Core Insights - DMC Global reported revenue of $159.29 million for Q1 2025, a year-over-year decline of 4.5%, but exceeded the Zacks Consensus Estimate by 7.37% [1] - The company's EPS for the quarter was $0.11, down from $0.21 a year ago, with a significant surprise of 237.50% compared to the consensus estimate of -$0.08 [1] Financial Performance - DMC Global's net sales for Arcadia were $65.58 million, surpassing the average estimate of $58.15 million, reflecting a year-over-year increase of 5.9% [4] - NobelClad's net sales reached $28.16 million, exceeding the two-analyst average estimate of $25.65 million, with a year-over-year change of 5% [4] - DynaEnergetics reported net sales of $65.55 million, slightly above the average estimate of $64.55 million [4] Stock Performance - Over the past month, DMC Global's shares have declined by 23.8%, contrasting with a minor decline of 0.7% in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - DMC Global Inc. reported a solid start to Q1 2025, indicating positive performance despite potential uncertainties in the market [4]. Group 1: Company Overview - The conference call was hosted by Geoff High, VP of Investor Relations, with participation from interim CEO Jim O'Leary and CFO Eric Walter [1][2]. - The earnings release and related presentation for Q1 performance are available on the company's investor relations page [3]. Group 2: Financial Performance - The company emphasized that the first quarter results were a strong beginning for 2025, suggesting a positive outlook for the year ahead [4].

Group 1 - DMC Global reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of a loss of $0.08 per share, representing an earnings surprise of 237.50% [1] - The company posted revenues of $159.29 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.37%, although this is a decrease from year-ago revenues of $166.87 million [2] - DMC Global has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates four times in the same period [2] Group 2 - The stock has underperformed the market, losing about 11.7% since the beginning of the year compared to the S&P 500's decline of 5.3% [3] - The current consensus EPS estimate for the coming quarter is $0.03 on revenues of $155.25 million, and for the current fiscal year, it is $0.08 on revenues of $619.8 million [7] - The Zacks Industry Rank indicates that the Industrial Services sector is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8]

Financial Data and Key Metrics Changes - Consolidated first quarter sales were $159.3 million, up 5% sequentially, while adjusted EBITDA attributable to DMC was $14.4 million, 30.9% higher than the fourth quarter [5][9] - Adjusted EBITDA margin was 11.4%, up sequentially from 7.8% in the fourth quarter and flat with the prior year [9][10] - First quarter adjusted net income attributable to DMC was $2.2 million, with adjusted EPS of $0.11 [11] Business Line Data and Key Metrics Changes - Arcadia's sales were $65.6 million, a 9% sequential increase and a 6% year-over-year improvement [5] - DynaEnergetics reported first quarter sales of $65.6 million, up 3% sequentially but down 16% year-over-year [5][6] - NobelClad's first quarter sales were flat sequentially but up 5% year-over-year, with an order backlog of $41 million, down from $49 million at the end of the fourth quarter [7][8] Market Data and Key Metrics Changes - The U.S. onshore energy market saw a 20% decline in the number of active frac crews compared to the previous year [6] - Ongoing uncertainty around U.S. tariff policies has led to customers delaying orders in NobelClad's market [8] Company Strategy and Development Direction - The company is focused on driving absolute EBITDA growth, generating strong free cash flow, and restoring balance sheet health through deleveraging [15] - Management emphasized operational improvement initiatives despite external challenges such as tariffs and macroeconomic conditions [4][5] Management Comments on Operating Environment and Future Outlook - Management noted that the first quarter was a solid start to 2025 despite external challenges [4] - Future guidance reflects concerns over macroeconomic volatility and visibility issues due to current tariff policies and energy prices [13][14] Other Important Information - The company ended the first quarter with cash and cash equivalents of approximately $15 million and total debt of approximately $72 million [11] - The guidance for second quarter consolidated sales is expected to be in the range of $149 million to $157 million [13] Q&A Session Summary Question: Impact of tariffs and costs on guidance - Management indicated that tariffs have some impact, but demand destruction is a larger factor affecting guidance [18][20] Question: Automation and cost containment opportunities - Management stated that cost containment efforts are ongoing, particularly in DynaEnergetics and Arcadia, but quantifying total impact is challenging [25][27] Question: California commercial projects' contribution to EBITDA - Management confirmed that the commercial side of the business will remain profitable in Q2, with a significant project impacting EBITDA [35] Question: Pricing pressures from suppliers - Management is evaluating the supply chain but finds it difficult to predict pricing impacts for the next quarter and second half of the year [36] Question: Tariff surcharge effectiveness - Management reported partial success in passing along tariff surcharges to customers, with ongoing discussions about cost sharing [39] Question: Dyna business performance outlook - Management expects the Dyna business to be flat to modestly down if oil prices remain low and rig counts decrease [42] Question: Update on Steel Connect situation - Management stated that there is no new information regarding Steel Connect, the largest shareholder [43]

