BOOM earnings analysis
What we found in BOOM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
DMC Global delivered a sharp sequential Q2 recovery, with revenue rising to $156.953 million, gross margin improving to 21.9%, and diluted EPS turning to $0.03 from a $0.34 Q1 loss. Year-over-year growth was modest and profitability remains mixed: Arcadia improved materially, but DynaEnergetics' margin fell to 15.9% and NobelClad revenue declined 17%. First-half cash conversion weakened substantially as working capital needs pushed operating cash flow to a $10.339 million outflow and increased net debt to $30.513 million.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Sequential earnings recovery
- Q2 net sales were $156.953 million, up 1% year over year from $155.487 million and up 15% sequentially from $135.595 million in Q1 2026. Diluted EPS was $0.03, versus breakeven in Q2 2025 and a $0.34 loss in Q1 2026.
- Operating profit improved
- Operating income increased 34% to $5.218 million from $3.897 million a year earlier, lifting operating margin to 3.3% from 2.5%. Gross margin also improved sequentially to 21.9% from 18.8% in Q1 2026.
- Arcadia drove the quarter
- Arcadia sales rose 9% to $67.419 million, gross margin expanded 150 basis points to 27.7%, and operating income increased to $3.645 million from $0.516 million. Management cited stronger short-cycle commercial exterior and high-end residential volumes, pricing, and better fixed-cost absorption.
- NobelClad backlog supports H2
- NobelClad expects backlog shipments to accelerate in the second half of 2026. Its backlog remained $63.508 million at June 30, despite declining from the Q1 record level of $70.308 million.
- Cost actions reduced overhead
- G&A expense fell 13% to $13.916 million, while restructuring expense dropped to $0.239 million from $1.149 million. The company attributed lower G&A principally to compensation savings and headcount reductions across all three segments.
- Debt covenants remain compliant
- Liquidity covenant headroom remained intact: the leverage ratio was 2.19x at June 30, 2026, below the 3.0x maximum, and debt-service coverage was 1.80x versus the 1.25x minimum.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Dyna pricing pressure eroded margin
- Consolidated gross margin contracted 170 basis points year over year to 21.9%. DynaEnergetics gross margin fell 500 basis points to 15.9%, as North American price and volume declines reduced sales by $1.770 million amid a highly competitive market.
- NobelClad shipments and backlog fell
- NobelClad revenue declined 17% to $22.151 million and adjusted EBITDA declined 31% to $3.032 million, driven by delayed large-project shipments and lower activity partly associated with evolving tariff policies. Backlog also declined $6.800 million from $70.308 million at Q1-end to $63.508 million.
- Working capital consumed cash
- Six-month operating cash flow swung to a $10.339 million outflow from a $19.734 million inflow, while capex was $1.646 million. Management attributed the outflow to higher Arcadia and NobelClad inventory and elevated Arcadia raw-material costs.
- Borrowings increased to fund working capital
- Net debt increased to $30.513 million at June 30, 2026 from $18.746 million at December 31, 2025, while total debt increased to $59.064 million from $50.644 million. Net credit-facility borrowings were $8.201 million during the first six months.
- New geopolitical and aluminum-cost risk
- A new risk factor identifies the February 2026 U.S.-Israel-Iran conflict as a potential source of energy, supply-chain, financing and aluminum-cost disruption. Management notes aluminum, Arcadia's most important raw material, reached multi-year highs earlier in 2026 and remains elevated and volatile.
- Arcadia put option creates financing risk
- A new risk factor states that Arcadia's minority holder may exercise its Put Option on or after September 6, 2026. The redeemable noncontrolling interest was valued at $187.080 million at June 30, 2026; Put Preferred would carry a 3% annual dividend and scheduled redemptions would begin June 23, 2027, subject to legal availability of funds.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.03
- Gross margin
- 21.9%
- Operating margin
- 3.3%
- Segment
- Arcadia Products revenue: $67.419 million, up $5.439 million (9%) year over year
- Segment
- DynaEnergetics revenue: $67.383 million, up $0.521 million (1%) year over year
- Segment
- NobelClad revenue: $22.151 million, down $4.494 million (17%) year over year
What they said about what is next.
The 10-Q provides no explicit quantitative revenue or EPS guidance. Management expects NobelClad backlog shipments to accelerate in the second half of 2026 and improve current-year performance; NobelClad backlog was $63.508 million at June 30, 2026.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 30, 2026
- DMC Global Inc. reported Q1 2026 revenue of $135.6 million, a 15% decrease compared to Q1 2025 due to declines across all segments. The company recorded a net loss of $6.1 million, significantly lower than the $0.7…
- 10-K · February 23, 2026
- DMC Global positions itself as a three‑business industrial manufacturer (Arcadia Products, DynaEnergetics, NobelClad) focused on extracting value from each segment while pursuing product upgrades and selective growth.…
- 10-Q · August 5, 2025
- DMC Global reported Q2 2025 net sales of $155,487,000, down 9% year-over-year, with gross margin compressing to 23.6% (from 27.1%) and operating income falling 67% to $3,897,000. Adjusted diluted EPS (as adjusted) was…
- 10-K · February 24, 2025
- DMC Global operates three asset-light manufacturing businesses (Arcadia Products, DynaEnergetics and NobelClad) and is pursuing value creation through product innovation and portfolio review. Arcadia accounted for ~39%…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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