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DMC Global Inc (BOOM)
NASDAQ:BOOM
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DMC Global
(NASDAQ:BOOM)
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Rating:49Neutral
Price Target:
$6.00
▲(1.87% Upside)
Action:ReiteratedDate:02/27/26
The score is held down primarily by weak technicals (price below all key moving averages with negative MACD) and an earnings-call outlook that emphasizes ongoing margin pressure, write-offs, and macro/tariff uncertainty. These are partially offset by improving balance-sheet leverage and resilient recent cash generation, but profitability and revenue trends remain pressured.
Positive Factors
Balance sheet improvement
Material debt reduction and a cash cushion improve financial flexibility and lower interest/service burden over the medium term. This durability supports continued investment, working capital needs, and provides a buffer against cyclical revenue volatility, enabling strategic options without forcing asset sales.
Consistent cash generation
Sustained positive operating and free cash flow despite accounting losses indicates strong operational cash conversion. Reliable cash generation allows the company to fund operations, reduce leverage, and invest in growth initiatives, making financial recovery more resilient to transient profit swings.
NobelClad backlog expansion
A growing, sizable backlog — including a large international petrochemical order — enhances near‑term revenue visibility and supports capacity utilization. Such secured orders reduce short‑term demand reliance and can improve margin predictability if project execution remains on schedule.
Negative Factors
Revenue decline & margin squeeze
Sustained top‑line contraction and compressed gross margins weaken profitability and free cash flow potential long term. Reduced scale can hamper pricing power, raise per‑unit costs, and limit funds available for R&D or capex, making consistent recovery and margin restoration more difficult.
Persistent tariff exposure
Ongoing Section 232 tariffs represent a structural cost headwind that erodes competitiveness and margins for affected product lines. With tariffs persisting post‑ruling, margin recovery depends on pass‑through or cost cuts, constraining pricing strategy and increasing earnings sensitivity to policy risk.
DynaEnergetics operational stress
Large write‑offs and negative segment margins signal customer stress and inventory/credit risk in the oil & gas end market. These impairments reduce recoverable earnings, increase volatility, and may necessitate higher provisions or working capital, slowing normalized profitability even if volumes recover.
DMC Global (BOOM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$120.66M
Dividend YieldN/A
Average Volume (3M)210.06K
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth-6.90%
EPS Growth94.14%
CountryUS
Employees1,600
SectorIndustrials
Sector Strength72
IndustryOil & Gas Equipment & Services
Share Statistics
EPS (TTM)-0.50
Shares Outstanding20,485,914
10 Day Avg. Volume167,839
30 Day Avg. Volume210,057
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)0.55
Price to Sales (P/S)0.22
P/FCF Ratio3.60
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit1.21
Enterprise Value/Ebitda4.27
Forecast
1Y Price Target
$9.00Price Target Upside52.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.03
Revenue Forecast (FY)$611.63M
DMC Global Business Overview & Revenue Model
Company DescriptionDMC Global Inc. provides a suite of technical products for the energy, industrial, and infrastructure markets worldwide. The company operates through three segments: Arcadia, DynaEnergetics, and NobelClad. The Arcadia segment manufactures, assembles, and sells architectural building materials, including storefronts and entrances, windows, curtain walls, and interior partitions; architectural components, architectural framing systems, and sun control products; sliding and glazing systems; and engineered steel, aluminum, and wood door and window systems. It sells its products through a national in-house sales force for buildings, such as office towers, hotels, education and athletic facilities, health care facilities, government buildings, retail centers, luxury homes, mixed use, and multi-family residential buildings. The DynaEnergetics segment designs, manufactures, markets, and sells perforating systems, including initiation systems, shaped charges, detonating cords, gun hardware, and control panels; and associated hardware for the oil and gas industry. It sells its products through direct selling, distributors, and independent sales representatives. The NobelClad segment produces and sells explosion-welded clad metal plates for use in the construction of heavy, corrosion resistant pressure vessels, and heat exchangers for oil and gas, chemical and petrochemical, alternative energy, hydrometallurgy, aluminum production, shipbuilding, power generation, and industrial refrigeration industries. It sells its products through direct sales personnel, program managers, and independent sales representatives. The company was formerly known as Dynamic Materials Corporation and changed its name to DMC Global Inc. in November 2016. DMC Global Inc. was founded in 1965 and is headquartered in Broomfield, Colorado.
