DMC Global Reports Second Quarter Financial Results

Second quarter sales were $155.5 millionNet income attributable to DMC was $0.1 millionAdjusted net income attributable to DMC* was $2.5 million, or $0.12 per diluted shareAdjusted EBITDA attributable to DMC* was $13.5 million, while total adjusted EBITDA, inclusive of non-controlling interest (NCI), was $16.2 millionTotal debt reduced by 17% year to date BROOMFIELD, Colo., Aug. 05, 2025 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) today announced financial results for its second quarter ended June 30, 2025. Consolidated second-quarter sales totaled $155.5 million, a decline of 2% sequentially and 9% versus the second quarter of 2024. Adjusted EBITDA attributable to DMC was $13.5 million, down 6% sequentially and down 30% versus the year-ago period, but above management’s guidance range of $10 million to $13 million, as DMC’s businesses executed on their operational and strategic initiatives while navigating a period of exceptionally low visibility. Sales at Arcadia, DMC’s architectural building products business, were $62.0 million, down 5% sequentially and down 11% versus last year’s second quarter. Last year’s second quarter benefitted from strong demand for high-end residential and commercial exterior products. As previously discussed and expected, the high-end residential market has been significantly weaker in the current year, reflecting persistently high interest rates and generally lower construction activity. The sequential decline also reflects lower project billings following the recent completion of a large mixed-use development in California. Second quarter adjusted EBITDA attributable to DMC was $4.0 million, down 28% sequentially and 46% from the year-ago second quarter. The disproportionate declines in adjusted EBITDA were due to lower absorption of fixed manufacturing overhead on decreased sales. During the past several months, Arcadia rightsized its residential cost structure to align with current market activity while refocusing on its core commercial operations. DynaEnergetics, DMC’s energy products business, reported second quarter sales of $66.9 million, up 2% sequentially and down 12% versus the year-ago second quarter. The year-over-year decline principally reflects lower pricing and softer demand in DynaEnergetics’ core U.S. unconventional market, where the average number of operating frac crews declined 5% sequentially and 24% versus the second quarter last year. Adjusted EBITDA was $9.0 million, up 22% sequentially and 3% versus the second quarter last year. The improvements reflect overall lower material costs relative to prior year, in particular. At NobelClad, DMC’s composite metals business, sales were $26.6 million, down 5% sequentially and up 6% versus the year-ago second quarter. Order backlog at the end of the second quarter was $37 million versus $41 million at the end of the first quarter. The decline reflects ongoing uncertainty regarding U.S. tariff policy, which has prompted customers to delay purchasing decisions while they await clarity on future tariff actions. Adjusted EBITDA was $4.4 million, down 19% from the previous quarter and 23% from the year-ago period, primarily due to a less favorable order mix. “During the quarter, we focused on executing our operational and commercial strategies,” said James O’Leary, DMC’s president and CEO. “We concurrently made important progress on improving our financial position. Total debt was reduced by 17% year to date, and we amended our credit facility in June to enhance our financial flexibility as we prepare for the possible acquisition of the remaining 40% stake in Arcadia in late 2026. “I want to thank all of our DMC associates for their continued focus and dedication despite extremely difficult market conditions. Our people are the