Financial Data and Key Metrics Changes - DMC's consolidated third quarter sales were $151.5 million, down 1% year-over-year, while adjusted EBITDA attributable to DMC was $8.6 million, up 51% year-over-year [3][4] - Net debt was reduced to $30.1 million, down 47% since the start of the year, marking the lowest level since acquiring Arcadia [3] - Adjusted net loss attributable to DMC was $1.6 million, with adjusted loss per share of $0.08 [9][10] Business Line Data and Key Metrics Changes - Arcadia's third quarter sales totaled $61.7 million, a 7% year-over-year increase but down 1% from the second quarter [3] - DynaEnergetics reported third quarter sales of $68.9 million, down 1% year-over-year and up 3% sequentially [4] - NobelClad's third quarter sales were $20.9 million, down 16% year-over-year and down 21% sequentially [5] Market Data and Key Metrics Changes - In DynaEnergetics' core U.S. onshore market, well completions were down 8% year-over-year and 6% sequentially [4] - Architectural billings in Arcadia's core Western region have declined every month since May, indicating soft commercial construction activity [4] Company Strategy and Development Direction - The company is focusing on leveraging its balance sheet and stabilizing operations across its business lines [3][12] - NobelClad secured a record order, which is expected to help rebuild its order book and explore global business opportunities [12] - DynaEnergetics is containing costs while pursuing international opportunities amidst a challenging North American oil and gas market [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment is marked by volatile energy prices, elevated interest rates, and shifting tariff policies [12] - The company expects continued headwinds in the oil field services market during the fourth quarter, with a focus on self-help measures [12][11] - There is cautious optimism regarding potential improvements in the building industry, but overall market conditions remain challenging [12][44] Other Important Information - The company ended the third quarter with cash and cash equivalents of approximately $26.4 million, and total debt was $56.5 million, down 20% from the end of 2024 [10] - Guidance for fourth quarter sales is expected to be in the range of $140 million to $150 million, with adjusted EBITDA anticipated to be around $5 million [10][11] Q&A Session Summary Question: Are there any green shoots in Arcadia? - Management acknowledged seeing some Arcadia-specific green shoots but emphasized that these improvements are not indicative of broader industry trends [19][20] Question: What is the shipping cadence for the large NobelClad order? - The bulk of the revenue from the large order is expected to be recognized in the second half of 2026 [24][28] Question: How is the tariff impact affecting DynaEnergetics? - The impact from tariffs was approximately $3 million, and pushing prices in the current market is extremely challenging [35] Question: What are the expectations for 2026 in the perforating gun business? - Management stated it is too early to discuss 2026 due to poor visibility and indicated that pricing relief is not expected in the near term [50] Question: What is needed for demand trends to pick up? - Stability in the market and potential interest rate cuts are critical for recovery, with cautious optimism for improvements in the building industry [41][44]