Company Overview - Galloper Gold Corp. has appointed Souren Sarkissov as a director, enhancing its leadership team [1][4] - The company is focused on mineral exploration in the Central Newfoundland Gold Belt, with key properties including the Glover Island Property and Mint Pond prospect [6] Leadership Background - Souren Sarkissov is a Toronto-based entrepreneur and investor with over 25 years of experience in managing and growing privately held companies [2] - He has successfully launched multiple businesses, transforming them into multi-million-dollar enterprises, and currently serves as Chairman of a multinational Oil and Gas company [3] Recent Developments - Galloper Gold completed its first diamond drilling program at Glover Island since 2012 in 2024, with plans for a robust drill program in Q4 2025 [6] - The company has been awarded Exempt Mineral Land by the government of Newfoundland and Labrador, which contains a known resource of at least 178,000 ounces of gold [6]

DMC Global (BOOM 5.68%), a diversified manufacturing holding company with businesses in building products, energy, and industrial sectors, reported its results for the second quarter of fiscal 2025 on August 5, 2025. The most important takeaway from this release was the company's ability to outperform consensus estimates for both GAAP revenue and non-GAAP EPS, despite ongoing end-market weakness. DMC Global posted non-GAAP earnings per share of $0.12, surpassing analyst expectations of $0.02. Revenue (GAAP) ...

Financial Data and Key Metrics Changes - Consolidated sales for the second quarter were $155.5 million, with adjusted EBITDA attributable to DMC at $13.5 million, exceeding the guidance range of $10 million to $13 million [3][4] - Adjusted EBITDA margin was 10.4%, down from 11.4% in the first quarter and 14.3% in the second quarter of the previous year [8][9] - Total debt decreased by 17% to approximately $59 million, with net debt reduced to roughly $46 million [7][10] Business Line Data and Key Metrics Changes - Arcadia's Building Products business reported second quarter sales of $62 million, down 5% sequentially and 11% year-over-year, reflecting weakness in the high-end residential market [3][4] - DynaEnergetics, the energy products business, had sales of $66.9 million, up 2% sequentially but down 12% year-over-year due to pricing pressure and weaker demand [4][5] - NobelClad's Composite Metals business reported sales of $26.6 million, down 5% sequentially but up 6% year-over-year, with a backlog of $37 million [5][6] Market Data and Key Metrics Changes - The high-end residential market and construction activity are facing challenges due to persistently high interest rates, impacting overall building activity [4][11] - NobelClad experienced a slowdown in bookings as customers await clarity on tariff actions, leading to lost business to non-U.S. suppliers [6][11] Company Strategy and Development Direction - The company is focused on deleveraging its balance sheet and strengthening its financial position in anticipation of future market recovery [3][7] - Arcadia is rightsizing its cost structure to align with current market conditions while refocusing on core exterior operations [4][11] - The company aims to prepare for the potential acquisition of the remaining 40% stake in Arcadia by late next year [15] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges due to high interest rates and uncertainty in the construction market, but expressed optimism about pent-up demand once conditions improve [13][14] - The company is maintaining tight cost controls and focusing on improving customer service and lead times [26][29] - Future guidance reflects macroeconomic concerns and the potential for volatility due to tariff policies and energy prices [11][12] Other Important Information - The company expects second quarter consolidated sales to be in the range of $142 million to $150 million, with adjusted EBITDA expected between $8 million and $12 million [10][11] - The company has made significant progress in improving its financial flexibility and reducing costs across its business segments [15] Q&A Session Summary Question: What is the impact of weakness in Arcadia? - The weakness is split between the high-end residential segment and deferred commercial projects due to tariffs and high interest rates [19][20] Question: What initiatives are being taken to drive profitability in Arcadia? - The focus is on improving customer service and reducing lead times, with no additional headcount until volume returns [26][27] Question: How is the balance sheet performing? - The business has performed well in net working capital, with expectations to convert EBITDA into free cash flow at a rate of 40% to 45% [34] Question: What are the expectations for Dyna's sales in the second half? - Sales are expected to trend lower in the primary U.S. markets, consistent with other players in the oilfield services space [56][57] Question: How are tariffs impacting pricing and costs? - Arcadia has successfully passed along tariff-driven increases, while NobelClad faces challenges due to project delays and demand impacts [48][50]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial information, including financial statements and management's discussion and analysis [ITEM 1. Condensed Consolidated Financial Statements](index=5&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of DMC Global Inc. for the periods ended June 30, 2025, and December 31, 2024, along with detailed notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 | Metric | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | | :----------------------------------- | :-------------------------- | :---------------------------- | | Total assets | $645,024 | $671,337 | | Total liabilities | $204,087 | $233,286 | | Redeemable noncontrolling interest | $187,080 | $187,080 | | Total stockholders' equity | $253,857 | $250,971 | - Total assets decreased by **$26,313 (3.9%)** from December 31, 2024, to June 30, 2025, while total liabilities decreased by **$29,199 (12.5%)**[12](index=12&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance, including net sales, gross profit, operating income, and net income for the reported periods | Metric (Thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $155,487 | $171,179 | $314,777 | $338,048 | | Gross profit | $36,731 | $46,413 | $77,930 | $88,765 | | Operating income | $3,897 | $11,685 | $10,410 | $18,373 | | Net income | $321 | $6,293 | $2,184 | $8,612 | | Net income attributable to DMC Global Inc. stockholders | $116 | $4,012 | $793 | $6,575 | | Basic EPS | $(0.24) | $0.24 | $(0.20) | $0.25 | | Diluted EPS | $(0.24) | $0.24 | $(0.20) | $0.25 | - Net sales decreased by **9%** for the three months ended June 30, 2025, and by **7%** for the six months ended June 30, 2025, compared to the respective prior-year periods[14](index=14&type=chunk) - Net income attributable to DMC Global Inc. stockholders saw a significant decline of **97%** for the three-month period and **88%** for the six-month period[14](index=14&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section details the company's comprehensive income, including net income and other comprehensive income components, for