BOOM DMC Global Inc

DMC Global Inc. (Nasdaq: BOOM) today reported financial results for its fourth quarter ended December 31, 2024. Stabilization at DMC’s three manufacturing businesses led to sales and earnings results that were above management’s forecasts, while progress was made on several internal initiatives that should benefit future periods. Fourth quarter sales were $152.4 million versus a forecasted range of $138 million to $148 million, while adjusted EBITDA attributable to DMC was $10.4 million versus guidance of $5 million to $8 million.

Sales at Arcadia, DMC’s architectural building products business, were up 4% sequentially and down 11% versus last year’s fourth quarter. Sales of commercial exterior products, which generate approximately 75% of Arcadia’s total revenue, were up modestly versus both the 2024 third quarter and comparable prior-year period. The year-over-year decline in fourth quarter sales principally reflects weak demand from the luxury home market for Arcadia’s premium residential windows and doors.

Jim Schladen, who recently rejoined Arcadia as president, is focused on a “back-to-basics” approach to driving sales and earnings growth, further strengthening the core commercial operations, and implementing an improvement plan for Arcadia’s high-end residential window and door offering. This plan may include the rightsizing of certain underperforming offerings.

At DynaEnergetics, DMC’s energy products business, fourth quarter sales declined 9% sequentially and 15% year-over-year. The sequential decline reflects a seasonal slowdown in North American onshore well completions, which was partially offset by strong international demand. The year-over-year sales decline principally reflects lower pricing in North America.

During the fourth quarter, DynaEnergetics introduced the next generation of its DynaStage perforating system, the leading modular perforating gun in the unconventional oil and gas industry. The new model brings a further improvement in down-hole reliability. Having been fully value reengineered to reduce material and complexity, it is lighter and more compact than its predecessor. All customers have completed the transition to the new system, which is being embraced for its unique and superior value proposition. DynaEnergetics also completed the first phase of a major automation project at its North American manufacturing center in Blum, Texas. Phase two is on track for completion in the second quarter.

At NobelClad, DMC’s composite metals business, strong shipments led to the second-best quarterly sales performance in more than a decade. Fourth quarter sales increased 14% sequentially, but declined 8% versus last year’s fourth quarter, which was NobelClad’s strongest sales quarter since 2013. Order backlog at the end of the fourth quarter was $49 million versus $59 million at the end of the third quarter, reflecting robust fourth quarter shipments that were not sufficiently offset by new bookings. Inquiries and order opportunities within NobelClad’s primary U.S. downstream energy market had improved throughout the fourth quarter and have remained healthy in the first quarter. NobelClad is focused on converting as many of these opportunities as possible into firm orders.

The Company believes Arcadia and DynaEnergetics have made significant progress stabilizing and improving their operations, positioning them to fully participate in future recoveries of their respective end markets. DMC’s focus prospectively is on margin expansion, EBITDA growth and debt reduction. During December 2024, DMC reached an agreement with its Arcadia joint venture partners to extend its put obligation until no earlier than September 2026. This extension will provide the company with significant optionality to deleverage its balance sheet with free cash flow while exploring opportunities to refinance on more favorable terms.

GuidanceFirst quarter sales are expected to be in a range of $146 million to $154 million, while adjusted EBITDA is expected in a range of $8 million to $11 million. DMC said its businesses are closely monitoring evolving U.S. and reciprocal tariff policies.

Summary Fourth Quarter Results

	Three months ended												Change
(Amounts in 000’s, except Per Share Data)	Dec 31, 2024				Sep 30, 2024				Dec 31, 2023				Sequential			Year-on-year
Net sales	$	152,374			$	152,429			$	174,036			—	%		(12	)%
Gross profit percentage		20.8	%			19.8	%			26.1	%
SG&A	$	25,126			$	28,205			$	27,179			(11	)%		(8	)%
Net (loss) income	$	(1,156	)		$	(159,416	)		$	3,569			99	%		(132	)%
Net income (loss) attributable to DMC	$	296			$	(101,323	)		$	2,764			100	%		(89	)%
Diluted net (loss) income per share attributable to DMC	$	(0.17	)		$	(8.27	)		$	0.01			98	%		(1,800	)%
Adjusted net income (loss) attributable to DMC	$	1,754			$	(9,615	)		$	5,179			118	%		(66	)%
Adjusted diluted net income (loss) per share	$	0.09			$	(0.49	)		$	0.26			118	%		(65	)%
Adjusted EBITDA attributable to DMC	$	10,382			$	5,671			$	19,589			83	%		(47	)%
Adjusted EBITDA before NCI allocation	$	11,876			$	7,015			$	23,278			69	%		(49	)%
Adjusted EBITDA before NCI allocation margin		7.8	%			4.6	%			13.4	%

