DMC Global — Q3 2026 Earnings Summary

Financial Performance:

• Consolidated sales were $172.8 million, up 14% year-over-year and 10% sequentially.
• Net income attributable to DMC was $9.7 million ($0.59 per diluted share), compared to a net loss of $3.1 million ($0.10 per diluted share) in Q3 2025.
• Adjusted EBITDA attributable to DMC was $19.0 million, up 122% year-over-year and 78% sequentially; excluding $5.4 million in tariff refunds, it was $13.6 million (up 59% year-over-year and 48% sequentially).
• Gross profit percentage was 26.9%, compared to 21.7% in Q3 2025 and 21.9% in Q2 2026.
• Total debt was $51.7 million, while net debt was $13.7 million, the lowest level since the December 2021 acquisition of 60% of Arcadia.
• Cash and cash equivalents were $37.9 million as of September 30, 2026.
• Net cash provided by operating activities was $17.5 million for the quarter.

Guidance and Future Outlook:

• Fourth quarter sales are expected to range from $154 million to $164 million.
• Fourth quarter adjusted EBITDA attributable to DMC is anticipated to range from $10 million to $13 million.
• Guidance reflects normal seasonal moderation at Arcadia, a temporary shutdown of the California finishing facility for planned maintenance, a decline in large long-cycle project activity, rising interest rates, volatility in aluminum costs, and tight labor conditions.
• DynaEnergetics is expected to see steady well completion activity with cost optimization programs offsetting input cost increases.
• NobelClad is expected to see continued improvement in shipping activity.
• Guidance does not contemplate increased disruptions in international supply chains due to ongoing hostilities in the Middle East or generally weaker end-market conditions.

Business Segments and Product Lines:

• Arcadia Products: Sales were $76.9 million (up 25% year-over-year, 14% sequentially). Adjusted EBITDA attributable to DMC was $6.8 million (up 32% year-over-year, 23% sequentially). Performance was driven by higher sales of commercial aluminum and residential products, with short-cycle commercial and high-end residential sales offsetting challenges from elevated interest rates and higher aluminum costs.
• DynaEnergetics: Sales were $67.1 million (down 3% year-over-year, flat sequentially). Adjusted EBITDA, excluding tariff refunds, was $6.5 million (up 34% year-over-year, 57% sequentially). Improved profitability resulted from cost savings initiatives and improved sales mix, including contributions from defense and enhanced geothermal sectors.
• NobelClad: Sales were $28.8 million (up 38% year-over-year, 30% sequentially). Adjusted EBITDA was $4.6 million (up 120% year-over-year, 51% sequentially). Performance reflected increased shipments on a large international petrochemical order and the resolution of supply chain issues on a large defense order.
• NobelClad ended the quarter with an order backlog of $72.4 million, including $16 million in orders related to U.S. Navy vessel construction.
• NobelClad's rolling 12-month bookings were $105.1 million, with a 12-month book-to-bill ratio of 1.19.

Market and Competitive Landscape:

• The company continues to navigate challenging, uncertain, and highly volatile end-market conditions.
• Arcadia faces a highly competitive pricing environment and challenges from elevated interest rates and materially higher aluminum costs.
• Large, longer-cycle commercial projects remain heavily impacted by ongoing market conditions.
• DynaEnergetics benefits from diversification efforts into defense and enhanced geothermal sectors.

Risks and Challenges:

• Risks include changes in global economic conditions, tariffs, and reciprocal tariffs.
• Uncertainty regarding the size and timing of customer orders and shipments.
• Fluctuations in customer demand and the ability to realize sales from the backlog.
• Volatility in metal and other raw material prices and availability.
• Potential disruptions in international supply chains due to hostilities in the Middle East.
• General economic conditions impacting end-market users.
• Risks associated with compliance with laws and regulations, including the Foreign Corrupt Practices Act.
• The impact of the stockholder protection rights agreement which could discourage takeovers.

Management Commentary and Tone:

• James O'Leary, President and CEO, stated that improved performance reflects cost optimization and commercial initiatives implemented over the past two years.
• Management noted that improvements were achieved despite continued macroeconomic headwinds across all end markets.
• Management highlighted strengthening the financial position, with net debt at its lowest level since the Arcadia acquisition.
• The tone was confident regarding the effectiveness of cost optimization and the resilience of the business model despite market volatility.

Other Key Points:

• DMC Global Inc. trades on Nasdaq under the symbol "BOOM."
• The company received $5.4 million in tariff refunds during the quarter, which were excluded from certain adjusted EBITDA metrics to show underlying operating performance.
• The company has a redeemable noncontrolling interest in Arcadia Products (40%).
• No dividends, stock buybacks, or M&A deals were announced in this release.