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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 Q4 Earnings: Navigating Macroeconomic Challenges

DMC Global reported a 6% decline in consolidated sales to $143.5 million in the fourth quarter, with adjusted EBITDA attributable to DMC being negative $1.6 million, including $7 million in discrete accounts receivable and inventory write-offs at DynaEnergetics. The company's EPS came out at -$0.5, missing estimates of -$0.11. The adjusted EBITDA margin was 7.1% for Arcadia and negative 4% for DynaEnergetics. The weak performance was largely due to macroeconomic challenges, including tariffs and unforecastable interest rates, which have weighed heavily on its core oilfield and construction markets.

Publication Date: Mar -02

📋 Highlights
  • Consolidated Sales Decline: DMC reported a 6% drop in sales to $143.5 million in Q4, driven by macroeconomic challenges like tariffs and interest rates.
  • Arcadia EBITDA Drop: Arcadia’s adjusted EBITDA fell to $2.4 million (from $5.1 million in Q3), despite a 5% sales decline to $57 million.
  • DynaEnergetics Losses: DynaEnergetics posted an adjusted EBITDA loss of $2.7 million, with $7 million in write-offs and 8% higher sales ($68.9 million).
  • NobelClad Resilience: NobelClad’s adjusted EBITDA remained positive at $2.1 million despite a 38% sales drop to $17.7 million.
  • 2026 Outlook: DMC expects continued challenges into 2026, with Q1 guidance of $132–138 million in sales and $2–4 million in adjusted EBITDA.

Segment Performance

Arcadia reported a 5% decline in sales to $57 million and an adjusted EBITDA of $2.4 million, down from $5.1 million in the third quarter. DynaEnergetics reported an 8% improvement in sales to $68.9 million, but adjusted EBITDA was negative $2.7 million due to challenging conditions in the North American onshore market. NobelClad reported a 38% decline in sales to $17.7 million, but adjusted EBITDA was $2.1 million. As Jim O'Leary stated, "the company is uniquely positioned to take advantage of growth opportunities due to its global footprint and technology."

Guidance and Outlook

DMC's guidance for the first quarter includes sales between $132 million and $138 million and adjusted EBITDA between $2 million and $4 million. The company expects many of the factors that negatively impacted its fourth quarter and most of 2025 to continue into 2026. Analysts estimate next year's revenue growth at 7.0%, indicating a potential recovery.

Valuation Metrics

With a P/S Ratio of 0.2 and EV/EBITDA of 4.27, the company's valuation appears reasonable. However, the negative ROE of -7.14% and ROIC of 1.27% indicate that the company's profitability is a concern. The Free Cash Flow Yield of 31.07% is a positive note, suggesting that the company has a decent cash generation capability.

Operational Challenges

The company is facing operational challenges, including increased pressure in the second half of the year and the need to fix or invest in certain areas to improve margins. As Jim O'Leary mentioned, "the company is exploring every discrete physical operation and product line to identify areas for improvement." The rebuilding in Los Angeles is taking longer than expected, impacting the company's performance.

3. NewsRoom

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DMC Global: Macro And Tariff Uncertainty Temper Near-Term Upside

Mar -02

Source: seekingalpha.com

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Galloper Announces Option Grant, Insider Share Purchases and Marketing Agreement

Feb -25

Source: newsfilecorp.com

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DMC Global (BOOM) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -24

Source: zacks.com

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DMC Global (BOOM) Reports Q4 Loss, Beats Revenue Estimates

Feb -24

Source: zacks.com

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DMC Global Inc. (BOOM) Q4 2025 Earnings Call Transcript

Feb -24

Source: seekingalpha.com

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DMC Global Reports Fourth Quarter Financial Results

Feb -23

Source: globenewswire.com

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Arnold Van Den Berg's Strategic Moves: MarketAxess Holdings Inc. Takes Center Stage

Feb -17

Source: gurufocus.com

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DMC Global (BOOM) Projected to Post Quarterly Earnings on Monday

Feb -16

Source: defenseworld.net

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
Smart Sand

A-Score: 5.1/10

Value: 5.3

Growth: 4.4

Quality: 3.4

Yield: 6.0

Momentum: 8.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
NESR

A-Score: 4.9/10

Value: 5.2

Growth: 6.1

Quality: 4.8

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Superior Drilling Products

A-Score: 4.5/10

Value: 7.3

Growth: 5.4

Quality: 7.2

Yield: 0.0

Momentum: 6.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Dawson Geophysical

A-Score: 4.4/10

Value: 5.2

Growth: 4.6

Quality: 2.5

Yield: 4.0

Momentum: 9.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
DMC Global

A-Score: 3.9/10

Value: 9.8

Growth: 3.8

Quality: 4.5

Yield: 0.0

Momentum: 2.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Newpark Resources

A-Score: 3.0/10

Value: 2.6

Growth: 1.7

Quality: 7.0

Yield: 0.0

Momentum: 4.5

Volatility: 2.3

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

5.59$

Current Price

5.59$

Potential

-0.00%

Expected Cash-Flows