UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the quarterly period ended ~~March~~June 3130, 2025

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO .

Commission file number 001-14775

DMC GLOBAL INC.

(Exact name of Registrant as Specified in its Charter)


Delaware						84-0608431
(State of Incorporation or Organization)						(I.R.S. Employer Identification No.)

11800 Ridge Parkway, Suite 300, Broomfield, Colorado 80021

(Address of principal executive offices, including zip code)

(303) 665-5700

(Registrant’s telephone number, including area code)

Title of each class

Trading Symbol

Name of exchange on which registered

Common Stock, $0.05 Par Value

BOOM

The Nasdaq Global Select Market

Stock Purchase Rights

The Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐						Accelerated filer ☒

Non-accelerated filer ☐						Smaller reporting company ☐

						Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 under the Act). Yes ☐ No ☒

The number of shares of Common Stock outstanding was 20,581,269 as of July 31, 2025.

CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q contains “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. We intend the forward-looking statements throughout this quarterly report on Form 10-Q to be covered by the safe harbor provisions for forward-looking statements. Statements contained in this report which are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projected results. These statements can sometimes be identified by our use of forward-looking words such as “may,” “believe,” “plan,” “anticipate,” “estimate,” “expect,” “intend,” and other phrases of similar meaning. Such statements include, but are not limited to, expectations regarding ~~improvements~~market-responsive initiatives at Arcadia Products, ~~anticipated~~cost ~~profit~~reduction ~~margin improvements resulting from changes in manufacturing processes~~ and ~~the~~market ~~introduction~~share ofexpansion ~~new~~initiatives ~~products~~at in DynaEnergetics, ~~our backlog and~~ order activity improvements at NobelClad, our ability to access capital markets transactions in the future, the availability of funds to support our liquidity position and our expected future liquidity position. The forward-looking information is based on information available as of the date of this quarterly report and on numerous assumptions and developments that are not within our control. Although we believe that our expectations as expressed in these forward-looking statements are reasonable, we cannot assure you that our expectations will turn out to be correct. Factors that could cause actual results to differ materially include, but are not limited to, those factors referenced in our Annual Report on Form 10-K for the year ended December 31, 2024 and this Quarterly Report on Form 10-Q and other potential factors, including: geopolitical and economic instability, including recessions or depressions; inflation; supply chain delays and disruptions; the availability and cost of energy; transportation disruptions; the ability to obtain new contracts at attractive prices; the size and timing of customer orders and shipments; product pricing and margins; our ability to realize sales from our backlog; fluctuations in customer demand; fluctuations in foreign currencies; competitive factors; the timely completion of contracts; the timing and size of expenditures; the timely receipt of government approvals and permits; the price and availability of metal, aluminum, and other raw materials; fluctuations in tariffs or quotas; changes in laws and regulations, both domestic and foreign, impacting our business and the business of the end-market users we serve; the adequacy of local labor supplies at our facilities; changes in immigration laws or enforcement programs; current or future limits on manufacturing capacity at our various operations; the impact of pending or future litigation or regulatory matters; the availability and cost of funds; our ability to access our borrowing capacity under our credit facility or access the capital markets; the actions of activist stockholders; global economic conditions; and wars, terrorism and armed conflicts. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. We undertake no obligation to publicly release the results of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

INDEX

		Page
PART I - FINANCIAL INFORMATION
Item 1	Condensed Consolidated Financial Statements	4
	Condensed Consolidated Balance Sheets as of March 31, 2025 (unaudited) and December 31, 2024	4
	Condensed Consolidated Balance Sheets as of June 30, 2025 (unaudited) and December 31, 2024	4
	Condensed Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024 (unaudited)	5
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2025 and 2024 (unaudited)	5
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2025 and 2024 (unaudited)	6
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024 (unaudited)	6
	Condensed Consolidated Statements of Stockholders’ Equity and Redeemable Noncontrolling Interest for the three months ended March 31, 2025 and 2024 (unaudited)	7
	Condensed Consolidated Statements of Stockholders’ Equity and Redeemable Noncontrolling Interest for the three and six months ended June 30, 2025 and 2024 (unaudited)	7
	Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024 (unaudited)	8
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 (unaudited)	9
	Notes to Condensed Consolidated Financial Statements (unaudited)	910
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2426
Item 3	Quantitative and Qualitative Disclosure about Market Risk	3443
Item 4	Controls and Procedures	3443
PART II - OTHER INFORMATION
Item 1	Legal Proceedings	3544
Item 1A	Risk Factors	3544
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	3545
Item 3	Defaults Upon Senior Securities	3645
Item 4	Mine Safety Disclosures	3645
Item 5	Other Information	3645
Item 6	Exhibits	3746
	Signatures	3747

Table of Contents

Part I - FINANCIAL INFORMATION

ITEM 1. Condensed Consolidated Financial Statements

DMC GLOBAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands, Except Share and Per Share Data)

	March 31, 2025		December 31, 2024
	June 30, 2025		December 31, 2024
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1412,~~705~~427	$	14,289
Accounts receivable, net of allowance for doubtful accounts of $7,588 and $6,881, respectively	114,470		103,361
Accounts receivable, net of allowance for doubtful accounts of $4,521 and $6,881, respectively	110,458		103,361
Inventories	~~148~~144,~~735~~557		152,580
Prepaid expenses and other	1812,~~999~~732		18,792
Total current assets	~~296~~280,~~909~~174		289,022
Property, plant and equipment	~~238~~245,~~647~~761		235,124
Less - accumulated depreciation	(~~109~~115,~~692~~637)		(105,848)
Property, plant and equipment, net	~~128~~130,~~955~~124		129,276
Purchased intangible assets, net	~~169~~164,~~341~~578		174,104
Deferred tax assets	1,~~225~~296		1,230
Other assets	7468,~~210~~852		77,705
Total assets	$	~~670~~645,~~640~~024	$	671,337
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4541,~~514~~450	$	45,059
Accrued expenses	1012,~~817~~370		11,393
Accrued income taxes	910,~~486~~377		7,574
Accrued employee compensation and benefits	11,~~006~~683		10,399
Contract liabilities	1812,~~538~~026		23,162
Current portion of long-term debt	23,~~500~~563		2,500
Other current liabilities	1310,~~902~~090		14,015
Total current liabilities	~~111~~101,~~763~~559		114,102
Long-term debt	6955,~~921~~112		68,318
Deferred tax liabilities	~~728~~1,191		711
Other long-term liabilities	4746,225		50,155
Total liabilities	~~229~~204,~~637~~087		233,286
Commitments and contingencies (Note 12)
Redeemable noncontrolling interest	187,080		187,080
Stockholders’ equity
Preferred stock, $0.05 par value; 4,000,000 shares authorized; no issued and outstanding shares	—		—
Common stock, $0.05 par value; 50,000,000 shares authorized; 21,403,030 and 21,083,184 shares issued, respectively	1,070		1,054
Common stock, $0.05 par value; 50,000,000 shares authorized; 21,487,809 and 21,083,184 shares issued, respectively	1,074		1,054
Additional paid-in capital	~~306~~304,~~951~~243		305,460
Retained earnings	~~758~~—		—
Other cumulative comprehensive loss	(2824,~~386~~908)		(29,560)
Treasury stock, at cost, and company stock held for deferred compensation, at par; 912,308 and 820,322 shares, respectively	(26,470)		(25,983)
Treasury stock, at cost, and company stock held for deferred compensation, at par; 906,540 and 820,322 shares, respectively	(26,552)		(25,983)
Total stockholders’ equity	253,~~923~~857		250,971
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity	$	~~670~~645,~~640~~024	$	671,337

