Energy, Utilities & Water  May 3, 2024

DMC Global: ‘Challenging market conditions’ led to sales decline in first quarter

BROOMFIELD — “Challenging market conditions” caused DMC Global Inc.’s (Nasdaq: BOOM) year-over-year sales to drop significantly in the first quarter of 2024, the Broomfield company said in its earnings report this week.

DMC posted first-quarter sales of $166.9 million, down 9% from the first quarter of 2023. 

The company’s first-quarter net income was $2.3 million, up from $2.1 million in the same period last year.

“DMC’s first quarter sales declined 9% versus the same quarter last year, reflecting challenging market conditions at two of our three industrial manufacturing businesses,” DMC CEO Michael Kuta said in a prepared statement. “Arcadia Products, our architectural building products business, was impacted by a late-quarter slowdown in short-cycle commercial activity, lower sales at its high-end residential division, and an approximately 10% decline in aluminum pricing versus last year’s first quarter. DynaEnergetics, our energy products business, reported steady demand and record unit sales of its industry-leading DynaStage perforating system, but was impacted by ongoing pricing pressure in its primary North American onshore market. NobelClad, our composite metals business, delivered strong first quarter results, with sales and adjusted EBITDA above our forecasts.”In early 2024, DMC Global told investors that it hopes to soon sell off two of its three business units: DynaEnergetics, the company’s energy-industry services division; and NobelClad, DMC’s industrial infrastructure and transportation division. If DynaEnergetics and NobelClad are offloaded, DMC’s remaining business unit would be Arcadia, a supplier of architectural building products.

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