DMC Global Reports Second Quarter Financial Results
05-Aug-2025 16:05:04 EDT
DMC Global Reports Second Quarter Financial Results
GlobeNewswire August 05, 2025
Second quarter sales were $155.5 million
Net income attributable to DMC was $0.1 million
Adjusted net income attributable to DMC* was $2.5 million, or $0.12 per diluted share
Adjusted EBITDA attributable to DMC* was $13.5 million, while total adjusted EBITDA, inclusive of non-controlling interest (NCI), was $16.2 million
Total debt reduced by 17% year to date
BROOMFIELD, Colo., Aug. 05, 2025 (GLOBE NEWSWIRE) — DMC Global Inc. (Nasdaq: BOOM) today announced financial results for its second quarter ended June 30, 2025. Consolidated second-quarter sales totaled $155.5 million, a decline of 2% sequentially and 9% versus the second quarter of 2024. Adjusted EBITDA attributable to DMC was $13.5 million, down 6% sequentially and down 30% versus the year-ago period, but above management's guidance range of $10 million to $13 million, as DMC's businesses executed on their operational and strategic initiatives while navigating a period of exceptionally low visibility.
Sales at Arcadia, DMC's architectural building products business, were $62.0 million, down 5% sequentially and down 11% versus last year's second quarter. Last year's second quarter benefitted from strong demand for high-end residential and commercial exterior products. As previously discussed and expected, the high-end residential market has been significantly weaker in the current year, reflecting persistently high interest rates and generally lower construction activity. The sequential decline also reflects lower project billings following the recent completion of a large mixed-use development in California. Second quarter adjusted EBITDA attributable to DMC was $4.0 million, down 28% sequentially and 46% from the year-ago second quarter. The disproportionate declines in adjusted EBITDA were due to lower absorption of fixed manufacturing overhead on decreased sales. During the past several months, Arcadia rightsized its residential cost structure to align with current market activity while refocusing on its core commercial operations.
DynaEnergetics, DMC's energy products business, reported second quarter sales of $66.9 million, up 2% sequentially and down 12% versus the year-ago second quarter. The year-over-year decline principally reflects lower pricing and softer demand in DynaEnergetics' core U.S. unconventional market, where the average number of operating frac crews declined 5% sequentially and 24% versus the second quarter last year. Adjusted EBITDA was $9.0 million, up 22% sequentially and 3% versus the second quarter last year. The improvements reflect overall lower material costs relative to prior year, in particular.
At NobelClad, DMC's composite metals business, sales were $26.6 million, down 5% sequentially and up 6% versus the year-ago second quarter. Order backlog at the end of the second quarter was $37 million versus $41 million at the end of the first quarter. The decline reflects ongoing uncertainty regarding U.S. tariff policy, which has prompted customers to delay purchasing decisions while they await clarity on future tariff actions. Adjusted EBITDA was $4.4 million, down 19% from the previous quarter and 23% from the year-ago period, primarily due to a less favorable order mix.
“During the quarter, we focused on executing our operational and commercial strategies,” said James O'Leary, DMC's president and CEO. “We concurrently made important progress on improving our financial position. Total debt was reduced by 17% year to date, and we amended our credit facility in June to enhance our financial flexibility as we prepare for the possible acquisition of the remaining 40% stake in Arcadia in late 2026.
“I want to thank all of our DMC associates for their continued focus and dedication despite extremely difficult market conditions. Our people are the foundation of our long-term success.”
Guidance Third quarter sales are expected to be in a range of $142 million to $150 million, with adjusted EBITDA attributable to DMC anticipated in a range of $8 million to $12 million. The wider-than-normal guidance range for adjusted EBITDA reflects increased uncertainty in DMC's end markets. Conditions in the U.S. construction industry are expected to remain challenging, and Arcadia's residential cost structure was rightsized to align with the current market, while management continues to focus on Arcadia's core commercial operations. At DynaEnergetics, third quarter guidance assumes a sequential decline in well completion activity in U.S. onshore oil and gas markets, reflecting lower oil prices, fewer active frac crews, and ongoing tariff issues. NobelClad's sales are expected to be lower sequentially, reflecting the deferral of orders by customers impacted by still evolving tariff policies. The above guidance is heavily influenced by macroeconomic concerns, volatility and visibility issues created by the current state of tariff policies and energy markets. It is subject to change either upward or downward as market conditions evolve.