How the Company Makes MoneyDMC Global generates revenue through multiple streams primarily centered around its product offerings and services in the energy sector. The company earns money by selling specialty steel products used in drilling operations, completion tools, and other related services to oil and gas companies. Key revenue streams include direct sales of products, long-term contracts with major energy firms, and aftermarket services that support product maintenance and optimization. Additionally, DMC Global benefits from strategic partnerships with leading energy companies, which help in securing ongoing contracts and expanding their market presence. The company's focus on innovation and operational efficiency also contributes to maintaining healthy profit margins.
DMC Global Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue from different business segments, highlighting which areas are driving growth and where there might be challenges or opportunities for expansion.
Breaks down revenue from different business segments, highlighting which areas are driving growth and where there might be challenges or opportunities for expansion.
Data provided by:
The Fly
The FlyDMC Global Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Negative
The call presented a mixed picture: meaningful balance-sheet and liquidity improvements (large reductions in net and total debt, $32M cash) and identified growth opportunities provide positive elements, but operational performance was weak across core segments. Material write-offs, negative consolidated adjusted EBITDA, a sizable adjusted net loss, significant year-over-year revenue declines at NobelClad and sharp input cost increases (aluminum +55% YoY) underscore substantial near-term challenges. Management’s cautious guidance and expectation that macro headwinds (tariffs, high interest rates, project deferrals) will persist imply further pressure before recovery, so the negatives outweigh the positives.Q4-2025 Updates
Positive Updates
Balance Sheet Improvement and Liquidity
Net debt reduced by $11.4M in the fourth quarter to $18.7M, down 67% year-over-year (lowest level since 2021). Total debt reduced to $52M, a 28% decrease from year-end 2024. Cash and cash equivalents of approximately $32M at quarter-end.
Consolidated Guidance Indicates Positive Adjusted EBITDA in Q1
Management guided first quarter sales of $132M–$138M and expects adjusted EBITDA attributable to DMC of $2M–$4M, implying a return to positive adjusted EBITDA in the upcoming quarter despite current headwinds.
DynaEnergetics Revenue Growth
DynaEnergetics reported fourth quarter sales of $68.9M, up 8% year-over-year and flat sequentially, indicating resilient unit volume despite challenging end-market conditions.
Arcadia Year‑Over‑Year Margin Improvement
Arcadia reported a fourth quarter adjusted EBITDA attributable to DMC of $2.4M (up from $2.2M YoY). Arcadia's adjusted EBITDA margin before noncontrolling interest improved to 7.1% from 6.2% year-over-year.
NobelClad Order Backlog Growth and Large International Order
NobelClad backlog at quarter-end was $62.6M, up 28% year-over-year and 10% sequentially, reflecting a record $25M order in Q1 2025 for an international petrochemical project.
Cost Discipline and Preparedness
Company emphasized ongoing cost reduction and operational readiness measures (headcount and variable costs on the table) and stated there are no required large capital investments to pursue growth opportunities such as enhanced geothermal and international shale.
Strategic Growth Opportunities Identified
Management highlighted potential growth avenues: enhanced geothermal and international shale for DynaEnergetics, and naval readiness/submarine-related demand for NobelClad, which could drive meaningful future upside if realized.
Negative Updates
Consolidated Sales Decline and Negative Segment EBITDA
Consolidated sales declined 6% year-over-year to $143.5M. Consolidated adjusted EBITDA attributable to DMC was negative $1.6M in the fourth quarter (included in results across segments).
Large Discrete Write‑offs at DynaEnergetics
Approximately $7M in discrete accounts receivable and inventory write-offs at DynaEnergetics in the quarter, primarily related to customer stress in the North American unconventional oil and gas market.