the reported periods | Metric (Thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $321 | $6,293 | $2,184 | $8,612 | | Change in cumulative foreign currency translation adjustment | $3,478 | $(515) | $4,652 | $(1,628) | | Other comprehensive income | $3,799 | $5,778 | $6,836 | $6,984 | | Comprehensive income attributable to DMC Global Inc. stockholders | $3,594 | $3,497 | $5,445 | $4,947 | - The company reported a **positive change** in cumulative foreign currency translation adjustment for both the three and six months ended June 30, 2025, contrasting with negative adjustments in the prior year[15](index=15&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity and Redeemable Noncontrolling Interest](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20and%20Redeemable%20Noncontrolling%20Interest) This section presents changes in stockholders' equity and redeemable noncontrolling interest from December 31, 2024, to June 30, 2025 | Metric (Thousands) | December 31, 2024 | June 30, 2025 | | :--------------------------------------- | :---------------- | :------------ | | Common Stock | $1,054 | $1,074 | | Additional Paid-In Capital | $305,460 | $304,243 | | Retained Earnings | — | — | | Other Cumulative Comprehensive Loss | $(29,560) | $(24,908) | | Treasury Stock, at cost, and Company Stock Held for Deferred Compensation, at par | $(25,983) | $(26,552) | | Total DMC Global Inc. Stockholders' Equity | $250,971 | $253,857 | | Redeemable Noncontrolling Interest | $187,080 | $187,080 | - Total stockholders' equity increased by **$2,886 (1.1%)** from December 31, 2024, to June 30, 2025, primarily due to changes in other cumulative comprehensive loss and common stock issued[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the company's cash inflows and outflows from operating, investing, and financing activities for the reported periods | Metric (Thousands) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :--------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $19,734 | $15,783 | | Net cash (used in) provided by investing activities | $(718) | $7,204 | | Net cash used in financing activities | $(19,746) | $(39,727) | | Net decrease in cash and cash equivalents | $(1,862) | $(16,473) | | Cash and cash equivalents, end of the period | $12,427 | $14,567 | - Net cash provided by operating activities increased by **$3,951 (25.0%)** for the six months ended June 30, 2025, compared to the same period in 2024[20](index=20&type=chunk) - Net cash used in investing activities shifted from a positive inflow of **$7,204K** in 2024 to an outflow of **$718K** in 2025[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on significant accounting policies, financial statement components, and other relevant financial information - The financial statements are unaudited and include all normal and recurring adjustments necessary for fair presentation of interim periods[22](index=22&type=chunk) - Certain information and footnote disclosures have been condensed or omitted for this quarterly presentation[22](index=22&type=chunk) - The company measures expected credit losses for accounts receivable using a current expected credit loss model, based on historical experience adjusted for current conditions and forecasts[24](index=24&type=chunk)[25](index=25&type=chunk) - Net provisions for expected credit losses were **$696K** for the six months ended June 30, 2025, compared to **$1,036K** in the prior year[24](index=24&type=chunk)[25](index=25&type=chunk) - The redeemable noncontrolling interest in Arcadia Products is classified in temporary equity due to redemption rights not entirely within the Company's control[30](index=30&type=chunk)[31](index=31&type=chunk) - The estimated settlement amount was **$187,080K** as of June 30, 2025, equal to the floor value[30](index=30&type=chunk)[31](index=31&type=chunk) - Revenue is primarily derived from tangible goods, recognized when control is transferred to customers[33](index=33&type=chunk)[60](index=60&type=chunk) - Contract liabilities decreased from **$23,162K** at December 31, 2024, to **$12,026K** at June 30, 2025, with most revenue expected to be recognized within one year[33](index=33&type=chunk)[60](index=60&type=chunk) - Restructuring expenses and asset impairments totaled **$1,474K** for the six months ended June 30, 2025, including a **$605K** asset impairment and lease termination costs at DynaEnergetics, and **$869K** in employee severance across all segments[52](index=52&type=chunk) Inventory Category | Inventory Category (Thousands) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Raw materials | $41,318 | $42,003 | | Work-in-process | $25,183 | $30,391 | | Finished goods | $77,794 | $79,907 | | Supplies | $262 | $279 | | Total inventories | $144,557 | $152,580 | - Total inventories decreased by **$8,023K (5.3%)** from December 31, 2024, to June 30, 2025[57](index=57&type=chunk) Purchased Intangible Assets | Purchased Intangible Assets (Thousands) | June 30, 2025 (Net) | December 31, 2024 (Net) | | :-------------------------------------- | :------------------ | :---------------------- | | Customer relationships | $147,747 | $156,540 | | Trademarks / Trade names | $16,831 | $17,564 | | Core technology | — | — | | Total intangible assets | $164,578 | $174,104 | - Total net purchased intangible assets decreased by **$9,526K (5.5%)** from December 31, 2024, to June 30, 2025, primarily due to amortization of customer relationships[58](index=58&type=chunk)[59](index=59&type=chunk) Debt | Debt (Thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :------------ | :---------------- | | U.S. Dollar revolving loan | $12,625 | $24,375 | | Term loan | $46,875 | $48,125 | | European line of credit | $750 | — | | Outstanding borrowings | $60,250 | $72,500 | | Total debt (net of issuance costs) | $58,675 | $70,818 | - Total outstanding borrowings decreased by **$12,250K (16.9%)** from December 31, 2024, to June 30, 2025[65](index=65&type=chunk)[71](index=71&type=chunk) - The company entered into the Second Amendment to its credit facility on June 10, 2025, modifying financial covenants and interest rates to accommodate a possible acquisition of the remaining **40%** minority interest in Arcadia Products, including a temporary increase in the maximum leverage ratio[65](index=65&type=chunk)[71](index=71&type=chunk) - The Stockholder Protection Rights Agreement's expiration time was extended for one year to June 4, 2026, on May 30, 2025, with no current impact on financial statements[75](index=75&type=chunk) - The effective tax rate differs from the U.S. statutory rate due to jurisdictional income mix, U.S. and foreign tax rate differences, permanent differences, and income/loss attributable to the redeemable noncontrolling interest holder[77](index=77&type=chunk)[79](index=79&type=chunk) - A valuation allowance is maintained against U.S. net deferred tax assets due to a three-year cumulative loss position[77](index=77&type=chunk)[79](index=79&type=chunk) - Strategic review and related expenses for the six months ended June 30, 2025, were **$2,073K**, primarily professional service fees (**$1,507K**) and employee retention compensation (**$366K**)[104](index=104&type=chunk)[105](index=105&type=chunk) - This