Arcadia

	Three months ended												Change
	Dec 31, 2024				Sep 30, 2024				Dec 31, 2023				Sequential			Year-on-year
Net sales	$	60,272			$	57,818			$	67,958			4	%		(11	)%
Gross profit percentage		22.4	%			23.5	%			27.8	%
Adjusted EBITDA attributable to DMC	$	2,243			$	2,014			$	5,533			11	%		(59	)%
Adjusted EBITDA before NCI allocation		3,737				3,358				9,222			11	%		(59	)%
Adjusted EBITDA before NCI allocation margin		6.2	%			5.8	%			13.6	%

• Sales decline vs. Q4 2023 reflects weak demand from luxury residential market.
• Adjusted EBITDA decline vs. prior-year quarter was disproportionate to sales decline due to higher fixed costs associated with the manufacturing of luxury residential products. 

DynaEnergetics

	Three months ended												Change
	Dec 31, 2024				Sep 30, 2024				Dec 31, 2023				Sequential			Year-on-year
Net sales	$	63,675			$	69,679			$	75,306			(9	)%		(15	)%
Gross profit percentage		15.1	%			12.0	%			21.4	%
Adjusted EBITDA	$	5,098			$	414			$	9,286			1,131	%		(45	)%
Adjusted EBITDA margin		8.0	%			0.6	%			12.3	%

• Year-over-year sales decline was attributable to lower pricing in North America, while sequential sales decline reflects slowdown in North American well-completion activity.
• Year-over-year margin decline reflects lower pricing, while sequential margin improvement was due to third-quarter inventory and bad-debt charges.

NobelClad

	Three months ended												Change
	Dec 31, 2024				Sep 30, 2024				Dec 31, 2023				Sequential			Year-on-year
Net sales	$	28,427			$	24,932			$	30,772			14	%		(8	)%
Gross profit percentage		30.5	%			33.2	%			33.8	%
Adjusted EBITDA	$	5,848			$	5,776			$	7,608			1	%		(23	)%
Adjusted EBITDA margin		20.6	%			23.2	%			24.7	%

• Rolling 12-month bookings were $96.6 million, and the 12-month book-to-bill ratio was 0.92.

Summary 2024 Results

	Twelve months ended							Change
	Dec 31, 2024				Dec 31, 2023				Year-on-year
Net sales	$	642,851			$	719,188			(11	)%
Gross profit percentage		23.4	%			29.5	%
SG&A	$	108,656			$	124,442			(13	)%
Net (loss) income	$	(151,960	)		$	34,759			(537	)%
Net (loss) income attributable to DMC	$	(94,452	)		$	26,259			(460	)%
Diluted net (loss) income per share attributable to DMC	$	(8.20	)		$	1.08			(859	)%
Adjusted net income attributable to DMC	$	1,981			$	35,316			(94	)%
Adjusted diluted net income per share	$	0.10			$	1.81			(94	)%
Adjusted EBITDA attributable to DMC	$	52,156			$	96,063			(46	)%
Adjusted EBITDA before NCI allocation	$	62,334			$	115,908			(46	)%
Adjusted EBITDA before NCI allocation margin		9.7	%			16.1	%

Conference call informationThe conference call will begin today 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).

Investors are invited to listen to the webcast live via the Internet at:https://event.choruscall.com/mediaframe/webcast.html?webcastid=LMDq0nQw

Webcast participants should access the website at least 15 minutes early to register and download any necessary audio software. The webcast also will be available on the Investor page of DMC’s website, located at: ir.dmcglobal.com. A replay of the webcast will be available for six months.

*Use of Non-GAAP Financial Measures In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (GAAP), the Company also discloses certain non-GAAP financial measures that we use in operational and financial decision making. Non-GAAP financial measures include the following:

• EBITDA: defined as net income (loss) plus net interest, taxes, depreciation and amortization.
• Adjusted EBITDA: excludes from EBITDA stock-based compensation, restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance (as further described in the tables below).
• Adjusted EBITDA attributable to DMC Global Inc.: excludes the Adjusted EBITDA attributable to the 40% redeemable noncontrolling interest in Arcadia Products.
• Adjusted EBITDA for DMC business segments: defined as operating income (loss) plus depreciation, amortization, allocated stock-based compensation (if applicable), restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance.
• Adjusted net income (loss): defined as net income (loss) attributable to DMC Global Inc. stockholders prior to the adjustment of redeemable noncontrolling interest plus restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance.
• Adjusted diluted earnings per share: defined as diluted earnings per share attributable to DMC Global Inc. stockholders (exclusive of adjustment of redeemable noncontrolling interest) plus restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance.
• Net debt: defined as total debt less total cash, cash equivalents and marketable securities.
• Free-cash flow: defined as cash flows from operating activities less net acquisitions of property, plant and equipment.

