DIRTT Reports Third Quarter 2025 Financial Results

Executive Summary

• DIRTT reported Q3 2025 revenue of $37.7 M (‑13% YoY) and a net loss after tax of $3.5 M, reversing the prior year’s profit of $7.1 M.
• Adjusted EBITDA fell to $1.2 M (3.1% of revenue) from $4.1 M (9.4%) in Q3 2024, reflecting higher reorganization expenses and tariff impacts.
• The company announced a non‑binding term sheet with BDC for up to C$15 M financing to partially repay its January 2026 convertible debentures and extended its RBC credit facility to 30 Nov 2026.

Key Details

• Revenue: $37.7 M (Q3 2025) vs. $43.4 M (Q3 2024), a 13% decline.
• Gross Profit Margin: 30.4% in Q3 2025, down from 38.8% YoY; tariff mitigation actions began to improve margins sequentially.
• Net Loss: $3.5 M ($0.02 loss per share) vs. net income of $7.1 M ($0.04 profit per share) in Q3 2024.
• Adjusted EBITDA: $1.2 M (3.1% of revenue) vs. $4.1 M (9.4%) YoY; driven by a $5.2 M drop in adjusted gross profit and lower operating expenses offset partially by reorganization costs.
• Liquidity: Unrestricted cash & available borrowings of $32.3 M at 30 Sep 2025 (down from $39.3 M).
• Tariff Impact: Incurred $1.9 M in tariffs and mitigation costs for the quarter; 50% tariff on Canadian aluminum exports noted as a major factor.
• Reorganization Expenses: $2.6 M incurred for Transformation Office establishment (vs. $0.6 M prior year).
• Financing Updates:
• Renewed NCIB permits acquisition of up to C$1,656,900 (January Debentures) + C$1,493,500 (December Debentores).
• Non‑binding term sheet with BDC for up to C$15 M; proceeds intended to partially settle January Debentures (remaining C$1.6 M to be paid from cash).
• RBC credit facility extended to 30 Nov 2026.
• Outlook: FYQ4 2025 revenue projected $48‑52 M; Adjusted EBITDA forecast $5‑7 M. Twelve‑month pipeline grew 7.2% to $333 M.
• Legal: 8‑week trial on restrictive covenant claims scheduled to start 2 Feb 2026.

Notable Quotes

“The third quarter of 2025 marked a shift back to normal business with improving margins and a return to positive Adjusted EBITDA.” – Benjamin Urban, CEO

“We look forward to working with BDC to secure C$15 M financing which we intend to use to partially settle the January Debentures.” – Fareeha Khan, CFO