Dirtt Environmental Solutions Ltd · TSX:DRT
Dirtt Environmental Solutions — Q2 2025 Earnings Presentation
20 slides from Dirtt Environmental Solutions's earnings presentation, Jul 31, 2025
Slide 1: Second Quarter 2025 Investor Deck – Supplement to Earnings Call
SECOND QUARTER 2025 INVESTOR DECK – SUPPLEMENT TO EARNINGS CALL 2025 07 31 © DIRTT ALL RIGHTS RESERVED 31/07/2025 1
Slide 2: Advisory: Cautionary Statement Regarding Forward-Looking Statements
ADVISORY CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING for inflation, tariffs, and fluctuations in commodity prices; shortages of supplies liabilities against directors and officers residing in a foreign country; the STATEMENTS of certain key components and materials or disruption in supplies due
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES NOTE REGARDING USE OF NON-GAAP FINANCIAL MEASURES because management believes that each of these items can distort the trends Our interim condensed consolidated financial statements are prepared in associated with the Company’s ongoing performance. We believe that excludi
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS © DIRTT ALL RIGHTS RESERVED
Slide 5: Key Q2 Financial Highlights
KEY Q2 FINANCIAL HIGHLIGHTS • Revenue of $38.9 million in the second quarter of 2025, a decrease of 6% compared to the first quarter of 2025 and a decrease of 6% from the prior year period. • Gross profit was $10.8 million or 27.8% of revenue in the second quarter of 2025 compared to $14.5 million o
Slide 6: Gross Profit Margin + Adjusted Gross Profit Margin
F I N A N C I A L R E S U LT S GROSS PROFIT MARGIN + ADJUSTED GROSS PROFIT MARGIN1 45% Second Quarter 40.7% 2025 Highlights: 39.5% 39.4% 40% 37.9% 38.8% 39.2% 38.9% 36.2% 36.9% 38.8% • Adjusted Gross Profit Margin of 37.8% 35.8% 37.3% 37.5% 35.5% 35% 35.9% 35.9% 36.9% 30.4% lower than prior year 34.
Slide 7: Operating Expenses Breakdown
F I N A N C I A L R E S U LT S OPERATING EXPENSES BREAKDOWN $7,000 Q2 2024 Q2 2025 Second Quarter 2025 $6,062 $6,000 $5,743 Recurring Operating $5,293 Expense Summary: $5,000 $4,391 • The increase in recurring $4,000 operating expenses was primarily related to a $0.9 million increase $3,000 in profe
Slide 8: EBITDA and Adjusted EBITDA
F I N A N C I A L R E S U LT S EBITDA AND ADJUSTED EBITDA1 Trending EBITDA and Adjusted EBITDA1 Adjusted EBITDA EBITDA 30% Second Quarter 22.6% 2025 Highlights: 20% • First negative quarter of 13.1% 12.7% 13.0% 13.9% Adjusted EBITDA(1) since 10% 8.5% 7.7% Q1 2023. 5.1% • Adjusted EBITDA in Q2 7.0% 1
Slide 9: Q2 2024 to Q2 2025 Net Income (Loss) After Tax
F I N A N C I A L R E S U LT S Q2 2024 TO Q2 2025 NET INCOME (LOSS) AFTER TAX Increase Decrease Total 2 1 0.6 0 -1 -2 USD millions -3 -4 (5.2) -5 -6 0.5 0.2 (6.6) -7 (2.2) (0.3) (0.2) -8 Adj EBITDA* Variances Interest income Income tax expense Q2 '25 Net Loss After Tax Q2 '24 Net Income After Tax FX
Slide 10: Debt and Equity
F I N A N C I A L R E S U LT S DEBT AND EQUITY Total Debt Trending $60,000 COMMON SHARES REPURCHASED $56,108 (SHARES NCIB) $50,000 2024 REPURCHASES (58,478) $40,000 2025 REPURCHASES* (5,326,733) $30,000 $23,539 $22,352 TOTAL REPURCHASES $20,000 TO DATE (5,385,211) $10,000 OUTSTANDING AS AT JULY 22,
Slide 11: Commercial + Operational Highlights
COMMERCIAL + OPERATIONAL HIGHLIGHTS © DIRTT ALL RIGHTS RESERVED
Slide 12: Key Commercial + Operational Highlights
KEY COMMERCIAL + OPERATIONAL HIGHLIGHTS “Despite market headwinds, DIRTT remains focused on our transformation and growth strategies and we are seeing positive trends. Our key priorities are revenue expansion and product innovation to unlock more scope and opportunities, resulting in our 12-month fo
Slide 13: Key Commercial + Operational Highlights Continued
C O M M E R C I A L R E S U LT S KEY COMMERCIAL + OPERATIONAL HIGHLIGHTS CONTINUED Technology • Advancing ICE commercialization through several early licensing discussions and development of a go-to-market strategy • Anticipate contracts as early as Q3, with increased traction by Q4 Products + Innov
Slide 14: Operational Efficiencies
O P E R A T I O N A L R E S U LT S OPERATIONAL EFFICIENCIES Average Inventory per External Deficiencies Shipments On Time in Full $M Revenue (in USD) per $M Revenue (OTIF) $588,737 $700K (# of external deficiencies) 100% 20 99.2% 18.7 99.2% 99.0% 99.7% 98.8% 98.3% $600K 98.1% 98.2% 18 $451,190 97.7%
Slide 15: Twelve-Month Pipeline
TWELVE-MONTH PIPELINE (IN USD MILLIONS) $350 $311 $300 $292 $283 $278 $270 $270 $263 $255 $250 $220 $200 $150 $100 $50 $0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 © DIRTT ALL RIGHTS RESERVED PRESENTATION TITLE: 15
Slide 16: Supplementary
SUPPLEMENTARY © DIRTT ALL RIGHTS RESERVED
Slide 17: Liquidity + Additional Financial Highlights
F I N A N C I A L R E S U LT S LIQUIDITY + ADDITIONAL FINANCIAL HIGHLIGHTS • Total liquidity of $31.1 million at June 30, 2025 ($ thousands) June 30, 2025 December 31, 2024 ($23.1 million of unrestricted cash and $8.0 Cash and cash equivalents 23,100 29,288 million liquidity available under asset ba
Slide 18: Summary of Consolidated Financial Results
F I N A N C I A L R E S U LT S SUMMARY OF CONSOLIDATED FINANCIAL RESULTS For the period ended June 30 Three Months ($ thousands, except per share amounts) 2025 2024 % Change Revenue 38,922 41,201 (6%) Gross profit 10,818 15,375 (30%) Gross profit margin 27.8% 37.3% Adjusted Gross Profit1 11,825 16,2
Slide 19: Non-GAAP Financial Measures
F I N A N C I A L R E S U LT S NON-GAAP FINANCIAL MEASURES For the period ended June 30 Three months ($ thousands, except per share amounts) 2025 2024 Net (loss) income after tax for the period (6,602) 596 Add back (deduct): The following tables present a reconciliation for the three months Interest
Slide 20: © DIRTT ALL RIGHTS RESERVED
© DIRTT ALL RIGHTS RESERVED
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