environmental Solutions Ltd. (DRT), a leader in industrialized construction, announced its financial results for the three and twelve months ended December 31, 2025. All financial information is presented in U.S. dollars.
Fourth Quarter 2025 Highlights
Benjamin Urban, chief executive officer, remarked, “December 2025 was our highest revenue month in over two years, and our fourth quarter results demonstrate that we are beginning to see a return to normalcy in our sales and earning power. Actions in our Transformation Office are accelerating, and we expect to see the impacts on our long-term revenue and earnings capacity in 2026 and beyond.”
Fareeha Khan, chief financial officer, added, “Our fourth quarter results were at the higher end of the guidance range provided last quarter, and we closed the quarter with $32.1 million of liquidity. We settled the January Debentures on January 31, 2026, and have secured C$15 million of committed financing, of which C$5.5 million has been received to date. Looking forward to 2026, we expect revenue between $194.0 and $209.0 million and Adjusted EBITDA between $26.0 and $31.0 million.”
Fourth quarter 2025 revenue was $50.9 million, an increase of $2.0 million or 4% from $48.9 million for the same period of 2024. We entered the fourth quarter of 2025 with a 20% higher twelve-month forward pipeline compared to January 1, 2025. Volumes have returned to normal following earlier push-out rates, and revenue has benefited from a 5% price increase and a 3.5% tariff surcharge announced in Q1 2025.
Gross profit for the quarter ended December 31, 2025, was $18.6 million or 36.6% of revenue, compared to $17.5 million or 35.9% for the same period of 2024. Adjusted Gross Profit for Q4 2025 was $19.7 million or 38.7% of revenue, an increase from $19.0 million or 38.8% in Q4 2024. The increase in Adjusted Gross Profit Margin is attributed to the revenue growth.
Financial Performance Overview
Sales and marketing expenses decreased by $0.4 million to $5.4 million, while general and administrative expenses increased by $2.8 million to $8.0 million, largely due to a legal provision of $2.0 million. Operations support expenses rose by $0.3 million, and technology and development expenses decreased by $0.2 million.
Stock-based compensation expense slightly decreased to $1.0 million from $1.1 million in Q4 2024. The company incurred $2.0 million in reorganization costs, significantly higher than the $0.2 million in Q4 2024. An impairment charge of $2.3 million was recognized due to the early termination of the lease at the Rock Hill Facility.
In Q4 2025, there was a foreign exchange loss of $0.3 million compared to a gain of $2.1 million in Q4 2024. Interest income decreased to $0.2 million, while interest expense remained consistent at $0.5 million.
Net loss after tax for Q4 2025 was $3.7 million, contrasting with a net income of $4.0 million in the same period of 2024. The adjusted EBITDA for Q4 2025 was $6.2 million or 12.1% of revenue, reflecting an improvement over the previous year.
The macroeconomic backdrop remains supportive, with the Dodge Momentum Index showing positive trends. DIRTT continues to transform and optimize its business, with a focus on streamlining processes and improving productivity. The establishment of a Transformation Office is expected to enhance efficiency and financial performance.
DIRTT's balance sheet remains strong, with $32.1 million in liquidity and modest indebtedness of $23.4 million. The company is also involved in ongoing litigation, seeking damages related to the Falkbuilt Litigation, which commenced on February 2, 2026.
Looking Ahead
DIRTT is issuing initial guidance for 2026, reflecting its assessment of tariff impacts while noting that unforeseen changes could alter these projections. A conference call and webcast for investors are scheduled for February 26, 2026. For more information, visit Inside Ticker.