foundation of our long-term success.” Guidance Third quarter sales are expected to be in a range of $142 million to $150 million, with adjusted EBITDA attributable to DMC anticipated in a range of $8 million to $12 million. The wider-than-normal guidance range for adjusted EBITDA reflects increased uncertainty in DMC’s end markets. Conditions in the U.S. construction industry are expected to remain challenging, and Arcadia’s residential cost structure was rightsized to align with the current market, while management continues to focus on Arcadia’s core commercial operations. At DynaEnergetics, third quarter guidance assumes a sequential decline in well completion activity in U.S. onshore oil and gas markets, reflecting lower oil prices, fewer active frac crews, and ongoing tariff issues. NobelClad’s sales are expected to be lower sequentially, reflecting the deferral of orders by customers impacted by still evolving tariff policies. The above guidance is heavily influenced by macroeconomic concerns, volatility and visibility issues created by the current state of tariff policies and energy markets. It is subject to change either upward or downward as market conditions evolve. Summary Second Quarter Results Three months ended Change Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Sequential Year-on-yearNet sales$155,487 $159,290 $171,179 (2)% (9)%Gross profit percentage 23.6% 25.9% 27.1% SG&A$26,147 $28,300 $27,122 (8)% (4)%Net income$321 $1,863 $6,293 (83)% (95)%Net income attributable to DMC$116 $677 $4,012 (83)% (97)%Diluted net (loss) income per share attributable to DMC$(0.24) $0.04 $0.24 (700)% (200)%Adjusted net income attributable to DMC$2,473 $2,170 $5,675 14% (56)%Adjusted diluted net income per share$0.12 $0.11 $0.29 9% (59)%Adjusted EBITDA attributable to DMC$13,538 $14,391 $19,420 (6)% (30)%Adjusted EBITDA before NCI allocation$16,228 $18,122 $24,398 (10)% (33)%Adjusted EBITDA before NCI allocation margin 10.4% 11.4% 14.3% Arcadia Three months ended Change Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Sequential Year-on-yearNet sales$61,980 $65,580 $69,748 (5)% (11)%Gross profit percentage 26.2% 31.0% 33.2% Adjusted EBITDA attributable to DMC$4,035 $5,596 $7,467 (28)% (46)%Adjusted EBITDA before NCI allocation$6,725 $9,327 $12,445 (28)% (46)%Adjusted EBITDA before NCI allocation margin 10.9% 14.2% 17.8% DynaEnergetics Three months ended Change Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Sequential Year-on-yearNet sales$66,862 $65,551 $76,210 2% (12)%Gross profit percentage 20.9% 19.5% 19.9% Adjusted EBITDA$8,979 $7,379 $8,752 22% 3%Adjusted EBITDA margin 13.4% 11.3% 11.5% NobelClad Three months ended Change Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Sequential Year-on-yearNet sales$26,645 $28,159 $25,221 (5)% 6%Gross profit percentage 24.7% 28.8% 32.6% Adjusted EBITDA$4,399 $5,416 $5,722 (19)% (23)%Adjusted EBITDA margin 16.5% 19.2% 22.7% NobelClad's rolling 12-month bookings were $80.7 million, and the 12-month book-to-bill ratio was 0.75. 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=YQzvAWQ8 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 MeasuresIn 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 total cash, cash equivalents and marketable securities.Free-cash flow: defined as cash flows from operating activities less net acquisitions of property, plant and equipment. 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 2025 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, 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 third quarter 2025 guidance on sales, adjusted EBITDA and the expected third quarter 2025 results (including billings) and underlying assumptions for each of Arcadia, DynaEnergetics and NobelClad. 