DMC Global Q3 Sales Rise 14% as Arcadia and NobelClad Strengthen

DMC Global Inc. (Nasdaq: BOOM) reported a 14% year-over-year increase in third-quarter 2026 sales as stronger activity at Arcadia Products and increased shipments at NobelClad lifted revenue and profitability. Adjusted EBITDA attributable to DMC, excluding tariff refunds, rose 59% to $13.6 million.

Consolidated sales reached $172.8 million, up from $151.5 million a year earlier and $157.0 million in the second quarter. The company attributed the annual increase to higher sales volumes across Arcadia’s primary product lines and shipments tied to a large petrochemical order at NobelClad.

Total net income was $12.1 million, compared with a $2.1 million net loss in the third quarter of 2025. Net income attributable to DMC was $9.7 million, or $0.48 per diluted share, versus a loss attributable to DMC of $3.1 million, or $0.16 per share, a year earlier. Adjusted diluted earnings were $0.48 per share, compared with an adjusted loss of $0.08 per share.

Adjusted EBITDA attributable to DMC was $19.0 million when $5.4 million of tariff refunds were included. Excluding those refunds, the measure increased to $13.6 million from $8.6 million a year earlier and $9.2 million in the second quarter. DMC said higher sales at Arcadia and NobelClad, along with cost-saving initiatives at DynaEnergetics, supported the improvement.

Arcadia and NobelClad drive sales growth

Arcadia, DMC’s architectural building products business, generated third-quarter sales of $76.9 million, up from $61.7 million a year earlier and $67.4 million in the preceding quarter. Adjusted EBITDA attributable to DMC increased to $6.8 million from $5.1 million in the prior-year period. The presentation said higher sales and improved absorption of fixed manufacturing overhead costs supported the year-over-year and sequential margin improvement.

DynaEnergetics recorded sales of $67.1 million, compared with $68.9 million a year earlier and $67.4 million in the second quarter. Adjusted EBITDA excluding tariff refunds was $6.5 million, up from $4.9 million in the third quarter of 2025 and $4.2 million in the second quarter of 2026. DMC attributed the increase to cost-saving initiatives. Including the tariff refunds, DynaEnergetics’ adjusted EBITDA was $11.9 million.

NobelClad’s sales rose to $28.8 million from $20.9 million a year earlier and $22.2 million in the previous quarter. Adjusted EBITDA increased to $4.6 million from $2.1 million in the prior-year quarter. DMC said the gains reflected increased shipments on a large petrochemical order and shipments associated with a large defense order.

Cash generation and fourth-quarter outlook

DMC generated $17.5 million of net cash from operating activities and $16.6 million of free cash flow during the quarter. At quarter-end, the company had $51.7 million of current and long-term debt and $38.0 million of cash and cash equivalents, resulting in net debt of $13.7 million.

For the fourth quarter of 2026, management expects consolidated sales of $154 million to $164 million and adjusted EBITDA attributable to DMC of $10 million to $13 million.

The outlook does not assume increased disruption to international supply chains from hostilities in the Middle East, which could affect DynaEnergetics and NobelClad, or generally weaker end-market conditions. DMC said the forecast remains highly dependent on macroeconomic conditions, particularly in its core energy and construction markets.

The company also noted that reported debt excludes a potential $162.2 million obligation, net of a bridge loan, related to the holder of the 40% noncontrolling interest in Arcadia. The associated put option became exercisable on September 6, 2026. DMC may exercise its call option at any time, but doing so would require an all-cash settlement; the put obligation may be settled in cash or through a combination of 20% cash and 80% in a newly designated series of preferred stock, subject to applicable limitations.