Summary Second Quarter Results
Three months ended
Change
Jun 30, 2025
Mar 31, 2025
Jun 30, 2024
Sequential
Year-on-year
Net sales
$
155,487
$
159,290
$
171,179
(2)
%
(9)
%
Gross profit percentage
23.6
%
25.9
%
27.1
%
SG&A
$
26,147
$
28,300
$
27,122
(8)
%
(4)
%
Net income
$
321
$
1,863
$
6,293
(83)
%
(95)
%
Net income attributable to DMC
$
116
$
677
$
4,012
(83)
%
(97)
%
Diluted net (loss) income per share attributable to DMC
$
(0.24
)
$
0.04
$
0.24
(700)
%
(200)
%
Adjusted net income attributable to DMC
$
2,473
$
2,170
$
5,675
14
%
(56)
%
Adjusted diluted net income per share
$
0.12
$
0.11
$
0.29
9
%
(59)
%
Adjusted EBITDA attributable to DMC
$
13,538
$
14,391
$
19,420
(6)
%
(30)
%
Adjusted EBITDA before NCI allocation
$
16,228
$
18,122
$
24,398
(10)
%
(33)
%
Adjusted EBITDA before NCI allocation margin
10.4
%
11.4
%
14.3
%
Arcadia
Three months ended
Change
Jun 30, 2025
Mar 31, 2025
Jun 30, 2024
Sequential
Year-on-year
Net sales
$
61,980
$
65,580
$
69,748
(5)
%
(11)
%
Gross profit percentage
26.2
%
31.0
%
33.2
%
Adjusted EBITDA attributable to DMC
$
4,035
$
5,596
$
7,467
(28)
%
(46)
%
Adjusted EBITDA before NCI allocation
$
6,725
$
9,327
$
12,445
(28)
%
(46)
%
Adjusted EBITDA before NCI allocation margin
10.9
%
14.2
%
17.8
%
DynaEnergetics
Three months ended
Change
Jun 30, 2025
Mar 31, 2025
Jun 30, 2024
Sequential
Year-on-year
Net sales
$
66,862
$
65,551
$
76,210
2
%
(12)
%
Gross profit percentage
20.9
%
19.5
%
19.9
%
Adjusted EBITDA
$
8,979
$
7,379
$
8,752
22
%
3
%
Adjusted EBITDA margin
13.4
%
11.3
%
11.5
%
NobelClad
Three months ended
Change
Jun 30, 2025
Mar 31, 2025
Jun 30, 2024
Sequential
Year-on-year
Net sales
$
26,645
$
28,159
$
25,221
(5)
%
6
%
Gross profit percentage
24.7
%
28.8
%
32.6
%
Adjusted EBITDA
$
4,399
$
5,416
$
5,722
(19)
%
(23)
%
Adjusted EBITDA margin
16.5
%
19.2
%
22.7
%
NobelClad's rolling 12-month bookings were $80.7 million, and the 12-month book-to-bill ratio was 0.75.
Conference call information The conference call will begin today at 5 p.m. Eastern (3 p.m. Mountain) and will be accessible by dialing 877-407-5783 (or +1 201-689-8782 for international callers).
Investors are invited to listen to the webcast live via the Internet at:
Webcast participants should access the website at least 15 minutes early to register and download any necessary audio software. The webcast also will be available on the Investor page of DMC's website, located at: ir.dmcglobal.com. A replay of the webcast will be available for six months.
*Use of Non-GAAP Financial Measures In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (GAAP), DMC also discloses certain non-GAAP financial measures that we use in operational and financial decision making. Non-GAAP financial measures include the following:
EBITDA: defined as net income (loss) plus net interest, taxes, depreciation and amortization.
Adjusted EBITDA: excludes from EBITDA stock-based compensation, restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC's operating performance (as further described in the tables below).
Adjusted EBITDA attributable to DMC Global Inc.: excludes the Adjusted EBITDA attributable to the 40% redeemable noncontrolling interest in Arcadia Products.