is a decrease from **$4,189K** in the prior year[104](index=104&type=chunk)[105](index=105&type=chunk) Segment Net Sales | Segment (Net Sales, Thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :----------------------------- | :------ | :------ | :------- | :------- | | Arcadia Products | $61,980 | $69,748 | $127,560 | $131,673 | | DynaEnergetics | $66,862 | $76,210 | $132,413 | $154,332 | | NobelClad | $26,645 | $25,221 | $54,804 | $52,043 | - Arcadia Products' net sales decreased by **11%** in Q2 2025 and **3%** YTD 2025[85](index=85&type=chunk)[86](index=86&type=chunk) - DynaEnergetics' net sales decreased by **12%** in Q2 2025 and **14%** YTD 2025[85](index=85&type=chunk)[86](index=86&type=chunk) - NobelClad's net sales increased by **6%** in Q2 2025 and **5%** YTD 2025[85](index=85&type=chunk)[86](index=86&type=chunk) - The company uses foreign currency forward contracts to offset foreign exchange rate fluctuations, with net notional amounts of **$8,045K** as of June 30, 2025[91](index=91&type=chunk)[93](index=93&type=chunk) - All changes in fair value are recognized in 'Other expense, net'[91](index=91&type=chunk)[93](index=93&type=chunk) Derivative Net Gains (Losses) | Derivative (Thousands) | Q2 2025 Net Gains (Losses) | Q2 2024 Net Gains (Losses) | YTD 2025 Net Gains (Losses) | YTD 2024 Net Gains (Losses) | | :--------------------- | :------------------------- | :------------------------- | :-------------------------- | :-------------------------- | | Foreign currency contracts | $642 | $(358) | $957 | $(1,213) | - The company is involved in several legal proceedings, including securities class action lawsuits and stockholder derivative lawsuits, which it intends to vigorously defend[99](index=99&type=chunk)[100](index=100&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) - An environmental matter related to stormwater violations at Arcadia Products facilities resulted in a Consent Decree and an accrual of **$762K** for potential penalties[99](index=99&type=chunk)[100](index=100&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting performance drivers, segment details, and outlook [Overview](index=27&type=section&id=Overview) This section introduces DMC Global Inc.'s three asset-light manufacturing businesses and their primary cost components - DMC Global Inc. operates three asset-light manufacturing businesses: Arcadia Products (aluminum framing systems for construction), DynaEnergetics (perforating systems for oil and gas), and NobelClad (explosion-welded clad metal plates for industrial equipment)[109](index=109&type=chunk)[110](index=110&type=chunk)[112](index=112&type=chunk)[114](index=114&type=chunk) - Arcadia Products' cost of products sold includes aluminum, paint, raw materials, employee compensation, lease expense, and depreciation[111](index=111&type=chunk)[113](index=113&type=chunk)[115](index=115&type=chunk) - DynaEnergetics' costs include metals, explosives, raw materials, compensation, and depreciation[111](index=111&type=chunk)[113](index=113&type=chunk)[115](index=115&type=chunk) - NobelClad's costs include metals, explosive powders, compensation, outside processing, and depreciation[111](index=111&type=chunk)[113](index=113&type=chunk)[115](index=115&type=chunk) - NobelClad's backlog was **$37,263K** at June 30, 2025, down from **$48,885K** at December 31, 2024, with most orders realized within twelve months[114](index=114&type=chunk) [Factors Affecting Results](index=27&type=section&id=Factors%20Affecting%20Results) This section discusses key factors influencing the company's consolidated sales performance, including segment-specific market conditions and leverage - Consolidated sales decreased by **9%** in Q2 2025 compared to Q2 2024, driven by lower sales at Arcadia Products (down **11%** due to commercial exterior and high-end residential markets) and DynaEnergetics (down **12%** due to lower well completions in North America, pricing decreases, and reduced international sales)[116](index=116&type=chunk)[122](index=122&type=chunk) - NobelClad's sales increased by **6%** in Q2 2025 compared to Q2 2024, primarily due to the timing of shipments from backlog[122](index=122&type=chunk) - The Company's leverage ratio was **1.23 to 1.0** as of June 30, 2025, well below the maximum permitted ratio of **3.0 to 1.0**[122](index=122&type=chunk) [Outlook](index=28&type=section&id=Outlook) This section provides forward-looking insights into market conditions, strategic focus areas for each business segment, and expected order activity - The company's businesses are monitoring U.S. and reciprocal tariff policies and volatility in U.S. and global energy markets, which could impact sales and profitability[117](index=117&type=chunk) - Arcadia Products has right-sized its high-end residential cost structure and is focusing on core commercial operations (**75%** of segment sales)[118](index=118&type=chunk) - DynaEnergetics is implementing cost reduction and market share expansion initiatives to offset an expected decline in demand in H2 2025 due to lower oil prices and reduced well completion activity[119](index=119&type=chunk) - NobelClad's order backlog decreased to **$37,263K**, with order activity expected to improve once customers gain clarity on future tariff actions[120](index=120&type=chunk) [Use of Non-GAAP Financial Measures](index=28&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) This section explains the company's use of non-GAAP financial measures to assess operating performance and liquidity, excluding nonrecurring charges - The company uses non-GAAP financial measures like EBITDA, Adjusted EBITDA, Adjusted EBITDA attributable to DMC Global Inc., Adjusted EBITDA for DMC business segments, Adjusted net income (loss), Adjusted diluted earnings per share, Net debt, and Free-cash flow to understand operating performance and liquidity, excluding nonrecurring charges[121](index=121&type=chunk)[123](index=123&type=chunk) [Consolidated Results of Operations](index=30&type=section&id=Consolidated%20Results%20of%20Operations) This section analyzes the company's consolidated financial performance, including net sales, gross profit, operating income, and net income, for the reported periods Consolidated Financial Performance (Q2 YoY Change) | Metric | Q2 2025 (Thousands) | Q2 2024 (Thousands) | $ Change | % Change | | :--------------------------------------- | :------------------ | :------------------ | :------- | :------- | | Net sales | $155,487 | $171,179 | $(15,692) | (9%) | | Gross profit | $36,731 | $46,413 | $(9,682) | (21%) | | Gross profit percentage | 23.6% | 27.1% | | | | Operating income | $3,897 | $11,685 | $(7,788) | (67%) | | Net income attributable to DMC Global Inc. | $116 | $4,012 | $(3,896) | (97%) | | Adjusted EBITDA attributable to DMC Global Inc. | $13,538 | $19,420 | $(5,882) | (30%) | - The decline in gross profit percentage (from **27.1%** to **23.6%**) was primarily due to lower absorption of fixed manufacturing overhead costs at Arcadia and a less favorable project/regional mix at NobelClad[126](index=126&type=chunk) - General and administrative expenses increased by **$282K** in Q2 2025, mainly due to **$520K** in executive transition costs and **$300K** in higher outside