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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DMC GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in Thousands, Except Share and Per Share Data)

(unaudited)

	Three months ended March 31,
	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Net sales	$	~~159~~155,~~290~~487	$	~~166~~171,~~869~~179	$	314,777	$	338,048
Cost of products sold	118,~~091~~756		124,~~517~~766		236,847		249,283
Gross profit	4136,~~199~~731		4246,~~352~~413		77,930		88,765
Costs and expenses:
General and administrative expenses	1615,~~674~~905		15,~~980~~623		32,579		31,603
Selling and distribution expenses	1110,~~626~~242		1211,~~223~~499		21,868		23,722
Amortization of purchased intangible assets	4,763		5,~~292~~307		9,526		10,599
Strategic review and related expenses	~~1,298~~775		2,~~169~~020		2,073		4,189
Restructuring expenses	325		—
Restructuring expenses and asset impairments	1,149		279		1,474		279
Total costs and expenses	3432,~~686~~834		3534,~~664~~728		67,520		70,392
Operating income	63,~~513~~897		611,~~688~~685		10,410		18,373
Other expense:
Other expense, net	(~~218~~346)		(~~409~~284)		(564)		(693)
Interest expense, net	(1,~~699~~811)		(2,~~317~~316)		(3,510)		(4,633)
Income before income taxes	41,~~596~~740		39,~~962~~085		6,336		13,047
Income tax provision	21,~~733~~419		12,~~643~~792		4,152		4,435
Net income	$	~~1,863~~321	$	26,~~319~~293	$	2,184	$	8,612
Less: Net income (loss) attributable to redeemable noncontrolling interest	1,186		(244)
Less: Net income attributable to redeemable noncontrolling interest	205		2,281		1,391		2,037
Net income attributable to DMC Global Inc. stockholders	$	~~677~~116	$	24,~~563~~012	$	793	$	6,575
Net income per share attributable to DMC Global Inc. stockholders:
Net (loss) income per share attributable to DMC Global Inc. stockholders:
Basic	$	(0.0424)	$	0.0124	$	(0.20)	$	0.25
Diluted	$	(0.0424)	$	0.0124	$	(0.20)	$	0.25
Weighted average shares outstanding:
Basic	1920,~~812~~134,~~161~~760		19,~~610~~659,~~644~~908		19,861,073		19,635,716
Diluted	1920,~~816~~134,~~281~~760		19,~~622~~671,~~455~~169		19,861,073		19,647,005

Reconciliation to net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share

	Three months ended March 31,
	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Net income attributable to DMC Global Inc. stockholders	$	~~677~~116	$	24,~~563~~012	$	793	$	6,575
Adjustment of redeemable noncontrolling interest	81(4,900)		~~(2,307)~~793		(4,819)		(1,514)
Net income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest	$	758	$	256
Net (loss) income attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest	$	(4,784)	$	4,805	$	(4,026)	$	5,061

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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DMC GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ~~(LOSS)~~

(Amounts in Thousands)

(unaudited)

	Three months ended March 31,
	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Net income	$	~~1,863~~321	$	26,~~319~~293	$	2,184	$	8,612
Change in cumulative foreign currency translation adjustment	13,~~174~~478		(~~1,113~~515)		4,652		(1,628)
Other comprehensive income	$	3,~~037~~799	$	15,~~206~~778	$	6,836	$	6,984
Less: comprehensive income (loss) attributable to redeemable noncontrolling interest	1,186		(244)
Less: comprehensive income attributable to redeemable noncontrolling interest	205		2,281		1,391		2,037
Comprehensive income attributable to DMC Global Inc. stockholders	$	13,~~851~~594	$	13,~~450~~497	$	5,445	$	4,947

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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DMC GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST

(Amounts in Thousands, Except Share Data)

(unaudited)

								Other		Treasury Stock, at cost, and			Total		Redeemable
				Additional				Cumulative		Company Stock Held for			DMC Global Inc.		Non-
	Common Stock			Paid-In		Retained		Comprehensive		Deferred Compensation, at par			Stockholders’		Controlling
	Shares	Amount		Capital		Earnings		Loss		Shares	Amount		Equity		Interest
Balances, December 31, 2024	21,083,184	$	1,054	$	305,460	$	—	$	(29,560)	(820,322)	$	(25,983)	$	250,971	$	187,080
Net income	—	—		—		677		—		—	—		677		1,186
Change in cumulative foreign currency translation adjustment	—	—		—		—		1,174		—	—		1,174		—
Shares issued in connection with stock compensation plans	319,846	16		(13)		—		—		(59,796)	(3)		—		—
Stock-based compensation	—	—		1,504		—		—		—	—		1,504		95
Distribution to redeemable noncontrolling interest holder	—	—		—		—		—		—	—		—		(1,200)
Adjustment of redeemable noncontrolling interest	—	—		—		81		—		—	—		81		(81)
Treasury stock activity	—	—		—		—		—		(32,190)	(484)		(484)		—
Balances, March 31, 2025	21,403,030	$	1,070	$	306,951	$	758	$	(28,386)	(912,308)	$	(26,470)	$	253,923	$	187,080
Net income	—	—		—		116		—		—	—		116		205
Change in cumulative foreign currency translation adjustment	—	—		—		—		3,478		—	—		3,478		—
Shares issued in connection with stock compensation plans	84,779	4		(4)		—		—		(8,356)	—		—		—
Stock-based compensation	—	—		1,322		—		—		—	—		1,322		95
Distribution to redeemable noncontrolling interest holder	—	—		—		—		—		—	—		—		(5,200)
Adjustment of redeemable noncontrolling interest	—	—		(4,026)		(874)		—		—	—		(4,900)		4,900
Treasury stock activity	—	—		—		—		—		14,124	(82)		(82)		—
Balances, June 30, 2025	21,487,809	$	1,074	$	304,243	$	—	$	(24,908)	(906,540)	$	(26,552)	$	253,857	$	187,080

