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Image source: The Motley Fool. Wednesday, July 29, 2026 at 5 p.m. ET Vice President of Investor Relations - Geoff High President and Chief Executive Officer - James O'Leary Chief Financial Officer - Eric Walter Operator: Greetings. Welcome to the DMC Global Second Quarter Earnings Call. [Operator Instructions]. Please note, this conference is being recorded. I will now turn the conference over to Geoff High, VP of Investor Relations at DMC Global. Thank you, Geoff. You may begin. Geoff High: Hello, and welcome to DMC's second quarter conference call. Presenting today are President and CEO, Jim O'Leary; and Chief Financial Officer, Eric Walter. I'd like to remind everyone that matters discussed during this call may include forward-looking statements that are based on our estimates, projections and assumptions as of today's date and are subject to risks and uncertainties that are disclosed in our filings with the SEC. Our business is subject to certain risks that could cause actual results to differ materially from those anticipated in our forward-looking statements. DMC assumes no obligation to update forward-looking statements that become untrue because of subsequent events. Today's earnings release and our related presentation on our second quarter performance are available on the Investors page of our website located at dmcglobal.com. A webcast replay of today's presentation will be available at our website shortly after the conclusion of this call. And with that, I'll now turn the call over to Jim O'Leary. Jim? James O'Leary: Thanks, Geoff, and thanks to everyone for joining us today. Despite continued headwinds in each of our end markets, many of the initiatives discussed in previous calls have been successful, notably at Arcadia. As a result, second quarter consolidated sales of $157 million were at the high end of our forecasted range, while adjusted EBITDA attributable to DMC of $10.7 million exceeded the high end of our range. Arcadia's second quarter sales increased 9% year-over-year and 19% sequentially, marking its strongest quarterly sales performance since the second quarter of 2024 and the best EBITDA performance in over a year. These results were delivered despite a still horrible commercial construction market. The American Institute of Architects reported last week that its Architectural Billings Index has now gone 41 consecutive months without a majority of the firms' reporting billings growth. This is the longest downturn in the more than 30-year history of the ABI. While demand for large longer-term construction projects remains highly challenged, Arcadia saw improved turnover for its core short-cycle products across its regional service center network as well as for high-end residential windows and doors. The stronger performance reflects the efforts of Arcadia's management team to improve product availability and service, long-standing hallmarks of Arcadia's business model. Additionally, efforts to rightsize our residential products offerings and refocus on attainable targets contributed significantly to Arcadia's improved performance. Sales at DynaEnergetics, our Energy Products business were flat year-over-year but increased 13% sequentially. Demand was steady but unfavorable mix, increased input costs and price pressure on profitability. DynaEnergetics recently completed its first shipment of a new perforating system developed specifically for use in enhanced geothermal systems. EGS is emerging as a potentially significant source of baseload electricity and could represent a meaningful opportunity for DynaEnergetics. At NobelClad, our Composite Metals business, second quarter sales were down 17% year-over-year, due primarily to lower activity in the global oil and gas market. Sales were up 15% sequentially as a result of increased deliveries on a large petrochemical order. NobelClad continues to maintain a healthy backlog with increased shipments from that backlog, including order deliveries delayed by customers should drive strong results during the second half of the year. I'll now turn it over to Eric for a closer look at our second quarter, our guidance for the third quarter and some important color on our capital structure as we're on the altar of the potential put-call exercise. Eric Walter: Thanks, Jim. I'll start with a look at our second quarter profitability across our businesses. Arcadia reported adjusted EBITDA margin before NCI allocation of 13.6%, up from 10.9% in the year ago quarter and 6.9% in the first quarter. The improvement principally reflects improved fixed cost absorption on higher sales and improved results as we successfully rightsized our residential offering. At DynaEnergetics, adjusted EBITDA margin was 8.4% and benefited from a $1.5 million tariff refund. The results were down from 13.4% last year, driven by unfavorable pricing and mix, along with higher input costs. Dyna's EBITDA margin was up from 4.6% in the prior quarter from sales growth and the tariff refund. NobelClad reported adjusted EBITDA margin of 13.7%, down from 16.5% in the year ago quarter and up from 9.8% in the first quarter. Second quarter SG&A expense was $24.5 million or 15.6% of sales versus 16.8% of sales in the year ago second quarter and 18.1% of sales in the first quarter. The sequential decline principally relates to higher sales and improved operating leverage on fixed costs. Second quarter adjusted net income attributable to DMC was $727,000 or $0.04 per diluted share. With respect to liquidity, we ended the second quarter with cash and cash equivalents of $28.6 million. Net debt increased to $30.5 million up from $18.7 million at our 2025 year-end. The increase was primarily due to higher credit facility borrowings to fund working capital needed for business growth. Net cash used in operations was $8 million, also reflecting our investments in working capital as activity improves. And now the guidance for the third quarter. we expect sales will be in the range of $158 million to $168 million, while adjusted EBITDA attributable to DMC is expected in a range of $10 million to $13 million. The anticipated sequential improvements reflect steady performance at Arcadia, increases in well completion activity at DynaEnergetics, oil and gas and EGS markets and increased product shipments at NobelClad. Our guidance does not contemplate increased disruptions in international supply chains due to renewed hostilities in the Middle East, which could impact both DynaEnergetics and NobelClad. Continued volatility in aluminum input costs at Arcadia or generally weaker end market conditions. As a reminder, our guidance is heavily impacted by macroeconomic conditions, including evolving tariff policies, particularly in our core energy and construction markets. Our guidance is subject to change either upward or downward as a highly volatile input evolve in 2026. Now I'd like to provide an update on the noncontrolling interest in Arcadia. As a reminder, when we acquired our 60% interest in Arcadia in 2021, our joint venture partner retained a 40% ownership interest equal to a net value of approximately $162 million. Under the terms of our operating agreements, DMC can acquire the remaining 40% at any time through a call option that would be settled entirely in cash. Our joint venture partner also holds a put option, which becomes exercisable on September 6. If either the call or put option is exercised, DMC would acquire the 40% share of Arcadia's adjusted EBITDA that we currently don't own. In addition to adding the 40% of Arcadia's EBITDA and cash flow, who would considerably simplify our reporting and operating structure. If the put option is exercised, DMC can settle the obligation either entirely in cash or a combination of 20% cash and 80% preferred shares. These preferred shares are convertible on a one-for-one basis and are mandatorily redeemable. However, I'd like to explain some critical considerations around any redemption of these preferred shares. Under NASDAQ rules and as previously discussed and disclosed, the conversion and related voting rights are limited to 19.9% of DMC's outstanding common shares prior to issuance. Any conversion beyond that level would require approval from our shareholders and the holder of the preferred shares would not be eligible to vote. This leaves any dilution above the 19.9% completely in the hands of DMC's shareholders. In terms of the mandatorily redeemable feature on the preferred shares, DMC would make equal annual cash redemptions over the subsequent 3 years after issuance. However, any redemption of the preferred shares is subject to DMC having sufficient legally available funds to redeem the shares. Delaware law prohibits the company from redeeming preferred shares, if doing so, would impair its ability to operate or adversely affect the interest of its creditors. This requires our Board of Directors to make a good-faith determination each quarter as to whether DMC can meet the requirements for a redemption. Our Board could not authorize any redemption that could threaten DMC's solvency or our ability to continue as a going concern. If DMC cannot redeem the preferred shares, it would not be in default under the governing document for the preferred shares. The unconverted preferred shares will remain outstanding until they can be redeemed, assuming the 19.9% has been converted. From an accounting perspective, the redeemable preferred stock would not be considered debt until