services, partially offset by lower Waterkeeper matter expenses[127](index=127&type=chunk) - Selling and distribution expenses decreased by **$1,257K** in Q2 2025, driven by lower bad debt expense (**$570K**), reduced selling costs at DynaEnergetics (**$402K**), and lower marketing consulting costs (**$264K**)[128](index=128&type=chunk) Consolidated Financial Performance (YTD YoY Change) | Metric | YTD 2025 (Thousands) | YTD 2024 (Thousands) | $ Change | % Change | | :--------------------------------------- | :------------------- | :------------------- | :------- | :------- | | Net sales | $314,777 | $338,048 | $(23,271) | (7%) | | Gross profit | $77,930 | $88,765 | $(10,835) | (12%) | | Gross profit percentage | 24.8% | 26.3% | | | | Operating income | $10,410 | $18,373 | $(7,963) | (43%) | | Net income attributable to DMC Global Inc. | $793 | $6,575 | $(5,782) | (88%) | | Adjusted EBITDA attributable to DMC Global Inc. | $27,929 | $36,103 | $(8,174) | (23%) | - YTD 2025 gross profit percentage declined from **26.3%** to **24.8%** due to lower fixed manufacturing overhead absorption at Arcadia and DynaEnergetics, and a less favorable project/regional mix at NobelClad[139](index=139&type=chunk) - YTD 2025 General and administrative expenses increased by **$976K**, driven by executive transition costs (**$520K**), higher compensation (**$854K**), and outside services (**$422K**), partially offset by lower Waterkeeper expenses and travel[140](index=140&type=chunk) - YTD 2025 Selling and distribution expenses decreased by **$1,854K**, primarily from lower selling costs at DynaEnergetics (**$568K**), reduced marketing consulting (**$449K**), lower bad debt (**$340K**), and decreased compensation (**$276K**)[141](index=141&type=chunk) [Business Segment Financial Information](index=36&type=section&id=Business%20Segment%20Financial%20Information) This section provides detailed financial performance analysis for each of the company's operating segments: Arcadia Products, DynaEnergetics, and NobelClad - Arcadia Products' net sales decreased by **11%** in Q2 2025 and **3%** YTD 2025, primarily due to lower sales volumes in commercial exterior and high-end residential markets[152](index=152&type=chunk)[153](index=153&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk) - Gross profit percentage declined from **33.2%** to **26.2%** in Q2 and from **30.4%** to **28.7%** YTD due to lower fixed manufacturing overhead absorption[152](index=152&type=chunk)[153](index=153&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk) - DynaEnergetics' net sales decreased by **12%** in Q2 2025 and **14%** YTD 2025, driven by lower DS perforating system volumes, pricing decreases from industry consolidation, and reduced international sales[166](index=166&type=chunk)[172](index=172&type=chunk) - Adjusted EBITDA increased by **3%** in Q2 but decreased by **15%** YTD[170](index=170&type=chunk)[175](index=175&type=chunk) - NobelClad's net sales increased by **6%** in Q2 2025 and **5%** YTD 2025, primarily due to the timing of shipments from backlog[177](index=177&type=chunk)[178](index=178&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk) - Gross profit percentage decreased from **32.6%** to **24.7%** in Q2 and from **32.4%** to **26.8%** YTD due to a less favorable project and regional mix[177](index=177&type=chunk)[178](index=178&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's financial liquidity, capital resources, debt management, and cash flow activities - Net debt decreased to **$46,248K** at June 30, 2025, from **$56,529K** at December 31, 2024, primarily due to **$12,278K** in net credit facility repayments[187](index=187&type=chunk) - The company believes current cash, operating cash flow, and credit facilities are sufficient for foreseeable working capital and capital expenditure needs[188](index=188&type=chunk) - Future capital market transactions may be pursued if conditions are favorable[188](index=188&type=chunk) - The credit facility was amended on June 10, 2025, to increase the maximum leverage ratio temporarily to **3.5x** adjusted EBITDA (from **3.0x**) to accommodate a possible acquisition of the remaining Arcadia Products minority interest[192](index=192&type=chunk)[194](index=194&type=chunk) - The actual leverage ratio was **1.23 to 1.0** as of June 30, 2025[192](index=192&type=chunk)[194](index=194&type=chunk) - The debt service coverage ratio for the trailing twelve months ended June 30, 2025, was **3.83 to 1.0**, exceeding the minimum requirement of **1.25 to 1.0**[193](index=193&type=chunk) - Net cash provided by operating activities increased to **$19,734K** for the six months ended June 30, 2025, from **$15,783K** in the prior year, driven by lower working capital balances[199](index=199&type=chunk) - Net cash used in investing activities was **$718K** for the six months ended June 30, 2025, primarily due to property, plant, and equipment acquisitions, partially offset by a note receivable settlement[200](index=200&type=chunk) - Net cash used in financing activities was **$19,746K** for the six months ended June 30, 2025, including **$12,278K** in net credit facility repayments and **$6,255K** in distributions to the redeemable noncontrolling interest holder[202](index=202&type=chunk) - The quarterly dividend remains suspended indefinitely since April 23, 2020, with future dividends subject to Board discretion and financial considerations[204](index=204&type=chunk) [Critical Accounting Estimates](index=45&type=section&id=Critical%20Accounting%20Estimates) This section confirms that there have been no changes to the critical accounting estimates since the last annual report - There have been no changes to the critical accounting estimates reported in the Annual Report on Form 10-K for the year ended December 31, 2024[205](index=205&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosure about Market Risk](index=46&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) This section states that there have been no material changes in market risk exposures related to foreign currency exchange rates and interest rates since the last annual report - No material changes in market risk for foreign currency exchange rates and interest rates were reported since the Annual Report on Form 10-K for the year ended December 31, 2024[206](index=206&type=chunk) [ITEM 4. Controls and Procedures](index=46&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Management, under the supervision of the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[207](index=207&type=chunk) - No material changes in internal control over financial reporting occurred during the fiscal quarter ended June 30, 2025[208](index=208&type=chunk) [PART II - OTHER INFORMATION](index=47&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 of the Condensed Consolidated Financial Statements for details on legal proceedings, including stockholder litigation and an environmental matter - Refer to Note 12 of the Condensed Consolidated Financial Statements for information on legal proceedings[209](index=209&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, highlighting potential adverse effects of tariffs, trade measures, and changes in immigration laws on operations and