third quarter 2026
Filed Oct 27, 2026DMC Global reports third quarter sales of $172.8 million, up 14% versus Q3 2025, and net income attributable to DMC of $9.7 million, or $0.59 per diluted share.
Third-quarter sales, profitability, gross margin and adjusted EBITDA improved substantially year over year and sequentially, while consolidated sales and adjusted EBITDA attributable to DMC exceeded the high end of management’s forecast. The result included $5.4 million in tariff refunds, while the company guided to lower fourth-quarter sales and adjusted EBITDA amid seasonal and macroeconomic pressures.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $172.8M | 10% | 14% |
| Q3 2026 gross profitGAAP | $46.45M | 35% | 41% |
| Q3 2026 gross profit percentageGAAP | 26.9% | – | – |
| Q3 2026 SG&AGAAP | $27.49M | 12% | 6% |
| Q3 2026 operating incomeGAAP | $14.50M | 178% | 2,278% |
| Q3 2026 income before income taxesGAAP | $13.27M | 236% | 1,078% |
| Q3 2026 income tax provisionGAAP | $1.20M | (38)% | 67% |
| Q3 2026 net incomeGAAP | $12.07M | 498% | 683% |
| Q3 2026 net income attributable to DMC Global Inc. stockholdersGAAP | $9.71M | 1,815% | 415% |
| Q3 2026 diluted net income per share attributable to DMC Global Inc. stockholdersGAAP | $0.59 | 490% | 690% |
| Q3 2026 adjusted net income attributable to DMCnon-GAAP | $9.78M | 1,246% | 701% |
| Q3 2026 adjusted diluted net income per sharenon-GAAP | $0.48 | 1,100% | 700% |
| Q3 2026 adjusted EBITDA before NCI allocationnon-GAAP | $23.53M | 64% | 97% |
| Q3 2026 adjusted EBITDA attributable to DMC Global Inc.non-GAAP | $19.01M | 78% | 122% |
| Q3 2026 adjusted EBITDA attributable to DMC Global Inc., excluding tariff refundsnon-GAAP | $13.59M | 48% | 59% |
| Q3 2026 adjusted EBITDA before NCI allocation margin, excluding tariff refundsnon-GAAP | 10.5% | – | – |
| Nine months ended September 30, 2026 net salesGAAP | $465.4M | – | —% |
| Nine months ended September 30, 2026 gross profitGAAP | $106.2M | – | (4)% |
| Nine months ended September 30, 2026 gross profit percentageGAAP | 22.8% | – | – |
| Nine months ended September 30, 2026 operating incomeGAAP | $15.64M | – | 42% |
| Nine months ended September 30, 2026 net incomeGAAP | $7.28M | – | 6,284% |
| Nine months ended September 30, 2026 net income attributable to DMC Global Inc. stockholdersGAAP | $4.15M | – | 281% |
| Nine months ended September 30, 2026 diluted net income per share attributable to DMC Global Inc. stockholdersGAAP | $0.36 | – | 216% |
| Nine months ended September 30, 2026 adjusted EBITDA attributable to DMC Global Inc.non-GAAP | $33.58M | – | – |
| Nine months ended September 30, 2026 adjusted EBITDA attributable to DMC Global Inc., excluding tariff refundsnon-GAAP | $26.67M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Arcadia ProductsHigher sales of commercial aluminum and residential products, supported by improving service levels and product availability. Short-cycle commercial and high-end residential sales made meaningful contributions. | $76.89M | 14% | 25% |
| DynaEnergeticsCost savings initiatives and improved sales mix, partially attributable to recent diversification efforts and the initial contributions from both the defense and enhanced geothermal sectors. | $67.12M | —% | (3)% |
| NobelCladIncreased shipments on a large, international petrochemical order and resolution of supply chain issues on a large defense order that was fully shipped in the quarter. | $28.82M | 30% | 38% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fourth quarter 2026 outlook
- Revenue$154 million to $164 million
- NoteAdjusted EBITDA attributable to DMC: $10 million to $13 million
- NoteSteady well completion activity at DynaEnergetics
- NoteContinued improvement in shipping activity at NobelClad
Capital returns
- Treasury stock purchases were $460 for the nine months ended September 30, 2026.
- Treasury stock purchases were $0 for the three months ended September 30, 2026.
What drove it
- Consolidated sales and adjusted EBITDA attributable to DMC exceeded the high end of management’s forecast.
- Arcadia benefited from commercial aluminum and residential product sales, improving service levels and product availability.
- DynaEnergetics improved profitability through cost savings initiatives and improved sales mix despite lower year-over-year sales.
- NobelClad benefited from petrochemical-order shipments and the full shipment of a large defense order.
- NobelClad ended the quarter with order backlog of $72.4 million, including $16 million in orders related to U.S. Navy vessel construction.
- NobelClad's rolling 12-month bookings were $105.1 million, and the 12-month book-to-bill ratio was 1.19.
Concerns
- Arcadia continues to face elevated interest rates, materially higher aluminum costs, weak large and longer-cycle commercial project activity, and a highly competitive pricing environment.
- Fourth-quarter guidance reflects normal seasonal moderation at Arcadia and a temporary shutdown of the California finishing facility for planned maintenance.