DMC borrows on its credit facility to make those redemptions. Additional details regarding the redemption of the preferred shares are summarized in Note 2 to the financial statements in today's Form 10-Q under the title redeemable noncontrolling interests. And with that, I'll turn the call back over to Jim. James O'Leary: Thanks, Eric. As noted before, we made meaningful progress during the quarter, particularly in Arcadia, even as our end markets provided very little help. Arcadia executed on several successful performance improvement initiatives. We believe it can build on this momentum, although we remain very mindful with the broader construction environment remains challenging. DynaEnergetics should benefit from the anticipated improvement in well completion activity in its core North American market during the balance of the year and hopefully continued success in the emerging EGS space. At NobelClad, a strong order backlog and the expected easing of customer-related delivery delays should drive higher shipment volumes and stronger financial results during the second half of the year. We remain focused on disciplined execution and tight cost controls. So each of our businesses can capitalize eventually improving market conditions. Finally, I'd like to thank our associates for their continued hard work and focus during the quarter. With that, we'd be glad to take any questions. Operator: [Operator Instructions]. Our first question is from Gerry Sweeney with ROTH Capital Partners LLC. Please proceed with your question. Gerard Sweeney: I wanted to start with Arcadia. On the Q1 earnings, you did discuss some supply chain constraints that hampered the short-cycle business. And obviously, we saw some improvement in 2Q. Did you recapture all the lost business? Or is there still some more opportunity there to go as we look out for the rest of the year and forward? James O'Leary: Sure. So -- and Gerry, I'm thinking back to whatever we said on the last quarter. The supply chain issues or costing issue, it's all around aluminum, it's all around just the general environment exacerbated obviously by what's going on in the Middle East. Where we're capturing business, and I don't want to go too far down memory lane, but if you remember, and this goes back to the third quarter of '24, which I remember vividly, I think that was the first time I was introduced to the company. We had the goodwill write-off. And we also had just a horrible quarterly performance where we talked about supply chain disruptions, product availability, customer issues. We brought Jim Slaten back after that. And our focus was, number one, stability from end to end, let's make sure our supply chain partners feel the love and we get that sorted out, which was really broken in that third quarter. And let's get back to the customers who, to be candid, we kind of screwed over when we didn't have product available. They rely on Arcadia. That's why we have #1 positions in every one of these major MSAs we deal with and that was Jim's priority. And with a short-cycle business is coming back now, it's not because the market is any better, it is still absolutely horrible. It's not because the long cycle business isn't any better. It's still very interest rate driven. And obviously, the Fed didn't do us any favors today. But the basic, Jim calls it the bread and butter business, the stuff that Arcadia was really I don't know, founded on is wrong. But the thing that made it successful in good times, bad times through recessions was just how important it was in the supply chain for its customers. And we think we're getting that business back. It's closer to 5 going on 6 months now, where the daily storefront business is consistently up day after day in our daily sales reports. When you don't hear about problems in the supply chain, that means something is going right. When the trains don't run, that's the only time you hear about them. So that's going well, too. And really, to give credit, not just to Jim, but we focus on stability. We wanted to bring back those customers, particularly on the storefront business. So the focus on the customers check working. We did have a lot of turnover. Besides Jim, we had a lot of President, Interim President during that period. This has been the longest time since DMC's Arcadia where we've had consistent leadership at the top. Jim is doing a great job. He's also done a great job bringing back a lot of the people who left during that period. And it's lead salespeople, guys in the branches. And I think when they come back, the business is coming back. And even though the macroeconomic environment is still challenging. And even though the aluminum issues still keep us awake at night, all the things we can control and we can influence it going right. So I hope that answers the question. Gerard Sweeney: Yes. I mean, I was just curious -- I mean, let's just say you lost 10 points because of issues, I'm just curious if you've gotten 5 points back and there's still some room to maybe recapture some lost market share with the understanding that the end markets are just in a tough position. That's all. James O'Leary: It would be a guess, but half of it is probably not wrong. If they feel a fair amount with the aluminum being what it is, and I'm not going to name names, but we do have some competitors who are -- have more challenged balance sheets than we do, who are much more aggressive on pricing than we'd like and have historically been. There's a little bit of market share that trades because of things that we don't want to participate in as far as like the really bottom of the barrel pricing. So I think we've probably gotten back a lot of the share that's within our control, and the rest, we probably don't want to participate in, but at least right now. And when things get better, and everyone starts behaving better, that will come back as well. Gerard Sweeney: Understood. That's helpful. And then DynaEnergetics, it's an interesting world out there. higher for longer. I think you indicated maybe some increased well completions in the second half of the year. Just curious if you could give any more color on what you're hearing out there, what's happening and if there's even an opportunity to push this into '27 or is it too early to even say on that front? James O'Leary: I'd say it's too early to say just because it's been so up one day down the next, the straits are open, the straits are closed. I'm just going to repeat the things that you probably read as well. Of the peers of ours, that are larger, in some cases, either peers or customers, they may actually have better visibility on it than we do because of the proximity to the majors. Everyone is still expecting a pickup in the second half. and everyone is saying they're hoping there'll be momentum into 2027. We're not hearing anything that contradicts it. It's just been slow to come. Obviously, we're not a direct -- we don't directly correlate with rig count. But until last week, I think it was the longest streak that rigs had increased in about 2 or 3 years. And again, all the anecdotes are positive. It's just they've yet to translate into meaningfully better business. So I'd say, hopefully, momentum in the second half, hopefully, that carries into 2027. And the only caveat that would be, I think, specific to us, particularly amongst equipment providers, we have a pretty big European presence. And we're a little bit more influenced or impacted negatively when you can't get stuff to some of our Middle Eastern customers, the European supply chain, traffic/freight has been an impact. So we might have timing issues there, but nothing -- again, nothing specific to call out, all anecdotal. Gerard Sweeney: Got it. And one more quick question on DynaEnergetics, excuse me, the enhanced geothermal. Any idea how we should look at that in terms of potential market size or growth or where it could go over the next couple of years? Or again, is this still very nascent in its development and more testing needs to answer that question. James O'Leary: Way too early. I wouldn't say it's testing, but look, the best indicator and something I draw your attention to, take a look at Fervo's-1, take a look at their website, they're the pioneer in this area. Everybody's watching them to see if they're successful, very much driven by all the buzz around data centers and the power super cycle that's much talked about and seems to be playing out. But the best thing to keep an eye on would be Fervo. And for a possible size of the market, I would look to the things I have in their S-1. Gerard Sweeney: Understood I appreciate it. Nice to see a good solid quarter for you. You guys deserve it. Operator: Our next question is from Stephen Gengaro with Stifel. Stephen Gengaro: I had a follow-up on the prior question on the geothermal side first. Can you talk a little bit about -- on the geothermal side, is the integrated perf gun technology, a differentiator like it is in the oil patch? Or is it just kind of another opportunity for advanced perf guns in general? I'm trying to figure out, like is there a more or less differentiated opportunity than you participated in the oilfield? James O'Leary: If I understand the question, it's using the existing technology but with some nuances and some nuances that we're able to provide. The type of gun, we're using a 5-inch gun and some additional tweaks because we are -- I still think it's safe to say we're the technology leader there. We're doing a lot