financial position - New or existing tariffs and other trade measures, including retaliatory tariffs, could adversely affect the company's results of operations, financial position, and cash flows by increasing material costs (e.g., steel, aluminum) and impacting competitiveness[211](index=211&type=chunk)[212](index=212&type=chunk) - Changes in immigration laws or enforcement programs could negatively impact the business by reducing the labor pool, increasing employee costs, and potentially leading to fines or adverse publicity if unauthorized workers are identified[213](index=213&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's unregistered sales of equity securities, specifically shares retained for tax withholding obligations upon vesting - During Q2 2025, the company retained **12,656 shares** of common stock at an average price of **$6.55 per share** to offset tax withholding obligations from vesting restricted common stock and deferred compensation plan distributions[214](index=214&type=chunk)[215](index=215&type=chunk) [Item 3. Defaults Upon Senior Securities](index=48&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities during the reporting period[216](index=216&type=chunk) [Item 4. Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section confirms no specified health and safety violations or mining-related fatalities for U.S. operations during the quarter ended June 30, 2025 - No specified health and safety violations, orders, citations, related assessments, legal actions, or mining-related fatalities were reported for U.S. operations during Q2 2025, as per Section 1503(a) of the Dodd-Frank Act[217](index=217&type=chunk) [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) This section states that no director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025[218](index=218&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amendments to key agreements, incentive plans, and executive officer agreements - Key exhibits include Amendment No. 1 to the Stockholder Protection Rights Agreement (May 30, 2025), the 2025 Omnibus Incentive Plan, the Second Amendment to the Credit Agreement (June 10, 2025), and various executive officer and director award agreements[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk)

[Executive Summary & Business Outlook](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Outlook) [Second Quarter 2025 Consolidated Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Consolidated%20Financial%20Highlights) DMC Global Inc. reported **Q2 2025 consolidated sales of $155.5 million**, a 2% sequential and 9% year-over-year decrease, with **adjusted EBITDA of $13.5 million** exceeding management guidance | Metric | Amount (Millions USD) | Sequential Change | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Consolidated Sales | 155.5 | -2% | -9% | | Adjusted EBITDA | 13.5 | -6% | -30% | | Net Income | 0.1 | -83% | -97% | | Adjusted Net Income | 2.5 | 14% | -56% | | Adjusted Diluted EPS | 0.12 | 9% | -59% | - Company's total debt decreased **17% year-to-date**, and a credit agreement was revised in June to enhance financial flexibility for a potential acquisition of the remaining 40% of Arcadia by late 2026[7](index=7&type=chunk)[8](index=8&type=chunk) [Segment Performance Overview](index=1&type=section&id=Segment%20Performance%20Overview) DMC Global's segments showed mixed Q2 results: Arcadia's sales and EBITDA declined due to high interest rates, DynaEnergetics' sales decreased but EBITDA grew from lower costs, and NobelClad's sales rose but EBITDA fell due to order mix [Arcadia](index=1&type=section&id=Arcadia) Arcadia's Q2 sales were **$62 million**, down 5% sequentially and 11% year-over-year, with **adjusted EBITDA of $4 million**, reflecting a weak high-end residential market | Metric | Amount (Millions USD) | Sequential Change | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Sales | 62.0 | -5% | -11% | | Adjusted EBITDA | 4.0 | -28% | -46% | - Performance decline primarily attributed to a significantly weaker high-end residential market due to high interest rates and reduced construction activity, alongside decreased project billing after large mixed-use project completion[4](index=4&type=chunk) - Arcadia has adjusted its residential business cost structure to adapt to current market activity and refocused on its core commercial operations[4](index=4&type=chunk) [DynaEnergetics](index=1&type=section&id=DynaEnergetics) DynaEnergetics' Q2 sales were **$66.9 million**, up 2% sequentially but down 12% year-over-year, with **adjusted EBITDA of $9 million**, benefiting from lower material costs | Metric | Amount (Millions USD) | Sequential Change | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Sales | 66.9 | 2% | -12% | | Adjusted EBITDA | 9.0 | 22% | 3% | - Year-over-year sales decline primarily reflects lower pricing and softer demand in DynaEnergetics' core U.S. unconventional market, where active frac crews decreased **5% sequentially** and **24% year-over-year**[5](index=5&type=chunk) - Improved adjusted EBITDA primarily benefited from lower overall material costs compared to the prior year period[5](index=5&type=chunk) [NobelClad](index=1&type=section&id=NobelClad) NobelClad's Q2 sales were **$26.6 million**, down 5% sequentially but up 6% year-over-year, with **adjusted EBITDA of $4.4 million**, impacted by an unfavorable order mix | Metric | Amount (Millions USD) | Sequential Change | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Sales | 26.6 | -5% | 6% | | Adjusted EBITDA | 4.4 | -19% | -23% | | Backlog (End of Period) | 37.0 | -9.8% (Sequential) | - | | Trailing 12-Month Bookings | 80.7 | - | - | | 12-Month Book-to-Bill Ratio | 0.75 | - | - | - Backlog decline reflects ongoing uncertainty in U.S. tariff policy, causing customers to delay purchasing decisions[6](index=6&type=chunk) - Adjusted EBITDA decline primarily due to an unfavorable order mix[6](index=6&type=chunk) [Management Commentary & Strategic Initiatives](index=1&type=section&id=Management%20Commentary%20%26%20Strategic%20Initiatives) CEO James O'Leary highlighted progress in operational and commercial strategies, improved financial health with a **17% debt reduction**, and a revised credit agreement for future acquisitions - The company is focused on executing operational and commercial strategies, making significant progress in improving its financial position[7](index=7&type=chunk) - Total debt decreased **17% year-to-date**, and a credit agreement was revised in June to enhance financial flexibility for a potential acquisition of the remaining 40% of Arcadia by late 2026[7](index=7&type=chunk)[8](index=8&type=chunk) [Third Quarter 2025 Guidance](index=2&type=section&id=Third%20Quarter%202025%20Guidance) DMC Global forecasts **Q3 sales between $142 million and $150 million**, with **adjusted EBITDA between $8 million and $12 million**, reflecting broad market uncertainties | Metric | Range (Millions USD) | | :--- | :--- | | Third Quarter Sales | 142 - 150 | | Adjusted EBITDA (Attributable to DMC) | 8 - 12 | - The wider adjusted EBITDA guidance range reflects increased uncertainty in DMC's end markets[8](index=8&type=chunk) - Challenging conditions are expected to persist in the U.S. construction