Wed, May 7, 9:04 PM (8 days ago)
**DIRTT Environmental Solutions Ltd. (DRT/DRTTF) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $41.3 million, a 1% increase from Q1 2024, driven by large education and healthcare projects. - **Gross Profit Margin:** 35.2%, slightly down from 35.9% in Q1 2024 due to tariffs. - **Net Loss:** $0.7 million, compared to a net income of $3.0 million in Q1 2024, primarily due to a decrease in gain on extinguishment of debt and foreign exchange gain. - **Cash Flow:** $3.7 million from operations, offset by $3.5 million in share repurchases and $0.8 million in capital expenditures. **Profit Margins & Cash Flow:** - **Adjusted EBITDA:** $2.1 million, down from $2.7 million in Q1 2024, due to increased litigation costs. - **Cash on Hand:** $28.4 million, a decrease of $0.8 million from Q1 2024. **Earnings Changes & Quarterly Performance:** - **Revenue Growth:** Driven by education and healthcare sectors, offset by smaller commercial and government projects. - **Cost Management:** Increased professional services costs due to litigation and share repurchase activities. **Trends & Uncertainties:** - **Tariffs:** Impacted by U.S. and Canadian tariffs, with $0.6 million in tariff-related costs. - **Legal Proceedings:** Ongoing litigation with Falkbuilt, with a trial scheduled for February 2026. - **Market Conditions:** Uncertainty due to macroeconomic factors and potential recession risks. **Future Operations & Impact:** - **Outlook:** Withdrawal of full-year revenue and Adjusted EBITDA guidance due to near-term softening. - **Strategic Priorities:** Focus on cost controls, business process improvements, and manufacturing efficiencies. - **Liquidity:** Strong balance sheet with $36.0 million in liquidity, including unrestricted cash and available borrowings. **Ticker:** DRT (TSX), DRTTF (OTC Pink Tier) **Note:** Amounts are in thousands of U.S. dollars unless otherwise stated.