of handholding, a lot of partnership, and you can only really do that if you have an expertise in the area.because the rock formations they're going into are different in the traditional oil and gas applications. The type of gun and its attributes are a little bit different. But beyond that and nuances to the detonator as well, it's the reason why you see all oil and gas people with the lead of all these companies. It's a very similar technology. Stephen Gengaro: Okay. And then you talked a little bit about the market backdrop for DynaEnergetics and kind of what we're seeing on the activity side and hopefully, it continues to improve. What do you see specifically on the competitive landscape and the pricing dynamics for the perf guns? James O'Leary: That's still very challenging. It's still one of the more fragmented areas in the chain when you work away from the majors down. Pricing is still hard to come by. There's no price increases, and it's very competitive, which has certainly been the case since in the 3 years that I've been on the Board and in the company. So no different really there. And I would also add between tariffs that we've been unable to recover between cost pressures on almost every input cost we have, the margin squeeze has been painful and you see it in ours. And I think you would see in our competitors' numbers as well. Stephen Gengaro: Okay. Great. And if I could just ask one more. You did a good job, and I appreciate the explanation on the put-call option. And kind of -- it seemed like we revisited that with sort of more detail than we've heard recently. Is that sort of foreshadowing something that's going to happen in the near term? Or are you just kind of reminding the market as to how the put-call option functions? James O'Leary: Well so I'll start off, I'll give you kudos. I mean you're one of our few analysts who've gone out and modeled it because I think you went a year or 2 further out last year. And it highlighted to us the fact that even though everything has been disclosed, and if you go back to 2021, the agreement, the operating agreement, the form of -- everything is disclosed out there. But we can't get away from the fact that it's a complicated transaction, it's been 5 years, and this won't be late-breaking news, it's July 29. The thing is exercisable on September 6. And we have absolutely no idea if our partner will stay in the joint venture, if they'll decide to exercise. But this is the first time that it is exercisable, and we're issuing our quarter and the next time we'll formally talk to you, it could be exercised. So what we wanted to do is make sure everybody has the same information, in addition to yourself, anybody else who is going to model it in the next report, including our shareholders, if they're doing their own modeling. We want to make sure people understood 2 things. Number one, the level of dilution that was originally committed to, nothing changed, exactly the same. We wanted to make sure, particularly the shareholders knew that the misconception that it was endless dilution, it's completely in the hands of our shareholders. They'll get a vote on anything above the 19.9%. I think you've modeled that well, and you understand it really well. We want to make sure everybody understands it as well as you. And the other thing, whether it's the $132 million or $100 million, we want to make sure people understand that the debt. If you put it in our debt footnote, if you schedule it out, it looks like a lot for this company to handle, but we want to make sure people understand the preferred stock is a capital instrument. It is called mandatorily redeemable. But the Board has an obligation to make sure it's not buying back the preferred shares at the wrong time. So we want to make sure that people understand, number one, how the dilution works. Number two, how the debt work. And number three, they know that they are in control as far as shareholder vote, and we are in control as far as making sure we're not buying back shares or redeeming the preferred at a time that would put the company in jeopardy. So really just clearing up things that are in the marketplace and making sure we don't have -- again, you've done a great job at it. Other guys are working on it. We want to make sure we also don't have selective disclosure issues in between and trying to explain something that's out there. But we appreciate it's a really complicated transaction. Stephen Gengaro: Yes. Great. That's very helpful. James O'Leary: No. You're welcome. And by the way, I really meant that. You did a good job modeling it. We want to make sure everyone has the same information. Operator: Our next question is from Ken Newman from KeyBanc Capital Markets. Kenneth Newman: Yes, of course. I just wanted to circle back a little bit on the supply chain dynamics question in Arcadia a little bit more. I think last quarter, we were talking about higher aluminum prices being a bit of a headwind for new project activity. Obviously, I know the commercial activity is still very challenging right now. But it sounds like it may also have been a tailwind on sales this quarter to a certain extent, right? So maybe, Eric, is there any way to maybe help us bridge how much of the year-over-year sales were really driven by stronger volumes versus the higher aluminum pricing? Because obviously, that took a step up, I think, sequentially on a year-over-year basis in aluminum costs. Eric Walter: Yes. I think a lot of the year-over-year increase is going to be due to the price -- the aluminum price increases. There was some volume pickup that we have. But where we're seeing the increases in what Jim talked about, our short-cycle business, and that's typically a business that's to the small to medium-sized glazers and contractors that are less price sensitive, versus a longer cycle project that would have more competitors bidding for the same piece of work. So those same types of issues that we talked about in the first quarter around projects being delayed, intense price competition, those still exist for the long-cycle business. But what we've seen is that the short cycle business or sometimes we call it storefront business has picked up considerably over the last several months. And so we're excited about that because that business is fairly steady, that's higher margin. And it's really the bread and butter of what Arcadia was founded on, which was to service that small to medium-sized glazer. Kenneth Newman: That's helpful color. I guess, Jim, does it feel like with all the work that you've done in optimizing the network in Arcadia, does it feel like this is pretty stable so long as the macro kind of still works with you? Or is there still kind of more work or more levers to pull in order to drive better optimization from here? James O'Leary: Well, really, the 1 thing I did was bring back Jim Slaten, and the only other thing I did was nothing, meaning stability, prioritized, just letting the thing get healthy by itself. I think as far as getting it back to where it was in 2021, 2022, Jim, he brought back the right people. We reprioritized and brought stability into the supply chain, how we manage some of our supply chain partners. We've calmed down the level of introduction of whether it's new processes, whenever you buy a founder-led company, and I have seen this a bunch of times, there's a temptation to try to boil the ocean right away and do everything new. We stopped that all together. There's a reference in the press release to the high-end residential business which a couple of years ago, I could have told you I was more likely to close it than not, and that was just an overreaction probably on my part to the challenges it had because we've introduced so much change. And maybe we set the goals for that company as far as how big it could get and how fast it would get there. Maybe we were too ambitious. And Jim and I had a handshake when he came back, you get it to a certain level, both on sales and profitability within a certain time period. And he's meeting all those goals. We're more -- I think, we're more measured on where we can get to in an absolutely horrible macroeconomic environment. When we first bought the company, I think we set out some goals that were probably too hard to get to. But we still have the best product in the market. We think the Arcadian name adds a halo effect to whatever we put out there on the residential side. And Jim and the people he's brought back are, again, every commitment he made to me and I made to our Board as far as getting that business to where it is or are all coming to pass. So the short answer is that the only thing I did was bring them back and let him bring back the people he wanted. We kind of restored the trust in our supply chain partners. Our people are restoring the trust our customers had in us.when we let them down in 2024. And right now, there are some things we probably could do in terms of processes. We think we got the systems we have in the ERP conversion. We are maybe 75% to 80% on the way there. We're going slow, it is still a big digestion issue. And as far as other operational improvement, I'd rather -- we're not going to force-feed the company things like maybe we had in the past. I'd like to have tailwinds to be candid. We really have headwinds in every one of our markets in Arcadia despite the fantastic performance this quarter, it still got real headwinds as far as input costs, interest rates, general malaise with our