DMC Global (BOOM) investor relations material

Executive summary

• Q4 2025 consolidated sales were $143.5 million, down 6% year-over-year and 5% sequentially, with a net loss attributable to shareholders of $11.2 million, including $7 million in discrete charges at DynaEnergetics.

• Adjusted EBITDA for Q4 was -$1.6 million, impacted by discrete charges and lower pricing.

• Adjusted net loss attributable to the company was $9.9 million, or $(0.50) per diluted share.

• Net debt was reduced by 67% year-over-year to $18.7 million, the lowest since the Arcadia acquisition in 2021.

• Management remains focused on strengthening the balance sheet, maximizing operating leverage, and pursuing growth in geothermal, international shale, and naval markets.

Financial highlights

• Q4 consolidated gross margin was 17.1%, down from 20.8% in Q4 2024 and 21.7% in Q3 2025.

• SG&A expenses rose to $29.6 million, or 20.6% of sales, up from $25.1 million, or 16.5% of sales, prior year, mainly due to write-offs at DynaEnergetics.

• Free cash flow for Q4 was $11.7 million; full-year free cash flow was $42.8 million, up 41% year-over-year.

• Adjusted net loss per share for Q4 was $(0.50), compared to $0.09 in Q4 2024.

• Full-year net sales were $609.8 million, down 5% from 2024.

Outlook and guidance

• Q1 2026 sales expected between $132 million and $138 million; adjusted EBITDA guidance is $2 million to $4 million.

• Severe weather, high interest rates, and tariffs are expected to continue impacting results.

• Arcadia likely to face continued project deferrals and pricing pressure; DynaEnergetics and NobelClad anticipate ongoing margin and demand challenges.

• Guidance is heavily influenced by macroeconomic concerns, tariff policy volatility, and energy prices.

• Guidance does not account for recent tariff policy changes or oil price increases; outlook remains highly sensitive to market volatility.