DMC Global (BOOM) investor relations material

Executive summary

• Q1 2026 consolidated sales were $135.6 million, down 15% year-over-year and 6% sequentially, reflecting macroeconomic and geopolitical headwinds, lower volumes, and pricing pressures across all segments.

• Adjusted EBITDA was $3.9 million, down from $14.4 million in the prior year but improved from negative $1.6 million in Q4, with margin contraction due to competitive pricing and higher input costs.

• Net loss attributable to stockholders was $6.1 million, compared to net income of $0.7 million in the prior year and a net loss of $11.2 million in the previous quarter.

• All business segments—Arcadia, DynaEnergetics, and NobelClad—experienced year-over-year sales declines, but sequential improvements are expected in Q2.

• Geopolitical conflict in the Middle East, supply chain disruptions, and higher raw material prices, especially aluminum, negatively impacted all business segments.

Financial highlights

• Arcadia Q1 sales: $56.7 million, down 14% year-over-year; DynaEnergetics: $59.5 million, down 9%; NobelClad: $19.3 million, down 31%.

• Adjusted net loss attributable to stockholders was $5.7 million, or $(0.28) per diluted share.

• Gross profit margin was 18.8%, down from 25.9% year-over-year.

• Cash and cash equivalents at quarter end: $31.5 million; net debt: $22.4 million.

• Net cash used in operating activities was $2.4 million for the quarter.

Outlook and guidance

• Q2 sales expected between $148 million and $158 million; adjusted EBITDA guidance is $6 million to $8 million.

• Sequential improvement anticipated across all segments, driven by demand growth and project shipments.

• Guidance does not factor in potential further international supply chain disruptions, which could impact shipments and raw material costs.

• Management sees potential demand improvement in coming quarters, supported by higher oil prices and increased well completion activity.

• Arcadia faces a challenging bidding environment and expects continued pressure on sales and margins.