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: our ability to realize sales from our backlog; our ability to obtain new contracts at attractive prices; the execution of purchase commitments by our customers, and our ability to successfully deliver on those purchase commitments; the size and timing of customer orders and shipments; the timely completion of contracts; changes to customer orders; product pricing and margins; fluctuations in customer demand; our ability to successfully navigate slowdowns in market activity or execute and capitalize upon growth opportunities; the success of DynaEnergetics’ product, technology, and margin enhancement initiatives; our ability to successfully protect our technology and intellectual property and the costs associated with these efforts; consolidation among DynaEnergetics’ customers; fluctuations in foreign currencies; fluctuations in tariffs and quotas; the cost and availability of energy; the cyclicality of our business; competitive factors; the timing and size of expenditures; the timing and price of metal and other raw material; the adequacy of local labor supplies at our facilities; changes in immigration laws or enforcement programs; our ability to attract and retain key personnel; current or future limits on manufacturing capacity at our various operations; government actions or other changes in laws and regulations; the availability and cost of funds; our ability to access our borrowing capacity under our credit facility; geopolitical and economic instability, including recessions, depressions, wars or other military actions; inflation; supply chain delays and disruptions; transportation disruptions; general economic conditions, both domestic and foreign, impacting our business and the business of our customers and the end-market users we serve; the potential effects of activist stockholder actions and actions that we may take to discourage takeover attempts, 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, 2024. 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. DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in Thousands, Except Share and Per Share Data)(unaudited) Three months ended Change Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Sequential Year-on-yearNET SALES$155,487 $159,290 $171,179 (2)% (9)%COST OF PRODUCTS SOLD 118,756 118,091 124,766 1% (5)%Gross profit 36,731 41,199 46,413 (11)% (21)%Gross profit percentage 23.6% 25.9% 27.1% COSTS AND EXPENSES: General and administrative expenses 15,905 16,674 15,623 (5)% 2%Selling and distribution expenses 10,242 11,626 11,499 (12)% (11)%Amortization of purchased intangible assets 4,763 4,763 5,307 —% (10)%Strategic review and related expenses 775 1,298 2,020 (40)% (62)%Restructuring expenses and asset impairments 1,149 325 279 254% 312%Total costs and expenses 32,834 34,686 34,728 (5)% (5)%OPERATING INCOME 3,897 6,513 11,685 (40)% (67)%OTHER EXPENSE: Other expense, net (346) (218) (284) 59% 22%Interest expense, net (1,811) (1,699) (2,316) 7% (22)%INCOME BEFORE INCOME TAXES 1,740 4,596 9,085 (62)% (81)%INCOME TAX PROVISION 1,419 2,733 2,792 (48)% (49)%NET INCOME 321 1,863 6,293 (83)% (95)%Less: Net income attributable to redeemable noncontrolling interest 205 1,186 2,281 (83)% (91)%NET INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS$116 $677 $4,012 (83)% (97)%NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS Basic$(0.24) $0.04 $0.24 (700)% (200)%Diluted$(0.24) $0.04 $0.24 (700)% (200)%WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 20,134,760 19,812,161 19,659,908 2% 2%Diluted 20,134,760 19,816,281 19,671,169 2% 2% Reconciliation to net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share Three months ended Jun 30, 2025 Mar 31, 2025 Jun 30, 2024Net income attributable to DMC Global Inc. stockholders$116 $677 $4,012Adjustment of redeemable noncontrolling interest (4,900) 81 793Net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest$(4,784) $758 $4,805 DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in Thousands, Except Share and Per Share Data)(unaudited) Six months ended Change Jun 30, 2025 Jun 30, 2024 Year-on-yearNET SALES$314,777 $338,048 (7)%COST OF PRODUCTS SOLD 236,847 249,283 (5)%Gross profit 77,930 88,765 (12)%Gross profit percentage 24.8% 26.3% COSTS AND EXPENSES: General and administrative expenses 32,579 31,603 3%Selling and distribution expenses 21,868 23,722 (8)%Amortization of purchased intangible assets 9,526 10,599 (10)%Strategic review expenses 2,073 4,189 (51)%Restructuring expenses and asset impairments 1,474 279 428%Total costs and expenses 67,520 70,392 (4)%OPERATING INCOME 10,410 18,373 (43)%OTHER EXPENSE: Other expense, net (564) (693) (19)%Interest expense, net (3,510) (4,633) (24)%INCOME BEFORE INCOME TAXES 6,336 13,047 (51)%INCOME TAX PROVISION 4,152 4,435 (6)%NET INCOME 2,184 8,612 (75)%Less: Net income attributable to redeemable noncontrolling interest 1,391 2,037 (32)%NET INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS$793 $6,575 (88)%NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS Basic$(0.20) $0.25 (180)%Diluted$(0.20) $0.25 (180)%WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 19,861,073 19,635,716 1%Diluted 19,861,073 19,647,005 1% Reconciliation to net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share Six months ended Jun 30, 2025 Jun 30, 2024Net income attributable to DMC Global Inc. stockholders$793 $6,575 Adjustment of redeemable noncontrolling interest (4,819) (1,514)Net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest$(4,026) $5,061 DMC GLOBAL INC.SEGMENT STATEMENTS OF OPERATIONS(Amounts in Thousands)(unaudited) Arcadia Three months ended Change Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Sequential Year-on-yearNet sales$61,980 $65,580 $69,748 (5)% (11)%Gross profit 16,250 20,361 23,157 (20)% (30)%Gross profit percentage 26.2% 31.0% 33.2% COSTS AND EXPENSES: General and administrative expenses 6,489 7,459 7,765 (13)% (16)%Selling and distribution expenses 4,290 4,818 4,116 (11)% 4%Amortization of purchased intangible assets 4,763 4,763 5,278 —% (10)%Restructuring expenses and asset impairments 192 325 279 (41)% (31)%Operating income 516 2,996 5,719 (83)% (91)%Adjusted EBITDA 6,725 9,327 12,445 (28)% (46)%Less: adjusted EBITDA attributable to redeemable noncontrolling interest (2,690) (3,731) (4,978) (28)% (46)%Adjusted EBITDA attributable to DMC Global Inc.$4,035 $5,596 $7,467 (28)% (46)% Six months ended Change Jun 30, 2025 Jun 30, 2024 Year-on-yearNet sales$127,560 $131,673 (3)%Gross profit 36,611 39,970 (8)%Gross profit percentage 28.7% 30.4% COSTS AND EXPENSES: General and administrative expenses 13,949 15,421 (10)%Selling and distribution expenses 9,107 8,584 6%Amortization of purchased intangible assets 9,526 10,555 (10)%Restructuring expenses and asset impairments 517 279 85%Operating income 3,512 5,131 (32)%Adjusted EBITDA 16,052 18,351 (13)%Less: adjusted EBITDA attributable to redeemable noncontrolling interest (6,421) (7,340) (13)%Adjusted EBITDA attributable to DMC Global Inc.$9,631 $11,011 (13)% DynaEnergetics Three months ended Change Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Sequential Year-on-yearNet sales$66,862 $65,551 $76,210 2% (12)%Gross profit 13,959 12,811 15,133 9% (8)%Gross profit percentage 20.9% 19.5% 19.9% COSTS AND EXPENSES: General and administrative expenses 3,028 2,747 3,011 10% 1%Selling and distribution expenses 3,774 4,476 5,041 (16)% (25)%Amortization of purchased intangible assets — — 29 —% (100)%Restructuring expenses and asset impairments 746 — — 100% 100%Operating income 6,411 5,588 7,052 15% (9)%Adjusted EBITDA$8,979 $7,379 $8,752 22% 3% Six months ended Change Jun 30, 2025 Jun 30, 2024 Year-on-yearNet sales$132,413 $154,332 (14)%Gross profit 26,770 32,104 (17)%Gross profit percentage 20.2% 20.8% COSTS AND EXPENSES: General and administrative expenses 5,775 5,903 (2)%Selling and distribution expenses 8,250 10,263 (20)%Amortization of purchased intangible assets — 44 (100)%Restructuring expenses and asset impairments 746 — 100%Operating income 11,999 15,894 (25)%Adjusted EBITDA$16,358 $19,291 (15)% NobelClad Three months ended Change Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Sequential Year-on-yearNet sales$26,645 $28,159 $25,221 (5)% 6%Gross profit 6,593 8,097 8,222 (19)% (20)%Gross profit percentage 24.7% 28.8% 32.6% COSTS AND EXPENSES: General and administrative expenses 852 1,192 1,023 (29)% (17)%Selling and distribution expenses 2,123 2,283 2,267 (7)% (6)%Restructuring expenses and asset impairments 211 — — 100% 100%Operating income 3,407 4,622 4,932 (26)% (31)%Adjusted EBITDA$4,399 $5,416 $5,722 (19)% (23)% Six months ended Change Jun 30, 2025 Jun 30, 2024 Year-on-yearNet sales$54,804 $52,043 5%Gross profit 14,690 16,866 (13)%Gross profit percentage 26.8% 32.4% COSTS AND EXPENSES: General and administrative expenses 2,043 2,096 (3)%Selling and distribution expenses 4,407 4,738 (7)%Restructuring expenses and asset impairments 211 — 100%Operating income 8,029 10,032 (20)%Adjusted EBITDA$9,815 $11,602 (15)% DMC GLOBAL INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in Thousands) Change Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sequential Year-end (unaudited) (unaudited) ASSETS Cash and cash equivalents$12,427 $14,705 $14,289 (15)% (13)%Accounts receivable, net 110,458 114,470 103,361 (4)% 7%Inventories 144,557 148,735 152,580 (3)% (5)%Prepaid expenses and other 12,732 18,999 18,792 (33)% (32)% Total current assets 280,174 296,909 289,022 (6)% (3)% Property, plant and equipment, net 130,124 128,955 129,276 1% 1%Purchased intangible assets, net 164,578 169,341 174,104 (3)% (5)%Other long-term assets 70,148 75,435 78,935 (7)% (11)% Total assets$645,024 $670,640 $671,337 (4)% (4)% LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY Accounts payable$41,450 $45,514 $45,059 (9)% (8)%Contract liabilities 12,026 18,538 23,162 (35)% (48)%Accrued income taxes 10,377 9,486 7,574 9% 37%Current portion of long-term debt 3,563 2,500 2,500 43% 43%Other current liabilities 34,143 35,725 35,807 (4)% (5)% Total current liabilities 101,559 111,763 114,102 (9)% (11)% Long-term debt 55,112 69,921 68,318 (21)% (19)%Deferred tax liabilities 1,191 728 711 64% 68%Other long-term liabilities 46,225 47,225 50,155 (2)% (8)%Redeemable noncontrolling interest 187,080 187,080 187,080 —% —%Stockholders’ equity 253,857 253,923 250,971 —% 1% Total liabilities, redeemable noncontrolling interest, and stockholders’ equity$645,024 $670,640 $671,337 (4)% (4)% DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in Thousands)(unaudited) Three months ended Six months ended Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Jun 30, 2025 Jun 30, 2024CASH FLOWS FROM OPERATING ACTIVITIES: Net income$321 $1,863 $6,293 $2,184 $8,612 Adjustments to reconcile net income to net cash from operating activities: Depreciation 3,707 3,660 3,431 7,367 6,850 Amortization of purchased intangible assets 4,763 4,763 5,307 9,526 10,599 Amortization of deferred debt issuance costs 231 217 217 448 407 Stock-based compensation 1,417 1,599 1,782 3,016 3,331 Bad debt expense (10) 706 560 696 1,036 Deferred income taxes 392 22 (746) 414 (1,292)Asset impairments 296 — — 296 — Other 433 555 197 988 (788)Change in working capital, net 3,696 (8,897) (14,698) (5,201) (12,972)Net cash provided by operating activities 15,246 4,488 2,343 19,734 15,783 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from maturities of marketable securities — — — — 3,000 Proceeds from sales of marketable securities — — — — 9,619 Acquisition of property, plant and equipment (2,921) (3,779) (2,547) (6,700) (5,515)Proceeds from property, plant and equipment reimbursements 1,362 426 — 1,788 — Proceeds on sale of property, plant and equipment 6 21 100 27 100 Proceeds from settlement of note receivable 4,167 — — 4,167 — Net cash provided by (used in) investing activities 2,614 (3,332) (2,447) (718) 7,204 CASH FLOWS FROM FINANCING ACTIVITIES: Repayments on term loan (625) (625) (625) (1,250) (118,125)Borrowings on term loan — — — — 50,000 Borrowings on revolving loans 38,359 8,500 6,700 46,859 77,150 Repayments on revolving loans (51,512) (6,375) (10,075) (57,887) (40,525)Payment of debt issuance costs (650) — — (650) (2,735)Distributions to redeemable noncontrolling interest holder (5,104) (1,151) (1,547) (6,255) (4,672)Net proceeds from issuance of common stock to employees and directors — — 132 — 132 Treasury stock purchases (79) (484) (16) (563) (952)Net cash used in financing activities (19,611) (135) (5,431) (19,746) (39,727)EFFECTS OF EXCHANGE RATES ON CASH (527) (605) (342) (1,132) 267 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (2,278) 416 (5,877) (1,862) (16,473)CASH AND CASH EQUIVALENTS, beginning of the period 14,705 14,289 20,444 14,289 31,040 CASH AND CASH EQUIVALENTS, end of the period$12,427 $14,705 $14,567 $12,427 $14,567 DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS(Amounts in Thousands)(unaudited) DMC Global EBITDA and Adjusted EBITDA Three months ended Change Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Sequential Year-on-yearNet income 321 1,863 6,293 (83)% (95)%Interest expense, net 1,811 1,699 2,316 7% (22)%Income tax provision 1,419 2,733 2,792 (48)% (49)%Depreciation 3,707 3,660 3,431 1% 8%Amortization of purchased intangible assets 4,763 4,763 5,307 —% (10)%EBITDA 12,021 14,718 20,139 (18)% (40)%Stock-based compensation 1,417 1,563 1,676 (9)% (15)%Strategic review and related expenses 775 1,298 2,020 (40)% (62)%Restructuring expenses and asset impairments 1,149 325 279 254% 312%Executive transition costs 520 — — 100% 100%Other expense, net 346 218 284 59% 22%Adjusted EBITDA$16,228 $18,122 $24,398 (10)% (33)%Less: adjusted EBITDA attributable to redeemable noncontrolling interest (2,690) (3,731) (4,978) (28)% (46)%Adjusted EBITDA attributable to DMC Global Inc.$13,538 $14,391 $19,420 (6)% (30)% Six months ended Change Jun 30, 2025 Jun 30, 2024 Year-on-yearNet income$2,184 $8,612 (75)%Interest expense, net 3,510 4,633 (24)%Income tax provision 4,152 4,435 (6)%Depreciation 7,367 6,850 8%Amortization of purchased intangible assets 9,526 10,599 (10)%EBITDA 26,739 35,129 (24)%Stock-based compensation 2,980 3,153 (5)%Strategic review expenses 2,073 4,189 (51)%Restructuring expenses and asset impairments 1,474 279 428%Executive transition costs 520 — 100%Other expense, net 564 693 (19)%Adjusted EBITDA$34,350 $43,443 (21)%Less: adjusted EBITDA attributable to redeemable noncontrolling interest (6,421) (7,340) (13)%Adjusted EBITDA attributable to DMC Global Inc.$27,929 $36,103 (23)% DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS(Amounts in Thousands)(unaudited) Adjusted Net Income* and Adjusted Diluted Earnings per Share *Net income attributable to DMC Global Inc. stockholders prior to the adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share Three months ended June 30, 2025 Amount Per Share (1)Net income attributable to DMC Global Inc.*$116 $—Strategic review and related expenses, net of tax 775 0.04Restructuring expenses and asset impairments, net of tax 1,062 0.05Executive transition costs, net of tax 520 0.03As adjusted$2,473 $0.12 (1) Calculated using diluted weighted average shares outstanding of 20,134,760 Three months ended March 31, 2025 Amount Per Share (1)Net income attributable to DMC Global Inc.