Canada's DIRTT Environmental Solutions Q3 revenue rises on higher volumes, lower tariff costs
Overview
Canada industrialized construction firm's Q3 revenue rose 19% yr/yr
Net income after tax turned positive, aided by a $13.1 mln deferred tax asset recognition
Adjusted EBITDA rose to $6.5 mln, driven by higher gross profit and lower operating expenses
Outlook
DIRTT maintains 2026 revenue guidance of $175.0 mln to $185.0 mln, expects to finish near low end
Company maintains 2026 Adjusted EBITDA outlook of $21.0 mln to $25.0 mln, sees results near low end
Result Drivers
LOWER TARIFF COSTS AND HIGHER VOLUMES - Co said improved gross profit margin was mainly due to reduced tariff costs and higher sales volumes, which offset rising material costs
COST CONTROL - Co attributed lower sales and marketing expenses to reduced salaries, benefits, and commissions
SERVICE REVENUE GROWTH - Co said increased service revenue contributed to overall revenue growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | $0.09 | ||
Q3 Net Income After Tax | $17.12 mln | ||
Q3 Gross Profit | $15.71 mln | ||
Q3 Operating Expenses | $11.33 mln | ||
Q3 Operating Income | $4.38 mln |
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the construction supplies & fixtures peer group is "buy"
Wall Street's median 12-month price target for DIRTT Environmental Solutions Ltd is C$1.05, about 26.5% above its November 3 closing price of C$0.83
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)