Adjusted EBITDA for DMC business segments: defined as operating income (loss) plus depreciation, amortization, allocated stock-based compensation (if applicable), restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC's operating performance.
Adjusted net income (loss): defined as net income (loss) attributable to DMC Global Inc. stockholders prior to the adjustment of redeemable noncontrolling interest plus restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC's operating performance.
Adjusted diluted earnings per share: defined as diluted earnings per share attributable to DMC Global Inc. stockholders (exclusive of adjustment of redeemable noncontrolling interest) plus restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC's operating performance.
Net debt: defined as total debt less total cash, cash equivalents and marketable securities.
Free-cash flow: defined as cash flows from operating activities less net acquisitions of property, plant and equipment.
Management believes providing these additional financial measures is useful to investors in understanding DMC's operating performance, excluding the effects of restructuring, impairment, and other nonrecurring charges, as well as its liquidity. Management typically monitors the business utilizing the above non-GAAP measures, in addition to GAAP results, to understand and compare operating results across accounting periods, and certain management incentive awards are based, in part, on these measures. The presence of non-GAAP financial measures in this report is not intended to suggest that such measures be considered in isolation or as a substitute for, or as superior to, DMC's GAAP information, and investors are cautioned that the non-GAAP financial measures are limited in their usefulness.
Because not all companies use identical calculations, DMC's presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. However, these measures can still be useful in evaluating the company's performance against its peer companies because management believes the measures provide users with valuable insight into key components of GAAP financial disclosures. For example, a company with greater GAAP net income may not be as appealing to investors if its net income is more heavily comprised of gains on asset sales. Likewise, eliminating the effects of interest income and expense moderates the impact of a company's capital structure on its performance.
DMC is unable to reconcile its expected second quarter 2025 adjusted EBITDA attributable to DMC to the most directly comparable projected GAAP financial measure because certain information necessary to calculate such measure on a GAAP basis is unavailable or dependent on the timing of future events outside of DMC's control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, DMC is unable to provide a reconciliation for expected adjusted EBITDA attributable to DMC without unreasonable efforts.
About DMC Global Inc. DMC Global is an owner and operator of innovative, asset-light manufacturing businesses that provide unique, highly engineered products and differentiated solutions. DMC's businesses have established leadership positions in their respective markets and consist of: Arcadia, a leading supplier of architectural building products; DynaEnergetics, which serves the global energy industry; and NobelClad, which addresses the global industrial infrastructure and transportation sectors. Based in Broomfield, Colorado, DMC trades on Nasdaq under the symbol “BOOM.” For more information, visit: http://www.dmcglobal.com/.