Management believes providing these additional financial measures is useful to investors in understanding the Company’s operating performance, excluding the effects of restructuring, impairment, and other nonrecurring charges, as well as its liquidity. Management typically monitors the business utilizing the above non-GAAP measures, in addition to GAAP results, to understand and compare operating results across accounting periods, and certain management incentive awards are based, in part, on these measures. The presence of non-GAAP financial measures in this report is not intended to suggest that such measures be considered in isolation or as a substitute for, or as superior to, DMC’s GAAP information, and investors are cautioned that the non-GAAP financial measures are limited in their usefulness.

Because not all companies use identical calculations, DMC’s presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. However, these measures can still be useful in evaluating the company’s performance against its peer companies because management believes the measures provide users with valuable insight into key components of GAAP financial disclosures. For example, a company with greater GAAP net income may not be as appealing to investors if its net income is more heavily comprised of gains on asset sales. Likewise, eliminating the effects of interest income and expense moderates the impact of a company’s capital structure on its performance.

DMC is unable to reconcile its expected first quarter 2025 adjusted EBITDA attributable to DMC to the most directly comparable projected GAAP financial measure because certain information necessary to calculate such measure on a GAAP basis is unavailable or dependent on the timing of future events outside of DMC’s control. Therefore, because of the uncertainty and variability of the nature of and the amount of any potential applicable future adjustments, which could be significant, DMC is unable to provide a reconciliation for expected adjusted EBITDA attributable to DMC without unreasonable efforts.

About DMC Global Inc.DMC Global is an owner and operator of innovative, asset-light manufacturing businesses that provide unique, highly engineered products and differentiated solutions. DMC’s businesses have established leadership positions in their respective markets and consist of: Arcadia, a leading supplier of architectural building products; DynaEnergetics, which serves the global energy industry; and NobelClad, which addresses the global industrial infrastructure and transportation sectors. Based in Broomfield, Colorado, DMC trades on Nasdaq under the symbol “BOOM.” For more information, visit: http://www.dmcglobal.com/.

Safe Harbor LanguageExcept for the historical information contained herein, this news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including first quarter 2025 guidance on sales and adjusted EBITDA; our expectations that future periods should benefit from internal initiatives, that Arcadia’s “back-to-basics” approach will drive sales and earnings growth, the potential rightsizing of certain underperforming offerings at Arcadia, DynaEnergetics’ expected second-quarter completion of phase two of its automation initiative, our belief that Arcadia and DynaEnergetics will be positioned to participate in future recoveries of their respective end markets, and DMC’s belief that it can expand margins, grow EBITDA and reduce debt. Such statements and information are based on numerous assumptions regarding present and future business strategies, the markets in which we operate, anticipated costs and the ability to achieve goals. Forward-looking information and statements are subject to known and unknown risks, uncertainties and other important factors that may cause actual results and performance to be materially different from those expressed or implied by such forward-looking information and statements, including but not limited to: our ability to realize sales from our backlog; our ability to obtain new contracts at attractive prices; the execution of purchase commitments by our customers, and our ability to successfully deliver on those purchase commitments; the size and timing of customer orders and shipments; the timely completion of contracts; changes to customer orders; product pricing and margins; fluctuations in customer demand; our ability to successfully navigate slowdowns in market activity or execute and capitalize upon growth opportunities; the success of DynaEnergetics’ product, technology, and margin enhancement initiatives; our ability to successfully protect our technology and intellectual property and the costs associated with these efforts; consolidation among DynaEnergetics’ customers; fluctuations in foreign currencies; fluctuations in tariffs and quotas; the cost and availability of energy; the cyclicality of our business; competitive factors; the timing and size of expenditures; the timing and price of metal and other raw material; the adequacy of local labor supplies at our facilities; our ability to attract and retain key personnel; current or future limits on manufacturing capacity at our various operations; government actions or other changes in laws and regulations; the availability and cost of funds; our ability to access our borrowing capacity under our credit facility; geopolitical and economic instability, including recessions, depressions, wars or other military actions; inflation; supply chain delays and disruptions; transportation disruptions; general economic conditions, both domestic and foreign, impacting our business and the business of our customers and the end-market users we serve; the potential effects of activist stockholder actions and actions that we may take to discourage takeover attempts, as well as the other risks detailed from time to time in our SEC reports, including the annual report on Form 10-K for the year ended December 31, 2024. We do not undertake any obligation to release public revisions to any forward-looking statement, including, without limitation, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

