DMC Global Cuts Net Debt 67% to $18.7M as Sales Drop 6% to $143.5M
DMC Global reduced net debt by 67% year-over-year to $18.7M after generating Q4 free cash flow of $11.7M and operating cash flow of $15.2M. Fourth quarter sales fell 6% to $143.5M while a net loss of $11.2M included $7M of discrete write-offs at DynaEnergetics and adjusted EBITDA was negative $1.6M.
1. Financial Highlights
In the fourth quarter ended December 31, 2025, consolidated sales were $143.5M, down 6% year-over-year and 5% sequentially, while net loss was $11.2M driven by $7M in discrete DynaEnergetics write-offs. Adjusted EBITDA attributable to DMC was negative $1.6M versus $10.4M in Q4 2024.
2. Balance Sheet and Cash Flow
DMC reduced total debt by 28% to $52M and cut net debt by 67% to $18.7M, the lowest level since its 2021 acquisition. The company generated $15.2M in operating cash flow and $11.7M in free cash flow for the quarter, boosting full-year free cash flow by 41% to $42.8M.
3. Segment Performance
Arcadia Products posted Q4 sales of $57M, down 5% year-over-year amid high interest rates and project deferrals, while NobelClad’s sales fell 38% to $17.7M even as its backlog rose 28% to $62.6M. DynaEnergetics saw sales increase 8% to $68.9M but reported a $2.7M adjusted EBITDA loss as oilfield conditions weakened and tariffs persisted.
4. Outlook and Guidance
For Q1 2026, management expects sales of $132M–$138M and adjusted EBITDA of $2M–$4M, reflecting severe weather and ongoing macroeconomic pressures. The company is pursuing geothermal and global shale opportunities, naval readiness contracts, tariff mitigation measures and targeted cost reduction programs.