developers. So when we have tailwinds again, we'll be a little bit more ambitious on additional improvements we can do. But for the time being, just getting back to where we were on the storefront business, and with both our customers and our supply chain partners is, I think, that's a tall of task. Kenneth Newman: Got it. That's very good color. I appreciate that. Maybe one last one if I could squeeze it in. It sounds like there was maybe a modest benefit to Dyna EBITDA margins this quarter from the tariff refunds. Is there a way to maybe parse out what that benefit was and whether or not that stretches into the remainder of the year? Eric Walter: Yes. Ken, we had about $1.5 million of tariff refunds in the second quarter. That's from a combination of refunds from the government as well as negotiations with vendors. We're continuing to go through and file for additional refunds from the government and continuing these negotiations with our supply chain. But it's really difficult to forecast what that's going to look like. Kenneth Newman: Just to be clear, does the current guidance already assume like a similar level of refunds for the third quarter? Eric Walter: It does not. The current guidance has no refund -- no tariff refunds factor into it. James O'Leary: Our ability to forecast tariff recovery is almost as good as our ability to forecast whether the Straits of Hormuz will be open when we walk out of this room. And operator, other than thank you to anybody who participated today. Thanks for your patience. We're doing -- we're trying to do the best we can in a very challenging market, but really appreciate all the work on the part of our employees at each one of our divisions here and in Europe. And we look forward to talking to you in a couple of months and enjoy the rest of the summer. So that's it for me. Operator: Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in DMC Global, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and DMC Global wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. DMC Global (BOOM) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Consolidated sales of $157 million were at the high end of the forecasted range, and adjusted EBITDA of $10.7 million exceeded the high end of the range. Arcadia's sales increased 9% year-over-year and 19% sequentially, marking its strongest quarterly sales performance since Q2 2024 and best EBITDA in over a year. Arcadia's adjusted EBITDA margin improved to 13.6% from 10.9% a year ago, driven by better fixed cost absorption and successful right-sizing of residential offerings. DynaEnergetics completed its first shipment for enhanced geothermal systems (EGS), a potentially significant new market for baseload electricity. NobelClad maintains a healthy backlog, with increased shipments expected in the second half of the year as customer-related delivery delays ease. The commercial construction market remains 'horrible,' with the AIA billing index showing 41 consecutive months without majority growth, the longest downturn in 30 years. DynaEnergetics' adjusted EBITDA margin fell to 8.4% from 13.4% last year due to unfavorable pricing, mix, and higher input costs, despite a $1.5 million tariff refund. NobelClad sales were down 17% year-over-year due to lower activity in the global oil and gas market. The company faces ongoing volatility from aluminum input costs at Arcadia and potential supply chain disruptions from Middle East hostilities. The potential exercise of the put option on Arcadia's non-controlling interest introduces complexity and uncertainty regarding future cash obligations and dilution. Here are the key highlights from DMC Global Inc (NASDAQ:BOOM)'s Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Warning! GuruFocus has detected 3 Warning Signs with BOOM. Is BOOM fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more detail on the potential exercise of the put/call option for the 40% non-controlling interest in Arcadia, specifically regarding dilution and debt concerns? A: (Eric Walter, CFO) We wanted to clarify the mechanics as the put option becomes exercisable on September 6th. If exercised, DMC can settle with 20% cash and 80% preferred shares. Crucially, the conversion of these preferred shares is limited to 19.9% of DMC's outstanding common shares; any dilution beyond that requires a shareholder vote. Furthermore, the mandatory redemption of the preferred shares is subject to the Board's determination that DMC has sufficient legally available funds, ensuring the company's solvency is not threatened. This is not a new development but a clarification of the existing agreement. Q: Regarding Arcadia, you previously discussed supply chain constraints. Did you recapture all the lost business from Q3 2024, or is there still more opportunity to regain market share? A: (Jim O'Leary, CEO) We have regained a significant portion, perhaps half, of the business we lost due to our own operational issues. The focus has been on restoring stability, trust with supply chain partners, and bringing back key personnel. However, we are not chasing the "bottom of the barrel" pricing from competitors with weaker balance sheets. We believe we've recaptured most of the share within our control, and the rest will likely return when market conditions improve and pricing behavior normalizes. Q: Can you talk about the competitive landscape and pricing dynamics for Dyna Energetics' perf guns? A: (Jim O'Leary, CEO) The market remains very challenging and fragmented. Pricing is still hard to come by, and there are no price increases. The margin squeeze has been painful due to tariffs we've been unable to recover and cost pressures on input costs. This is reflected in our numbers and, I believe, in our competitors' as well. Q: How much of Arcadia's year-over-year sales increase was driven by higher aluminum pricing versus stronger volumes? A: (Eric Walter, CFO) A lot of the year-over-year increase is due to higher aluminum prices. However, we did see a volume pickup in our short-cycle "storefront" business, which is less price-sensitive and higher margin. The long-cycle project business still faces intense price competition and delays. The improvement in the short-cycle business is a key driver of our excitement, as it is the core of Arcadia's historical success. Q: With the work done at Arcadia, do you feel the performance is now stable, or are there more levers to pull for optimization? A: (Jim O'Leary, CEO) The primary action was bringing back Jim Schladen and prioritizing stability. We stopped trying to "boil the ocean" with new processes and focused on restoring trust with customers and supply chain partners. We are being measured, especially given the horrible macro environment. We have headwinds from input costs and interest rates. When we have tailwinds again, we can be more ambitious, but for now, getting back to our core storefront business is a tall enough task. Q: Was there a benefit from tariff refunds in Dyna Energetics' margins this quarter, and is that expected to continue? A: (Eric Walter, CFO) Yes, we had about $1.5 million in tariff refunds in Q2 from government filings and vendor negotiations. However, it is very difficult to forecast. Our Q3 guidance does not assume any tariff refunds. Q: Can you provide more color on the enhanced geothermal systems (EGS) opportunity for Dyna Energetics? How should we look at the potential market size? A: (Jim O'Leary, CEO) It is still very early, but it is a real opportunity driven by the power super cycle for data centers. The technology is similar to oil and gas, but with nuances. We are the technology leader, using a 5-inch gun with specific tweaks. The best indicator to watch is Fervo Energy, the pioneer in this space. Look at their S1 and website to gauge the potential market size. Q: Is the integrated perf gun technology a differentiator in the geothermal market, similar to the oil patch? A: (Jim O'Leary, CEO) Yes, it is a differentiator. While it uses existing technology, the rock formations are different, requiring specific gun attributes and detonator nuances. Our expertise allows us to provide significant handholding and partnership, which is why oil and gas people are leading these companies. Q: What are you hearing about well completion activity for the second half of the year and into 2027? A: (Jim O'Leary, CEO) It's too early to say definitively, as the market is very volatile. Everyone is still expecting a pickup and hoping for momentum into 2027. All anecdotes are positive, but they have yet to translate into meaningfully better business for us. We are also impacted by European supply chain and freight issues for Middle Eastern customers, which could cause timing issues. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in DMC Global? Here are five stocks we like better. DMC Global’s second-quarter sales reached $157 million, at the high end of guidance, while adjusted EBITDA of $10.7 million exceeded expectations. Arcadia led the improvement, with sales up 9% year over year and its margin rising to 13.6%. DynaEnergetics’ sales increased 13% sequentially but profitability remained below last year’s level due to pricing pressure, mix and input costs; NobelClad sales fell 17% year over year but benefited from a large petrochemical order and a healthy backlog. DMC expects third-quarter sales of $158 million to $168 million and adjusted EBITDA of $10 million to $13 million, while warning about aluminum-price volatility, supply-chain risks and uncertain end-market demand. The company is also approaching a potential transaction to acquire Arcadia’s remaining 40% ownership interest. DMC Global (NASDAQ:BOOM) reported second-quarter consolidated sales of $157 million, at the high end of its forecast range, while adjusted EBITDA attributable to the company reached $10.7 million and exceeded the high end of guidance. President and CEO James O’Leary said the results reflected progress on internal initiatives despite continued pressure across the company’s construction, energy and industrial end markets. “Despite continued headwinds in each of our end markets, many of the initiatives discussed in previous calls have been successful, notably at Arcadia,” O’Leary said. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Arcadia, DMC’s architectural building products business, posted a 9% year-over-year sales increase and a 19% sequential increase. O’Leary said it was Arcadia’s strongest sales performance since the second quarter of 2024 and its best EBITDA performance in more than a year. Arcadia’s adjusted EBITDA margin before non-controlling-interest allocation was 13.6%, compared with 10.9% a year earlier and 6.9% in the first quarter. Chief Financial Officer Eric Walter attributed the margin improvement primarily to better fixed-cost absorption on higher sales and gains from resizing the company’s residential product offering. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? The improvement came as the broader commercial construction market remained weak. O’Leary cited the American Institute of Architects’ Architecture Billings Index, which has gone 41 consecutive months without a majority of firms reporting billing growth, marking its longest downturn in more than 30 years of the index’s history. Still, Arcadia saw stronger turnover in its short-cycle products sold through regional service centers, as well as increased demand for high-end residential windows and doors. Management said the improvement reflected efforts to restore product availability and customer service after earlier supply-chain and product-availability issues. → Innovative ETF Strategies That Are Paying Off This Summer During the question-and-answer session, O’Leary said the company believes it has recovered much of the business that was within its control following disruptions in 2024. He added that Arcadia continues to face aluminum-cost concerns, challenging developer conditions and competitive pricing, particularly for longer-cycle projects. Walter said a significant portion of Arcadia’s year-over-year sales increase was related to higher aluminum prices, though volumes also improved. The short-cycle storefront business, which serves small- and medium-sized glaziers and contractors, has improved in recent months and generally carries higher margins, he said. DynaEnergetics, DMC’s energy products business, reported sales that were flat from the prior-year period but up 13% sequentially. Adjusted EBITDA margin was 8.4%, down from 13.4% a year earlier but up from 4.6% in the first quarter. Walter said DynaEnergetics benefited from approximately $1.5 million in tariff refunds during the second quarter, stemming from government refunds and vendor negotiations. Pricing pressure, an unfavorable sales mix and higher input costs weighed on profitability compared with the prior year. DMC’s third-quarter guidance does not assume tariff refunds, he said. The company recently completed its first shipment of a perforating system designed for enhanced geothermal systems, or EGS. O’Leary described EGS as an emerging source of baseload power that could create an opportunity for DynaEnergetics, though management said the market remains at an early stage. O’Leary said the company expects improved well-completion activity in North America during the second half, although the timing of that recovery remains uncertain. He also pointed to potential supply-chain and freight disruptions affecting European operations and Middle Eastern customers. NobelClad, DMC’s composite metals business, saw second-quarter sales decline 17% from a year earlier, primarily because of lower global oil-and-gas activity. Sales rose 15% sequentially, however, due to deliveries tied to a large petrochemical order. NobelClad’s adjusted EBITDA margin was 13.7%, compared with 16.5% a year earlier and 9.8% in the first quarter. Management said the business maintains a healthy backlog, and that increased shipments, including deliveries previously delayed by customers, are expected to support stronger second-half results. DMC reported second-quarter SG&A expense of $24.5 million, or 15.6% of sales, down from 16.8% of sales in the year-earlier quarter and 18.1% in the first quarter. The company recorded adjusted net income attributable to DMC of $727,000, or $0.04 per diluted share. At quarter-end, DMC had $28.6 million in cash and cash equivalents. Net debt was $30.5 million, compared with $18.7 million at the end of 2025. Walter said the increase primarily reflected higher borrowings under the company’s credit facility to fund working-capital needs. Net cash used in operating activities was $8 million during the quarter. For the third quarter, DMC expects: Sales of $158 million to $168 million. Adjusted EBITDA attributable to DMC of $10 million to $13 million. The outlook assumes steady Arcadia performance, higher well-completion activity at DynaEnergetics, including in oil-and-gas and EGS markets, and increased NobelClad product shipments. Management cautioned that guidance does not account for possible additional international supply-chain disruptions tied to renewed Middle East hostilities, aluminum-price volatility or weaker end-market conditions. Walter also updated investors on the non-controlling interest in Arcadia. DMC acquired a 60% stake in the business in 2021, while its joint-venture partner retained a 40% interest with a net value at that time of about $162 million. DMC has the right to acquire the remaining interest through a cash-settled call option. The joint-venture partner’s put option becomes exercisable Sept. 6. If the put is exercised, DMC may settle entirely in cash or with a combination of 20% cash and 80% preferred shares. Walter said the preferred shares would be convertible on a one-for-one basis, but conversion and related voting rights would be limited to 19.9% of DMC’s outstanding common shares before issuance under Nasdaq rules. Any conversion above that threshold would require shareholder approval. The preferred shares would be subject to equal annual cash redemptions over three years, provided DMC has legally available funds. Walter said Delaware law and the company’s board oversight prevent redemptions that could impair operations, harm creditors or threaten the company’s solvency. If shares could not be redeemed at a given time, DMC would not be in default under the preferred-share governing documents. DMC Global Inc (NASDAQ: BOOM) is a diversified industrial company headquartered in Houston, Texas. It operates through two core business segments—EVI and MECO—that deliver engineered products and services primarily to the mining, oil and gas, and water treatment markets. The company focuses on innovation, precision manufacturing and aftermarket support to help clients improve operational efficiency and safety in challenging environments. The EVI segment, operating under the DynaEnergetics brand, designs and manufactures explosive perforating systems, well completion tools and precision components for the non-metallic mining and oilfield services industries. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "DMC Global Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

DMC Global (BOOM) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of a loss of $0.15 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +126.67%. A quarter ago, it was expected that this diversified holding company would post a loss of $0.31 per share when it actually produced a loss of $0.28, delivering a surprise of +9.68%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. DMC Global, which belongs to the Zacks Industrial Services industry, posted revenues of $156.95 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.36%. This compares to year-ago revenues of $155.49 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. DMC Global shares have lost about 18.4% since the beginning of the year versus the S&P 500's gain of 8.5%. While DMC Global has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for DMC Global was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.05 on $155.5 million in revenues for the coming quarter and -$0.29 on $590.17 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Industrial Services is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Eos Energy Enterprises, Inc. (EOSE), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This company is expected to post quarterly loss of $0.27 per share in its upcoming report, which represents a year-over-year change of +74.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Eos Energy Enterprises, Inc.'s revenues are expected to be $68.77 million, up 351.