DMC Global Reports 5% Decrease in Net Sales and 74% Drop in Net Income for Q1 2025

DMC Global Inc. reported a decrease in financial performance for the first quarter of 2025, with net sales of $159.3 million, down 5% from $166.9 million in the same period last year. The decline was primarily driven by a 16% drop in sales at DynaEnergetics, attributed to reduced well completions in North America and pricing pressures due to industry consolidation. In contrast, Arcadia Products and NobelClad saw increases in sales, with Arcadia reporting $65.6 million, a 6% rise, and NobelClad achieving $28.2 million, up 5%. The company's gross profit also fell slightly to $41.2 million, resulting in a gross profit margin of 25.9%.

In terms of profitability, DMC Global's net income attributable to the company was $677,000, a significant decrease of 74% compared to $2.6 million in the prior year. The decline in net income was influenced by increased general and administrative expenses, which rose to $16.7 million, and the introduction of restructuring expenses of $325,000 related to headcount reductions at Arcadia Products. The company also recorded a higher income tax provision of $2.7 million, reflecting a 66% increase from the previous year.

Operationally, DMC Global's total assets remained relatively stable at $670.6 million as of March 31, 2025, compared to $671.3 million at the end of 2024. The company reported a slight increase in accounts receivable, which rose to $114.5 million, indicating potential delays in customer payments. The total employee headcount was not disclosed, but the company noted ongoing efforts to streamline operations and reduce costs. Additionally, the company’s leverage ratio was reported at 1.38 to 1.0, well below the maximum permitted ratio of 3.0 to 1.0 under its credit facility.

Looking ahead, DMC Global anticipates challenges due to evolving tariff policies and potential impacts on product demand. The company is focused on stabilizing operations at Arcadia Products under the leadership of returning president Jim Schladen, while DynaEnergetics is implementing cost-reduction initiatives to enhance product performance. NobelClad is also monitoring quoting activity, hoping for improved order activity as customers gain clarity on tariff implications. The company remains committed to executing its strategic plans while navigating the current market conditions.