								Other		Treasury Stock, at cost, and			Total		Redeemable
				Additional				Cumulative		Company Stock Held for			DMC Global Inc.		Non-
	Common Stock			Paid-In		Retained		Comprehensive		Deferred Compensation, at par			Stockholders’		Controlling
	Shares	Amount		Capital		Earnings		Loss		Shares	Amount		Equity		Interest
Balances, December 31, 2023	20,467,495	$	1,023	$	313,833	$	146,604	$	(26,426)	(689,700)	$	(24,739)	$	410,295	$	187,760
Net income (loss)	—	—		—		2,563		—		—	—		2,563		(244)
Change in cumulative foreign currency translation adjustment	—	—		—		—		(1,113)		—	—		(1,113)		—
Shares issued in connection with stock compensation plans	236,509	12		(12)		—		—		—	—		—		—
Stock-based compensation	—	—		1,412		—		—		—	—		1,412		137
Distribution to redeemable noncontrolling interest holder	—	—		—		—		—		—	—		—		(2,880)
Adjustment of redeemable noncontrolling interest	—	—		—		(2,307)		—		—	—		(2,307)		2,307
Treasury stock activity	—	—		—		—		—		(32,030)	(936)		(936)		—
Balances, March 31, 2024	20,704,004	$	1,035	$	315,233	$	146,860	$	(27,539)	(721,730)	$	(25,675)	$	409,914	$	187,080

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements

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DMC GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTEREST

(Amounts in Thousands, Except Share Data)

(unaudited)


								Other		Treasury Stock, at cost, and			Total		Redeemable
				Additional				Cumulative		Company Stock Held for			DMC Global Inc.		Non-
	Common Stock			Paid-In		Retained		Comprehensive		Deferred Compensation, at par			Stockholders’		Controlling
	Shares	Amount		Capital		Earnings		Loss		Shares	Amount		Equity		Interest
Balances, December 31, 2023	20,467,495	$	1,023	$	313,833	$	146,604	$	(26,426)	(689,700)	$	(24,739)	$	410,295	$	187,760
Net income (loss)	—	—		—		2,563		—		—	—		2,563		(244)
Change in cumulative foreign currency translation adjustment	—	—		—		—		(1,113)		—	—		(1,113)		—
Shares issued in connection with stock compensation plans	236,509	12		(12)		—		—		—	—		—		—
Stock-based compensation	—	—		1,412		—		—		—	—		1,412		137
Distribution to redeemable noncontrolling interest holder	—	—		—		—		—		—	—		—		(2,880)
Adjustment of redeemable noncontrolling interest	—	—		—		(2,307)		—		—	—		(2,307)		2,307
Treasury stock activity	—	—		—		—		—		(32,030)	(936)		(936)		—

Balances, March 31, 2024	20,704,004	$	1,035	$	315,233	$	146,860	$	(27,539)	(721,730)	$	(25,675)	$	409,914	$	187,080
Net income	—	—		—		4,012		—		—	—		4,012		2,281
Change in cumulative foreign currency translation adjustment	—	—		—		—		(515)		—	—		(515)		—


Shares issued in connection with stock compensation plans	85,643	5		127		—		—		—	—		132		—




Stock-based compensation	—	—		1,670		—		—		—	—		1,670		112
Distribution to redeemable noncontrolling interest holder	—	—		—		—		—		—	—		—		(1,600)
Adjustment of redeemable noncontrolling interest	—	—		—		793		—		—	—		793		(793)
Treasury stock activity	—	—		—		—		—		(26,536)	(17)		(17)		—
Balances, June 30, 2024	20,789,647	$	1,040	$	317,030	$	151,665	$	(28,054)	(748,266)	$	(25,692)	$	415,989	$	187,080

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements

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DMC GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in Thousands)

(unaudited)

	Three months ended March 31,
	Six months ended June 30,
	2025		2024
Cash flows from operating activities:
Net income	$	12,~~863~~184	$	28,~~319~~612
Adjustments to reconcile net income to net cash from operating activities:
Depreciation	37,~~660~~367		36,~~419~~850
Amortization of purchased intangible assets	49,~~763~~526		510,~~292~~599
Amortization of deferred debt issuance costs	~~217~~448		~~190~~407
Stock-based compensation	13,~~599~~016		13,~~549~~331
Bad debt expense	~~706~~696		~~476~~1,036
Deferred income taxes	22414		(~~546~~1,292)
Other	555		(985)
Asset impairments	296		—
Other	988		(788)
Change in:
Accounts receivable, net	(104,~~572~~854)		~~486~~(13,903)
Inventories	410,~~557~~716		(58,~~910~~835)
Prepaid expenses and other	312,~~239~~367		32,~~022~~677
Accounts payable	~~203~~(4,449)		1022,~~660~~070
Contract liabilities	(411,~~758~~415)		(25,~~391~~135)
Accrued expenses and other liabilities	(17,566)		(49,~~141~~846)
Net cash provided by operating activities	419,~~488~~734		1315,~~440~~783
Cash flows from investing activities:
Proceeds from maturities of marketable securities	—		3,000
Proceeds from sales of marketable securities	—		9,619
Acquisition of property, plant and equipment	(36,~~779~~700)		(25,~~968~~515)
Proceeds from property, plant and equipment reimbursements	~~426~~1,788		—
Proceeds on sale of property, plant and equipment	2127		—100
Net cash (used in) provided by investing activities	(3,332)		9,651
Proceeds from settlement of note receivable	4,167		—
Net cash (used in) provided by investing activities	(718)		7,204
Cash flows from financing activities:
Repayments on term loan	(~~625~~1,250)		(~~117~~118,~~500~~125)
Borrowings on term loan	—		50,000
Borrowings on revolving loans	846,~~500~~859		7077,~~450~~150
Repayments on revolving loans	(657,~~375~~887)		(3040,~~450~~525)
Payment of debt issuance costs	—(650)		(2,735)
Distributions to redeemable noncontrolling interest holder	(16,~~151~~255)		(34,~~125~~672)
Treasury stock purchases	(484)		(936)
Net proceeds from issuance of common stock to employees and directors	—		132
Net cash used in financing activities	(135)		(34,296)
Treasury stock purchases	(563)		(952)
Effects of exchange rates on cash	(605)		609
Net cash used in financing activities	(19,746)		(39,727)
Net increase (decrease) in cash and cash equivalents	416		(10,596)
Effects of exchange rates on cash	(1,132)		267
Net decrease in cash and cash equivalents	(1,862)		(16,473)
Cash and cash equivalents, beginning of the period	14,289		31,040
Cash and cash equivalents, end of the period	$	1412,~~705~~427	$	2014,~~444~~567

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

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DMC GLOBAL INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in Thousands, Except Share and Per Share Data)

(unaudited)

1. BASIS OF PRESENTATION

The information included in the Condensed Consolidated Financial Statements is unaudited but includes all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the interim periods presented. Certain information and footnote disclosures, including critical and significant accounting policies normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted for this quarterly presentation. These Condensed Consolidated Financial Statements should be read in conjunction with the financial statements that are included in our Annual Report filed on Form 10-K for the year ended December 31, 2024.

2. SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The Condensed Consolidated Financial Statements include the accounts of DMC Global Inc. (“DMC”, “we”, “us”, “our”, or the “Company”) and its controlled subsidiaries. All intercompany accounts, profits, and transactions have been eliminated in consolidation.

Accounts Receivable

The Company measures expected credit losses for its accounts receivable using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. The Company has disaggregated pools of accounts receivable balances by business, geography and/or customer risk profile and has used history and other experience to establish an allowance for credit losses at the time the receivable is recognized. To measure expected credit losses, we have elected to pool trade receivables by segment and analyze each segment’s accounts receivable balances as separate populations. Within each segment, receivables exhibit similar risk characteristics.

During the three and six months ended ~~March~~June 3130, 2025, our expected loss rate reflects uncertainties in market conditions present in our businesses, including supply chain disruptions, industry consolidation, higher interest rates, as well as global geopolitical and economic instability. In addition, we reviewed receivables outstanding, including aged balances, and in circumstances where we are aware of a specific customer’s inability to meet its financial obligation to us, we recorded a specific allowance for credit losses against the amounts due, reducing the net receivable recognized to the amount we estimate will be collected. The offsetting expense is charged to “Selling and distribution expenses” in our Condensed Consolidated Statements of Operations. During the three and six months ended ~~March~~June 3130, 2025, net recoveries of $10 and net provisions of $696, respectively, were recorded. During the three and six months ended June 30, 2024, net provisions of $~~706~~560 and $~~476~~1,036, respectively, were recorded.

The following table summarizes year-to-date activity in the allowance for credit losses on receivables from customers in each of our business segments:

	Arcadia Products		DynaEnergetics		NobelClad		DMC Global Inc.
Allowance for doubtful accounts, December 31, 2024	$	495	$	6,369	$	17	$	6,881
Current period provision for expected credit losses	~~285~~364		~~471~~495		—		~~756~~859
Write-offs charged against the allowance	—(51)		—(3,010)		—		—(3,061)
Recoveries of amounts previously reserved	(5098)		—(65)		—		(50163)
Impacts of foreign currency exchange rates and other	—		15		—		15
Allowance for doubtful accounts, March 31, 2025	$	730	$	6,841	$	17	$	7,588
Allowance for doubtful accounts, June 30, 2025	$	710	$	3,794	$	17	$	4,521

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Redeemable noncontrolling interest

On December 23, 2021, DMC completed the acquisition of 60% of the membership interests in Arcadia Products, LLC, a Colorado limited liability company resulting from the conversion of Arcadia, Inc. (collectively, “Arcadia Products”). The limited liability company operating agreement for Arcadia Products (the “Operating Agreement”) contains a right for the Company to purchase the remaining interest in Arcadia Products from the minority interest holder on or after December 23, 2024 (“Call Option”). Similarly, the Operating Agreement originally permitted the minority interest holder of Arcadia Products the right to sell its remaining interest in Arcadia Products to the Company on or after December 23, 2024 ("Put Option"). On December 3, 2024, the Company and minority interest holder entered into an amendment to the Operating Agreement whereby the minority interest holder agreed not to exercise the Put Option until on or after September 6, 2026 ~~in exchange for, among other terms, a one-time payment of $2,500~~. ~~The $2,500 payment was made in December 2024.~~

The purchase price for any interests sold pursuant to the Call Option or Put Option continues to be based upon a predefined calculation as included within the Operating Agreement. In connection with an exercise of the Call Option, the Operating Agreement would require payment of the purchase price in cash. However, in connection with the exercise of the Put Option, the Operating Agreement permits the Company the option to pay the purchase price in cash or in a combination of cash and preferred stock that would be authorized at that time.

The Company initially accounted for the noncontrolling interest at its acquisition date fair value. We determined that neither the Call Option nor the Put Option meet the definition of a derivative as the Operating Agreement does not allow for contractual net settlement, the options cannot be settled outside the Operating Agreement through a market mechanism, and the underlying shares are deemed illiquid as they are not publicly traded and thus not considered readily convertible to cash. Additionally, the settlement price for both options is based upon a predefined calculation tied to adjusted earnings rather than a fixed price, and the formula is based upon a multiple of Arcadia Products’ average adjusted earnings over a three-year period, subject to a floor value as defined in the Operating Agreement which is based primarily upon a contractually stated equity value. As such, we have concluded that the Call Option and Put Option are embedded within the noncontrolling interest and therefore do not represent freestanding instruments.

Given that the noncontrolling interest is subject to possible redemption with redemption rights that are not entirely within the control of the Company, we have concluded that the noncontrolling interest should be accounted for in accordance with ASC 480 Distinguishing Liabilities from Equity ("ASC 480"). The noncontrolling interest is also probable of redemption, as the only criteria for the security to become redeemable is the passage of time. As such, the redeemable noncontrolling interest is classified in temporary equity, separate from the stockholders’ equity section, in the Condensed Consolidated Balance Sheets.

At each balance sheet date subsequent to acquisition, two separate calculations must be performed to determine the value of the redeemable noncontrolling interest. First, the redeemable noncontrolling interest must be accounted for in accordance with ASC 810 Consolidation (“ASC 810”) whereby income (loss) and cash distributions attributable to the redeemable noncontrolling interest holder are ascribed. After this occurs, applicable provisions of ASC 480 must be considered to determine whether any further adjustment is necessary to increase the carrying value of the redeemable noncontrolling interest. An adjustment would only be necessary if the estimated settlement amount of the redeemable noncontrolling interest, per the terms of the Operating Agreement, exceeds the carrying value calculated in accordance with ASC 810. If such adjustment is required, the impact is immediately recorded to retained earnings and additional paid-in capital, upon absence of retained earnings, and therefore does not impact the Condensed Consolidated Statements of Operations or Comprehensive Income (Loss). As of ~~March~~June 3130, 2025 and December 31, 2024, the redeemable noncontrolling interest was $187,080, which is equal to the floor value per the Operating Agreement.

