DIRTT Environmental Solutions (DRTT) investor relations material

Executive summary

• Revenue for Q2 2026 was $40.3 million (CAD 40.3 million), up 4% year-over-year, with commercial activity as the main driver and gross profit margin rising to 34.7% from 27.8% in Q2 2025.

• Net income after tax reached $1.1 million, reversing a net loss of $6.6 million in the prior year quarter.

• Adjusted EBITDA improved to $4.7 million (11.8% of revenue), compared to a loss in the prior year.

• Transformation initiatives and cost discipline contributed to improved profitability and operational efficiency.

• Liquidity stood at $21.5 million as of June 30, 2026, with cash and cash equivalents at approximately $14.8 million.

Financial highlights

• Adjusted Gross Profit for Q2 2026 was $14.9 million (37.0% margin), up from $11.8 million (30.4%) in Q2 2025.

• Operating expenses declined to $12.7 million, with sales and marketing and G&A expenses both decreasing year-over-year.

• Net cash from operating activities was $0.9 million, compared to net cash used of $3.9 million in Q2 2025.

• Interest expense decreased to $0.4 million due to debt repayments.

• Reorganization costs rose to $1.1 million, primarily for termination benefits and consultant costs.

Outlook and guidance

• 2026 revenue guidance revised to $175–$185 million, with Adjusted EBITDA guidance of $21–$25 million.

• Guidance reflects macroeconomic conditions, project timing, and ongoing transformation benefits.

• Management remains confident in expanding profitability and long-term value creation.

• Transformation benefits expected to continue, with further improvements anticipated in 2027.