DMC Global (BOOM) Q3 2026 earnings summary

Executive summary

• Q3 sales were $172.8 million, up 14% YoY and 10% sequentially, driven by higher Arcadia volumes and increased NobelClad shipments.

• Adjusted EBITDA attributable to DMC, excluding $5.4 million in tariff refunds, was $13.589 million, up 59% YoY and 48% sequentially, above the high end of guidance.

• Cost-saving and commercial initiatives supported results amid challenging markets; net debt reached its lowest level since the Arcadia acquisition in December 2021.

• 9M sales were $465.4 million, nearly flat YoY, while adjusted EBITDA attributable to shareholders declined 8% to $33.6 million.

Financial highlights

• Gross profit was $46.4 million, up 41% YoY; gross margin expanded to 26.9% from 21.7%, partly reflecting tariff refunds.

• Operating income was $14.5 million versus $0.6 million; net income attributable to shareholders was $9.7 million versus a $3.1 million loss, with diluted EPS of $0.59 versus $(0.10).

• Adjusted EBITDA attributable to DMC was $19.0 million including $5.4 million in tariff refunds, and $13.6 million excluding refunds; adjusted net income was $9.8 million, or $0.48 per diluted share.

• SG&A was $27.5 million, or 15.9% of sales, versus 17.1% YoY and 15.6% QoQ.

• 9M operating income rose 42% to $15.6 million; net income attributable to shareholders was $4.2 million versus a $2.3 million loss.

Outlook and guidance

• Q4 sales guidance is $154 million-$164 million; adjusted EBITDA attributable to DMC is expected at $10 million-$13 million.

• Assumptions include seasonal moderation, steady well-completion activity in DynaEnergetics’ core U.S. market, cost savings offsetting input-cost increases, and continued improvement in NobelClad shipments; no defense contribution is included.

• Planned California anodizing-facility maintenance at December-end will last ~2 weeks; inventory will be built to support customers, though shipments may be pressured.

• Guidance excludes increased Middle East-related supply-chain disruption and weaker end markets; results remain sensitive to macroeconomic conditions in energy and construction.