Promissory Note

In order to equalize after-tax consideration to the redeemable noncontrolling interest holder relative to an alternative transaction structure, immediately following the closing of the acquisition, the Company loaned $24,902 to the redeemable noncontrolling interest holder. The loan was evidenced by an unsecured promissory note, and the loan will be repaid out of proceeds from the sale of the redeemable noncontrolling interest holder’s interests in Arcadia Products, whether received upon exercise of the Put Option, the Call Option or upon ~~sales~~sale to third parties permitted under the terms of the Operating Agreement. The loan must be repaid in full at the earlier of the exercise of the Put or Call Option, or by December 16, 2051, and has been recorded within “Other assets” in the Condensed Consolidated Balance Sheets.

~~Revenue Recognition~~11

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Revenue Recognition

The Company’s revenues are derived from consideration paid by customers for tangible goods. The Company analyzes its different products by segment to determine the appropriate basis for revenue recognition. Revenue is not generated from sources other than contracts with customers and revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. There are no material upfront costs for operations that are incurred from contracts with customers.

Our rights to payments for goods transferred to customers within our DynaEnergetics and NobelClad business segments arise when control is transferred at a point in time and not on any other criteria. Our rights to payments for goods transferred to customers within our Arcadia Products business segment also predominantly arise when control is transferred at a point in time; however, at times, control of certain customized, project-based products passes to the customer over time. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 30 to 90 days across all of our segments. In instances when we require customers to make advanced payments prior to the shipment of their orders, we record a contract liability. We have determined that our contract liabilities do not include a significant financing component given the short duration between order initiation and order fulfillment within each of our segments. Refer to Note 10 "Business Segments" for disaggregated revenue disclosures.

See additional revenue recognition policy disclosures specific to each of our business segments within our Annual Report filed on Form 10-K for the year ended December 31, 2024.

Income Taxes

We recognize deferred tax assets and liabilities for the expected future income tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Any effects of changes in income tax rates or tax laws are included in the provision for income taxes in the period of enactment. The deferred income tax impact of tax credits are recognized as an immediate adjustment to income tax expense. We recognize deferred tax assets for the expected future effects of all deductible temporary differences to the extent we believe these assets will more likely than not be realized. We record a valuation allowance when, based on current circumstances, it is more likely than not that all or a portion of the deferred tax assets will not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, recent financial performance and existing valuation allowances, if any.

We recognize the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, that the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the Condensed Consolidated Financial Statements from such a position are measured as the largest benefit that is more likely than not to be realized upon ultimate resolution. We recognize interest and penalties related to uncertain tax positions in operating expense.

Earnings Per Share

In periods with net income, the Company computes earnings per share (“EPS”) using a two-class method, which is an earnings allocation formula that determines EPS for (i) each class of common stock (the Company has a single class of common stock), and (ii) participating securities according to dividends declared and participation rights in undistributed earnings. Restricted stock awards granted under the 2016 Omnibus Incentive Plan are considered participating securities in periods of net income as they receive non-forfeitable rights to dividends as common stock. Restricted stock awards do not participate in net losses.

Basic EPS is calculated by dividing net income (loss) attributable to the Company’s stockholders after adjustment of redeemable noncontrolling interest and dividends, if applicable, by the weighted-average number of common shares outstanding during the period. Net income (loss) available to common shareholders of the Company includes any adjustment to the redeemable noncontrolling interest as of the end of the period presented. Refer to the "Redeemable noncontrolling interest" section above for further discussion of the calculation of the adjustment of the redeemable noncontrolling interest. Diluted EPS adjusts basic EPS for the effects of restricted stock awards, restricted stock units, performance share units and other potentially dilutive financial instruments (“dilutive securities”), only in the periods in which such effect is dilutive. The effect of the dilutive securities is reflected in diluted EPS by application of the more dilutive of (1) the treasury stock method or (2) the two-class method. For the applicable periods presented, diluted EPS using the two-class method was more dilutive than the treasury stock method; as such, only the two-class method has been included below.

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	Three months ended March 31,
	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Net income attributable to DMC Global Inc. stockholders, as reported	$	~~677~~116	$	24,~~563~~012	$	793	$	6,575
Adjustment of redeemable noncontrolling interest	81(4,900)		~~(2,307)~~793		(4,819)		(1,514)
Less: Undistributed net income available to participating securities	~~(24)~~—		(5100)		—		(105)
Numerator for basic net income per share:	734		251
Numerator for basic net (loss) income per share:	(4,784)		4,705		(4,026)		4,956
Add: Undistributed net income allocated to participating securities	24—		5100		—		105
Less: Undistributed net income reallocated to participating securities	~~(24)~~—		(5100)		—		(105)
Numerator for diluted net income per share:	$	734	$	251
Numerator for diluted net (loss) income per share:	$	(4,784)	$	4,705	$	(4,026)	$	4,956
Denominator:
Weighted average shares outstanding for basic net income per share	19,812,161		19,610,644
Weighted average shares outstanding for basic net (loss) income per share	20,134,760		19,659,908		19,861,073		19,635,716
Effect of dilutive securities (1)	~~4,120~~—		11,~~811~~261		—		11,289
Weighted average shares outstanding for diluted net income per share	19,816,281		19,622,455
Weighted average shares outstanding for diluted net (loss) income per share	20,134,760		19,671,169		19,861,073		19,647,005
Net income per share attributable to DMC Global Inc. stockholders
Net (loss) income per share attributable to DMC Global Inc. stockholders
Basic	$	(0.0424)	$	0.0124	$	(0.20)	$	0.25
Diluted	$	(0.0424)	$	0.0124	$	(0.20)	$	0.25

(1) ~~For~~Given that we were in a net loss position for the three and six months ended ~~March~~June 3130, 2025, all potentially dilutive shares were anti-dilutive and were therefore excluded from the determination of diluted EPS. For the three and six months ended June 30, 2024, 7113,~~813~~539 and 10,~~052~~843 shares, respectively, have been excluded as their effect would have been anti-dilutive.

Deferred Compensation Plan

The Company maintains a Non-Qualified Deferred Compensation Plan (the “Plan”) as part of its overall compensation package for certain employees. Participants are eligible to defer a portion of their annual salary, their annual incentive bonus, and their equity awards through the Plan on a tax-deferred basis. Deferrals into the Plan are not matched or subsidized by the Company, nor are they eligible for above-market or preferential earnings.