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DMC Global (BOOM) : Free Stock Analysis Report Eos Energy Enterprises, Inc. (EOSE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second quarter sales were $157.0 million Net income attributable to DMC was $0.5 million, or $0.10 per diluted share Adjusted EBITDA attributable to DMC* was $10.7 million BROOMFIELD, Colo., July 29, 2026 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) today reported financial results for its second quarter ended June 30, 2026. Consolidated sales and adjusted EBITDA attributable to DMC were at or above the high end of management's forecasts, driven by meaningfully improved results at Arcadia Products, DMC’s building products business, which delivered its strongest sales performance since the second quarter of 2024. Second quarter consolidated sales were $157.0 million, level with the 2025 second quarter and up 16% sequentially. Adjusted EBITDA attributable to DMC was $10.7 million, down 21% versus the 2025 second quarter, and up 174% sequentially. The year-over-year decline in adjusted EBITDA was driven by unfavorable mix, higher input costs and price pressure at DynaEnergetics, DMC’s energy products business. The commercial construction market, particularly for larger, longer-term project business, remains highly challenged as reflected by the American Institute of Architects’ Architectural Billings Index, which has gone a record 41 consecutive months without a majority of firms reporting billings growth. Despite this, Arcadia reported second quarter sales of $67.4 million, up 9% versus the year-ago second quarter, and up 19% sequentially. Adjusted EBITDA attributable to DMC was $5.5 million, up 36% year over year and up 135% sequentially due to higher sales and improved fixed cost absorption. Arcadia’s improved performance was driven by successful efforts to strengthen its short-cycle commercial product line through improved product availability and service across its network of regional service centers. The high-end residential windows and door line also reported improved year-over-year performance. Meanwhile, Arcadia’s sales also benefitted from higher average aluminum prices, which were up 79% year over year and 11% sequentially. DynaEnergetics reported second quarter sales of $67.4 million, flat versus the year-ago second quarter, and up 13% sequentially. Adjusted EBITDA, which included $1.5 million in tariff refunds, was $5.6 million, down 37% from the 2025 second quarter and up 105% from the prior quarter. The sequential increase was driven by sales growth and tariff refunds, while the year-over-year decline resulted from previously mentioned unfavorable mix, input-cost and price factors. Demand at DynaEnergetics remains steady across its North American and international markets. DynaEnergetics also recently completed the first customer deliveries of a new perforating system purpose-built for Enhanced Geothermal Systems (EGS) applications, which often involve large wellbores and extreme downhole conditions. At NobelClad, DMC’s composite metals business, second quarter sales were $22.2 million, down 17% versus last year’s second quarter, but up 15% sequentially. Second quarter sales were negatively impacted by customer delays in taking delivery of certain clad-plate orders. Adjusted EBITDA was $3.0 million, down 31% year over year, but up 60% versus the prior quarter. NobelClad ended the second quarter with an order backlog of $63.5 million versus $70.3 million at the end of the 2026 first quarter. Shipments from NobelClad’s backlog are expected to improve during the third quarter as customer delays in delivery acceptance abate. “Although each of our businesses continues to be impacted by difficult end market conditions, we benefitted from specific improvement initiatives discussed in prior quarters, most notably at Arcadia,” said James O’Leary, president and CEO. Looking ahead, both DynaEnergetics and NobelClad should benefit as market headwinds begin to ease. Finally, I would like to thank our associates for their continued hard work and focus during the most recent quarter.” GuidanceThird quarter sales are expected to be in a range of $158 million to $168 million, with adjusted EBITDA attributable to DMC anticipated in a range of $10 million to $13 million. The expected sequential improvements reflect steady performance at Arcadia, expected increases in well completion activity in DynaEnergetics’ oil and gas and EGS markets, and increased project shipments at NobelClad. DMC’s third quarter guidance does not contemplate increased disruptions in international supply chains due to ongoing hostilities in the Middle East, which could impact both DynaEnergetics and NobelClad, continued volatility in aluminum input costs at Arcadia, or generally weaker end market conditions. This guidance remains highly dependent on macroeconomic conditions, particularly within DMC’s core energy and construction markets, and may change—either positively or negatively—as these volatile factors evolve throughout 2026. Summary Second Quarter Results Arcadia Products DynaEnergetics NobelClad NobelClad's rolling 12-month bookings were $106.9 million, and the 12-month book-to-bill ratio was 1.33. Conference call informationThe 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:https://event.choruscall.com/mediaframe/webcast.html?webcastid=JzbhrP5f 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 consolidated cash and cash equivalents per the Condensed Consolidated Balance Sheets. 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 third quarter 2026 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 Products, 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 LanguageExcept 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 2026 guidance on sales and adjusted EBITDA attributable to DMC; the expectation of accelerated order shipments at NobelClad as delays in order acceptance by customers is expected to abate; the expected easing of macroeconomic headwinds at DynaEnergetics and NobelClad; the expected increase in well completion activity in DynaEnergetics’ end markets, and the expected steady performance in results at Arcadia. 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: changes in global economic conditions, including tariffs or reciprocal tariffs; our ability to obtain new contracts at attractive prices; the size and timing of customer orders and shipments; product pricing and margins; our ability to realize sales from our backlog and our ability to adjust our manufacturing and supply chain; fluctuations in customer demand; our ability to manage periods of growth and contraction effectively; general economic conditions, both domestic and foreign, impacting our business and the business of the end-market users we serve; competitive factors; the timely completion of contracts; the timing and size of expenditures; the timely receipt of government approvals and permits; the price and availability of metal and other raw materials; the adequacy of local labor supplies at our facilities; current or future limits on manufacturing capacity at our various operations; the impact of catastrophic weather events on our business and that of our customers; the ability to remain an innovative leader in our fields of business; the costs and impacts of pending or future litigation or regulatory matters; changes to legislation, regulation or public sentiment related to our business and the industries in which our customers operate; the impacts of trade and economic sanctions or other restrictions imposed by the European Union, the United States or other countries; costs and risks associated with compliance with laws and regulations, including the United States Foreign Corrupt Practices Act and similar legislation; the availability and cost of funds; fluctuations in foreign currencies; actions of activist stockholders or others; the impact of our stockholder protection rights agreement, which includes terms and conditions that could discourage a takeover or other transaction that stockholders may consider favorable, 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, 2025. 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. Reconciliation to net income (loss) attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share Reconciliation to net loss attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share Arcadia Products DynaEnergetics NobelClad Adjusted Net Income (Loss)* and Adjusted Diluted Earnings per Share *Net income (loss) attributable to DMC Global Inc. prior to the adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share (1) Calculated using diluted weighted average shares outstanding of 20,235,822. (1) Calculated using diluted weighted average shares outstanding of 20,066,158. (1) Calculated using diluted weighted average shares outstanding of 20,134,760. (1) Calculated using diluted weighted average shares outstanding of 20,133,159. (1) Calculated using diluted weighted average shares outstanding of 19,861,073. Segment Adjusted EBITDA Arcadia Products DynaEnergetics NobelClad CONTACT:Geoff High, Vice President of Investor Relations303-604-3924

BROOMFIELD, Colo., April 30, 2026 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) today reported financial results for its first quarter ended March 31, 2026. DMC’s businesses continued to navigate a broad range of macroeconomic challenges across the Company’s construction, energy and industrial infrastructure markets. Despite these headwinds, DMC delivered financial results that were within management’s expectations. First quarter consolidated sales were $135.6 million, down 15% from the 2025 first quarter and down 6% sequentially. Adjusted EBITDA attributable to DMC was $3.9 million versus $14.4 million in last year’s first quarter, and negative ($1.6) million in the fourth quarter. The conflict in the Middle East has impacted each of the Company’s markets, as supply chain issues, international oil production disruptions, and higher raw material prices – notably aluminum – created significant challenges. Arcadia Products, DMC’s architectural building products business, reported first quarter sales of $56.7 million, flat sequentially and down 14% from last year’s first quarter, which benefited from a large project in southern California. Sharply higher aluminum prices and elevated interest rates continued to result in soft demand across Arcadia’s commercial and residential end markets. With fewer project opportunities available, the bidding environment remained highly competitive and pricing pressure persisted. Average aluminum costs reached multi-year highs during the first quarter, increasing 64% year over year and 16% sequentially. First quarter adjusted EBITDA attributable to DMC was $2.3 million, down from $5.6 million in the 2025 first quarter and $2.4 million in the prior quarter. DynaEnergetics reported first quarter sales of $59.5 million, down 9% year over year and down 14% sequentially. The declines primarily reflect lower unit sales, a further reduction in well completion activity and a highly competitive pricing environment in DynaEnergetics’ core North American market. Sales were also impacted by delayed product shipments into the Middle East due to the conflict in Iran. Adjusted EBITDA was $2.7 million versus $7.4 million in the 2025 first quarter and negative ($2.7) million in the prior quarter, which was impacted by approximately $7 million in discrete accounts receivable and inventory write-offs. The year-over-year decline in adjusted EBITDA was primarily driven by the imposition of tariffs in April 2025. At NobelClad, DMC’s composite metals business, first quarter sales were $19.3 million, down 31% versus last year’s first quarter, but up 9% sequentially. The year-over-year decline reflects the impact of shipments on a large China-based project in last year’s first quarter, as well as reduced bookings during the first half of 2025, when uncertainty associated with rapidly evolving U.S. and reciprocal tariff policies slowed global project activity. The sequential increase was driven by initial deliveries on a record-setting international petrochemical project, with additional shipments expected throughout the remainder of the year. Adjusted EBITDA was $1.9 million, down from $5.4 million in the year-ago first quarter and $2.1 million in the previous quarter. NobelClad ended the first quarter with an order backlog of $70.3 million, up 12% from the end of the 2025 fourth quarter and the highest level in more than 15 years. “DMC’s businesses are operating in a highly challenged environment that was further impacted by geopolitical developments during the first quarter,” said James O’Leary, president and CEO. “Despite these challenges, our teams delivered results consistent with our expectations. As we remain focused on disciplined execution and cost management, we are also pursuing opportunities in existing and adjacent markets, most notably the enhanced geothermal sector. Finally, I’d like to thank our associates for their continued dedication and focus in a difficult operating environment.” Guidance Second quarter sales are expected to be in a range of $148 million to $158 million, with adjusted EBITDA attributable to DMC anticipated in a range of $6 million to $8 million. The expected sequential improvements reflect anticipated demand growth at each of DMC’s businesses. DynaEnergetics expects higher order activity in both international and North American markets, while Arcadia anticipates a modest sequential increase in activity following a seasonally soft first quarter. NobelClad expects increased shipments related to a large international petrochemical order. DMC’s second quarter guidance does not contemplate increased disruptions in international supply chains, which could delay shipments by DynaEnergetics into the Middle East, impact the delivery of raw materials and customer orders at NobelClad, and further drive-up aluminum input costs at Arcadia. Management noted that several factors across DMC’s end markets point to potential demand improvement over the next several quarters. Multiple large oilfield service companies have indicated that the conflict in the Middle East may have lasting implications for higher oil prices, supporting increased well completion activity and full project calendars in North America. In addition, growing interest in enhanced geothermal applications—leveraging well completion technologies developed by the oil and gas industry—could represent a long-term opportunity for DynaEnergetics. At $70.3 million, NobelClad’s order backlog is at its highest level in more than 15 years. The business is also monitoring several positive leading indicators, including expected increases in U.S. Navy spending on enhanced naval readiness, and industrial infrastructure repair and reconstruction in the Middle East. A key leading indicator for Arcadia is the Architectural Billings Index (ABI). In March 2026, the ABI for Arcadia’s core western U.S. market rose above 50 for the first time since December 2024, indicating that more firms are reporting increased billings than those reporting declining billings. This guidance remains highly dependent on macroeconomic conditions, particularly within DMC’s core energy and construction markets, and may change—either positively or negatively—as these volatile factors evolve throughout 2026. Summary First Quarter Results Arcadia Products DynaEnergetics NobelClad NobelClad's rolling 12-month bookings were $113.1 million, and the 12-month book-to-bill ratio was 1.34. 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: https://event.choruscall.com/mediaframe/webcast.html?webcastid=bHcTbFnv 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 consolidated cash and cash equivalents per the Condensed Consolidated Balance Sheets. 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 2026 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 Products, 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 second quarter 2026 guidance on sales and adjusted EBITDA attributable to DMC; the expected timing of shipments on NobelClad’s record-setting petrochemical order; anticipated demand growth during the second quarter and potentially longer term at each of DMC’s businesses; an expected increase in order activity in both international and North American markets at DynaEnergetics due to potential increased well completion activity; the prospect that growing interest in Enhanced Geothermal Systems could represent a long-term opportunity for DynaEnergetics; modest sequential increase in activity at Arcadia; and the potential benefits to NobelClad of expected increases in U.S. Navy spending on enhanced naval readiness, and industrial infrastructure repair and reconstruction in the Middle East. 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: changes in global economic conditions, including tariffs or reciprocal tariffs; our ability to obtain new contracts at attractive prices; the size and timing of customer orders and shipments; product pricing and margins; our ability to realize sales from our backlog and our ability to adjust our manufacturing and supply chain; fluctuations in customer demand; our ability to manage periods of growth and contraction effectively; general economic conditions, both domestic and foreign, impacting our business and the business of the end-market users we serve; competitive factors; the timely completion of contracts; the timing and size of expenditures; the timely receipt of government approvals and permits; the price and availability of metal and other raw materials; the adequacy of local labor supplies at our facilities; current or future limits on manufacturing capacity at our various operations; the impact of catastrophic weather events on our business and that of our customers; the ability to remain an innovative leader in our fields of business; the costs and impacts of pending or future litigation or regulatory matters; changes to legislation, regulation or public sentiment related to our business and the industries in which our customers operate; the impacts of trade and economic sanctions or other restrictions imposed by the European Union, the United States or other countries; costs and risks associated with compliance with laws and regulations, including the United States Foreign Corrupt Practices Act and similar legislation; the availability and cost of funds; fluctuations in foreign currencies; actions of activist stockholders or others; the impact of our stockholder protection rights agreement, which includes terms and conditions that could discourage a takeover or other transaction that stockholders may consider favorable, 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, 2025. 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. Reconciliation to net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share Arcadia Products DynaEnergetics NobelClad DMC Global EBITDA and Adjusted EBITDA Adjusted Net (Loss) Income* and Adjusted Diluted Earnings per Share *Net (loss) income attributable to DMC Global Inc. prior to the adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share (1) Calculated using diluted weighted average shares outstanding of 20,066,158. (1) Calculated using diluted weighted average shares outstanding of 19,998,353. (1) Calculated using diluted weighted average shares outstanding of 19,816,281. Segment Adjusted EBITDA Arcadia Products DynaEnergetics NobelClad CONTACT: Geoff High, Vice President of Investor Relations 303-604-3924

Consolidated Q1 results showed sales of $135.6 million (down 15% year-over-year, 6% sequentially) with adjusted EBITDA of $3.9 million versus $14.4 million a year earlier and an adjusted net loss attributable to DMC of $5.7 million (loss per share $0.28), compressing margins to about 4%. Business-specific headwinds were acute: Arcadia margins squeezed by aluminum costs that rose 64% year-over-year and competitive pricing, DynaEnergetics faced lower North American activity plus tariffs (implemented April 2025) and Middle East shipment delays, while NobelClad’s sales fell but its backlog reached $70.3 million, the highest in more than 15 years. Management guides Q2 sales of $148–158 million and adjusted EBITDA of $6–8 million expecting sequential improvement, but cautions the outlook is sensitive to further supply-chain disruption, tariff shifts, and aluminium inflation; DMC ended the quarter with about $32 million cash and $54 million total debt (net debt $22.4 million). Interested in DMC Global? Here are five stocks we like better. DMC Global (NASDAQ:BOOM) reported first-quarter results that reflected what President and CEO James O’Leary described as continuing macroeconomic pressure across construction, energy, and industrial end markets, compounded by the late-February onset of conflict in the Middle East. O’Leary said the conflict “intensified these headwinds,” disrupting supply chains and international oil production and contributing to raw material inflation—particularly aluminum, which he called Arcadia’s “biggest cost.” Despite those conditions, O’Leary said the company’s performance landed “within our admittedly moderated expectation range.” → Palantir Is Down 30%: Noise? Or a Signal to Accumulate? Consolidated first-quarter sales were $135.6 million, down 15% from the prior-year quarter and down 6% sequentially. Adjusted EBITDA attributable to DMC was $3.9 million, compared with $14.4 million a year earlier and negative $1.6 million in the fourth quarter. Chief Financial Officer Eric Walter said consolidated adjusted EBITDA margin before allocations of non-controlling interests (NCI) was 4%, down from 11.4% in the year-ago quarter, but improved from “break even” in the fourth quarter. First-quarter SG&A expense was $24.6 million, or 18.1% of sales, compared with 17.8% of sales a year earlier and 20.7% in the fourth quarter. Walter said the sequential decline in SG&A as a percentage of sales “principally relates to the discrete AR charges at Dyna in the fourth quarter.” → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss On the bottom line, Walter reported an adjusted net loss attributable to DMC of $5.7 million, with an adjusted loss per share of $0.28. At Arcadia, the building products business, first-quarter sales were $56.7 million, down 14% year-over-year and flat sequentially. O’Leary attributed the year-over-year decline “principally” to the timing of a large mixed-use project in Southern California that benefited last year’s first quarter. He added that demand remained soft across commercial and residential markets as aluminum prices and high interest rates continued to weigh on customer demand and project activity. → Did Qualcomm Just Put Apple in Check? O’Leary said average aluminum costs reached multiyear highs, rising 64% year-over-year and 16% sequentially, while a competitive bidding environment continued to pressure pricing. Arcadia’s adjusted EBITDA attributable to DMC was $2.3 million, down from $5.6 million in the prior-year quarter and roughly in line with $2.4 million in the prior quarter. Walter said Arcadia’s adjusted EBITDA margin before NCI was 6.9%, down from 14.2% a year earlier and 7.1% in the fourth quarter, citing competitive pricing, high aluminum input costs, and lower absorption of fixed manufacturing overhead. In the Q&A, O’Leary said Arcadia margins were likely to remain under pressure as recent aluminum increases carry forward. “I’d expect margins to still be challenged for at least the next quarter or two at Arcadia as the aluminum issue works through,” he said, adding that continued high aluminum prices could prolong the challenge. DynaEnergetics, the company’s energy products business, posted first-quarter sales of $59.5 million, down 9% year-over-year and down 14% sequentially. O’Leary said declines were driven by lower product sales in North America as well completion activity continued to decline, alongside competitive pricing. He also said the Middle East conflict delayed customer shipments into the region. Dyna’s adjusted EBITDA was $2.7 million, compared with $7.4 million a year earlier and negative $2.7 million in the fourth quarter. O’Leary said the year-over-year decline was “primarily driven by tariffs implemented in April 2025,” while the sequential improvement reflected the absence of discrete accounts receivable and inventory charges recorded in the fourth quarter. Walter put Dyna’s adjusted EBITDA margin at 4.6%, down from 11.3% a year ago, and improved from -4% in the fourth quarter. Discussing potential improvements in oilfield activity, O’Leary emphasized that Dyna operates with “very short lead times,” but he also cautioned that industry commentary suggests any meaningful pickup is more likely in the back half of the year rather than the second quarter. O’Leary also told analysts that cost savings from automation and product re-engineering initiatives are “already baked into the guidance” and expected to carry into future periods. On geothermal, he said the company expects to “book sales this year,” though not at a level that would be broken out separately, while describing geothermal as a potential long-term growth opportunity for Dyna. NobelClad, DMC’s composite metal business, generated first-quarter sales of $19.3 million, down 31% year-over-year, which O’Leary attributed primarily to the timing of large project shipments that benefited the prior-year period. He also cited “reduced bookings in the first half of 2025 due to uncertainty around U.S. and reciprocal tariff policies.” Sequentially, sales increased 9%, supported by initial deliveries on a large international petrochemical project, with additional shipments expected throughout the remainder of the year. NobelClad adjusted EBITDA was $1.9 million, compared with $5.4 million a year ago and $2.1 million in the prior quarter. Walter said NobelClad’s adjusted EBITDA margin was 9.8%, down from 19.2% in the year-ago quarter and 11.9% in the fourth quarter, reflecting both prior-year project timing and a “less favorable project mix” in the current quarter. O’Leary reported that NobelClad’s order backlog ended the quarter at $70.3 million, up 12% sequentially and “the highest level in more than 15 years.” For the second quarter, Walter guided to sales of $148 million to $158 million and adjusted EBITDA attributable to DMC of $6 million to $8 million. He said the company expects the sequential improvement to be driven by demand growth across all three businesses, including stronger order activity at DynaEnergetics, a “modest pickup” at Arcadia after a seasonally softer first quarter, and higher NobelClad shipments tied to the international petrochemical project. In the Q&A, management also noted that the largest sequential increase is expected at NobelClad due to that project ramp. Walter cautioned that the outlook assumes a “relatively consistent operating environment” and does not factor in additional international supply chain disruptions that could affect Dyna shipments into the Middle East, NobelClad raw material availability and order timing, or further increase aluminum input costs at Arcadia. He also noted that guidance remains sensitive to macroeconomic conditions and evolving tariff policies in the company’s core energy and construction markets. On liquidity, Walter said DMC ended the quarter with approximately $32 million in cash and cash equivalents and $54 million in total debt, with net debt of $22.4 million. Looking beyond the near-term volatility, O’Leary said the company is hearing “early indication” from peers and competitors that demand in key end markets may be improving. He cited industry commentary about “higher for longer” oil prices supporting plans for increased drilling and completion activity, and pointed to Arcadia’s tracking of the Architectural Billings Index, noting that in March the index in the company’s primary Western U.S. market rose above 50 for the first time since December 2024. Still, he characterized the current environment for construction as “a pretty gloomy year,” while adding that conditions “do feel like they’ve stopped getting worse.” DMC Global Inc (NASDAQ: BOOM) is a diversified industrial company headquartered in Houston, Texas. It operates through two core business segments—EVI and MECO—that deliver engineered products and services primarily to the mining, oil and gas, and water treatment markets. The company focuses on innovation, precision manufacturing and aftermarket support to help clients improve operational efficiency and safety in challenging environments. The EVI segment, operating under the DynaEnergetics brand, designs and manufactures explosive perforating systems, well completion tools and precision components for the non-metallic mining and oilfield services industries. The article "DMC Global Q1 Earnings Call Highlights" was originally published by MarketBeat.