DMC Global Reports 9% Decline in Q2 2025 Net Sales, Net Income Drops to $0.3 Million

DMC Global Inc. reported a decline in financial performance for the second quarter of 2025, with net sales of $155.5 million, down 9% from $171.2 million in the same period last year. The decrease was primarily driven by lower sales in its Arcadia Products and DynaEnergetics segments, which saw declines of 11% and 12%, respectively. Gross profit also fell to $36.7 million, representing a gross profit margin of 23.6%, down from 27.1% in the prior year. The company recorded a net income of $0.3 million, a significant drop from $6.3 million in Q2 2024, leading to a net loss per share of $0.24 compared to earnings of $0.24 per share in the previous year.

For the first half of 2025, DMC's net sales totaled $314.8 million, a 7% decrease from $338.0 million in the same period of 2024. The decline was attributed mainly to reduced sales volumes in the DynaEnergetics segment, which faced challenges due to lower well completions in North America and pricing pressures from industry consolidation. The company’s gross profit for the six months ended June 30, 2025, was $77.9 million, with a gross profit margin of 24.8%, down from 26.3% in the prior year. Net income for the first half of 2025 was $2.2 million, compared to $8.6 million in the same period last year.

DMC Global has undertaken strategic initiatives to address its operational challenges, including a focus on cost management and efficiency improvements. The company has rightsized its cost structure in the Arcadia Products segment to align with current market conditions, which include high interest rates and lower construction activity. Additionally, DynaEnergetics is pursuing various initiatives to reduce costs and increase market share in response to anticipated declines in demand. The company’s order backlog for NobelClad decreased to $37.3 million as of June 30, 2025, down from $48.9 million at the end of 2024, reflecting reduced bookings activity amid tariff uncertainties.

Operationally, DMC Global's employee headcount has been adjusted in response to market conditions, with restructuring expenses and asset impairments totaling $1.5 million in the second quarter of 2025. The company’s leverage ratio was reported at 1.23 to 1.0, well below the maximum permitted ratio of 3.0 to 1.0 under its credit facility. Looking ahead, DMC Global remains cautious about the potential impacts of ongoing market volatility, particularly in the energy sector, and is focused on executing its strategies to enhance profitability and shareholder value.