Financial Data and Key Metrics Changes - Consolidated first quarter sales were $159.3 million, up 5% sequentially, while adjusted EBITDA attributable to DMC was $14.4 million, 30.9% higher than the fourth quarter [4] - Adjusted EBITDA margin was 11.4%, up sequentially from 7.8% in the fourth quarter and flat with the prior year [8][10] - First quarter adjusted net income attributable to DMC was $2.2 million, with adjusted EPS of $0.11 [10] Business Line Data and Key Metrics Changes - Arcadia's sales were $65.6 million, a 9% sequential increase and a 6% year-over-year improvement, driven by increased sales of commercial exterior storefront products [4] - DynaEnergetics reported first quarter sales of $65.6 million, up 3% sequentially but down 16% year-over-year due to pricing adjustments in response to a downturn in the U.S. onshore energy market [4][5] - NobelClad's first quarter sales were flat sequentially but up 5% year-over-year, with an order backlog of $41 million, down from $49 million at the end of the fourth quarter [6][7] Market Data and Key Metrics Changes - The number of active frac crews in DynaEnergetics' core U.S. onshore energy market was down approximately 20% compared to the previous year [5] - Ongoing uncertainty around U.S. tariff policies has led customers to delay orders in NobelClad's markets [7] Company Strategy and Development Direction - The company is focused on driving absolute EBITDA growth, generating strong free cash flow, and restoring its balance sheet through deleveraging [14] - Management emphasized a renewed focus on core operations and cost containment initiatives across business lines [4][14] Management's Comments on Operating Environment and Future Outlook - Management noted external challenges including tariffs, volatile macroeconomic conditions, and decreasing visibility into core end markets [2][4] - Future guidance indicates expectations for lower project billings at Arcadia and a slowdown in NobelClad sales due to tariff uncertainties [11][12] Other Important Information - The company ended the first quarter with cash and cash equivalents of approximately $15 million and total debt of approximately $72 million, resulting in a debt to adjusted EBITDA leverage ratio of 1.38 [10] Q&A Session Summary Question: Impact of guidance factors including tariffs and costs - Management indicated that tariffs are creating demand destruction, particularly affecting NobelClad and Arcadia, which is more impacted by interest rates than tariffs [18][20] Question: Progress on cost containment and automation initiatives - Management stated that Arcadia is focused on fixing its residential business and refocusing on commercial operations, while DynaEnergetics is implementing automation to improve efficiency [25][26] Question: Performance expectations for Dyna in a declining rig count scenario - Management expects Dyna's business to be softer if oil prices remain low and rig counts decline, with guidance reflecting a flat to modestly down outlook [41] Question: Update on tariff surcharges and pricing strategies - Management reported some success in passing along tariff surcharges but noted that not all costs have been recovered, and discussions with customers are ongoing [38] Question: Status of Steel Connect situation - Management stated that Steel Connect is the largest shareholder, and there are no new updates beyond periodic conversations [43]