CONTACT:Geoff High, Vice President of Investor Relations303-604-3924

DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in Thousands, Except Share and Per Share Data)(unaudited)
	Three months ended												Change
	Dec 31, 2024				Sep 30, 2024				Dec 31, 2023				Sequential			Year-on-year
NET SALES	$	152,374			$	152,429			$	174,036			—	%		(12	)%
COST OF PRODUCTS SOLD		120,675				122,324				128,682			(1	)%		(6	)%
Gross profit		31,699				30,105				45,354			5	%		(30	)%
Gross profit percentage		20.8	%			19.8	%			26.1	%
COSTS AND EXPENSES:
General and administrative expenses		15,449				14,349				15,056			8	%		3	%
Selling and distribution expenses		9,677				13,856				12,123			(30	)%		(20	)%
Amortization of purchased intangible assets		5,278				5,278				5,666			—	%		(7	)%
Goodwill impairment		—				141,725				—			(100	)%		—	%
Strategic review expenses		1,813				1,763				—			3	%		100	%
Restructuring expenses and asset impairments		178				2,069				3,251			(91	)%		(95	)%
Total costs and expenses		32,395				179,040				36,096			(82	)%		(10	)%
OPERATING (LOSS) INCOME		(696	)			(148,935	)			9,258			100	%		(108	)%
OTHER INCOME (EXPENSE):
Other income (expense), net		145				(520	)			(1,445	)		128	%		110	%
Interest expense, net		(1,918	)			(2,113	)			(2,311	)		(9	)%		(17	)%
(LOSS) INCOME BEFORE INCOME TAXES		(2,469	)			(151,568	)			5,502			98	%		(145	)%
INCOME TAX (BENEFIT) PROVISION		(1,313	)			7,848				1,933			117	%		168	%
NET (LOSS) INCOME		(1,156	)			(159,416	)			3,569			99	%		(132	)%
Less: Net (loss) income attributable to redeemable noncontrolling interest		(1,452	)			(58,093	)			805			98	%		(280	)%
NET INCOME (LOSS) ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS	$	296			$	(101,323	)		$	2,764			100	%		(89	)%
NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS
Basic	$	(0.17	)		$	(8.27	)		$	0.01			98	%		(1,800	)%
Diluted	$	(0.17	)		$	(8.27	)		$	0.01			98	%		(1,800	)%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		19,730,643				19,706,587				19,561,494			—	%		1	%
Diluted		19,730,643				19,706,587				19,580,750			—	%		1	%

Reconciliation to net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share

	Three months ended
	Dec 31, 2024				Sep 30, 2024				Dec 31, 2023
Net income (loss) attributable to DMC Global Inc. stockholders	$	296			$	(101,323	)		$	2,764
Adjustment of redeemable noncontrolling interest		(1,059	)			(61,687	)			(2,581	)
Deemed dividend		(2,500	)			—				—
Net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest	$	(3,263	)		$	(163,010	)		$	183

DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in Thousands, Except Share and Per Share Data)(unaudited)
	Twelve months ended								Change
	Dec 31, 2024				Dec 31, 2023				Year-on-year
NET SALES	$	642,851			$	719,188			(11	)%
COST OF PRODUCTS SOLD		492,282				507,136			(3	)%
Gross profit		150,569				212,052			(29	)%
Gross profit percentage		23.4	%			29.5	%
COSTS AND EXPENSES:
General and administrative expenses		61,401				75,341			(19	)%
Selling and distribution expenses		47,255				49,101			(4	)%
Amortization of purchased intangible assets		21,155				22,667			(7	)%
Goodwill impairment		141,725				—			100	%
Strategic review expenses		7,765				—			100	%
Restructuring expenses and asset impairments		2,526				3,766			(33	)%
Total costs and expenses		281,827				150,875			87	%
OPERATING (LOSS) INCOME		(131,258	)			61,177			(315	)%
OTHER EXPENSE:
Other expense, net		(1,068	)			(1,782	)		(40	)%
Interest expense, net		(8,664	)			(9,516	)		(9	)%
(LOSS) INCOME BEFORE INCOME TAXES		(140,990	)			49,879			(383	)%
INCOME TAX PROVISION		10,970				15,120			(27	)%
NET (LOSS) INCOME		(151,960	)			34,759			(537	)%
Less: Net (loss) income attributable to redeemable noncontrolling interest		(57,508	)			8,500			(777	)%
NET (LOSS) INCOME ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS	$	(94,452	)		$	26,259			(460	)%
NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS
Basic	$	(8.20	)		$	1.08			(859	)%
Diluted	$	(8.20	)		$	1.08			(859	)%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic		19,667,673				19,504,542			1	%
Diluted		19,667,673				19,518,382			1	%

Reconciliation to net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share

	Twelve months ended
	Dec 31, 2024				Dec 31, 2023
Net (loss) income attributable to DMC Global Inc. stockholders	$	(94,452	)		$	26,259
Adjustment of redeemable noncontrolling interest		(64,260	)			(4,870	)
Deemed dividend		(2,500	)			—
Net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest	$	(161,212	)		$	21,389