Safe Harbor Language Except for the historical information contained herein, this news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including third quarter 2025 guidance on sales, adjusted EBITDA and the expected third quarter 2025 results (including billings) and underlying assumptions for each of Arcadia, DynaEnergetics and NobelClad. Such statements and information are based on numerous assumptions regarding present and future business strategies, the markets in which we operate, anticipated costs and the ability to achieve goals. Forward-looking information and statements are subject to known and unknown risks, uncertainties and other important factors that may cause actual results and performance to be materially different from those expressed or implied by such forward-looking information and statements, including but not limited to: our ability to realize sales from our backlog; our ability to obtain new contracts at attractive prices; the execution of purchase commitments by our customers, and our ability to successfully deliver on those purchase commitments; the size and timing of customer orders and shipments; the timely completion of contracts; changes to customer orders; product pricing and margins; fluctuations in customer demand; our ability to successfully navigate slowdowns in market activity or execute and capitalize upon growth opportunities; the success of DynaEnergetics' product, technology, and margin enhancement initiatives; our ability to successfully protect our technology and intellectual property and the costs associated with these efforts; consolidation among DynaEnergetics' customers; fluctuations in foreign currencies; fluctuations in tariffs and quotas; the cost and availability of energy; the cyclicality of our business; competitive factors; the timing and size of expenditures; the timing and price of metal and other raw material; the adequacy of local labor supplies at our facilities; changes in immigration laws or enforcement programs; our ability to attract and retain key personnel; current or future limits on manufacturing capacity at our various operations; government actions or other changes in laws and regulations; the availability and cost of funds; our ability to access our borrowing capacity under our credit facility; geopolitical and economic instability, including recessions, depressions, wars or other military actions; inflation; supply chain delays and disruptions; transportation disruptions; general economic conditions, both domestic and foreign, impacting our business and the business of our customers and the end-market users we serve; the potential effects of activist stockholder actions and actions that we may take to discourage takeover attempts, as well as the other risks detailed from time to time in our SEC reports, including the annual report on Form 10-K for the year ended December 31, 2024. We do not undertake any obligation to release public revisions to any forward-looking statement, including, without limitation, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
DMC GLOBAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in Thousands, Except Share and Per Share Data) (unaudited)
Three months ended
Change
Jun 30, 2025
Mar 31, 2025
Jun 30, 2024
Sequential
Year-on-year
NET SALES
$
155,487
$
159,290
$
171,179
(2)
%
(9)
%
COST OF PRODUCTS SOLD
118,756
118,091
124,766
1
%
(5)
%
Gross profit
36,731
41,199
46,413
(11)
%
(21)
%
Gross profit percentage
23.6
%
25.9
%
27.1
%
COSTS AND EXPENSES:
General and administrative expenses
15,905
16,674
15,623
(5)
%
2
%
Selling and distribution expenses
10,242
11,626
11,499
(12)
%
(11)
%
Amortization of purchased intangible assets
4,763
4,763
5,307
—
%
(10)
%
Strategic review and related expenses
775
1,298
2,020
(40)
%
(62)
%
Restructuring expenses and asset impairments
1,149
325
279
254
%
312
%
Total costs and expenses
32,834
34,686
34,728
(5)
%
(5)
%
OPERATING INCOME
3,897
6,513
11,685
(40)
%
(67)
%
OTHER EXPENSE:
Other expense, net
(346
)
(218
)
(284
)
59
%
22
%
Interest expense, net
(1,811
)
(1,699
)
(2,316
)
7
%
(22)
%
INCOME BEFORE INCOME TAXES
1,740
4,596
9,085
(62)
%
(81)
%
INCOME TAX PROVISION
1,419
2,733
2,792
(48)
%
(49)
%
NET INCOME
321
1,863
6,293
(83)
%
(95)
%
Less: Net income attributable to redeemable noncontrolling interest
