BOOM · DMC Global Inc.

DMC Global Inc. announced first quarter 2026 results reflecting ongoing macroeconomic headwinds and geopolitical tensions in the Middle East, which exacerbated supply chain disruptions, elevated raw material costs—particularly aluminum up 64% year-over-year—and reduced demand in construction, energy, and industrial markets. Consolidated sales fell 15% year-over-year to $135.6 million, with gross margins contracting to 18.8% from 25.9%, driven by pricing pressures and cost inflation across segments. Adjusted EBITDA attributable to DMC dropped 73% to $3.9 million, resulting in a GAAP net loss attributable to DMC of $6.1 million or $(0.34) per diluted share.

Segment performance varied: Arcadia Products held sales steady sequentially at $56.7 million but declined 14% year-over-year due to soft commercial/residential demand and competitive bidding, with adjusted EBITDA falling to $2.3 million amid multi-year high aluminum costs. DynaEnergetics saw sales decrease 9% to $59.5 million from lower North American well completions and Middle East shipment delays, though adjusted EBITDA improved to $2.7 million from prior quarter losses partly due to $7 million in write-offs. NobelClad's sales dropped 31% year-over-year to $19.3 million, missing a large prior-year China project, but rose 9% sequentially on a major petrochemical order, ending with a 15-year high $70.3 million backlog and 1.34 book-to-bill ratio.

CEO James O’Leary highlighted disciplined execution amid challenges, with focus on cost management and opportunities in enhanced geothermal for DynaEnergetics and naval/industrial infrastructure for NobelClad. Q2 guidance signals sequential recovery to $148-158 million sales and $6-8 million adjusted EBITDA, driven by anticipated demand upticks, though vulnerable to further international disruptions. Positive indicators include rising Architectural Billings Index and potential oil price support from Middle East conflict.