DynaEnergetics Margin Deterioration and Loss
DynaEnergetics adjusted EBITDA was negative $2.7M (including write-offs). Adjusted EBITDA margin fell to negative 4% from 8% in the year-ago quarter and 7.1% in Q3, reflecting tariff-driven cost pressure and pricing challenges.
NobelClad Significant Revenue Decline and Margin Compression
NobelClad reported fourth quarter sales of $17.7M, down 38% year-over-year and down 15% sequentially. Adjusted EBITDA fell 64% year-over-year to $2.1M; adjusted EBITDA margin declined to ~12% from 20.6% in the prior-year quarter.
Arcadia Sequential Sales and Margin Pressure
Arcadia sales were $57M, down 5% year-over-year and down 8% sequentially. Adjusted EBITDA declined from $5.1M in Q3 to $2.4M in Q4; margin pressured by seasonality, high interest rates, project deferrals and competitive pricing.
Sharp Increase in Aluminum Input Costs
Average aluminum input price for Arcadia rose 55% year-over-year and 12% sequentially, creating substantial margin pressure in a soft market where project deferrals and price competition limit pass-through.
Tariffs Materially Impact Margins and Cash Costs
DynaEnergetics paid more than $3M in tariffs and related duties in Q4 and over $10M since tariffs were imposed in February last year. Management expects Section 232 tariffs to remain in place after recent Supreme Court ruling, creating ongoing uncertainty and costs.
Higher SG&A and Adjusted Net Loss
Fourth quarter SG&A increased to $29.6M (20.6% of sales) from $25.1M (16.5% of sales) year-over-year, principally due to Dyna write-offs. Fourth quarter adjusted net loss attributable to DMC was $9.9M with adjusted loss per share of $0.50.
Near-Term Macro and Market Headwinds Persist
Management expects many negative factors (high interest rates, volatile input prices, tariffs, severe weather impacts, project deferrals) to continue into 2026, suggesting a slow start to the year and cautious recovery timing.
Company Guidance
DMC guided Q1 FY2026 sales of $132–138 million and adjusted EBITDA attributable to DMC of $2–4 million, noting severe weather hit much of the U.S. early in the quarter and that evolving tariffs, high interest rates and volatile input costs could materially affect results. For context, Q4 consolidated sales were $143.5 million (‑6% y/y) with adjusted EBITDA attributable to DMC of negative $1.6 million (including ≈$7.0 million of DynaEnergetics write‑offs), adjusted net loss of $9.9 million, cash of ≈$32 million, total debt of $52 million (‑28% vs. year‑end 2024) and net debt of $18.7 million (‑67% vs. year‑end 2024). Segment detail cited: Arcadia Q4 sales $57.0 million with a 7.1% adj. EBITDA margin (aluminum input price +55% y/y, +12% q/q); DynaEnergetics Q4 sales $68.9 million with a negative 4% adj. EBITDA margin (Dyna paid >$3M in tariffs in Q4 and >$10M since tariffs began); NobelClad Q4 sales $17.7 million, adj. EBITDA ≈$2.1 million, and backlog $62.6 million (+28% y/y, +10% q/q). Management emphasized guidance is highly sensitive to macro and tariff developments.DMC Global Financial Statement Overview
Summary
Financials are mixed. Cash flow is a clear strength (positive operating cash flow in 2022–2025 and strong 2025 free cash flow around $54M) and leverage improved materially (debt-to-equity down to ~0.21; total debt down to ~$51M). Offsetting this, the income statement remains weak and volatile: revenue has fallen from 2023 levels ($719M to $610M by 2025), gross margin compressed (~29.5% to ~22.2%), and the firm is still near breakeven/loss-making (2025 net margin about -2.2%).Income Statement
