DMC Global abandons biz unit sale, drops guidance

BROOMFIELD — Oilfield and infrastructure services firm DMC Global Inc. (Nasdaq: BOOM) lowered its third-quarter sales projections this week and abandoned a months-long effort to sell off two of its three business units. 

Sales for the most recent quarter are expected to be about $152 million, down from prior guidance of $158 million to $168 million, a result of “weaker-than-expected sales” from two of its divisions, DMC Global said. 

DMC Global’s stock price hit a 52-week low in after-hour trading on Monday. 

In early 2024, company leaders told investors that DMC would attempt to offload DynaEnergetics, the company’s energy-industry services division; and NobelClad, DMC’s industrial infrastructure and transportation division, leaving Arcadia, a supplier of architectural building products, as the company’s sole business unit. 

That attempted pivot away from two of its business units came 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 nearly two years ago, was elevated to the permanent lead role in August 2023.

The company said this week that it “is no longer actively marketing DynaEnergetics and NobelClad. Since announcing strategic review processes for both businesses in January 2024, the Company has reviewed and considered sales, mergers and other strategic combinations. However, given the challenges of the last several months for DMC, including macroeconomic factors such as weakness and volatility in the energy market, the Board believes that prioritizing stability, simplification and internal improvement will better serve DMC’s stockholders than selling these market-leading businesses at the present time.”

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