Arcadia

DMC GLOBAL INC.SEGMENT STATEMENTS OF OPERATIONS(Amounts in Thousands)(unaudited)
	Three months ended												Change
	Dec 31, 2024				Sep 30, 2024				Dec 31, 2023				Sequential			Year-on-year
Net sales	$	60,272			$	57,818			$	67,958			4	%		(11	)%
Gross profit		13,493				13,562				18,910			(1	)%		(29	)%
Gross profit percentage		22.4	%			23.5	%			27.8	%
COSTS AND EXPENSES:
General and administrative expenses		8,237				7,223				7,012			14	%		17	%
Selling and distribution expenses		3,505				4,210				4,028			(17	)%		(13	)%
Amortization of purchased intangible assets		5,278				5,278				5,652			—	%		(7	)%
Goodwill impairment		—				141,725				—			(100	)%		—	%
Restructuring expenses and asset impairments		118				248				—			(52	)%		100	%
Operating (loss) income		(3,645	)			(145,122	)			2,218			97	%		(264	)%
Adjusted EBITDA		3,737				3,358				9,222			11	%		(59	)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest		(1,494	)			(1,344	)			(3,689	)		11	%		(60	)%
Adjusted EBITDA attributable to DMC Global Inc.	$	2,243			$	2,014			$	5,533			11	%		(59	)%

	Twelve months ended								Change
	Dec 31, 2024				Dec 31, 2023				Year-on-year
Net sales	$	249,763			$	298,909			(16	)%
Gross profit		67,025				92,252			(27	)%
Gross profit percentage		26.8	%			30.9	%
COSTS AND EXPENSES:
General and administrative expenses		30,881				30,488			1	%
Selling and distribution expenses		16,299				17,749			(8	)%
Amortization of purchased intangible assets		21,111				22,608			(7	)%
Goodwill impairment		141,725				—			100	%
Restructuring expenses and asset impairments		645				—			100	%
Operating (loss) income		(143,636	)			21,407			(771	)%
Adjusted EBITDA	$	25,446			$	49,612			(49	)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest	$	(10,178	)		$	(19,845	)		(49	)%
Adjusted EBITDA attributable to DMC Global Inc.	$	15,268			$	29,767			(49	)%

DynaEnergetics

DMC GLOBAL INC.SEGMENT STATEMENTS OF OPERATIONS(Amounts in Thousands)(unaudited)
	Three months ended												Change
	Dec 31, 2024				Sep 30, 2024				Dec 31, 2023				Sequential			Year-on-year
Net sales	$	63,675			$	69,679			$	75,306			(9	)%		(15	)%
Gross profit		9,604				8,347				16,127			15	%		(40	)%
Gross profit percentage		15.1	%			12.0	%			21.4	%
COSTS AND EXPENSES:
General and administrative expenses		2,634				2,299				2,937			15	%		(10	)%
Selling and distribution expenses		3,588				7,276				5,584			(51	)%		(36	)%
Amortization of purchased intangible assets		—				—				14			—	%		(100	)%
Restructuring expenses and asset impairments		60				1,821				3,011			(97	)%		(98	)%
Operating income (loss)		3,322				(3,049	)			4,581			209	%		(27	)%
Adjusted EBITDA	$	5,098			$	414			$	9,286			1,131	%		(45	)%

	Twelve months ended								Change
	Dec 31, 2024				Dec 31, 2023				Year-on-year
Net sales	$	287,686			$	315,026			(9	)%
Gross profit		50,055				86,701			(42	)%
Gross profit percentage		17.4	%			27.5	%
COSTS AND EXPENSES:
General and administrative expenses		10,835				15,806			(31	)%
Selling and distribution expenses		21,128				21,472			(2	)%
Amortization of purchased intangible assets		44				59			(25	)%
Restructuring expenses and asset impairments		1,881				3,011			(38	)%
Operating income		16,167				46,353			(65	)%
Adjusted EBITDA	$	24,803			$	56,270			(56	)%

NobelClad

	Three months ended												Change
	Dec 31, 2024				Sep 30, 2024				Dec 31, 2023				Sequential			Year-on-year
Net sales	$	28,427			$	24,932			$	30,772			14	%		(8	)%
Gross profit		8,676				8,269				10,416			5	%		(17	)%
Gross profit percentage		30.5	%			33.2	%			33.8	%
COSTS AND EXPENSES:
General and administrative expenses		1,092				1,110				1,114			(2	)%		(2	)%
Selling and distribution expenses		2,534				2,190				2,435			16	%		4	%
Operating income		5,050				4,969				6,867			2	%		(26	)%
Adjusted EBITDA	$	5,848			$	5,776			$	7,608			1	%		(23	)%