The Plan provides for deferred compensation obligations to be settled either by delivery of a fixed number of shares of DMC’s common stock or in cash, in accordance with participant contributions and elections. For deferred equity awards, subsequent to equity award vesting and after a period prescribed by the Plan, participants ~~can~~historically could elect to diversify contributions of equity awards into other investment options available to Plan participants. Once diversified, such contributions ~~will~~are be settled by delivery of cash. Effective January 1, 2024, diversification of newly deferred equity awards is no longer permitted by the Plan.

The Company has established a grantor trust commonly known as a “rabbi trust” and contributed certain assets to partially satisfy the future obligations to participants in the Plan. These assets are subject to potential claims of the Company’s general creditors. The assets held in the trust include unvested restricted stock awards (“RSAs”), vested company stock awards, company-owned life insurance (“COLI”) on certain current and former employees, and money market funds. Unvested RSAs and common stock held by the trust are reflected in the Condensed Consolidated Balance Sheets within “Treasury stock, at cost, and company stock held for deferred compensation, at par” at the par value of the common stock or unvested RSAs. These accounts are not adjusted for subsequent changes in the fair value of the common stock. COLI is accounted for at the cash surrender value while money market ~~and mutual~~ funds held by the trust are accounted for at fair value.

Deferred compensation obligations that will be settled in cash are accounted for on an accrual basis in accordance with the terms of the Plan. These obligations are adjusted based on changes in value of the underlying investment options chosen by Plan participants. Deferred compensation obligations that will be settled by delivery of a fixed number of previously vested shares of the Company’s common stock are reflected in the Condensed Consolidated Statements of Stockholders’ Equity and Redeemable Noncontrolling Interest within “Common stock” at the par value of the common stock or unvested RSAs. These accounts are not adjusted for subsequent changes in the fair value of the common stock.13

The balances related to the deferred compensation plan were as follows for the periods presented. The amounts included within “Prepaid expenses and other” and “Other current liabilities” pertain to scheduled distributions per the terms of the Plan that will occur within twelve months of March 31, 2025.

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	Balance Sheet location	March 31, 2025		December 31, 2024
Deferred compensation assets	Prepaid expenses and other	$	5,756	$	5,742
Deferred compensation assets	Other assets	2,315		3,396
Deferred compensation obligations	Other current liabilities	5,756		5,742
Deferred compensation obligations	Other long-term liabilities	5,721		7,183


	Balance Sheet location	June 30, 2025		December 31, 2024
Deferred compensation assets	Prepaid expenses and other	$	1,805	$	5,742
Deferred compensation assets	Other assets	2,501		3,396
Deferred compensation obligations	Other current liabilities	1,805		5,742
Deferred compensation obligations	Other long-term liabilities	5,951		7,183

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are required to use an established hierarchy for fair value measurements based upon the inputs to the valuation and the degree to which they are observable or not observable in the market. The three levels in the hierarchy are as follows:

•Level 1 — Inputs to the valuation based upon quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date.

•Level 2 — Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data.

•Level 3 — Inputs to the valuation that are unobservable inputs for the asset or liability.

The highest priority is assigned to Level 1 inputs and the lowest priority to Level 3 inputs.

The carrying value of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their fair value. The carrying value of our revolving loans and term loan under our credit facility, and the European line of credit, when outstanding, also approximate their fair value because of the variable interest rate associated with these instruments, which reset each month at market interest rates. All of these account balances are considered Level 1 assets and liabilities.

Our foreign currency forward contracts are valued using quoted market prices or are determined using a yield curve model based on current market rates. As a result, we classify these instruments as Level 2 in the fair value hierarchy. Money market funds of $~~679~~682 as of ~~March~~June 3130, 2025 and $974 as of December 31, 2024 held to satisfy future deferred compensation obligations are valued based upon the market values of underlying securities and are classified as Level 2 assets in the fair value hierarchy.

We did not hold any Level 3 assets or liabilities as of ~~March~~June 3130, 2025 or December 31, 2024.

Restructuring expenses and asset impairments

Restructuring expenses are incurred from time to time to improve operational efficiency across our businesses. During the three and six months ended ~~March~~June 3130, 2025, we recorded total restructuring expenses and asset impairments of $~~325~~1,149 and $1,474, respectively. ~~These~~Expenses ~~expenses~~incurred ~~relate~~during tothe six months ended June 30, 2025 include an asset impairment charge and related contract termination costs associated with exiting a lease totaling $605 at DynaEnergetics and employee severance of $869 associated with headcount reductions atacross ~~Arcadia~~all ~~Products~~three business segments.

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Recent Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2023-09 (“ASU 2023-09”), Income Taxes (Topic 740): Improvement to Income Tax Disclosures, which amends income tax disclosure requirements for the effective tax rate reconciliation to include incremental income tax information and expanded disclosures of income taxes paid. The guidance is effective for fiscal years beginning after December 15, 2024 and is applied prospectively. Early adoption and retrospective application of the amendments are permitted. We are currently evaluating the impact of ASU 2023-09 on our financial statements and disclosures.

We have considered all other recent accounting pronouncements issued, but not yet effective, and we do not expect any to have a material effect on the Company’s Condensed Consolidated Financial Statements.

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3. INVENTORIES

Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Significant cost elements included in inventory are raw materials, labor, freight, subcontract costs, and manufacturing overhead. As necessary, we write down inventory to its net realizable value by recording provisions for excess, slow moving and obsolete inventory. To determine provision amounts, we regularly review inventory quantities on hand and values, and compare them to estimates of future product demand, market conditions, production requirements and technological developments.

Inventories consisted of the following at ~~March~~June 3130, 2025:

Arcadia Products

DynaEnergetics

NobelClad

DMC Global Inc.