industry, Arcadia has adjusted its cost structure and continues to focus on commercial operations. DynaEnergetics anticipates a sequential decline in U.S. onshore oil and gas completion activity. NobelClad sales are projected to decrease sequentially, influenced by evolving tariff policies[8](index=8&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) [About DMC Global Inc.](index=4&type=section&id=About%20DMC%20Global%20Inc.) DMC Global Inc. is an owner and operator of innovative, asset-light manufacturing businesses providing unique, highly engineered products and differentiated solutions - DMC Global Inc. is an owner and operator of innovative, asset-light manufacturing businesses, providing unique, highly engineered products and differentiated solutions[18](index=18&type=chunk) - The company's businesses include Arcadia (architectural products), DynaEnergetics (global energy industry), and NobelClad (global industrial infrastructure and transportation)[18](index=18&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) This press release contains forward-looking statements subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from expectations - The press release contains forward-looking statements based on assumptions about current and future business strategies, markets, anticipated costs, and the ability to achieve objectives[19](index=19&type=chunk) - Forward-looking information and statements are subject to known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from expectations, including order fulfillment, new contract acquisition, customer purchasing commitments, product pricing and margins, fluctuations in customer demand, tariff and quota fluctuations, energy costs and availability, business cyclicality, competitive factors, and macroeconomic conditions[19](index=19&type=chunk)[21](index=21&type=chunk) - The company undertakes no obligation to publicly revise any forward-looking statements, except as required by applicable securities laws[21](index=21&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) DMC Global will host a conference call on **August 5, 2025, at 5:00 PM ET (3:00 PM MT)** to discuss Q2 financial results, with a webcast replay available for six months - The conference call will be held on **August 5, 2025, at 5:00 PM ET (3:00 PM MT)**[13](index=13&type=chunk) - Investors can participate by dialing **877-407-5783** (international **+1 201-689-8782**) or by accessing the webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=YQzvAWQ8[13](index=13&type=chunk) - A webcast replay will be available for **six months** on the investor page of DMC's website[13](index=13&type=chunk) [Consolidated Financial Results](index=6&type=section&id=Consolidated%20Financial%20Results) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) DMC Global's **Q2 2025 consolidated net sales were $155.5 million**, down 2% sequentially and 9% year-over-year, with net income significantly decreasing both sequentially and year-over-year Condensed Consolidated Statements of Operations Summary for Q2 2025 | Metric (Thousands USD) | June 30, 2025 | March 31, 2025 | June 30, 2024 | Sequential Change | Year-over-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | 155,487 | 159,290 | 171,179 | (2)% | (9)% | | Gross Profit | 36,731 | 41,199 | 46,413 | (11)% | (21)% | | Gross Margin | 23.6% | 25.9% | 27.1% | - | - | | Operating Income | 3,897 | 6,513 | 11,685 | (40)% | (67)% | | Net Income | 321 | 1,863 | 6,293 | (83)% | (95)% | | Net Income Attributable to DMC Global Inc. Shareholders | 116 | 677 | 4,012 | (83)% | (97)% | | Diluted EPS Attributable to DMC Global Inc. Shareholders | (0.24) | 0.04 | 0.24 | (700)% | (200)% | Condensed Consolidated Statements of Operations Summary for H1 2025 | Metric (Thousands USD) | June 30, 2025 | June 30, 2024 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Net Sales | 314,777 | 338,048 | (7)% | | Gross Profit | 77,930 | 88,765 | (12)% | | Gross Margin | 24.8% | 26.3% | - | | Operating Income | 10,410 | 18,373 | (43)% | | Net Income | 2,184 | 8,612 | (75)% | | Net Income Attributable to DMC Global Inc. Shareholders | 793 | 6,575 | (88)% | | Diluted EPS Attributable to DMC Global Inc. Shareholders | (0.20) | 0.25 | (180)% | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, DMC Global's **total assets were $645 million**, a 4% decrease from year-end 2024, with **total liabilities decreasing 9% sequentially and 11% year-over-year** Condensed Consolidated Balance Sheets Summary as of Q2 2025 | Metric (Thousands USD) | June 30, 2025 | March 31, 2025 | December 31, 2024 | Sequential Change | Year-End Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 12,427 | 14,705 | 14,289 | (15)% | (13)% | | Total Current Assets | 280,174 | 296,909 | 289,022 | (6)% | (3)% | | Total Assets | 645,024 | 670,640 | 671,337 | (4)% | (4)% | | Total Current Liabilities | 101,559 | 111,763 | 114,102 | (9)% | (11)% | | Long-Term Debt | 55,112 | 69,921 | 68,318 | (21)% | (19)% | | Total Liabilities, Redeemable Non-Controlling Interests, and Stockholders' Equity | 645,024 | 670,640 | 671,337 | (4)% | (4)% | - Net accounts receivable decreased **4% sequentially** but increased **7% from year-end 2024**. Inventory decreased **3% sequentially** and **5% from year-end 2024**[35](index=35&type=chunk) - Contract liabilities decreased **35% sequentially** and **48% from year-end 2024**[35](index=35&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) DMC Global's **Q2 2025 net cash flow from operating activities was $15.2 million**, a significant increase from prior periods, while financing activities saw a **net outflow of $19.6 million** Condensed Consolidated Statements of Cash Flows Summary for Q2 2025 | Metric (Thousands USD) | June 30, 2025 (Q2) | March 31, 2025 (Q1) | June 30, 2024 (Q2) | Sequential Change | Year-over-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 15,246 | 4,488 | 2,343 | 239.7% | 550.7% | | Net Cash Provided by/(Used in) Investing Activities | 2,614 | (3,332) | (2,447) | - | - | | Net Cash Used in Financing Activities | (19,611) | (135) | (5,431) | - | 2610.9% | | Cash and Cash Equivalents, End of Period | 12,427 | 14,705 | 14,567 | (15.5)% | (14.7)% | Condensed Consolidated Statements of Cash Flows Summary for H1 2025 | Metric (Thousands USD) | June 30, 2025 (H1) | June 30, 2024 (H1) | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 19,734 | 15,783 | 25.0% | | Net Cash Used in Investing Activities | (718) | 7,204 | - | | Net Cash Used in Financing Activities | (19,746) | (39,727) | (50.3)% | | Cash and Cash Equivalents, End of Period | 12,427 | 14,567 | (14.7)% | - Net cash inflow from investing activities primarily benefited from **$4.167 million** in note settlements[37](index=37&type=chunk) - Cash outflow from financing activities primarily included **$51.512 million** in revolving loan repayments and **$5.104 million** in distributions to redeemable non-controlling interest holders[37](index=37&type=chunk) [Segment Financial Results](index=8&type=section&id=Segment%20Financial%20Results) [Arcadia Segment Operations](index=8&type=section&id=Arcadia%20Segment%20Operations) Arcadia's **Q2 2025 net sales were $61.98 million**, down 5% sequentially and 11% year-over-year, with operating