DMC Global (NASDAQ:BOOM) Announces Quarterly Earnings Results

DMC Global (NASDAQ:BOOM) posted its quarterly earnings data on Tuesday. The industrial products company reported $0.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.11 by $0.37, FiscalAI reports. The company had revenue of $172.83 million for the quarter, compared to the consensus estimate of $161.10 million. DMC Global had a negative net margin of 1.15% and a negative return on equity of 2.13%.

Here are the key takeaways from DMC Global’s conference call:

• Third-quarter results exceeded guidance: Sales rose 14% year over year to $172.8 million, while adjusted EBITDA attributable to DMC increased 59% to $13.6 million, excluding $5.4 million in DynaEnergetics tariff refunds.
• Profitability improved across all three businesses. Arcadia benefited from higher commercial and residential sales, DynaEnergetics from cost savings and a better mix, and NobelClad from stronger shipments; NobelClad’s backlog reached $72.4 million, including a record $16 million in U.S. Navy orders.
• DMC generated $16.6 million of free cash flow during the quarter, reducing net debt to $13.7 million—the lowest level since the Arcadia acquisition in 2021.
• Management highlighted early, potentially longer-term diversification opportunities for DynaEnergetics in defense and enhanced geothermal applications, but said the defense contribution was only about $0.75 million and remains too early to include in guidance or reliably model.
• Fourth-quarter guidance calls for sales of $154 million to $164 million and adjusted EBITDA of $10 million to $13 million, reflecting normal seasonality, a two-week California facility maintenance shutdown, weak construction activity, high interest rates, volatile aluminum costs, and tight labor conditions.

DMC Global Price Performance

DMC Global stock traded up $0.87 during mid-day trading on Friday, hitting $9.35. The company’s stock had a trading volume of 1,326,013 shares, compared to its average volume of 723,477. The stock’s fifty day moving average price is $6.22 and its two-hundred day moving average price is $6.57. DMC Global has a twelve month low of $4.69 and a twelve month high of $9.47. The company has a quick ratio of 1.24, a current ratio of 2.56 and a debt-to-equity ratio of 0.19. The stock has a market capitalization of $192.05 million, a P/E ratio of -38.96 and a beta of 1.65.

Wall Street Analysts Forecast Growth

A number of research firms have commented on BOOM. Stifel Nicolaus raised their target price on shares of DMC Global from $7.00 to $8.00 and gave the company a “hold” rating in a research report on Monday, August 3rd. Zacks Research raised shares of DMC Global from a “hold” rating to a “strong-buy” rating in a research note on Wednesday. Weiss Ratings reissued a “sell (d-)” rating on shares of DMC Global in a research note on Wednesday, August 19th. Finally, Wall Street Zen upgraded DMC Global from a “buy” rating to a “strong-buy” rating in a research report on Saturday. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, DMC Global currently has a consensus rating of “Moderate Buy” and a consensus target price of $9.00.

About DMC Global

DMC Global Inc (NASDAQ:BOOM) is a diversified industrial company that develops and manufactures engineered products for energy, industrial, infrastructure and building markets. The company’s operations have included businesses focused on specialty metalworking and architectural building products.

Through its DMC Clad Solutions business, DMC Global supplies explosion-welded clad metals under the NobelClad brand. These products bond dissimilar metals to create corrosion-resistant and structurally capable materials used in chemical processing, oil and gas, power generation, marine, transportation and other industrial applications.