DMC Global Reports Second Quarter Financial Results

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].