income significantly decreasing and gross margin falling to **26.2%** Arcadia Segment Operations Summary for Q2 2025 | Metric (Thousands USD) | June 30, 2025 | March 31, 2025 | June 30, 2024 | Sequential Change | Year-over-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | 61,980 | 65,580 | 69,748 | (5)% | (11)% | | Gross Profit | 16,250 | 20,361 | 23,157 | (20)% | (30)% | | Gross Margin | 26.2% | 31.0% | 33.2% | - | - | | Operating Income | 516 | 2,996 | 5,719 | (83)% | (91)% | Arcadia Segment Operations Summary for H1 2025 | Metric (Thousands USD) | June 30, 2025 | June 30, 2024 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Net Sales | 127,560 | 131,673 | (3)% | | Gross Profit | 36,611 | 39,970 | (8)% | | Gross Margin | 28.7% | 30.4% | - | | Operating Income | 3,512 | 5,131 | (32)% | [DynaEnergetics Segment Operations](index=9&type=section&id=DynaEnergetics%20Segment%20Operations) DynaEnergetics' **Q2 2025 net sales were $66.862 million**, up 2% sequentially but down 12% year-over-year, with operating income increasing and gross margin rising to **20.9%** DynaEnergetics Segment Operations Summary for Q2 2025 | Metric (Thousands USD) | June 30, 2025 | March 31, 2025 | June 30, 2024 | Sequential Change | Year-over-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | 66,862 | 65,551 | 76,210 | 2% | (12)% | | Gross Profit | 13,959 | 12,811 | 15,133 | 9% | (8)% | | Gross Margin | 20.9% | 19.5% | 19.9% | - | - | | Operating Income | 6,411 | 5,588 | 7,052 | 15% | (9)% | DynaEnergetics Segment Operations Summary for H1 2025 | Metric (Thousands USD) | June 30, 2025 | June 30, 2024 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Net Sales | 132,413 | 154,332 | (14)% | | Gross Profit | 26,770 | 32,104 | (17)% | | Gross Margin | 20.2% | 20.8% | - | | Operating Income | 11,999 | 15,894 | (25)% | [NobelClad Segment Operations](index=9&type=section&id=NobelClad%20Segment%20Operations) NobelClad's **Q2 2025 net sales were $26.645 million**, down 5% sequentially but up 6% year-over-year, with operating income and gross margin both decreasing NobelClad Segment Operations Summary for Q2 2025 | Metric (Thousands USD) | June 30, 2025 | March 31, 2025 | June 30, 2024 | Sequential Change | Year-over-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Sales | 26,645 | 28,159 | 25,221 | (5)% | 6% | | Gross Profit | 6,593 | 8,097 | 8,222 | (19)% | (20)% | | Gross Margin | 24.7% | 28.8% | 32.6% | - | - | | Operating Income | 3,407 | 4,622 | 4,932 | (26)% | (31)% | NobelClad Segment Operations Summary for H1 2025 | Metric (Thousands USD) | June 30, 2025 | June 30, 2024 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Net Sales | 54,804 | 52,043 | 5% | | Gross Profit | 14,690 | 16,866 | (13)% | | Gross Margin | 26.8% | 32.4% | - | | Operating Income | 8,029 | 10,032 | (20)% | [Non-GAAP Financial Measures Reconciliation](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) [Use of Non-GAAP Financial Measures](index=3&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) DMC Global uses non-GAAP financial measures like EBITDA and adjusted EPS to aid operational and financial decisions, providing insights into performance excluding non-recurring items - Non-GAAP financial measures include EBITDA, Adjusted EBITDA, Adjusted EBITDA attributable to DMC Global Inc., Adjusted EBITDA for DMC's business segments, Adjusted Net Income (Loss), Adjusted Diluted EPS, Net Debt, and Free Cash Flow[14](index=14&type=chunk)[20](index=20&type=chunk) - Management believes providing these additional financial measures helps investors understand DMC's operating performance, excluding the impact of restructuring, impairment, and other non-recurring charges, as well as the company's liquidity[15](index=15&type=chunk) - Non-GAAP financial measures are not a substitute for GAAP information, and investors should use them cautiously, as they may not be comparable to similar measures used by other companies[15](index=15&type=chunk)[16](index=16&type=chunk) [DMC Global EBITDA and Adjusted EBITDA Reconciliation](index=13&type=section&id=DMC%20Global%20EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) DMC Global's **Q2 2025 EBITDA was $12 million**, down 18% sequentially and 40% year-over-year, with **adjusted EBITDA attributable to DMC Global Inc. at $13.5 million** DMC Global EBITDA and Adjusted EBITDA Reconciliation Summary (Thousands USD) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | Sequential Change | Year-over-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income | 321 | 1,863 | 6,293 | (83)% | (95)% | | EBITDA | 12,021 | 14,718 | 20,139 | (18)% | (40)% | | Adjusted EBITDA | 16,228 | 18,122 | 24,398 | (10)% | (33)% | | Adjusted EBITDA Attributable to DMC Global Inc. | 13,538 | 14,391 | 19,420 | (6)% | (30)% | - Adjustments include share-based compensation, strategic review and related costs, restructuring charges and asset impairments, executive transition costs, and other net expenses[38](index=38&type=chunk) [Adjusted Net Income and Adjusted Diluted EPS Reconciliation](index=14&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS%20Reconciliation) DMC Global's **Q2 2025 adjusted net income was $2.473 million**, with **adjusted diluted EPS of $0.12**, while first-half adjusted net income reached **$4.643 million** Adjusted Net Income and Adjusted Diluted EPS Reconciliation Summary (Thousands USD) | Metric | June 30, 2025 (Q2) | EPS | March 31, 2025 (Q1) | EPS | June 30, 2024 (Q2) | EPS | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to DMC Global Inc. | 116 | — | 677 | 0.03 | 4,012 | 0.20 | | Adjusted Net Income | 2,473 | 0.12 | 2,170 | 0.11 | 5,675 | 0.29 | Adjusted Net Income and Adjusted Diluted EPS Reconciliation Summary (Thousands USD) | Metric | June 30, 2025 (H1) | EPS | June 30, 2024 (H1) | EPS | | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to DMC Global Inc. | 793 | 0.04 | 6,575 | 0.33 | | Adjusted Net Income | 4,643 | 0.23 | 9,842 | 0.50 | - Adjustments include strategic review and related costs (after tax), restructuring charges and asset impairments (after tax), and executive transition costs (after tax)[39](index=39&type=chunk) [Segment Adjusted EBITDA Reconciliation](index=16&type=section&id=Segment%20Adjusted%20EBITDA%20Reconciliation) DMC Global provides adjusted EBITDA reconciliations for its Arcadia, DynaEnergetics, and NobelClad segments, detailing adjustments from reported operating income [Arcadia Adjusted EBITDA](index=16&type=section&id=Arcadia%20Adjusted%20EBITDA) Arcadia's **Q2 2025 adjusted EBITDA was $6.725 million**, down 28% sequentially and 46% year-over-year, with adjusted EBITDA attributable to DMC Global Inc. at **$4.035 million** Arcadia Adjusted EBITDA Summary (Thousands USD) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | Sequential Change | Year-over-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Reported Operating Income | 516 | 2,996 | 5,719 | (83)% | (91)% | | Adjusted EBITDA | 6,725 | 9,327 | 12,445 | (28)% | (46)% | | Adjusted EBITDA Attributable to DMC Global Inc. | 4,035 | 5,596 | 7,467 | (28)% | (46)% | [DynaEnergetics Adjusted EBITDA](index=16&type=section&id=DynaEnergetics%20Adjusted%20EBITDA) DynaEnergetics' **Q2 2025 adjusted EBITDA was $8.979 million**, up 22% sequentially and 3% year-over-year DynaEnergetics Adjusted EBITDA Summary (Thousands USD) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | Sequential Change | Year-over-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Reported Operating Income | 6,411 | 5,588 | 7,052 | 15% | (9)% | | Adjusted EBITDA | 8,979 | 7,379 | 8,752 | 22% | 3% | [NobelClad Adjusted EBITDA](index=17&type=section&id=NobelClad%20Adjusted%20EBITDA) NobelClad's **Q2 2025 adjusted EBITDA was $4.399 million**, down 19% sequentially and 23% year-over-year NobelClad Adjusted EBITDA Summary (Thousands USD) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | Sequential Change | Year-over-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Reported Operating Income | 3,407 | 4,622 | 4,932 | (26)% | (31)% | | Adjusted EBITDA | 4,399 | 5,416 | 5,722 | (19)% | (23)% |