DMC GLOBAL INC.SEGMENT STATEMENTS OF OPERATIONS(Amounts in Thousands)(unaudited)
	Twelve months ended								Change
	Dec 31, 2024				Dec 31, 2023				Year-on-year
Net sales	$	105,402			$	105,253			—	%
Gross profit		33,811				33,529			1	%
Gross profit percentage		32.1	%			31.9	%
COSTS AND EXPENSES:
General and administrative expenses		4,299				4,092			5	%
Selling and distribution expenses		9,461				9,570			(1	)%
Restructuring expenses and asset impairments		—				440			(100	)%
Operating income		20,051				19,427			3	%
Adjusted EBITDA	$	23,226			$	22,760			2	%

DMC GLOBAL INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in Thousands)
										Change
	Dec 31, 2024			Sep 30, 2024			Dec 31, 2023			Sequential			From year-end
	(unaudited)			(unaudited)
ASSETS
Cash and cash equivalents	$	14,289		$	14,511		$	31,040		(2	)%		(54	)%
Marketable securities		—			—			12,619		-			(100	)%
Accounts receivable, net		103,361			110,996			106,205		(7	)%		(3	)%
Inventories		152,580			165,636			166,712		(8	)%		(8	)%
Prepaid expenses and other		18,792			16,734			10,236		12	%		84	%
Total current assets		289,022			307,877			326,812		(6	)%		(12	)%
Property, plant and equipment, net		129,276			129,674			129,267		—	%		—	%
Goodwill		—			—			141,725		-			(100	)%
Purchased intangible assets, net		174,104			179,380			195,260		(3	)%		(11	)%
Other long-term assets		78,935			85,079			91,431		(7	)%		(14	)%
Total assets	$	671,337		$	702,010		$	884,495		(4	)%		(24	)%
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY
Accounts payable	$	45,059		$	55,883		$	40,202		(19	)%		12	%
Contract liabilities		23,162			21,263			21,621		9	%		7	%
Accrued income taxes		7,574			16,616			12,810		(54	)%		(41	)%
Current portion of long-term debt		2,500			2,500			15,000		—	%		(83	)%
Other current liabilities		35,807			33,787			36,828		6	%		(3	)%
Total current liabilities		114,102			130,049			126,461		(12	)%		(10	)%
Long-term debt		68,318			71,715			100,851		(5	)%		(32	)%
Deferred tax liabilities		711			1,702			1,956		(58	)%		(64	)%
Other long-term liabilities		50,155			54,940			57,172		(9	)%		(12	)%
Redeemable noncontrolling interest		187,080			187,080			187,760		—	%		—	%
Stockholders’ equity		250,971			256,524			410,295		(2	)%		(39	)%
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity	$	671,337		$	702,010		$	884,495		(4	)%		(24	)%

DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in Thousands)(unaudited)
	Three months ended												Twelve months ended
	Dec 31, 2024				Sep 30, 2024				Dec 31, 2023				Dec 31, 2024				Dec 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(1,156	)		$	(159,416	)		$	3,569			$	(151,960	)		$	34,759
Adjustments to reconcile net (loss) income to net cash from operating activities:
Depreciation		3,597				3,444				3,546				13,891				13,840
Amortization of purchased intangible assets		5,278				5,278				5,666				21,155				22,667
Amortization of deferred debt issuance costs		217				217				141				841				553
Stock-based compensation		1,799				1,772				1,712				6,902				10,270
Bad debt expense		(49	)			3,943				1,006				4,930				1,146
Deferred income taxes		(515	)			6,026				(1,248	)			4,219				970
Asset impairments		138				1,044				1,956				1,182				2,471
Goodwill impairment		—				141,725				—				141,725				—
Unrealized gain on marketable securities		—				—				(148	)			—				(148	)
Other		(1,242	)			712				1,859				(1,318	)			(181	)
Change in working capital, net		3,744				14,257				5,120				5,029				(20,420	)
Net cash provided by operating activities		11,811				19,002				23,179				46,596				65,927
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in marketable securities		—				—				(4,955	)			—				(12,471	)
Proceeds from maturities of marketable securities		—				—				—				3,000				—
Proceeds from sales of marketable securities		—				—				—				9,619				—
Acquisition of property, plant and equipment		(5,684	)			(6,085	)			(8,519	)			(17,284	)			(15,974	)
Proceeds from property, plant and equipment reimbursements		587				406				—				993				—
Proceeds on sale of property, plant and equipment		3				—				344				103				344
Net cash used in investing activities		(5,094	)			(5,679	)			(13,130	)			(3,569	)			(28,101	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments on term loan		(625	)			(625	)			(3,750	)			(119,375	)			—
Borrowings on term loan		—				—				—				50,000				(17,500	)
Borrowings on revolving loans		12,500				500				—				90,150				—
Repayments on revolving loans		(15,375	)			(9,875	)			—				(65,775	)			—
Payments of debt issuance costs		—				—				—				(2,735	)			—
Distributions to redeemable noncontrolling interest holder		(124	)			(3,649	)			(3,170	)			(8,445	)			(13,515	)
Payment of deemed dividend to noncontrolling interest holder		(2,500	)			—				—				(2,500	)			—
Net proceeds from issuance of common stock to employees		—				—				102				132				314
Treasury stock activity		(240	)			(48	)			(153	)			(1,240	)			(2,481	)
Net cash used in financing activities		(6,364	)			(13,697	)			(6,971	)			(59,788	)			(33,182	)
EFFECTS OF EXCHANGE RATES ON CASH		(575	)			318				(98	)			10				1,252
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(222	)			(56	)			2,980				(16,751	)			5,896
CASH AND CASH EQUIVALENTS, beginning of the period		14,511				14,567				28,060				31,040				25,144
CASH AND CASH EQUIVALENTS, end of the period	$	14,289			$	14,511			$	31,040			$	14,289			$	31,040