Raw materials

87,~~951~~547

27,~~199~~461

76,~~174~~310

4341,~~324~~318

Work-in-process

65,~~714~~717

810,~~943~~599

128,~~047~~867

2725,~~704~~183

Finished goods

5651,~~970~~983

2025,~~427~~554

83257

77,~~480~~794

Supplies

—

~~227~~262

Total inventories

7265,~~635~~247

5663,~~569~~614

1915,~~531~~696

~~148~~144,~~735~~557

Inventories consisted of the following at December 31, 2024:


	Arcadia Products		DynaEnergetics		NobelClad		DMC Global Inc.
Raw materials	$	9,548	$	25,831	$	6,624	$	42,003
Work-in-process	5,942		10,201		14,248		30,391
Finished goods	57,495		22,038		374		79,907
Supplies	—		—		279		279
Total inventories	$	72,985	$	58,070	$	21,525	$	152,580

4. PURCHASED INTANGIBLE ASSETS

Our purchased intangible assets consisted of the following at June 30, 2025:

Gross

AccumulatedAmortization

Net

Customer relationships

210,500

(5862,~~356~~753)

~~152~~147,~~144~~747

Trademarks / Trade names

22,000

(45,~~803~~169)

1716,~~197~~831

Total intangible assets

232,500

(6367,~~159~~922)

~~169~~164,~~341~~578

	Gross		AccumulatedAmortization		Net
Core technology	$	260	$	(260)	$	—
Customer relationships	211,077		(54,537)		156,540
Trademarks / Trade names	22,000		(4,436)		17,564
Total intangible assets	$	233,337	$	(59,233)	$	174,104

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Our purchased intangible assets consisted of the following at December 31, 2024:


	Gross		Accumulated Amortization		Net
Core technology	$	260	$	(260)	$	—
Customer relationships	211,077		(54,537)		156,540

Trademarks / Trade names	22,000		(4,436)		17,564
Total intangible assets	$	233,337	$	(59,233)	$	174,104

5. CONTRACT LIABILITIES

At times, we require customers to make advanced payments prior to the shipment of their orders to help finance our inventory investment on large orders or keep customers’ credit limits at acceptable levels. Contract liabilities were as follows for the periods presented:

	March 31, 2025		December 31, 2024
	June 30, 2025		December 31, 2024
Arcadia Products	$	97,~~053~~666	$	9,408
NobelClad	73,~~621~~007		12,381
DynaEnergetics	1,~~864~~353		1,373
Total	$	1812,~~538~~026	$	23,162

We generally expect to recognize the revenue associated with contract liabilities over a time period no longer than one year, but unforeseen circumstances can cause delays in shipments associated with contract liabilities, primarily supply chain delays and disruptions.

6. LEASES

The Company leases real properties for use in manufacturing and as administrative and sales offices, and leases automobiles and office equipment. The Company determines if a contract contains a lease arrangement at the inception of the contract. For leases in which the Company is the lessee, leases are classified as either finance or operating. Right-of-use (“ROU”) assets are initially measured at the present value of lease payments over the lease term plus initial direct costs, if any. If a lease does not provide a discount rate and the implicit rate cannot be readily determined, an incremental borrowing rate is used to determine the present value of future lease payments. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term within the Condensed Consolidated Statements of Operations. Lease and non-lease components within the Company’s lease agreements are accounted for together. Variable lease payments are recognized in the period in which the obligation is incurred.

Nearly all of the Company’s leasing arrangements are classified as operating leases. ROU asset and lease liability balances were as follows for the periods presented:

	March 31, 2025		December 31, 2024
	June 30, 2025		December 31, 2024
ROU asset	$	4037,~~017~~808	$	42,164
Current lease liability	87,~~171~~911		8,297
Long-term lease liability	3533,~~501~~792		37,150
Total lease liability	$	4341,~~672~~703	$	45,447

The ROU asset is reported in “Other assets” while the current lease liability is reported in “Other current liabilities” and the long-term lease liability is reported in “Other long-term liabilities” in the Company’s Condensed Consolidated Balance Sheets. Cash paid for operating lease liabilities is recorded as operating cash outflows in the Company’s Condensed Consolidated Statements of Cash Flows.

Arcadia Products leases certain office, manufacturing, distribution and warehouse facilities from entities affiliated with the redeemable noncontrolling interest holder and the president of Arcadia Products. There were eight such leases in effect as of March 31, 2025, with expiration dates ranging from calendar years 2025 to 2031, inclusive of the assumed exercise of renewal options. As of March 31, 2025, the total ROU asset and related lease liability recognized for these leases was $20,858 and $21,976, respectively. During the three months ended March 31, 2025 and 2024, associated lease expense was $1,156 in each period and is included in total operating lease expense. 16

For the three months ended March 31, 2025 and 2024, total operating lease expense was $3,132 and $3,348, respectively. Short term and variable lease costs were not significant for any period presented.

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Arcadia Products leases certain office, manufacturing, distribution and warehouse facilities from entities affiliated with the redeemable noncontrolling interest holder and the president of Arcadia Products. There were eight such leases in effect as of June 30, 2025, with expiration dates ranging from calendar years 2025 to 2031, inclusive of the assumed exercise of applicable renewal options. As of June 30, 2025, the total ROU asset and related lease liability recognized for these leases was $19,921 and $21,065, respectively. During the three and six months ended June 30, 2025 and 2024, associated lease expense was $1,156 and $2,312, respectively, in each period, and is included in total operating lease expense.

For the three months ended June 30, 2025 and 2024, total operating lease expense was $3,114 and $3,377, respectively. For the six months ended June 30, 2025 and 2024, total operating lease expense was $6,246 and $6,725, respectively. Short term and variable lease costs were not significant for any period presented.

7. DEBT

Outstanding borrowings consisted of the following at:

	March 31, 2025		December 31, 2024
	June 30, 2025		December 31, 2024
Syndicated credit agreement:
U.S. Dollar revolving loan	$	2612,~~500~~625	$	24,375
Term loan	4746,~~500~~875		48,125
Commerzbank line of credit	—		—
European line of credit	750		—
Outstanding borrowings	7460,~~000~~250		72,500
Less: debt issuance costs	(1,~~579~~575)		(1,682)
Total debt	7258,~~421~~675		70,818
Less: current portion of long-term debt	(23,~~500~~563)		(2,500)
Long-term debt	$	6955,~~921~~112	$	68,318

Syndicated Credit Agreement

On February 6, 2024, the Company and certain domestic subsidiaries entered into an amendment (the “First Amendment”) to its existing credit agreement with a syndicate of banks, led by KeyBank National Association (the “credit facility”). The First Amendment provides for certain changes to the credit facility, including an increase in the maximum commitment amount from $200,000 to $300,000. The credit facility allows for revolving loans of up to $200,000, a $50,000 term loan facility, and a $50,000 delayed draw term loan facility that can be accessed by the Company at its discretion until February 6, 2026 (the “Delayed Draw Term Loan Facility”). The $50,000 term loan facility is amortizable at $625 per quarter beginning on June 30, 2024 through March 31, 2026. Quarterly term loan amortization increases to $938 on June 30, 2026 through March 31, 2028, and increases to $1,250 from June 30, 2028 through December 31, 2028. A balloon payment for the outstanding term loan balance is due upon the credit facility maturity date of February 6, 2029. The credit facility retains a $100,000 accordion feature to increase the commitments under the revolving loan and/or by adding one or more term loans subject to approval by the applicable lenders. The credit facility is secured by certain assets of DMC including accounts receivable, inventory, and fixed assets, including Arcadia Products and its subsidiary, as well as guarantees and share pledges by DMC and its subsidiaries. The revolving loan can also be used to issue bank guarantees to customers to secure their advanced payments. As of ~~March~~June 3130, 2025 and December 31, 2024, bank guarantees of $443, respectively, were secured.

