DMC Global posts $172.8 million in sales, tops third-quarter forecasts
Key Facts
DMC Global reported on October 27 results for the third quarter ended September 30, 2026, with consolidated sales and adjusted earnings attributable to the company exceeding the high end of management’s guidance, according to a company statement. Sales were $172.8 million, while adjusted earnings before interest, taxes, depreciation and amortization, excluding tariff refunds, reached $13.6 million. The company said both figures exceeded “the high end of management’s guidance.” Adjusted earnings included $5.4 million in tariff refunds, bringing the total to $19.0 million when included. The announcement came after the company had previously set a guidance range, shifting the comparison to the size of the beat and its sources.
Adjusted earnings excluding tariff refunds rose 59% from the third quarter of 2025 and 48% from the second quarter of 2026, according to DMC’s statement. The distinction between the two figures shows the impact of the $5.4 million in tariff refunds on reported results: earnings were $13.6 million without them and $19.0 million including them. Chief Executive James O’Leary said the improvement reflected cost-improvement initiatives and commercial activities selectively implemented across the businesses over the past two years. He added that these efforts came despite economic headwinds. Gross margin rose to 26.9%, compared with 21.7% in the same period of 2025 and 21.9% in the second quarter of 2026.
Arcadia, DMC’s building products unit, reported sales of $76.9 million, up 25% year over year and 14% from the previous quarter. The company attributed the performance to contributions from short-cycle commercial products and premium residential products, which helped offset challenges from high interest rates and rising aluminum costs. It also pointed to improved service levels and product availability. DMC said commercial aluminum sales and residential products supported the unit’s growth during the quarter. Long-cycle commercial projects remained under pressure, alongside high financing and input costs.
DynaEnergetics, the energy products unit, reported sales of $67.1 million, down 3% from the third quarter of 2025 and flat from the second quarter of 2026. But adjusted earnings excluding tariff refunds rose to $6.5 million, up 34% year over year and 57% quarter over quarter. DMC said the improvement in profitability was linked to targeted cost-saving initiatives and a better sales mix. Diversification efforts also contributed, with initial contributions from the defense and enhanced geothermal energy sectors. The unit’s higher profitability came despite lower annual sales.
NobelClad, the composite metals unit, reported sales of $28.8 million, up 38% from the third quarter of 2025 and 30% from the previous quarter. The company said shipments increased as it fulfilled a large international order in the petrochemical sector, and that it completed shipment of a large defense order after resolving supply issues. The unit ended the quarter with a backlog of $72.4 million, including $16 million related to U.S. Navy shipbuilding. Trailing 12-month bookings were $105.1 million, while the book-to-bill ratio for the period reached 1.19. The figures reflect continued order flow to the unit alongside higher shipments during the quarter.
At the balance-sheet level, total debt was $51.7 million and net debt was $13.7 million at the end of the third quarter. The company said net debt at this level was its lowest since acquiring 60% of Arcadia in December 2021. This coincided with a higher gross margin and improved adjusted earnings compared with both the year-earlier and prior-quarter periods. In its fourth-quarter guidance, DMC forecast sales of $154 million to $164 million and adjusted earnings attributable to the company of $10 million to $13 million. The ranges point to lower results than third-quarter sales and adjusted earnings excluding tariff refunds.
The company attributed its fourth-quarter outlook to the usual seasonal moderation at Arcadia, along with a temporary shutdown of its California finishing plant for planned maintenance. It also cited a decline in long-cycle projects and continued pressure from interest rates, aluminum and labor costs. DMC expects well-completion activity to remain stable and NobelClad shipments to continue improving during the quarter. It said its estimates assume neither an increase in international supply-chain disruptions related to fighting in the Middle East nor further broad-based weakness in end markets. After the results were announced on October 27, the stock rose 14.39% in after-hours trading to $6.12, after closing the regular session at $5.35, according to Investing.com.