DIRTT Environmental Solutions (DRTT) investor relations material

Executive summary

• Revenue for Q1 2026 was $42.4 million, up 3% year-over-year, with a 16% increase in the twelve-month forward pipeline entering Q2 2026, reflecting stable demand despite seasonality and macroeconomic uncertainty.

• Net loss after tax widened to $3.3 million from $0.7 million in Q1 2025, mainly due to higher reorganization expenses and lower gross profit.

• Adjusted EBITDA was $1.4 million (3.3% of revenue), down from $2.1 million (5.1% of revenue) in Q1 2025, due to lower adjusted gross profit partially offset by reduced operating expenses.

• Liquidity at quarter-end was $25.1 million, supporting ongoing transformation initiatives and down from $32.1 million at year-end 2025.

• Transformation initiatives, including workforce and organizational changes, are ongoing to optimize cost structure and operational streamlining.

Financial highlights

• Gross profit was $13.0 million (30.6% margin), down from $14.5 million (35.2%) year-over-year, with margin decline due to higher aluminum prices, tariffs, and lower installation margins.

• Adjusted Gross Profit was $13.9 million (32.9% margin), down from $15.5 million (37.5%) in Q1 2025.

• Net loss after tax was $3.3 million, compared to $0.7 million in Q1 2025.

• Operating expenses rose to $16.3 million, driven by $2.4 million in reorganization costs.

• Cash flows from operating activities were $1.2 million, down from $3.7 million in Q1 2025.

Outlook and guidance

• 2026 revenue guidance maintained at $194.0–$250.0 million; Adjusted EBITDA guidance at $26.0–$40.0 million.

• Guidance reflects operational improvements, manufacturing best practices, and commercial execution, with Q1 typically being the weakest quarter and stronger performance expected in the second half.

• The 12-month forward pipeline stands at $338 million, up 16% year-over-year, with strength in healthcare, government, and education.

• Management expects continued improvement in pipeline conversion and operational execution.

• Guidance incorporates tariff impacts and recent raw material price increases.