Financial Performance - Net sales for Q1 2025 were $159.29 million, a decrease of 4.5% compared to $166.87 million in Q1 2024[14] - Gross profit for Q1 2025 was $41.20 million, down from $42.35 million in Q1 2024, reflecting a gross margin of 25.9%[14] - Operating income for Q1 2025 was $6.51 million, slightly lower than $6.69 million in Q1 2024[14] - Net income attributable to DMC Global Inc. stockholders for Q1 2025 was $0.68 million, a significant decrease from $2.56 million in Q1 2024[14] - The company reported a comprehensive income attributable to DMC Global Inc. stockholders of $1.85 million for Q1 2025, compared to $1.45 million in Q1 2024[15] - Net income for the three months ended March 31, 2025, was $1,863 million, a decrease of 19.7% from $2,319 million in the same period of 2024[19] - Basic and diluted net income per share for Q1 2025 was $0.04, compared to $0.01 in Q1 2024, reflecting a 300% increase[40] - Adjusted EBITDA attributable to DMC Global Inc. decreased by 14% to $14,391 in Q1 2025 from $16,683 in Q1 2024[117] - Net income attributable to DMC Global Inc. fell by 74% to $677 in Q1 2025 compared to $2,563 in Q1 2024[123] Assets and Liabilities - Total current assets increased to $296.91 million as of March 31, 2025, compared to $289.02 million at the end of 2024[12] - Total liabilities decreased to $229.64 million as of March 31, 2025, down from $233.29 million at the end of 2024[12] - Cash and cash equivalents increased to $14.71 million as of March 31, 2025, compared to $14.29 million at the end of 2024[12] - Total debt as of March 31, 2025, was $72,421,000, an increase from $70,818,000 as of December 31, 2024[64] - The net debt position increased to $57,716 as of March 31, 2025, compared to $56,529 at December 31, 2024, due to net borrowings of $1,500[146] Cash Flow - Net cash provided by operating activities decreased to $4,488 million from $13,440 million, reflecting a decline of 66.7% year-over-year[19] - The company reported a net cash used in investing activities of $(3,332) million, compared to a net cash provided of $9,651 million in the same period last year[19] - Net cash flows used in financing activities for Q1 2025 were $135, which included $1,151 in distributions to redeemable noncontrolling interest holders and $484 in treasury stock purchases[159] - In Q1 2024, net cash flows used in financing activities were significantly higher at $34,296, primarily due to $27,500 in net credit facility repayments[160] Sales Performance by Segment - For the three months ended March 31, 2025, total net sales were $159,290, with Arcadia Products contributing $65,580, DynaEnergetics $65,551, and NobelClad $28,159[82] - DynaEnergetics reported total sales of $65,551 for the three months ended March 31, 2025, down from $78,122 in the same period of 2024, representing a decrease of approximately 16%[85] - NobelClad's total sales increased to $28,159 in the first quarter of 2025, compared to $26,822 in the first quarter of 2024, reflecting an increase of about 5%[86] - Arcadia Products achieved sales of $65,580 in Q1 2025, a 6% increase compared to the same period in 2024, driven by higher sales volumes for longer-cycle commercial projects[107] Expenses and Costs - The company incurred restructuring expenses of $0.33 million in Q1 2025, indicating ongoing strategic adjustments[14] - General and administrative expenses increased by 4% to $16,674 in Q1 2025, primarily due to higher compensation costs[117] - Selling and distribution expenses increased by $350, primarily due to a $235 increase in bad debt expense and $152 in incentive compensation costs for the three months ended March 31, 2025[132] - The company recorded total operating lease expense of $3,132,000 for Q1 2025, down from $3,348,000 in Q1 2024[63] Strategic Initiatives and Risks - The company incurred strategic review expenses of $1,298 in Q1 2025, primarily due to professional service fees and employee retention compensation[96] - The company is exposed to foreign currency exchange risk and uses forward contracts to mitigate these risks, with net notional amounts of forward contracts held at $13,469 as of March 31, 2025[89] - The company announced a tariff surcharge of 7% to 9% on all perforating systems sold in North America in response to increased raw material costs due to tariffs[169] - There were no material changes in market risk related to foreign currency exchange rates and interest rates compared to the previous year[163] Compliance and Financial Ratios - The Company maintained a minimum debt service coverage ratio of 1.25 to 1.0 as per the credit facility[69] - As of March 31, 2025, the Company was in compliance with all financial covenants and provisions of its debt agreements[70] - The actual leverage ratio as of March 31, 2025 was 1.38 to 1.0, well below the maximum permitted ratio of 3.0 to 1.0[151] - The debt service coverage ratio for the trailing twelve months ended March 31, 2025 was 3.43 to 1.0, exceeding the minimum required ratio of 1.25 to 1.0[152]

© 2025 DMC. All rights reserved. First Quarter 2025 Earnings Presentation May 1, 2025 ARCADIA COMMERCIAL FRAMING SYSTEMS USED IN HILTON'S CANOPY HOTEL, TEMPE ARIZONA 1 USE OF NON-GAAP FINANCIAL MEASURES & SAFE HARBOR LANGUAGE *Use of Non-GAAP Financial Measures Adjusted net income, adjusted diluted EPS, adjusted EBITDA, net debt, and free-cash flow are non-GAAP financial measures used by management to measure operating performance. For reconciliations of the most directly comparable GAAP measures to non-GAA ...