205
1,186
2,281
(83)
%
(91)
%
NET INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS
$
116
$
677
$
4,012
(83)
%
(97)
%
NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS
Basic
$
(0.24
)
$
0.04
$
0.24
(700)
%
(200)
%
Diluted
$
(0.24
)
$
0.04
$
0.24
(700)
%
(200)
%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic
20,134,760
19,812,161
19,659,908
2
%
2
%
Diluted
20,134,760
19,816,281
19,671,169
2
%
2
%
Reconciliation to net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share
Three months ended
Jun 30, 2025
Mar 31, 2025
Jun 30, 2024
Net income attributable to DMC Global Inc. stockholders
$
116
$
677
$
4,012
Adjustment of redeemable noncontrolling interest
(4,900
)
81
793
Net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest
$
(4,784
)
$
758
$
4,805
DMC GLOBAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in Thousands, Except Share and Per Share Data) (unaudited)
Six months ended
Change
Jun 30, 2025
Jun 30, 2024
Year-on-year
NET SALES
$
314,777
$
338,048
(7)
%
COST OF PRODUCTS SOLD
236,847
249,283
(5)
%
Gross profit
77,930
88,765
(12)
%
Gross profit percentage
24.8
%
26.3
%
COSTS AND EXPENSES:
General and administrative expenses
32,579
31,603
3
%
Selling and distribution expenses
21,868
23,722
(8)
%
Amortization of purchased intangible assets
9,526
10,599
(10)
%
Strategic review expenses
2,073
4,189
(51)
%
Restructuring expenses and asset impairments
1,474
279
428
%
Total costs and expenses
67,520
70,392
(4)
%
OPERATING INCOME
10,410
18,373
(43)
%
OTHER EXPENSE:
Other expense, net
(564
)
(693
)
(19)
%
Interest expense, net
(3,510
)
(4,633
)
(24)
%
INCOME BEFORE INCOME TAXES
6,336
13,047
(51)
%
INCOME TAX PROVISION
4,152
4,435
(6)
%
NET INCOME
2,184
8,612
(75)
%
Less: Net income attributable to redeemable noncontrolling interest
1,391
2,037
(32)
%
NET INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS
$
793
$
6,575
(88)
%
NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS
Basic
$
(0.20
)
$
0.25
(180)
%
Diluted
$
(0.20
)
$
0.25
(180)
%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic
19,861,073
19,635,716
1
%
Diluted
19,861,073
19,647,005
1
%
Reconciliation to net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share
Six months ended
Jun 30, 2025
Jun 30, 2024
Net income attributable to DMC Global Inc. stockholders
$
793
$
6,575
Adjustment of redeemable noncontrolling interest
(4,819
)
(1,514
)
Net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest
$
(4,026
)
$
5,061
DMC GLOBAL INC. SEGMENT STATEMENTS OF OPERATIONS (Amounts in Thousands) (unaudited)
Arcadia
Three months ended
Change
Jun 30, 2025
Mar 31, 2025
Jun 30, 2024
Sequential
Year-on-year
Net sales
$
61,980
$
65,580
$
69,748
(5)
%
(11)
%
Gross profit
16,250
20,361
23,157
(20)
%
(30)
%
Gross profit percentage
26.2
%
31.0
%
33.2
%
COSTS AND EXPENSES:
General and administrative expenses
6,489
7,459
7,765
(13)
%
(16)
%
Selling and distribution expenses
4,290
4,818
4,116
(11)
%
4
%
Amortization of purchased intangible assets
4,763
4,763
5,278
—
%
(10)
%
Restructuring expenses and asset impairments
192
325
279
(41)
%
(31)
%
Operating income
516
2,996
5,719
(83)
%
(91)
%
Adjusted EBITDA
6,725
9,327
12,445
(28)
%
(46)
%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest
(2,690
)
(3,731
)
(4,978
)
(28)
%
(46)
%
Adjusted EBITDA attributable to DMC Global Inc.
$
4,035
$
5,596
$
7,467
(28)
%
(46)
%
Six months ended
Change
Jun 30, 2025
Jun 30, 2024
Year-on-year
Net sales
$
127,560
$
131,673
(3)
%
Gross profit
36,611
39,970
(8)
%
Gross profit percentage
28.7
%
30.4
%
COSTS AND EXPENSES:
General and administrative expenses
13,949
15,421
(10)
%
Selling and distribution expenses
9,107
8,584
6
%
Amortization of purchased intangible assets
9,526
10,555
(10)
%
Restructuring expenses and asset impairments
517
279
85
%
Operating income
3,512
5,131
(32)
%
Adjusted EBITDA
16,052
18,351
(13)
%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest
(6,421
)