*$677 $0.03Strategic review and related expenses, net of tax 1,298 0.07Restructuring expenses and asset impairments, net of tax 195 0.01As adjusted$2,170 $0.11 (1) Calculated using diluted weighted average shares outstanding of 19,816,281 Three months ended June 30, 2024 Amount Per Share (1)Net income attributable to DMC Global Inc.*$4,012 $0.20Strategic review and related expenses, net of tax 1,538 0.08Restructuring expenses and asset impairments, net of tax 125 0.01As adjusted$5,675 $0.29 (1) Calculated using diluted weighted average shares outstanding of 19,671,169 Six months ended June 30, 2025 Amount Per Share (1)Net income attributable to DMC Global Inc.*$793 $0.04Strategic review and related expenses, net of tax 2,073 0.10Restructuring expenses and asset impairments, net of tax 1,257 0.06Executive transition costs, net of tax 520 0.03As adjusted$4,643 $0.23 (1) Calculated using diluted weighted average shares outstanding of 19,861,073 Six months ended June 30, 2024 Amount Per Share (1)Net income attributable to DMC Global Inc.*$6,575 $0.33Strategic review and related expenses, net of tax 3,142 0.16Restructuring expenses and asset impairments, net of tax 125 0.01As adjusted$9,842 $0.50 (1) Calculated using diluted weighted average shares outstanding of 19,647,005 DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS(Amounts in Thousands)(unaudited) Segment Adjusted EBITDA Arcadia Three months ended Change Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Sequential Year-on-yearOperating income, as reported$516 $2,996 $5,719 (83)% (91)%Adjustments: Depreciation 1,016 1,006 888 1% 14%Amortization of purchased intangible assets 4,763 4,763 5,278 —% (10)%Stock-based compensation 238 237 281 —% (15)%Restructuring expenses and asset impairments 192 325 279 (41)% (31)%Adjusted EBITDA 6,725 9,327 12,445 (28)% (46)%Less: adjusted EBITDA attributable to redeemable noncontrolling interest (2,690) (3,731) (4,978) (28)% (46)%Adjusted EBITDA attributable to DMC Global Inc.$4,035 $5,596 $7,467 (28)% (46)% Six months ended Change Jun 30, 2025 Jun 30, 2024 Year-on-yearOperating income, as reported$3,512 $5,131 (32)%Adjustments: Depreciation 2,022 1,763 15%Amortization of purchased intangible assets 9,526 10,555 (10)%Stock-based compensation 475 623 (24)%Restructuring expenses and asset impairments 517 279 85%Adjusted EBITDA 16,052 18,351 (13)%Less: adjusted EBITDA attributable to redeemable noncontrolling interest (6,421) $(7,340) (13)%Adjusted EBITDA attributable to DMC Global Inc.$9,631 $11,011 (13)% DynaEnergetics Three months ended Change Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Sequential Year-on-yearOperating income, as reported$6,411 $5,588 $7,052 15% (9)%Adjustments: Depreciation 1,822 1,791 1,671 2% 9%Amortization of purchased intangible assets — — 29 —% (100)%Restructuring expenses and asset impairments 746 — — 100% 100%Adjusted EBITDA$8,979 $7,379 $8,752 22% 3% Six months ended Change Jun 30, 2025 Jun 30, 2024 Year-on-yearOperating income, as reported$11,999 $15,894 (25)%Adjustments: Depreciation 3,613 3,353 8%Amortization of purchased intangible assets — 44 (100)%Restructuring expenses and asset impairments 746 — 100%Adjusted EBITDA$16,358 $19,291 (15)% NobelClad Three months ended Change Jun 30, 2025 Mar 31, 2025 Jun 30, 2024 Sequential Year-on-yearOperating income, as reported$3,407 $4,622 $4,932 (26)% (31)%Adjustments: Depreciation 781 794 790 (2)% (1)%Restructuring expenses and asset impairments 211 — — 100% 100%Adjusted EBITDA$4,399 $5,416 $5,722 (19)% (23)% Six months ended Change Jun 30, 2025 Jun 30, 2024 Year-on-yearOperating income, as reported$8,029 $10,032 (20)%Adjustments: Depreciation 1,575 1,570 —%Restructuring expenses and asset impairments 211 — 100%Adjusted EBITDA$9,815 $11,602 (15)% CONTACT: Geoff High, Vice President of Investor Relations 303-604-3924

DMC Global Reports Second Quarter Financial Results

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