- DMC cited rising interest rates, aluminum input-cost volatility, and tight labor conditions for commercial and residential builders.
- Fourth-quarter guidance does not contemplate increased international supply-chain disruptions from ongoing hostilities in the Middle East or generally weaker end-market conditions.
- Fourth-quarter guidance remains highly dependent on macroeconomic conditions in DMC’s core energy and construction markets.
What to watch
- Arcadia’s sales and execution through seasonal moderation and the planned California finishing-facility shutdown.
- The durability of DynaEnergetics cost optimization benefits as input costs increase and well completion activity remains steady.
- NobelClad’s shipping activity and conversion of its $72.4 million order backlog.
- The effect of international supply-chain conditions and Middle East hostilities on DynaEnergetics and NobelClad.
- Whether fourth-quarter sales of $154 million to $164 million and adjusted EBITDA attributable to DMC of $10 million to $13 million are achieved.
Balance sheet and cash flow
- Cash and cash equivalents were $37,957 at September 30, 2026, compared with $28,551 at June 30, 2026 and $31,898 at December 31, 2025.
- Total debt was $51.7 million, while net debt was $13.7 million.
- Current portion of long-term debt was $3,750 at September 30, 2026.
- Long-term debt was $47,924 at September 30, 2026.
- Net cash provided by operating activities was $17,509 for the three months ended September 30, 2026, compared with $(7,960) for the three months ended June 30, 2026 and $18,606 for the three months ended September 30, 2025.
- Net cash provided by operating activities was $7,170 for the nine months ended September 30, 2026, compared with $38,340 for the nine months ended September 30, 2025.
- Acquisition of property, plant and equipment was $(980) for the three months ended September 30, 2026 and $(4,364) for the nine months ended September 30, 2026.
- Repayments on term loan were $(938) for the three months ended September 30, 2026 and $(2,500) for the nine months ended September 30, 2026.
Analysis
DMC reported a materially improved third quarter. Net sales were $172,825, up 14% year on year and 10% sequentially, while gross profit rose to $46,446 from $32,829 in the prior-year quarter. Gross profit percentage reached 26.9%, compared with 21.7% a year earlier and 21.9% in the second quarter. Operating income was $14,504, compared with $610 in the 2025 third quarter, and net income attributable to DMC Global Inc. stockholders was $9,708, compared with a loss of $(3,081). Diluted net income per share attributable to DMC Global Inc. stockholders was $0.59, compared with $(0.10).
The reported improvement was broad-based across the three businesses, although the sources differed. Arcadia Products produced $76,886 of sales, up 25% year on year, on higher commercial aluminum and residential sales. Its adjusted EBITDA attributable to DMC Global Inc. was $6,770, up 32%. DynaEnergetics sales declined 3% to $67,124, but adjusted EBITDA excluding tariff refunds increased 34% to $6,503 as cost savings and improved mix offset lower sales. NobelClad sales rose 38% to $28,815 and adjusted EBITDA increased 120% to $4,568, supported by shipments on large petrochemical and defense orders.
Adjusted EBITDA attributable to DMC Global Inc. was $19,014, up 122% year on year and 78% sequentially. The result included $5,425 in tariff refunds. Excluding tariff refunds, adjusted EBITDA attributable to DMC Global Inc. was $13,589, up 59% year on year and 48% sequentially. The exclusion is important because the reported adjusted EBITDA increase includes a tariff-refund benefit that management identifies as nonrecurring for assessing underlying operating performance. Adjusted diluted net income per share was $0.48, compared with $(0.08) a year earlier.
Liquidity improved during the quarter. Cash and cash equivalents were $37,957 at September 30, 2026, and the company reported total debt of $51.7 million and net debt of $13.7 million. Net cash provided by operating activities was $17,509 for the quarter. DMC also repaid $(938) on its term loan during the quarter and $(2,500) during the first nine months. Treasury stock purchases were $460 during the nine-month period.
For the fourth quarter, DMC expects sales of $154 million to $164 million and adjusted EBITDA attributable to DMC of $10 million to $13 million. The guide incorporates seasonal moderation and a planned California finishing-facility shutdown at Arcadia, as well as construction-market pressure from rising interest rates, volatile aluminum costs and tight builder labor conditions. Management expects cost optimization to more than offset input-cost increases at DynaEnergetics and expects continued shipping improvement at NobelClad. The company explicitly noted that the outlook excludes potential additional international supply-chain disruptions and remains highly dependent on macroeconomic conditions.
Management, verbatim
Our improved performance reflects the cost optimization and commercial initiatives selectively implemented across our businesses over the past two years. These improvements were achieved despite continued macroeconomic headwinds across all of our end markets. We also strengthened DMC’s financial position during this period, with net debt now at its lowest level since the acquisition of Arcadia in December 2021.
James O’Leary, DMC’s president and CEO
Not in the filing
stated, not guessed- Previous-release outlook and prior-guidance comparison were not provided.
- Free cash flow was not reported.
- Dividend declaration or dividend payment information was not reported.
- Fourth-quarter gross margin guidance was not reported.
- Fourth-quarter operating-expense guidance was not reported.
- Fourth-quarter tax-rate guidance was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.