DMC Global Q2 sales beat expectations
Overview
DMC Global Q2 sales fall 9% yr/yr but beat analyst expectations
Adjusted EBITDA declines 30% yr/yr, beats management guidance
Co reduces total debt by 17% year-to-date, enhancing financial flexibility
Outlook
DMC Global expects Q3 sales between $142 mln and $150 mln
Company anticipates Q3 adjusted EBITDA of $8 mln to $12 mln
DMC Global cites challenging U.S. construction industry conditions
Company sees tariff policy uncertainty affecting customer orders
Result Drivers
ARCADIA SALES DECLINE - Weaker demand in high-end residential market due to high interest rates and lower construction activity
DYNAENERGETICS SALES DROP - Lower pricing and demand in U.S. unconventional market, despite sequential improvement in adjusted EBITDA
NOBELCLAD SALES IMPACT - Ongoing uncertainty around U.S. tariff policies led to deferred customer orders
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $155.50 mln | $151.60 mln (3 Analysts) |
Q2 Adjusted EBITDA | Beat | $13.50 mln | $11.50 mln (3 Analysts) |
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 $10.25, about 24.5% above its August 4 closing price of $7.74
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 18 three months ago
Press Release:
