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.”
Quarterly results show lower sales and profitability versus prior year
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.”
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.
Arcadia: aluminum costs and competitive bidding weighed on margins
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.
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: lower activity, tariffs, and delayed Middle East shipments
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: backlog hits highest level in more than 15 years
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.”
Second-quarter outlook calls for sequential improvement, but risks remain
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.”
About DMC Global NASDAQ: BOOM
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.
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