(7,340
)
(13)
%
Adjusted EBITDA attributable to DMC Global Inc.
$
9,631
$
11,011
(13)
%
DynaEnergetics
Three months ended
Change
Jun 30, 2025
Mar 31, 2025
Jun 30, 2024
Sequential
Year-on-year
Net sales
$
66,862
$
65,551
$
76,210
2
%
(12)
%
Gross profit
13,959
12,811
15,133
9
%
(8)
%
Gross profit percentage
20.9
%
19.5
%
19.9
%
COSTS AND EXPENSES:
General and administrative expenses
3,028
2,747
3,011
10
%
1
%
Selling and distribution expenses
3,774
4,476
5,041
(16)
%
(25)
%
Amortization of purchased intangible assets
—
—
29
—
%
(100)
%
Restructuring expenses and asset impairments
746
—
—
100
%
100
%
Operating income
6,411
5,588
7,052
15
%
(9)
%
Adjusted EBITDA
$
8,979
$
7,379
$
8,752
22
%
3
%
Six months ended
Change
Jun 30, 2025
Jun 30, 2024
Year-on-year
Net sales
$
132,413
$
154,332
(14)
%
Gross profit
26,770
32,104
(17)
%
Gross profit percentage
20.2
%
20.8
%
COSTS AND EXPENSES:
General and administrative expenses
5,775
5,903
(2)
%
Selling and distribution expenses
8,250
10,263
(20)
%
Amortization of purchased intangible assets
—
44
(100)
%
Restructuring expenses and asset impairments
746
—
100
%
Operating income
11,999
15,894
(25)
%
Adjusted EBITDA
$
16,358
$
19,291
(15)
%
NobelClad
Three months ended
Change
Jun 30, 2025
Mar 31, 2025
Jun 30, 2024
Sequential
Year-on-year
Net sales
$
26,645
$
28,159
$
25,221
(5)
%
6
%
Gross profit
6,593
8,097
8,222
(19)
%
(20)
%
Gross profit percentage
24.7
%
28.8
%
32.6
%
COSTS AND EXPENSES:
General and administrative expenses
852
1,192
1,023
(29)
%
(17)
%
Selling and distribution expenses
2,123
2,283
2,267
(7)
%
(6)
%
Restructuring expenses and asset impairments
211
—
—
100
%
100
%
Operating income
3,407
4,622
4,932
(26)
%
(31)
%
Adjusted EBITDA
$
4,399
$
5,416
$
5,722
(19)
%
(23)
%
Six months ended
Change
Jun 30, 2025
Jun 30, 2024
Year-on-year
Net sales
$
54,804
$
52,043
5
%
Gross profit
14,690
16,866
(13)
%
Gross profit percentage
26.8
%
32.4
%
COSTS AND EXPENSES:
General and administrative expenses
2,043
2,096
(3)
%
Selling and distribution expenses
4,407
4,738
(7)
%
Restructuring expenses and asset impairments
211
—
100
%
Operating income
8,029
10,032
(20)
%
Adjusted EBITDA
$
9,815
$
11,602
(15)
%
DMC GLOBAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in Thousands)
Change
Jun 30, 2025
Mar 31, 2025
Dec 31, 2024
Sequential
Year-end
(unaudited)
(unaudited)
ASSETS
Cash and cash equivalents
$
12,427
$
14,705
$
14,289
(15)
%
(13)
%
Accounts receivable, net
110,458
114,470
103,361
(4)
%
7
%
Inventories
144,557
148,735
152,580
(3)
%
(5)
%
Prepaid expenses and other
12,732
18,999
18,792
(33)
%
(32)
%
Total current assets
280,174
296,909
289,022
(6)
%
(3)
%
Property, plant and equipment, net
130,124
128,955
129,276
1
%
1
%
Purchased intangible assets, net
164,578
169,341
174,104
(3)
%
(5)
%
Other long-term assets
70,148
75,435
78,935
(7)
%
(11)
%
Total assets
$
645,024
$
670,640
$
671,337
(4)
%
(4)
%
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY
Accounts payable
$
41,450
$
45,514
$
45,059
(9)
%
(8)
%
Contract liabilities
12,026
18,538
23,162
(35)
%
(48)
%
Accrued income taxes
10,377
9,486
7,574
9
%
37
%
Current portion of long-term debt
3,563
2,500
2,500
43
%
43
%
Other current liabilities
34,143
35,725
35,807
(4)
%
(5)
%
Total current liabilities
101,559
111,763
114,102
(9)
%
(11)
%
Long-term debt
55,112
69,921
68,318
(21)
%
(19)
%
Deferred tax liabilities
1,191
728
711
64
%
68
%
Other long-term liabilities
46,225
47,225
50,155
(2)
%
(8)
%
Redeemable noncontrolling interest
187,080
187,080
187,080
—
%
—
%
Stockholders' equity
253,857
253,923
250,971
—
%
1
%
Total liabilities, redeemable noncontrolling interest, and stockholders' equity
$
645,024
$
670,640
$
671,337
(4)
%
(4)
%
DMC GLOBAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in Thousands) (unaudited)
Three months ended
Six months ended
Jun 30, 2025
Mar 31, 2025
Jun 30, 2024
Jun 30, 2025
Jun 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
$
321
$
1,863
