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1. Company Snapshot

1.a. Company Description

DMC Global Inc.provides a suite of technical products for the energy, industrial, and infrastructure markets worldwide.The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad.


The Arcadia segment manufactures, assembles, and sells architectural building materials, including storefronts and entrances, windows, curtain walls, and interior partitions; architectural components, architectural framing systems, and sun control products; sliding and glazing systems; and engineered steel, aluminum, and wood door and window systems.It sells its products through a national in-house sales force for buildings, such as office towers, hotels, education and athletic facilities, health care facilities, government buildings, retail centers, luxury homes, mixed use, and multi-family residential buildings.The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and associated hardware for the oil and gas industry.


It sells its products through direct selling, distributors, and independent sales representatives.The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, power generation, and industrial refrigeration industries.It sells its products through direct sales personnel, program managers, and independent sales representatives.


The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc.in November 2016.DMC Global Inc.


was founded in 1965 and is headquartered in Broomfield, Colorado.

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1.b. Last Insights on BOOM

The recent performance of DMC Global Inc. has been negatively impacted by ongoing securities investigations and potential claims against the company. Multiple law firms, including Bronstein, Gewirtz & Grossman, LLC, have initiated investigations into allegations against DMC Global, which may have contributed to investor concerns and market volatility. The company's stock has been subject to various class action lawsuits and shareholder inquiries, which may have weighed on its performance.

1.c. Company Highlights

2. DMC Global's Q3 Earnings: Deleveraging Progress and Mixed Segment Performance

DMC Global reported third-quarter sales of $151.5 million, a 1% year-over-year decline, while adjusted EBITDA attributable to DMC was $8.6 million, up 51% year-over-year. The company's net debt decreased by 47% since the start of the year to $30.1 million, indicating significant progress in deleveraging its balance sheet. Earnings per share (EPS) came in at -$0.08, missing estimates of $0.01.

Publication Date: Nov -21

📋 Highlights
  • Net Debt Reduction:: DMC reduced net debt to $30.1 million, a 47% decline since January.
  • EBITDA Growth:: Adjusted EBITDA rose 51% YoY to $8.6 million despite 1% sales decline ($151.5 million).
  • Arcadia Performance:: Sales up 7% to $61.7 million, adjusted EBITDA doubled to $5.1 million.
  • Tariff Impact:: DynaEnergetics faced $3 million in tariff-related costs, contributing to 46% sequential EBITDA drop.
  • NobelClad Delays:: Record order delayed to 2026, with sales down 16% to $20.9 million and EBITDA falling 64%.

Segment Performance

The Arcadia segment reported a 7% year-over-year increase in sales to $61.7 million, with adjusted EBITDA more than doubling to $5.1 million. This improvement was attributed to better operating performance and absorption of fixed manufacturing overhead. In contrast, DynaEnergetics' sales were down 1% year-over-year to $68.9 million, with adjusted EBITDA of $4.9 million, up from breakeven in the year-ago quarter but down 46% sequentially. NobelClad's sales declined 16% year-over-year to $20.9 million, with adjusted EBITDA of $2.1 million, down 64% from the prior year.

Guidance and Outlook

DMC expects fourth-quarter sales to be in the range of $140 million to $150 million, with adjusted EBITDA attributable to DMC in the range of $5 million to $8 million. The guidance is influenced by macroeconomic concerns, volatility, and visibility issues created by the current state of energy markets and tariff policies. Jim O'Leary stated that "Arcadia is seeing Arcadia-specific green shoots due to stability and self-help measures, but industry-wide, the market is struggling with high interest rates and overall cost and affordability."

Valuation and Growth Prospects

Analysts estimate next year's revenue growth at 2.1%. Considering the current valuation metrics, DMC Global's P/S Ratio is 0.19, and EV/EBITDA is 4.09. The company's ROE is -3.11%, and ROIC is -0.94%. The dividend yield is 0.0%, but the free cash flow yield is 38.37%, indicating a potential opportunity for investors. With the current challenges and uncertainties, DMC is focusing on containing costs and pursuing international opportunities.

Management's Strategy and Confidence

Jim O'Leary emphasized the need for stability, citing NobelClad's order book stability as a positive sign. He is cautiously optimistic about the Fed's interest rate cuts and believes 2-3 cuts could lead to building growth in the back half of next year. The company's self-help efforts, including getting its balance sheet and cost structure in shape, are expected to position DMC for the eventual recovery.

3. NewsRoom

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Galloper Gold Completes Debt Settlement

Nov -27

Source: newsfilecorp.com

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Galloper Announces Option Grant

Nov -19

Source: newsfilecorp.com

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Galloper Gold Announces Proposed Debt Settlement

Nov -19

Source: newsfilecorp.com

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DMC Global Inc. (BOOM) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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DMC Global (BOOM) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Nov -05

Source: zacks.com

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DMC Global (BOOM) Reports Q3 Loss, Tops Revenue Estimates

Nov -05

Source: zacks.com

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DMC Global Reports Third Quarter Financial Results

Nov -04

Source: globenewswire.com

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EXPEDIA GROUP STUDY REVEALS NEW INSIGHTS IN TRAVEL CONTENT AMID AI BOOM

Oct -28

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.83%)

6. Segments

DynaEnergetics

Expected Growth: 0.8%

DynaEnergetics' 0.8 growth is driven by increasing demand for its perforating systems and initiation systems in the oil and gas industry, coupled with its expanding global presence and strategic acquisitions. Additionally, the company's focus on innovation and R&D has led to the development of new products and technologies, further contributing to its growth.

Arcadia

Expected Growth: 0.9%

Arcadia's 0.9 growth driven by increasing demand for mission-critical infrastructure, expansion in oil and gas markets, and strategic acquisitions. Additionally, growing need for environmental and social governance (ESG) solutions, and investments in digital transformation and innovation also contribute to growth.

NobelClad

Expected Growth: 0.7%

NobelClad's 0.7 growth is driven by increasing demand for explosion-welded clad plates in the oil and gas industry, coupled with growing adoption in the chemical processing and power generation sectors. Additionally, the company's expansion into new geographies and strategic partnerships contribute to its growth momentum.

7. Detailed Products

Dynasen

A leading manufacturer of precision timing devices, including detonators and initiating systems for the oil and gas, mining, and seismic industries.

Nobelclad

A leading manufacturer of explosion-clad metal plates for the oil and gas, chemical, and power generation industries.

DynaEnergetics

A leading manufacturer of initiation systems and energetic devices for the oil and gas industry.

Dynitec

A leading manufacturer of advanced initiation systems and energetic devices for the oil and gas industry.

8. DMC Global Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for DMC Global Inc. is medium due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for DMC Global Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for DMC Global Inc. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for DMC Global Inc. is high due to the low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for DMC Global Inc. is high due to the presence of several competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.14%
Debt Cost 8.36%
Equity Weight 76.86%
Equity Cost 11.94%
WACC 11.11%
Leverage 30.10%

11. Quality Control: DMC Global Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NESR

A-Score: 4.9/10

Value: 6.4

Growth: 6.1

Quality: 5.2

Yield: 0.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Dawson Geophysical

A-Score: 4.5/10

Value: 7.2

Growth: 4.6

Quality: 3.2

Yield: 4.0

Momentum: 8.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Smart Sand

A-Score: 4.5/10

Value: 5.3

Growth: 4.4

Quality: 3.1

Yield: 6.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Superior Drilling Products

A-Score: 4.3/10

Value: 7.2

Growth: 5.4

Quality: 7.2

Yield: 0.0

Momentum: 5.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Newpark Resources

A-Score: 3.8/10

Value: 5.5

Growth: 1.7

Quality: 5.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

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Stock-Card
DMC Global

A-Score: 3.4/10

Value: 9.1

Growth: 3.8

Quality: 3.1

Yield: 0.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.31$

Current Price

6.31$

Potential

-0.00%

Expected Cash-Flows