DMC Global

EBITDA and Adjusted EBITDA

DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS(Amounts in Thousands)(unaudited)
					Three months ended												Change
	Dec 31, 2024				Sep 30, 2024				Dec 31, 2023				Sequential				Year-on-year
Net (loss) income		(1,156	)			(159,416	)			3,569				99	%		(132	)%
Interest expense, net		1,918				2,113				2,311				(9	)%		(17	)%
Income tax (benefit) provision		(1,313	)			7,848				1,933				117	%		168	%
Depreciation		3,597				3,444				3,546				4	%		1	%
Amortization of purchased intangible assets		5,278				5,278				5,666				—	%		(7	)%
EBITDA		8,324				(140,733	)			17,025				106	%		(51	)%
Stock-based compensation		1,706				1,671				1,557				2	%		10	%
Goodwill impairment		—				141,725				—				(100	)%		—	%
Strategic review expenses		1,813				1,763				—				3	%		100	%
Restructuring expenses and asset impairments		178				2,069				3,251				(91	)%		(95	)%
Other (income) expense, net		(145	)			520				1,445				128	%		110	%
Adjusted EBITDA	$	11,876			$	7,015			$	23,278				69	%		(49	)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest		(1,494	)			(1,344	)			(3,689	)			11	%		(60	)%
Adjusted EBITDA attributable to DMC Global Inc.	$	10,382			$	5,671			$	19,589				83	%		(47	)%
									Twelve months ended								Change
									Dec 31, 2024				Dec 31, 2023				Year-on-year
Net (loss) income									$	(151,960	)		$	34,759			(537	)%
Interest expense, net										8,664				9,516			(9	)%
Income tax provision										10,970				15,120			(27	)%
Depreciation										13,891				13,840			—	%
Amortization of purchased intangible assets										21,155				22,667			(7	)%
EBITDA										(97,280	)			95,902			(201	)%
Stock-based compensation										6,530				10,115			(35	)%
Goodwill impairment										141,725				—			100	%
Strategic review expenses										7,765				—			100	%
Restructuring expenses and asset impairments										2,526				3,766			(33	)%
CEO transition expenses										—				4,343			(100	)%
Other expense, net										1,068				1,782			(40	)%
Adjusted EBITDA									$	62,334			$	115,908			(46	)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest										(10,178	)			(19,845	)		(49	)%
Adjusted EBITDA attributable to DMC Global Inc.									$	52,156			$	96,063			(46	)%

DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS(Amounts in Thousands)(unaudited)

Adjusted Net Income (Loss)* and Adjusted Diluted Earnings per Share

*Net income (loss) attributable to DMC Global Inc. prior to the adjustment of redeemable noncontrolling interest and deemed dividend for purposes of calculating earnings per share

	Three months ended December 31, 2024
	Amount			Per Share(1)
Net income attributable to DMC Global Inc.*	$	296		$	0.02
Strategic review expenses, net of tax		1,360			0.07
Restructuring expenses and asset impairments, net of tax		98			—
As adjusted	$	1,754		$	0.09

(1) Calculated using diluted weighted average shares outstanding of 19,730,643

	Three months ended September 30, 2024
	Amount				Per Share(1)
Net loss attributable to DMC Global Inc.*	$	(101,323	)		$	(5.14	)
Goodwill impairment, net of tax		85,035				4.31
Strategic review expenses, net of tax		1,322				0.07
Restructuring expenses and asset impairments, net of tax		1,451				0.07
Establishment of income tax valuation allowance		3,900				0.20
As adjusted	$	(9,615	)		$	(0.49	)

(1) Calculated using diluted weighted average shares outstanding of 19,706,587

	Three months ended December 31, 2023
	Amount			Per Share(1)
Net income attributable to DMC Global Inc.*	$	2,764		$	0.14
Restructuring expenses and asset impairments, net of tax		2,415			0.12
As adjusted	$	5,179		$	0.26

(1) Calculated using diluted weighted average shares outstanding of 19,580,750

	Twelve months ended December 31, 2024
	Amount				Per Share(1)
Net loss attributable to DMC Global Inc.*	$	(94,452	)		$	(4.80	)
Goodwill impairment, net of tax		85,035				4.32
Strategic review expenses, net of tax		5,824				0.30
Restructuring expenses and asset impairments, net of tax		1,674				0.08
Establishment of income tax valuation allowance		3,900				0.20
As adjusted	$	1,981			$	0.10

(1) Calculated using diluted weighted average shares outstanding of 19,667,673

	Twelve months ended December 31, 2023
	Amount			Per Share(1)
Net income attributable to DMC Global Inc.*	$	26,259		$	1.35
CEO transition expenses and accelerated stock-based compensation, net of tax		6,284			0.32
Restructuring expenses and asset impairments, net of tax		2,773			0.14
As adjusted	$	35,316		$	1.81

(1) Calculated using diluted weighted average shares outstanding of 19,518,382

DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS(Amounts in Thousands)(unaudited)

Segment Adjusted EBITDA

Arcadia

	Three months ended												Change
	Dec 31, 2024				Sep 30, 2024				Dec 31, 2023				Sequential			Year-on-year
Operating (loss) income, as reported	$	(3,645	)		$	(145,122	)		$	2,218			97	%		(264	)%
Adjustments:
Depreciation		1,004				914				1,020			10	%		(2	)%
Amortization of purchased intangible assets		5,278				5,278				5,652			—	%		(7	)%
Stock-based compensation		982				315				332			212	%		196	%
Goodwill impairment		—				141,725				—			(100	)%		—	%
Restructuring expenses and asset impairments		118				248				—			(52	)%		100	%
Adjusted EBITDA		3,737				3,358				9,222			11	%		(59	)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest		(1,494	)			(1,344	)			(3,689	)		11	%		(60	)%
Adjusted EBITDA attributable to DMC Global Inc.	$	2,243			$	2,014			$	5,533			11	%		(59	)%

	Twelve months ended								Change
	Dec 31, 2024				Dec 31, 2023				Year-on-year
Operating (loss) income, as reported	$	(143,636	)		$	21,407			(771	)%
Adjustments:
Depreciation		3,681				3,695			—	%
Amortization of purchased intangible assets		21,111				22,608			(7	)%
Stock-based compensation		1,920				1,571			22	%
Goodwill impairment		141,725				—			100	%
Restructuring expenses and asset impairments		645				—			100	%
CEO transition expenses		—				331			(100	)%
Adjusted EBITDA		25,446				49,612			(49	)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest		(10,178	)			(19,845	)		(49	)%
Adjusted EBITDA attributable to DMC Global Inc.	$	15,268			$	29,767			(49	)%

DynaEnergetics

	Three months ended										Change
	Dec 31, 2024			Sep 30, 2024				Dec 31, 2023			Sequential			Year-on-year
Operating income (loss), as reported	$	3,322		$	(3,049	)		$	4,581		209	%		(27	)%
Adjustments:
Depreciation		1,716			1,642				1,680		5	%		2	%
Amortization of purchased intangible assets		—			—				14		—	%		(100	)%
Restructuring expenses and asset impairments		60			1,821				3,011		(97	)%		(98	)%
Adjusted EBITDA	$	5,098		$	414			$	9,286		1,131	%		(45	)%

DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS(Amounts in Thousands)(unaudited)
	Twelve months ended						Change
	Dec 31, 2024			Dec 31, 2023			Year-on-year
Operating income, as reported	$	16,167		$	46,353		(65	)%
Adjustments:
Depreciation		6,711			6,847		(2	)%
Amortization of purchased intangible assets		44			59		(25	)%
Restructuring expenses and asset impairments		1,881			3,011		(38	)%
Adjusted EBITDA	$	24,803		$	56,270		(56	)%

NobelClad

	Three months ended									Change
	Dec 31, 2024			Sep 30, 2024			Dec 31, 2023			Sequential			Year-on-year
Operating income, as reported	$	5,050		$	4,969		$	6,867		2	%		(26	)%
Adjustments:
Depreciation		798			807			741		(1	)%		8	%
Adjusted EBITDA	$	5,848		$	5,776		$	7,608		1	%		(23	)%

	Twelve months ended						Change
	Dec 31, 2024			Dec 31, 2023			Year-on-year
Operating income, as reported	$	20,051		$	19,427		3	%
Adjustments:
Depreciation		3,175			2,893		10	%
Restructuring expenses and asset impairments		—			440		(100	)%
Adjusted EBITDA	$	23,226		$	22,760		2	%