$
6,293
$
2,184
$
8,612
Adjustments to reconcile net income to net cash from operating activities:
Depreciation
3,707
3,660
3,431
7,367
6,850
Amortization of purchased intangible assets
4,763
4,763
5,307
9,526
10,599
Amortization of deferred debt issuance costs
231
217
217
448
407
Stock-based compensation
1,417
1,599
1,782
3,016
3,331
Bad debt expense
(10
)
706
560
696
1,036
Deferred income taxes
392
22
(746
)
414
(1,292
)
Asset impairments
296
—
—
296
—
Other
433
555
197
988
(788
)
Change in working capital, net
3,696
(8,897
)
(14,698
)
(5,201
)
(12,972
)
Net cash provided by operating activities
15,246
4,488
2,343
19,734
15,783
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of marketable securities
—
—
—
—
3,000
Proceeds from sales of marketable securities
—
—
—
—
9,619
Acquisition of property, plant and equipment
(2,921
)
(3,779
)
(2,547
)
(6,700
)
(5,515
)
Proceeds from property, plant and equipment reimbursements
1,362
426
—
1,788
—
Proceeds on sale of property, plant and equipment
6
21
100
27
100
Proceeds from settlement of note receivable
4,167
—
—
4,167
—
Net cash provided by (used in) investing activities
2,614
(3,332
)
(2,447
)
(718
)
7,204
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments on term loan
(625
)
(625
)
(625
)
(1,250
)
(118,125
)
Borrowings on term loan
—
—
—
—
50,000
Borrowings on revolving loans
38,359
8,500
6,700
46,859
77,150
Repayments on revolving loans
(51,512
)
(6,375
)
(10,075
)
(57,887
)
(40,525
)
Payment of debt issuance costs
(650
)
—
—
(650
)
(2,735
)
Distributions to redeemable noncontrolling interest holder
(5,104
)
(1,151
)
(1,547
)
(6,255
)
(4,672
)
Net proceeds from issuance of common stock to employees and directors
—
—
132
—
132
Treasury stock purchases
(79
)
(484
)
(16
)
(563
)
(952
)
Net cash used in financing activities
(19,611
)
(135
)
(5,431
)
(19,746
)
(39,727
)
EFFECTS OF EXCHANGE RATES ON CASH
(527
)
(605
)
(342
)
(1,132
)
267
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
(2,278
)
416
(5,877
)
(1,862
)
(16,473
)
CASH AND CASH EQUIVALENTS, beginning of the period
14,705
14,289
20,444
14,289
31,040
CASH AND CASH EQUIVALENTS, end of the period
$
12,427
$
14,705
$
14,567
$
12,427
$
14,567
DMC GLOBAL INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS (Amounts in Thousands) (unaudited)
DMC Global
EBITDA and Adjusted EBITDA
Three months ended
Change
Jun 30, 2025
Mar 31, 2025
Jun 30, 2024
Sequential
Year-on-year
Net income
321
1,863
6,293
(83)
%
(95)
%
Interest expense, net
1,811
1,699
2,316
7
%
(22)
%
Income tax provision
1,419
2,733
2,792
(48)
%
(49)
%
Depreciation
3,707
3,660
3,431
1
%
8
%
Amortization of purchased intangible assets
4,763
4,763
5,307
—
%
(10)
%
EBITDA
12,021
14,718
20,139
(18)
%
(40)
%
Stock-based compensation
1,417
1,563
1,676
(9)
%
(15)
%
Strategic review and related expenses
775
1,298
2,020
(40)
%
(62)
%
Restructuring expenses and asset impairments
1,149
325
279
254
%
312
%
Executive transition costs
520
—
—
100
%
100
%
Other expense, net
346
218
284
59
%
22
%
Adjusted EBITDA
$
16,228
$
18,122
$
24,398
(10)
%
(33)
%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest
(2,690
)
(3,731
)
(4,978
)
(28)
%
(46)
%
Adjusted EBITDA attributable to DMC Global Inc.
$
13,538
$
14,391
$
19,420
(6)
%
(30)
%
Six months ended
Change
Jun 30, 2025
Jun 30, 2024
Year-on-year
Net income
$
2,184
$
8,612
(75)
%
Interest expense, net
3,510
4,633
(24)
%
Income tax provision
4,152
4,435
(6)
%
Depreciation
7,367
6,850
8
%
Amortization of purchased intangible assets
9,526
10,599
(10)
%
EBITDA
26,739
35,129
(24)
%
Stock-based compensation
2,980
3,153
(5)
%
Strategic review expenses
2,073
4,189
(51)
%
Restructuring expenses and asset impairments
1,474
279
428
%
Executive transition costs
520
—
100
%
Other expense, net
564
693
(19)
%
Adjusted EBITDA
$
34,350
$
43,443
(21)
%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest
(6,421
)
(7,340
)
(13)
%
Adjusted EBITDA attributable to DMC Global Inc.