Sales Performance - First quarter sales were $159.3 million, representing a 5% sequential increase but a 5% decline compared to Q1 2024[9]. - Arcadia's sales reached $65.6 million, a 9% sequential increase and a 6% increase compared to the same quarter last year[4]. - DynaEnergetics reported sales of $65.6 million, a 3% sequential increase but a 16% decline year-on-year due to pricing adjustments and lower unit sales[5]. - NobelClad's sales were flat sequentially at $28.2 million, with a 5% increase compared to the previous year's first quarter[7]. - DynaEnergetics segment net sales were $65,551,000, a 3% increase sequentially but a 16% decrease year-on-year[31]. - NobelClad segment net sales were $28,159,000, a 1% decrease sequentially but a 5% increase year-on-year[33]. Financial Metrics - Adjusted EBITDA attributable to DMC was $14.4 million, up 39% sequentially but down 14% year-on-year[12]. - The gross profit percentage for the first quarter improved to 25.9%, up from 20.8% in the previous quarter[12]. - Gross profit increased by 30% sequentially to $41,199,000, while year-on-year it decreased by 3%[28]. - Operating income for Q1 2025 was $6,513,000, a significant improvement from a loss of $696,000 in Q4 2024, but a 3% decrease compared to Q1 2024[28]. - Net income attributable to DMC Global Inc. stockholders was $677,000, a 129% increase sequentially but a 74% decrease year-on-year[28]. - Adjusted EBITDA for the Arcadia segment was $9,327,000, a 150% increase sequentially and a 58% increase year-on-year[30]. - Adjusted EBITDA for the same period was $18,122,000, a 53% increase from $11,876,000 in the previous quarter, but a 5% decrease year-on-year[38]. - DynaEnergetics reported adjusted EBITDA of $7,379,000 for the three months ended March 31, 2025, a 45% increase from $5,098,000 in the previous quarter[41]. - NobelClad's operating income for the same period was $4,622,000, down 8% from $5,050,000 in the previous quarter[42]. Cash Flow and Assets - Total current assets increased by 3% to $296,909,000 compared to the end of Q4 2024[35]. - Cash and cash equivalents rose by 3% to $14,705,000 from $14,289,000 at the end of Q4 2024[35]. - Cash flows from operating activities provided $4,488,000, a decrease from $11,811,000 in the previous quarter[37]. - The cash and cash equivalents at the end of the period were $14,705,000, an increase from $14,289,000 at the beginning of the period[37]. Guidance and Future Outlook - Second quarter sales guidance is projected to be between $149 million and $157 million, with adjusted EBITDA expected in the range of $10 million to $13 million[11]. - Arcadia's results are anticipated to be below the prior year's second quarter due to decreased demand in the luxury residential market[11]. Operational Initiatives - DynaEnergetics completed a major automation initiative aimed at increasing production capacity and streamlining operations[6]. - The company experienced a 150% sequential increase in adjusted EBITDA attributable to DMC Global Inc. from $2,243,000 to $5,596,000 in the Arcadia segment[40]. - Strategic review and related expenses for the three months ended March 31, 2025, amounted to $1,298,000, down 28% from $1,813,000 in the previous quarter[38].

Core Insights - DMC Global Inc. reported a solid start to 2025 with a 5% sequential increase in consolidated sales and a 39% sequential rise in consolidated adjusted EBITDA for Q1 2025 [1][9]. Financial Performance - Total net sales for Q1 2025 were $159.3 million, reflecting a 5% increase from Q4 2024 but a 5% decrease compared to Q1 2024 [9][11]. - Adjusted net income attributable to DMC was $2.2 million, or $0.11 per diluted share, down 48% year-on-year [9][11]. - Adjusted EBITDA attributable to DMC was $14.4 million, a 39% increase sequentially but a 14% decrease year-on-year [9][11]. Segment Performance Arcadia - Arcadia's sales reached $65.6 million, up 9% sequentially and 6% year-on-year, driven by increased sales in commercial products [2][12]. - Adjusted EBITDA for Arcadia was $5.6 million, up 149% sequentially and 58% year-on-year [2][12]. DynaEnergetics - DynaEnergetics reported sales of $65.6 million, a 3% sequential increase but a 16% decline year-on-year due to pricing adjustments and lower unit sales [3][13]. - Adjusted EBITDA for DynaEnergetics was $7.4 million, up 45% sequentially but down 30% year-on-year [3][13]. NobelClad - NobelClad's sales were flat sequentially at $28.2 million, with a 5% increase year-on-year [5][32]. - Adjusted EBITDA for NobelClad was $5.4 million, down 7% sequentially and 8% year-on-year [5][32]. Operational Initiatives - DMC has focused on operational improvements, including a major automation initiative at DynaEnergetics' manufacturing center to enhance production capacity [4][7]. - The company has emphasized cost control and a return to core operations amid a volatile macroeconomic environment [2][6]. Guidance - For Q2 2025, DMC expects sales between $149 million and $157 million, with adjusted EBITDA anticipated between $10 million and $13 million [8][10]. - The guidance reflects anticipated lower project billings at Arcadia and ongoing macroeconomic challenges impacting demand [8][10].

HOUSTON, March 04, 2025 (GLOBE NEWSWIRE) -- DynaEnergetics, a business of DMC Global Inc. (Nasdaq: BOOM), today announced it will institute a tariff surcharge ranging from 7% to 9% on all perforating systems sold in North America, effective April 5, 2025. The surcharge is being implemented in response to higher raw material costs resulting from U.S. tariffs announced to date. The surcharge will be applied to DynaEnergetics’ DS Infinity™ 2.0, DS Gravity™ 2.0 and DS NLine™ 2.0 perforating systems, as well as ...