Core Viewpoint - DMC Global Inc. reported a decline in sales and adjusted EBITDA for the second quarter of 2025, reflecting challenging market conditions across its business segments, particularly in the architectural building products and energy sectors [1][2][3]. Financial Performance - Consolidated second-quarter sales totaled $155.5 million, a decline of 2% sequentially and 9% year-over-year [1][7]. - Adjusted EBITDA attributable to DMC was $13.5 million, down 6% sequentially and 30% compared to the same period last year, but above management's guidance [1][7]. - Net income attributable to DMC was $0.1 million, with adjusted net income of $2.5 million, or $0.12 per diluted share [7][20]. Segment Performance Arcadia (Architectural Building Products) - Sales were $62.0 million, down 5% sequentially and 11% year-over-year [2][9]. - Adjusted EBITDA was $4.0 million, down 28% sequentially and 46% year-over-year, primarily due to lower absorption of fixed manufacturing overhead [2][9]. DynaEnergetics (Energy Products) - Reported sales of $66.9 million, up 2% sequentially but down 12% year-over-year [3][10]. - Adjusted EBITDA was $9.0 million, up 22% sequentially and 3% year-over-year, attributed to lower material costs [3][10]. NobelClad (Composite Metals) - Sales were $26.6 million, down 5% sequentially but up 6% year-over-year [4][11]. - Adjusted EBITDA was $4.4 million, down 19% from the previous quarter and 23% from the year-ago period, mainly due to a less favorable order mix [4][11]. Guidance and Market Outlook - For the third quarter, sales are expected to be in the range of $142 million to $150 million, with adjusted EBITDA anticipated between $8 million and $12 million [6][19]. - The guidance reflects increased uncertainty in DMC's end markets, particularly in the U.S. construction industry and energy markets, influenced by macroeconomic concerns and tariff policies [6][19]. Debt and Financial Position - Total debt was reduced by 17% year-to-date, and the company amended its credit facility to enhance financial flexibility [5][7].

Core Viewpoint - Galloper Gold Corp. has been awarded the Exempt Mineral Lands (EML) Mineral Licence for the historic Lunch Pond South Extension (LPSE) Resource on Glover Island, which contains approximately 178,800 ounces of gold [1][2]. Summary by Sections Acquisition and Resource Details - The EML was awarded through a Request for Proposal (RFP) process that began in November 2024, covering an area of 1,926 hectares [2]. - The LPSE resource was delineated by Mountain Lake Minerals in 2012, with a total of ~178,800 ounces of gold indicated and inferred [2]. - The technical report from 2017 confirms the reliability of the historical estimate, as no exploration work has been conducted on the LPSE deposit since its release [3]. Geological Context - The LPSE deposit is situated in the southwestern part of an 11 km mineralized corridor known as the Glover Island Trend (GIT), which hosts 17 mineral prospects [4]. - The GIT is associated with significant mineralization, including gold and base metals, and is located near the Cabot Fault, which is known for its prolific mineralized nature [4]. Management Commentary - The CEO of Galloper Gold expressed enthusiasm about the acquisition, stating it positions the company for significant growth in gold deposits and mining development in Canada [5]. - The acquisition adds a known 43-101 resource to Galloper's portfolio, indicating a promising future for the company [5]. Resource Estimates - The mineral resource estimate includes: - Open Pit: 993,000 tonnes at an average grade of 1.72 g/t Au indicated and 1,703,000 tonnes at 1.59 g/t Au inferred [6][7]. - Underground: 36,000 tonnes at 2.99 g/t Au indicated and 373,000 tonnes at 2.78 g/t Au inferred [6][7]. - The total resource estimate combines both open pit and underground classifications, totaling 1,029,000 tonnes at an average grade of 1.76 g/t Au indicated and 2,076,000 tonnes at 1.81 g/t Au inferred [7]. Future Plans - An exploration program is set to begin in the fall, focusing on expanding the Lucky Smoke prospect and drilling the LPSE deposit and other prospects within the new Mineral Licence [11]. Company Overview - Galloper Gold Corp. is focused on mineral exploration in the Central Newfoundland Gold Belt, with its flagship Glover Island Property located 24 km southeast of Corner Brook [13].

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against DMC Global Inc. due to allegations of securities laws violations and breaches of fiduciary duties related to misleading statements and inadequate internal systems [1][2]. Group 1: Investigation Details - The investigation focuses on whether DMC Global's board of directors breached their fiduciary duties to the company [1]. - Allegations include that the goodwill associated with DMC Global's principal business segment, Acadia Products, was overstated due to adverse events affecting that segment [2]. - It is claimed that DMC Global's internal systems and processes were materially inadequate, adversely affecting its operations and public disclosures [2]. Group 2: Legal Rights and Contact Information - Long-term stockholders of DMC Global are encouraged to contact Bragar Eagel & Squire for more information regarding their legal rights and the ongoing investigation [3]. - The law firm offers no cost or obligation for stockholders seeking to learn more about the claims [3]. Group 3: About the Law Firm - Bragar Eagel & Squire, P.C. is a nationally recognized law firm that represents individual and institutional investors in various complex litigations across state and federal courts [4].

The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has DMC Global (BOOM) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. DMC Global is a member of our Industrial Products group, which includes 189 different companies and currently sits at #2 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks R ...

BROOMFIELD, Colo., July 22, 2025 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) will announce its 2025 second quarter financial results after the stock market closes on Tuesday, August 5, 2025. Following the earnings release, executive management will host a conference call and simultaneous webcast. The conference call will begin 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). A replay of the webcast will be available fo ...