DIRTT Environmental Solutions (DRTT) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 19% YoY to $44.7M; gross margin was 35.1%, operating income was $4.4M, and Adjusted EBITDA increased to $6.5M from $1.2M.

• Transformation actions reset the cost base and commercial model; further efficiency gains and topline growth remain priorities, and the initiatives have not reached full run rate.

Financial highlights

• Q3 product revenue was $41.5M versus $36.7M; service revenue was $3.2M versus $1.0M.

• Gross profit increased to $15.7M from $11.5M; Adjusted Gross Profit was $16.6M versus $12.5M.

• Operating expenses declined 25% to $11.3M; operating income was $4.4M versus an operating loss of $3.7M.

• Net income after tax was $17.1M versus a $3.5M loss; basic and diluted EPS were each $0.09 versus a $0.02 loss.

• Q3 operating cash flow was $3.1M versus $4.4M; investing cash outflow was $0.7M and financing cash inflow was $2.1M.

Outlook and guidance

• FY 2026 guidance remains revenue of $175M–$185M and Adjusted EBITDA of $21M–$25M; management expects results near the low end of both ranges based on project timing and revenue conversion.

• Guidance implies 4%–10% revenue growth and 760–910 bps of Adjusted EBITDA margin expansion versus FY 2025; transformation initiatives have not reached full run rate.

• Priorities include rebuilding the 12-month pipeline, improving conversion and sales execution, expanding Construction Services, and accelerating product introductions.

• Management cited improved project qualification, forecast alignment and award-timing visibility, while customer decisions remain measured in some markets.