DMC Global sales off slightly in fourth quarter as company mulls biz unit sales

BROOMFIELD — DMC Global Inc. (Nasdaq: BOOM) saw its year-over-year sales slip slightly in the fourth quarter of 2023 as the Broomfield-based energy- and industrial-infrastructure firm considers selling off two of its three business units. 

Sales in the most recent period were $174 million, down a tad from $175 million in the fourth quarter of 2022.

DMC’s adjusted net attributable income was $5.2 million in the fourth quarter of 2023, an improvement over $4.3 million in the same period the prior year.

For the full 2023 fiscal year, DMC posted sales of  $719.2 million and adjusted net attributable income of $35.3 million. Those figures in 2022 were $654 million and $13.4 million, respectively.

“The fourth quarter marked the end of a milestone year for DMC. In addition to reporting record sales, adjusted EBITDA and free cash flow, we refined the operating strategies of our three businesses and initiated a review of alternative structures for DMC’s portfolio as part of a broader strategy for enhancing stakeholder value,” DMC Global CEO Michael Kuta said in a prepared statement.

The company is in the process of evaluating the potential sale of DynaEnergetics, the company’s energy-industry services division, and NobelClad, DMC’s industrial infrastructure and transportation division.

DMC’s board of directors, in collaboration with outside financial consultants, “will consider various strategic, business, and financial alternatives for DMC’s DynaEnergetics and NobelClad businesses,” the company said last month. “These could include, among other things, a sale, a merger or other business combination of a portion of DMC’s business-unit assets, and/or a strategic investment.”

If DynaEnergetics and NobelClad are offloaded, DMC’s remaining business unit would be Arcadia, a supplier of architectural building products.The potential pivot away from two of its business units comes as Michael Kuta has settled into his role as DMC president and CEO. Kuta, who has been serving as interim CEO after the sudden departure of the company’s former CEO about a year ago, was elevated to the permanent lead role in August 2023.

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