Financial Data and Key Metrics Changes - Consolidated first quarter sales were $159.3 million, up 5% sequentially, while adjusted EBITDA attributable to DMC was $14.4 million, 30.9% higher than the fourth quarter [5][9] - Adjusted EBITDA margin was 11.4%, up sequentially from 7.8% in the fourth quarter and flat with the prior year [9][10] - First quarter adjusted net income attributable to DMC was $2.2 million, with adjusted EPS of $0.11 [11] Business Line Data and Key Metrics Changes - Arcadia's sales were $65.6 million, a 9% sequential increase and a 6% year-over-year improvement [5] - DynaEnergetics reported first quarter sales of $65.6 million, up 3% sequentially but down 16% year-over-year [5][6] - NobelClad's first quarter sales were flat sequentially but up 5% year-over-year, with an order backlog of $41 million, down from $49 million at the end of the fourth quarter [7][8] Market Data and Key Metrics Changes - The U.S. onshore energy market saw a 20% decline in the number of active frac crews compared to the previous year [6] - Ongoing uncertainty around U.S. tariff policies has led to customers delaying orders in NobelClad's market [8] Company Strategy and Development Direction - The company is focused on driving absolute EBITDA growth, generating strong free cash flow, and restoring balance sheet health through deleveraging [15] - Management emphasized operational improvement initiatives despite external challenges such as tariffs and macroeconomic conditions [4][5] Management Comments on Operating Environment and Future Outlook - Management noted that the first quarter was a solid start to 2025 despite external challenges [4] - Future guidance reflects concerns over macroeconomic volatility and visibility issues due to current tariff policies and energy prices [13][14] Other Important Information - The company ended the first quarter with cash and cash equivalents of approximately $15 million and total debt of approximately $72 million [11] - The guidance for second quarter consolidated sales is expected to be in the range of $149 million to $157 million [13] Q&A Session Summary Question: Impact of tariffs and costs on guidance - Management indicated that tariffs have some impact, but demand destruction is a larger factor affecting guidance [18][20] Question: Automation and cost containment opportunities - Management stated that cost containment efforts are ongoing, particularly in DynaEnergetics and Arcadia, but quantifying total impact is challenging [25][27] Question: California commercial projects' contribution to EBITDA - Management confirmed that the commercial side of the business will remain profitable in Q2, with a significant project impacting EBITDA [35] Question: Pricing pressures from suppliers - Management is evaluating the supply chain but finds it difficult to predict pricing impacts for the next quarter and second half of the year [36] Question: Tariff surcharge effectiveness - Management reported partial success in passing along tariff surcharges to customers, with ongoing discussions about cost sharing [39] Question: Dyna business performance outlook - Management expects the Dyna business to be flat to modestly down if oil prices remain low and rig counts decrease [42] Question: Update on Steel Connect situation - Management stated that there is no new information regarding Steel Connect, the largest shareholder [43]

Financial Data and Key Metrics Changes - Consolidated first quarter sales were $159.3 million, up 5% sequentially, while adjusted EBITDA attributable to DMC was $14.4 million, 30.9% higher than the fourth quarter [4] - Adjusted EBITDA margin was 11.4%, up sequentially from 7.8% in the fourth quarter and flat with the prior year [8][10] - First quarter adjusted net income attributable to DMC was $2.2 million, with adjusted EPS of $0.11 [10] Business Line Data and Key Metrics Changes - Arcadia's sales were $65.6 million, a 9% sequential increase and a 6% year-over-year improvement, driven by increased sales of commercial exterior storefront products [4] - DynaEnergetics reported first quarter sales of $65.6 million, up 3% sequentially but down 16% year-over-year due to pricing adjustments in response to a downturn in the U.S. onshore energy market [4][5] - NobelClad's first quarter sales were flat sequentially but up 5% year-over-year, with an order backlog of $41 million, down from $49 million at the end of the fourth quarter [6][7] Market Data and Key Metrics Changes - The number of active frac crews in DynaEnergetics' core U.S. onshore energy market was down approximately 20% compared to the previous year [5] - Ongoing uncertainty around U.S. tariff policies has led customers to delay orders in NobelClad's markets [7] Company Strategy and Development Direction - The company is focused on driving absolute EBITDA growth, generating strong free cash flow, and restoring its balance sheet through deleveraging [14] - Management emphasized a renewed focus on core operations and cost containment initiatives across business lines [4][14] Management's Comments on Operating Environment and Future Outlook - Management noted external challenges including tariffs, volatile macroeconomic conditions, and decreasing