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Sep 30, 2023
DMC Global Q3 2023 Earnings Report
Reported third quarter financial results with sales comparable to Q3 2022, but below forecasts.
Key Takeaways
DMC Global's third-quarter sales were $172.1 million, a 1% decrease compared to Q3 2022. Net income was $11.5 million, with $8.9 million attributable to DMC. Adjusted diluted EPS attributable to DMC was $0.50, a 43% increase year-over-year. The company generated $21.9 million in free cash flow.
Third quarter sales were $172.1 million, down 1% vs. Q3 2022
Net income was $11.5 million, while net income attributable to DMC was $8.9 million
Adjusted diluted EPS attributable to DMC was $0.50, up 43% versus Q3 2022
Third quarter free cash flow was $21.9 million
Forward Guidance
DMC Global anticipates fourth-quarter 2023 sales to be between $170 million and $180 million, with Arcadia between $70M - $74M, DynaEnergetics between $72M - $76M, and NobelClad between $28M - $30M. Consolidated gross margin is expected to be 28%-30%, with SG&A between $28M - $29M. Adjusted EBITDA attributable to DMC is projected to be between $20M - $24M.
Positive Outlook
- Resiliency of Arcadia's and NobelClad's diverse end markets
- Expected acceleration in well-completion activity in DynaEnergetics' core North American market beginning early next year
- Arcadia's expansion in paint capacity to increase sales potential
- Expected operational benefits from Arcadia's new ERP system in coming quarters
- DynaEnergetics implementing automation, lean manufacturing, and cost-reduction initiatives
Challenges Ahead
- Macro-economic uncertainties
- Roughly half of this year’s $20 million capex budget has been allocated to the fourth quarter.
- DynaEnergetics has incurred approximately $1 million in fourth-quarter restructuring expenses
Historical Earnings Impact
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Avg. Return Before/After Earnings
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