DMC Global Inc.

DMC reported second-quarter consolidated sales of $157 million and adjusted EBITDA attributable to DMC of $10.7 million, both at the high end or above the high end of guidance. Second-quarter adjusted net income attributable to DMC was $727,000, or $0.04 per diluted share. Arcadia’s adjusted EBITDA margin before NCI allocation was 13.6%, up from 10.9% in the year-ago quarter and 6.9% in Q1. DynaEnergetics’ adjusted EBITDA margin was 8.4%, down from 13.4% a year ago and up from 4.6% in Q1; this included a $1.5 million tariff refund. NobelClad’s adjusted EBITDA margin was 13.7%, down from 16.5% a year ago and up from 9.8% in Q1. SG&A was $24.5 million, or 15.6% of sales, versus 16.8% a year ago and 18.1% in Q1. Cash and cash equivalents were $28.6 million, net debt was $30.5 million versus $18.7 million at 2025 year-end, and net cash used in operations was $8 million. For Q3, management guided to sales of $158 million to $168 million and adjusted EBITDA attributable to DMC of $10 million to $13 million. The outlook assumes steady Arcadia performance, more well completion activity at DynaEnergetics, and higher shipments at NobelClad, but does not include tariff refunds and does not contemplate added supply-chain disruptions, weaker end markets, or renewed aluminum volatility.

Jim O'Leary said the quarter showed real progress despite “continued headwinds” across all end markets, especially at Arcadia. He emphasized that Arcadia’s turnaround came from stability, better product availability and service, and refocusing the residential business on attainable targets. For DynaEnergetics, he pointed to a possible second-half pickup in well completions and early traction in enhanced geothermal systems, while noting it is still too early to size that market.

Eric Walter highlighted margin recovery at Arcadia, where higher sales and a right-sized residential offering helped lift adjusted EBITDA margin to 13.6%. He also noted DynaEnergetics’ 8.4% margin benefited from a $1.5 million tariff refund, while NobelClad’s margin improved sequentially to 13.7%. On the balance sheet, he said cash was $28.6 million, net debt was $30.5 million, and operating cash usage of $8 million reflected working-capital investment as activity improved. He also stressed that Q3 guidance excludes tariff refunds and could be affected by Middle East disruptions, aluminum volatility, or weaker demand.

Analysts focused on whether Arcadia had recovered all lost short-cycle business, with management saying most of the controllable share appears to have returned, though some pricing-related share is still in the market and they do not want to chase “bottom of the barrel” pricing. Questions also centered on DynaEnergetics, where management said industry anecdotes point to a second-half improvement and possible momentum into 2027, but visibility remains limited and pricing is still highly competitive. Analysts pressed on the enhanced geothermal opportunity and the Arcadia put-call structure; management said geothermal is early but potentially meaningful, and the put-call disclosure was meant to clarify dilution, redemption mechanics, and the fact that shareholders control conversion above 19.9%.