DMC Global Q2 sales beat estimates as Arcadia results improve

Overview

• US engineered products maker's Q2 sales were flat yr/yr, beating analyst expectations

• Adjusted EBITDA attributable to DMC fell 21% yr/yr due to higher costs and price pressure

• Arcadia Products delivered strongest sales since Q2 2024, driven by improved product availability

Outlook

• DMC Global expects Q3 sales between $158 mln and $168 mln

• Company anticipates Q3 adjusted EBITDA attributable to DMC of $10 mln to $13 mln

• Guidance excludes possible supply chain disruptions and aluminum cost volatility

Result Drivers

• ARCADIA IMPROVEMENT - Arcadia Products' sales and profitability improved due to better product availability, service enhancements, and higher aluminum prices

• DYNAENERGETICS PRESSURE - DynaEnergetics' year-over-year results were hurt by unfavorable mix, higher input costs, and price pressure

• NOBELCLAD DELAYS - NobelClad sales declined due to customer delays in taking delivery of certain clad-plate orders

Company press release: ID:nGNX48lYmm

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies fixtures peer group is "buy."

• Wall Street's median 12-month price target for DMC Global Inc is $8.50, about 55.7% above its July 28 closing price of $5.46

Reuters Recommended Reads

• July 28 - Crane Company Q2 sales rise 26%, beat estimates; outlook raised

• July 28 - Illinois Tool Works Q2 revenue beats on segment growth; raises outlook

• July 29 - Stanley Black Decker Q2 adjusted EPS beats estimates on volume growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)