DMC Global 2025 Q3 Earnings Sharp Reduction in Net Loss Amid Revenue Decline

DMC Global (BOOM) reported fiscal 2025 Q3 earnings on Nov 4, 2025, with revenue declining 0.6% year-over-year to $151.53 million, narrowly beating Wall Street estimates by $6.43 million. However, adjusted EPS of -$0.08 missed expectations by $0.11. The company provided in-line guidance for Q4, forecasting sales of $140–150 million and adjusted EBITDA of $5–8 million, reflecting ongoing market challenges.

Revenue

DMC Global’s total revenue for Q3 2025 fell 0.6% to $151.53 million compared to the prior year, with Arcadia Products leading the way with $61.66 million in sales, a 7% year-over-year increase. DynaEnergetics contributed $68.95 million, slightly below the prior year, while NobelClad’s revenue declined 16% to $20.93 million. The Arcadia segment’s growth was driven by improved operational efficiency and higher absorption of fixed costs, though NobelClad faced headwinds from U.S. tariff uncertainties.

Earnings/Net Income

The company significantly narrowed its net loss to $-2.07 million in Q3 2025, a 98.7% improvement from the $-159.42 million loss in Q3 2024. Earnings per share (EPS) also improved, with a loss of $0.10 compared to $8.27 a year earlier. While the EPS miss highlights ongoing challenges, the substantial reduction in net losses signals progress in deleveraging and cost control.

Post-Earnings Price Action Review

Despite the improved financial results, DMC Global’s stock price continued to underperform, declining 2.54% on the latest trading day, 9.54% over the past week, and 5.30% month-to-date. The downward trend reflects investor caution amid persistent macroeconomic uncertainties, including volatile energy prices and shifting tariff policies.

CEO Commentary

CEO James O’Leary emphasized deleveraging as the top priority, reducing net debt by 47% to $30.1 million. He noted Arcadia’s stabilized operations and improved margins despite soft construction demand, while DynaEnergetics struggled with declining U.S. onshore activity and tariffs. NobelClad’s $25 million international order, though a record, is set to ship in late 2026, underscoring the need for patience as the company navigates market headwinds.

Guidance

CFO Eric Walter outlined Q4 2025 guidance, forecasting sales of $140–150 million and adjusted EBITDA of $5–8 million. The outlook accounts for delayed revenue from NobelClad’s 2026 order and continued challenges in DynaEnergetics’ North American market. Arcadia is expected to show year-over-year profit improvement, though margin pressures persist due to pricing and cost dynamics.

Additional News

DMC Global secured a $25 million international petrochemical project order for NobelClad, marking the segment’s largest deal in its 60-year history. The order, set to ship in late 2026, is expected to bolster future growth despite current U.S. booking delays tied to tariff uncertainties. Additionally, the company announced a 47% reduction in net debt since the start of 2025, reinforcing its focus on deleveraging. Strategic priorities remain centered on cost control, operational efficiency, and positioning for eventual market recovery, as highlighted by O’Leary’s cautious outlook amid volatile energy prices and elevated interest rates.