Fresh Del Monte Produce Inc.

DMC reported second-quarter consolidated sales of $157 million, adjusted EBITDA attributable to DMC of $10.7 million, and adjusted net income attributable to DMC of $727 thousand, or $0.04 per diluted share. Arcadia’s adjusted EBITDA margin before NCI 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% last year but up from 4.6% in Q1; and NobelClad’s adjusted EBITDA 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. The company ended Q2 with $28.6 million in cash and cash equivalents, net debt of $30.5 million, and used $8 million in operating cash flow. For Q3, management expects sales of $158 million to $168 million and adjusted EBITDA attributable to DMC of $10 million to $13 million, with no tariff refunds assumed in the guidance and risks including Middle East supply-chain disruptions, aluminum volatility, weaker end markets, and tariff policy changes.

Jim O'Leary said the quarter showed meaningful progress despite “continued headwinds” across end markets, especially at Arcadia, where management’s stability and service-focused changes helped bring back short-cycle business and improve residential performance. He emphasized that the commercial construction market remains “horrible” and that some of Arcadia’s gains are tied to restoring customer and supplier trust rather than a better macro backdrop. On DynaEnergetics, he highlighted steady demand, potential upside from enhanced geothermal systems, and expected second-half improvement in well completions; on NobelClad, he pointed to backlog and delayed deliveries as drivers of better results later in the year.

Eric Walter quantified the quarter’s margin improvement and liquidity. He said Arcadia’s margin rose to 13.6% on improved fixed-cost absorption and a rightsized residential offering, DynaEnergetics’ 8.4% margin benefited from a $1.5 million tariff refund but was pressured by pricing and mix, and NobelClad’s 13.7% margin improved sequentially on stronger shipments. He also noted SG&A of $24.5 million, cash of $28.6 million, net debt of $30.5 million versus $18.7 million at year-end, and $8 million of cash used in operations due to working-capital investment. For Q3, he guided to $158 million to $168 million of sales and $10 million to $13 million of adjusted EBITDA attributable to DMC, explicitly excluding further tariff refunds.

Analysts focused on whether Arcadia had fully recovered lost share, and management said it likely recovered “a lot” of the share within its control, but some pricing-related share remains with competitors that DMC does not want to chase. Questions on DynaEnergetics centered on activity momentum, pricing, and geothermal; management said industry chatter still points to a second-half pickup and possible momentum into 2027, while geothermal is still early but could be meaningful, with Fervo cited as the key indicator. The most detailed Q&A came on the Arcadia/put-call structure: management explained the September 6 put exercisability, the 19.9% voting cap on preferred conversion without shareholder approval, and that any redemption depends on legally available funds and board approval, stressing there is no automatic default if preferred shares cannot be redeemed on schedule.