visibility into core end markets [2][4] - Future guidance indicates expectations for lower project billings at Arcadia and a slowdown in NobelClad sales due to tariff uncertainties [11][12] Other Important Information - The company ended the first quarter with cash and cash equivalents of approximately $15 million and total debt of approximately $72 million, resulting in a debt to adjusted EBITDA leverage ratio of 1.38 [10] Q&A Session Summary Question: Impact of guidance factors including tariffs and costs - Management indicated that tariffs are creating demand destruction, particularly affecting NobelClad and Arcadia, which is more impacted by interest rates than tariffs [18][20] Question: Progress on cost containment and automation initiatives - Management stated that Arcadia is focused on fixing its residential business and refocusing on commercial operations, while DynaEnergetics is implementing automation to improve efficiency [25][26] Question: Performance expectations for Dyna in a declining rig count scenario - Management expects Dyna's business to be softer if oil prices remain low and rig counts decline, with guidance reflecting a flat to modestly down outlook [41] Question: Update on tariff surcharges and pricing strategies - Management reported some success in passing along tariff surcharges but noted that not all costs have been recovered, and discussions with customers are ongoing [38] Question: Status of Steel Connect situation - Management stated that Steel Connect is the largest shareholder, and there are no new updates beyond periodic conversations [43]

Financial Data and Key Metrics Changes - Fourth quarter sales reached $152.4 million, with adjusted EBITDA attributable to DMC at $10.4 million, both exceeding guidance [3][4] - Adjusted EBITDA margin was 7.8%, up from 4.6% in the third quarter but down from 13.4% in the prior year [10] - Adjusted net income attributable to DMC was $1.8 million, with adjusted EPS at $0.09 [12] Business Line Data and Key Metrics Changes - Arcadia's fourth quarter sales were $60.3 million, up 4% sequentially but down 11% year-over-year, primarily due to soft demand for luxury custom residential windows and doors [4][10] - DynaEnergetics reported fourth quarter sales of $63.7 million, down 9% sequentially due to seasonal slowdowns [4] - NobelClad achieved fourth quarter sales of $28.4 million, marking its second strongest performance in over ten years, despite a sequential decline in order backlog [7] Market Data and Key Metrics Changes - The energy products market is experiencing a seasonal slowdown, impacting DynaEnergetics' performance [4] - Arcadia is refocusing on its core commercial operations, which represent the majority of its sales and EBITDA [4][8] Company Strategy and Development Direction - The company is implementing a "back to basics" approach, focusing on rightsizing cost structures and enhancing commercial operations [4][15] - An agreement was reached to extend the maturity of the Arcadia put call arrangement until September 2026, providing flexibility to reduce debt and improve cash flow [8][14] - The company is prioritizing free cash flow generation and absolute EBITDA improvement in its incentive programs [14][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a challenging year but highlighted significant progress in stabilizing the business [14] - The company is closely monitoring tariff impacts and their effects on demand, particularly in the U.S. market [12][36] - Management expressed confidence in the ability to maintain momentum in NobelClad despite a decrease in backlog [24] Other Important Information - The company ended the fourth quarter with approximately $14 million in cash and cash equivalents, and total debt of about $71 million [12] - The debt to adjusted EBITDA leverage ratio was 1.35, well below the covenant threshold of 3.0 [12] Q&A Session Summary Question: Supply chain sourcing initiatives and improvements - Management discussed the back to basics approach focusing on rightsizing the cost structure and enhancing commercial culture [18][19] Question: Transition to commercial efforts and LA rebuild - Management noted that 75% of the business is commercial, and rebuilding efforts in LA will provide opportunities for growth [20][21] Question: Confidence in NobelClad's momentum - Management expressed confidence in maintaining momentum despite a decrease in backlog, while acknowledging potential tariff impacts [23][24] Question: Performance in a flat U.S. pressure pumping business - Management indicated that margin improvements will come from self-help initiatives, with high single-digit margins expected until market conditions improve [28] Question: Mid-cycle EBITDA margin expectations - Management suggested mid-teens EBITDA margins for Arcadia and low double-digit margins for DynaEnergetics at mid-cycle [30][32] Question: Rightsizing at Arcadia - Management confirmed that the issues related to high-end retail were largely behind them, with significant downsizing already completed [43][44] Question: Working capital opportunities - Management highlighted a focus on improving working capital efficiency across all businesses, particularly in Arcadia [48]