DMC Global Inc. reported fourth‑quarter 2025 results that showed consolidated revenue of $143.5 million, a 6% year‑over‑year decline and a 5% sequential drop, slightly beating the consensus estimate of $143.43 million. The company posted a net loss of $11.2 million and an adjusted earnings per share of –$0.50, missing the consensus estimate of –$0.11 to –$0.14 by a wide margin. Operating cash flow rose to $15.2 million and free cash flow to $11.7 million, while net debt fell to $18.7 million, a 67% reduction from the end‑of‑2024 balance. Year‑to‑date operating cash flow climbed to $53.5 million, up 15% from 2024, and free cash flow increased to $42.8 million, a 41% rise.
Segment performance highlighted a $57 million quarter for Arcadia Products, $68.9 million for DynaEnergetics, and $17.7 million for NobelClad. NobelClad recorded a record $25 million order and a 10% sequential backlog increase to $62.6 million, a figure that corrects the previously reported 53% increase. The company also noted a 28% year‑over‑year backlog growth for NobelClad.
The quarter was weighed by $7 million in discrete accounts receivable and inventory write‑offs at DynaEnergetics and over $3 million in tariffs paid in Q4 2025, with total tariffs for the calendar year exceeding $10 million. Severe weather across the United States during the first half of the quarter further impacted operations, as CFO Eric Walter noted that the results reflect the impact of severe weather.
Management guided for Q1 2026 sales of $132 million to $138 million and adjusted EBITDA of $2 million to $4 million, signaling continued headwinds but a cautious path to profitability. CEO Jim O’Leary emphasized that “Despite these difficulties, we remain focused on our main objective, which we have consistently discussed with you each quarter: strengthening our financial position, and on that front, we continue to make significant progress.”
Investors reacted with caution, largely due to the EPS miss and the significant write‑offs and tariff costs, despite the company’s strong balance‑sheet repair and cash‑flow generation. The market’s mixed response underscores the importance of the company’s guidance and the ongoing challenges in its energy and construction segments.
The results illustrate a company in transition: while revenue and cash flow remain solid, profitability has slipped into negative territory, and the company’s focus on deleveraging and cost discipline will be critical to navigate the continued macro‑economic headwinds and competitive pressures in its core markets.
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