DMC Global Sees Fourth-Quarter Sales of $154 Million to $164 Million
Key Facts
DMC Global expects consolidated sales of $154 million to $164 million in the fourth quarter of 2026 and adjusted EBITDA attributable to the company of $10 million to $13 million, according to its third-quarter results statement. The projected sales range reflects typical seasonal moderation in Arcadia activity, along with a temporary maintenance shutdown at the company’s finishing facility in California. DMC said weaker activity in large, long-cycle commercial projects is adding to pressure on its construction products business. The statement did not compare the guidance with analyst estimates. In the third quarter, sales exceeded the upper end of management’s expectations, putting the new guidance in the context of strong quarterly results both year over year and sequentially.
Consolidated sales were $172.8 million in the third quarter, up 14% from the same period in 2025 and 10% from the previous quarter. The company also reported net income attributable to DMC of $9.7 million, or $0.59 per diluted share, compared with a net loss of $3.1 million and a loss of $0.10 per share in the third quarter of last year. Adjusted EBITDA attributable to DMC, excluding tariff refunds, was $13.6 million, up 59% year over year and 48% sequentially. Including tariff refunds, the measure was $19.0 million. The comparison shows quarterly earnings improving alongside revenue growth, with the adjusted figure varying depending on whether refunds are included or excluded.
Arcadia, DMC’s construction products unit, was the biggest sales growth driver among the units cited in the statement, posting $76.9 million in third-quarter sales, up 25% from a year earlier and 14% from the second quarter. The company attributed the annual improvement to higher sales of commercial aluminum and residential products, as well as improved service and product availability. But fourth-quarter guidance points to seasonal moderation in Arcadia activity, coinciding with planned maintenance at the California finishing facility. The company also cited the impact of persistently high interest rates on construction activity, volatility in aluminum input costs, and a tight labor market among commercial and residential construction companies. These factors leave the construction products business facing a mix of weaker activity, cost pressures and operational challenges.
At the other units, DynaEnergetics posted about $67.1 million in third-quarter sales, down 3% year over year and flat from the previous quarter. DMC expected well-completion activity to remain stable in the fourth quarter and said the benefits of previously announced cost-improvement programs would outweigh increases in input costs. NobelClad reported sales of $28.8 million, up 38% year over year and 30% sequentially. The company attributed the performance to shipments of a large order in the international petrochemical sector and delivery of a defense order after supply issues were resolved. NobelClad’s backlog stood at $72.4 million at the end of the quarter, including $16 million in orders related to U.S. Navy shipbuilding; the company expects shipping activity to continue improving in the fourth quarter.
Total debt was $51.7 million and net debt was $13.7 million as of September 30, 2026, the lowest net debt level since DMC acquired 60% of Arcadia in December 2021. The company said its guidance does not include any worsening disruption to international supply chains from ongoing hostilities in the Middle East. It added that the outlook depends heavily on macroeconomic conditions, particularly in the energy and construction markets. This sensitivity keeps conditions in those markets and supply risks among the factors that could affect the company’s execution of its guidance. DMC is scheduled to discuss its third-quarter results on a call on October 27, 2026, at 5 p.m. U.S. Eastern time.
In after-hours trading following the October 27 close, the company’s shares rose 14.39% to $6.12, compared with the regular-session close of $5.35, according to an Investing.com report. The move followed the third-quarter results, which beat analyst estimates: earnings per share were $0.48 versus an estimate of $0.11, while revenue reached $172.82 million compared with a consensus estimate of $161.1 million. Analysts’ average estimate for fourth-quarter revenue was $158.30 million, within the company’s projected range of $154 million to $164 million. The consensus average therefore falls between the two ends of the official guidance, rather than outside them. BOOM shares closed at $5.37 on October 26, according to EL7 data.