Revenue expanded sharply in 2022 and stayed elevated versus 2020–2021, but growth has cooled and turned negative in 2024–2025 (annual revenue down from $719M in 2023 to $610M in 2025). Profitability has been volatile: the company was solidly profitable in 2022–2023 (positive net margins), then swung to a large loss in 2024 before improving materially in 2025 (loss narrowed to about -2.2% net margin). Gross margin has also compressed from ~29.5% (2023) to ~22.2% (2025), highlighting pressure on pricing/costs even as bottom-line losses improve.41
Neutral
Balance Sheet
Leverage looks manageable and improving: debt-to-equity has declined meaningfully from ~0.46 (2024) to ~0.21 (2025), and total debt fell from $116M to $51M. Equity is relatively stable ($242M–$410M range over the period), which provides a cushion, but profitability weakness in 2024–2025 is a risk factor for rebuilding equity returns. Overall, the balance sheet appears reasonably positioned with moderate leverage, though earnings volatility is the key swing factor.63
Positive
Cash Flow
Cash generation is a relative strength. Operating cash flow remained positive in 2022–2025 and improved in 2025 to ~$54M, with free cash flow also strong at ~$54M and up sharply versus 2024. This cash flow resilience is notable given net losses in 2024–2025, suggesting the business is still converting operations into cash, though coverage is not especially high (operating cash flow is less than total debt). The main weakness is prior volatility (negative operating and free cash flow in 2021).70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 609.84M | 642.85M | 719.19M | 654.09M | 260.12M |
| Gross Profit | 116.20M | 150.57M | 212.05M | 185.45M | 59.48M |
| EBITDA | 32.77M | -97.28M | 95.90M | 81.38M | 10.44M |
| Net Income | -11.74M | -158.71M | 21.39M | 14.18M | -4.63M |
Balance Sheet | |||||
| Total Assets | 635.83M | 671.34M | 884.50M | 878.98M | 864.41M |
| Cash, Cash Equivalents and Short-Term Investments | 31.90M | 14.29M | 43.66M | 25.14M | 30.81M |
| Total Debt | 122.59M | 116.27M | 163.25M | 167.84M | 185.55M |
| Total Liabilities | 206.70M | 233.29M | 286.44M | 310.81M | 306.69M |
| Stockholders Equity | 242.05M | 250.97M | 410.30M | 380.65M | 360.52M |
Cash Flow | |||||
| Free Cash Flow | 37.03M | 29.31M | 49.95M | 26.35M | -21.47M |
| Operating Cash Flow | 53.53M | 46.60M | 65.93M | 44.94M | -12.81M |
| Investing Cash Flow | -6.56M | -3.57M | -28.10M | -20.93M | -267.81M |
| Financing Cash Flow | -28.74M | -59.79M | -33.18M | -28.51M | 282.58M |
DMC Global Technical Analysis
Negative
5.89
Price Trends
7.69
Negative
7.29
Negative
7.37
Negative
Market Momentum
-0.42
Positive
30.99
Neutral
11.90
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BOOM, the sentiment is Negative. The current price of 5.89 is below the 20-day moving average (MA) of 7.99, below the 50-day MA of 7.69, and below the 200-day MA of 7.37, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 30.99 is Neutral, neither overbought nor oversold. The STOCH value of 11.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BOOM.
DMC Global Risk Analysis
DMC Global disclosed 40 risk factors in its most recent earnings report. DMC Global reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
DMC Global Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $101.23M | 8.78 | 11.89% | ― | 16.61% | -72.29% | |
68 Neutral | $660.26M | ― | -3.16% | ― | -1.29% | -123.25% | |
66 Neutral | $782.07M | -6.85 | -17.49% | ― | -11.02% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
49 Neutral | $120.66M | -6.59 | -3.68% | ― | -6.90% | 94.14% | |
47 Neutral | $118.18M | -4.22 | -21.55% | ― | -18.29% | -43.05% |
* Industrials Sector Average
BOOM
DMC Global
5.89
-2.30
-28.04%
FET
Forum Energy Tech
58.03
40.43
229.72%
OIS
Oil States International
13.09
8.00
157.17%
GEOS
Geospace Technologies
9.17
1.42
18.32%
NCSM
Ncs Multistage Holdings
39.84
13.87
53.41%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.