DMC Global CEO retiring during tumultuous period at Broomfield firm

BROOMFIELD — DMC Global Inc. (Nasdaq: BOOM) CEO Michael Kuta is retiring from the oilfield-services, construction-products and infrastructure firm amid a period of rough seas for the company, which has seen its stock price shave off nearly 56% of its price since the beginning of the year. 

DMC chairman James O’Leary will serve as the company’s interim leader when Kuda departs at the end of November. 

“I look forward to partnering with DMC’s business leaders and associates around the world to address the internal and external challenges the company currently faces,” O’Leary said in a prepared statement. “My priority is putting the company on a path toward enhanced value for our stakeholders.”

In early November, DMC appointed an interim president to lead Arcadia, its architectural building products business unit, after sales fell and losses increased in the third quarter of fiscal 2024.

Organizationwide, DMC’s quarterly revenue totaled $152.4 million in the most-recent period, down 11% year over year.

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 effort was abandoned this fall. 

“At Arcadia, DMC’s architectural building products business, persistent high interest rates have impacted sales to the high-end luxury home market and have resulted in continued soft commercial construction activity. Under the direction of a new interim business president, Arcadia is executing a series of internal initiatives designed to strengthen sourcing and supply chain functions; improve sales, inventory and operations planning processes; and more effectively leverage Arcadia’s enterprise resource planning system,” DMC said in its quarterly report. “The business is also reviewing certain product lines that have not consistently met profitability targets.

Kuta was appointed as DMC’s CEO in August 2023. He had been serving as interim co-CEO and before that he was DMC’s chief financial officer. He rose to the interim position after the sudden departure of the company’s CEO in early 2023. 

“Michael’s dedication and contributions to DMC during the past decade are greatly appreciated,” O’Leary’s statement said. “The board of directors and everyone at DMC wish him the best in his retirement.”

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