$
27,929
$
36,103
(23)
%
DMC GLOBAL INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS (Amounts in Thousands) (unaudited)
Adjusted Net Income* and Adjusted Diluted Earnings per Share
*Net income attributable to DMC Global Inc. stockholders prior to the adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share
Three months ended June 30, 2025
Amount
Per Share (1)
Net income attributable to DMC Global Inc.*
$
116
$
—
Strategic review and related expenses, net of tax
775
0.04
Restructuring expenses and asset impairments, net of tax
1,062
0.05
Executive transition costs, net of tax
520
0.03
As adjusted
$
2,473
$
0.12
(1) Calculated using diluted weighted average shares outstanding of 20,134,760
Three months ended March 31, 2025
Amount
Per Share (1)
Net income attributable to DMC Global Inc.*
$
677
$
0.03
Strategic review and related expenses, net of tax
1,298
0.07
Restructuring expenses and asset impairments, net of tax
195
0.01
As adjusted
$
2,170
$
0.11
(1) Calculated using diluted weighted average shares outstanding of 19,816,281
Three months ended June 30, 2024
Amount
Per Share (1)
Net income attributable to DMC Global Inc.*
$
4,012
$
0.20
Strategic review and related expenses, net of tax
1,538
0.08
Restructuring expenses and asset impairments, net of tax
125
0.01
As adjusted
$
5,675
$
0.29
(1) Calculated using diluted weighted average shares outstanding of 19,671,169
Six months ended June 30, 2025
Amount
Per Share (1)
Net income attributable to DMC Global Inc.*
$
793
$
0.04
Strategic review and related expenses, net of tax
2,073
0.10
Restructuring expenses and asset impairments, net of tax
1,257
0.06
Executive transition costs, net of tax
520
0.03
As adjusted
$
4,643
$
0.23
(1) Calculated using diluted weighted average shares outstanding of 19,861,073
Six months ended June 30, 2024
Amount
Per Share (1)
Net income attributable to DMC Global Inc.*
$
6,575
$
0.33
Strategic review and related expenses, net of tax
3,142
0.16
Restructuring expenses and asset impairments, net of tax
125
0.01
As adjusted
$
9,842
$
0.50
(1) Calculated using diluted weighted average shares outstanding of 19,647,005
DMC GLOBAL INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS (Amounts in Thousands) (unaudited)
Segment Adjusted EBITDA
Arcadia
Three months ended
Change
Jun 30, 2025
Mar 31, 2025
Jun 30, 2024
Sequential
Year-on-year
Operating income, as reported
$
516
$
2,996
$
5,719
(83)
%
(91)
%
Adjustments:
Depreciation
1,016
1,006
888
1
%
14
%
Amortization of purchased intangible assets
4,763
4,763
5,278
—
%
(10)
%
Stock-based compensation
238
237
281
—
%
(15)
%
Restructuring expenses and asset impairments
192
325
279
(41)
%
(31)
%
Adjusted EBITDA
6,725
9,327
12,445
(28)
%
(46)
%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest
(2,690
)
(3,731
)
(4,978
)
(28)
%
(46)
%
Adjusted EBITDA attributable to DMC Global Inc.
$
4,035
$
5,596
$
7,467
(28)
%
(46)
%
Six months ended
Change
Jun 30, 2025
Jun 30, 2024
Year-on-year
Operating income, as reported
$
3,512
$
5,131
(32)
%
Adjustments:
Depreciation
2,022
1,763
15
%
Amortization of purchased intangible assets
9,526
10,555
(10)
%
Stock-based compensation
475
623
(24)
%
Restructuring expenses and asset impairments
517
279
85
%
Adjusted EBITDA
16,052
18,351
(13)
%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest
