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…
Earnings analysis · 10-Q
BOOM earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.03
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.