Oct 27, 2026 earnings call — Improved sales and margins across businesses
DMC reported third quarter sales of $172.8 million and adjusted EBITDA excluding tariff refunds of $13.6 million.
Revenue $0.2B (est $0.2B) · EPS $0.48 (est $0.10) · Next-quarter revenue outlook $0.2B–$0.2B
Key quotes
"These results were driven by initiatives implemented over the past 2 years to improve the performance of our businesses despite continued uncertainty and highly challenging end market conditions."
"However, we believe we have recently regained local market share in our key short-cycle operations due to the focused initiatives just discussed."
"NobelClad ended the third quarter with an order backlog of $72.4 million, up from $63.5 million at the end of the second quarter."
Analyst Q&A 2
Defense detonators and Arcadia market share
Q (Gerard Sweeney · ROTH Capital Partners): The analyst asked for details on the company's defense opportunities, especially detonators and drone use, and whether the DynaSelect detonator fits. He also asked about Arcadia share gains and any Pacific Palisades update.
A: Management said they have been exploring capabilities across businesses and see a potential application in detonators for drones, but it is very early. They called the order a "bluebird" of about $0.75 million, not in guidance, and said it could reduce modeled DynaEnergetics margins by about 50 to 100 basis points. On Arcadia, they said they have regained most of the lost share from 2023, face production constraints on residential, and are pursuing longer-term satellite opportunities a few quarters, maybe a year or 2 out.
"And when we looked at where we would have other applications, geothermal is one, which we've talked about and defense, particularly, and you're right, it's the detonators, it's for drones." — James O'Leary (CEO)
Dyna margins; Arcadia shutdown and mix
Q (Kenneth Newman · KeyBanc): He asked whether Dyna segment margins could increase sequentially if volumes remain stable and how much margin improvement remains. He also asked what the Arcadia maintenance shutdown is, its timing and impact, and the current short-cycle versus long-cycle mix.
A: Management said Dyna margin gains are more about absolute dollars and are sustainable, but they don't expect another step-function lift; most savings came from product design and sourcing with a little more sourcing upside, and if volumes stay the same margins should be about the same. For Arcadia, they said seasonality and maintenance will pressure shipments: one anodizing facility will be down for probably 2 weeks at the end of December and they will build some inventory to help customers. They also said short-cycle commercial is roughly half of Arcadia revenue, long-cycle roughly 25%, residential 15%, and the balance is the interiors "Wilson" business; short-cycle tends to have higher margins and they have been winning back that business.
"We think that, that facility is going to be down for probably 2 weeks at the end of September -- or sorry, end of December." — Eric Walter (CFO)