Borrowings under the $200,000 revolving loan limit and $50,000 term loan can be in the form of Adjusted Daily Simple Secured Overnight Financing Rate ("SOFR") loans or one month Adjusted Term SOFR loans. Additionally, U.S. dollar borrowings on the revolving loan can be in the form of Base Rate loans (Base Rate borrowings are based on the greater of the administrative agent’s Prime rate, an adjusted Federal Funds rate or an adjusted SOFR rate). SOFR loans currently bear interest at the applicable SOFR rate plus an applicable margin (varying from 2.25% to 3.25%). Base Rate loans currently bear interest at the defined Base Rate plus an applicable margin (varying from 1.25% to 2.25%).

The credit facility includes various covenants and restrictions, certain of which relate to the payment of dividends or other distributions to stockholders; redemption of capital stock; incurring additional indebtedness; mortgaging, pledging or disposition of major assets; and maintenance of specified ratios.

The debt service coverage ratio is defined in the credit facility as the ratio of Consolidated EBITDA less the sum of capital distributions paid in cash (other than those made with respect to preferred stock issued under the Operating Agreement), Consolidated Unfunded Capital Expenditures (as defined in the credit facility), and net cash income taxes divided by the sum of cash interest expense, any dividends on the preferred stock paid in cash, and scheduled principal payments on funded indebtedness. Under our credit facility, the minimum debt service coverage ratio permitted is 1.25 to 1.0.

As of March 31, 2025, we were in compliance with all financial covenants and other provisions of our debt agreements.

Line of Credit with German Bank

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WeThe ~~maintain~~leverage aratio ~~line~~is ofdefined ~~credit~~in ~~with~~the acredit ~~German~~facility ~~bank~~as ~~with~~the aratio ~~borrowing capacity~~ of ~~€7,000~~Consolidated ~~for~~Funded ~~our~~Indebtedness ~~NobelClad~~(as ~~and~~defined ~~DynaEnergetics operations~~ in ~~Europe.~~the ~~This~~credit ~~line~~facility) ofon ~~credit~~the islast ~~also~~day ~~used~~of toany ~~issue~~trailing ~~bank~~four ~~guarantees~~quarter toperiod ~~customers~~ to ~~secure~~Consolidated ~~their~~EBITDA ~~advanced~~(as ~~payments.~~defined Asin ofthe ~~March~~credit ~~31,~~facility) ~~2025~~for ~~and~~such ~~December~~period. ~~31,~~The ~~2024,~~maximum weleverage ~~had~~ratio nocurrently ~~outstanding~~permitted ~~borrowings~~by ~~under~~our ~~this~~credit ~~line~~facility ofis ~~credit~~3.0 ~~and~~to ~~bank~~1.0; ~~guarantees~~provided, ~~of €2~~however,~~708~~ ~~and~~that ~~€2,843,~~the ~~respectively,~~Second ~~were~~Amendment ~~secured.~~(as ~~The~~defined ~~line~~below) ofprovides ~~credit~~for ~~has~~a ~~open-ended~~temporary ~~terms~~increase ~~and~~in ~~can~~the bemaximum ~~canceled~~leverage byratio ~~the~~under ~~bank~~certain atcircumstances ~~any~~as ~~time~~described below.

On June 10, 2025, the Company and certain domestic subsidiaries entered into an amendment to the credit facility (the “Second Amendment”). The Second Amendment provides for certain changes to the credit facility, including modifications to the Company’s financial covenants and applicable interest rates to accommodate the possible acquisition of the remaining 40% minority interest in Arcadia Products. Key provisions of the Second Amendment include a temporary increase in the Company’s maximum leverage ratio to 3.5x adjusted EBITDA over the trailing 12 months — up from 3.0x — should either the Put Option or the Call Option be exercised. This elevated leverage limit will apply for the first two quarters following payment of the purchase price of the Put Option or the Call Option, followed by a reduction to 3.25x in the third quarter, and a return to 3.0x thereafter. Additionally, proceeds under the Delayed Draw Term Loan Facility may now be held (to the extent drawn on such facility prior to expiration) in a restricted account after the expiration of such facility for purposes of paying the purchase price of the Put Option or the Call Option in the future.

As of June 30, 2025, we were in compliance with all financial covenants and other provisions of our debt agreements.

European Line of Credit

We maintain a line of credit with a German bank with a borrowing capacity of €7,000 for our NobelClad and DynaEnergetics operations in Europe. This line of credit is also used to issue bank guarantees to customers to secure their advanced payments. As of June 30, 2025 and December 31, 2024, we had €637 and €0, respectively, in outstanding borrowings under this line of credit and bank guarantees of €1,630 and €2,843, respectively, were secured. The line of credit has open-ended terms and can be canceled by the bank at any time.

8. STOCKHOLDERS PROTECTION RIGHTS AGREEMENT

On June 5, 2024, the Company’s board of directors (the “Board”) adopted the Stockholder Protection Rights Agreement (the “Rights Agreement”) and declared a dividend of one right (“Right”) for each share of the Company’s common stock outstanding at the close of business on June 17, 2024. One Right will also be issued together with each share of common stock issued by the Company after that date, but before the Separation Time (as defined in the Rights Agreement). Each Right initially represents the right to purchase one one-thousandth (0.001) of a share of Series B Participating Preferred Stock for $75.00, subject to adjustment and upon such terms and subject to the conditions set forth in the Rights Agreement. Rights will generally become exercisable if any person (or any persons acting as a group) acquires “Beneficial Ownership” (as defined in the Rights Agreement) of 10%, or 20% in the case of certain passive investors, or more of the Company’s outstanding common stock. If Rights become exercisable, all holders of Rights (other than the person, entity or group triggering the Rights Agreement, whose rights will become void and will not be exercisable) will have the right to purchase from the Company for $75.00, subject to certain potential adjustments, shares of the Company’s common stock having a market value of twice that amount.

~~The~~On May 30, 2025, the Company entered into Amendment No. 1 to the Rights Agreement ~~expires~~(the on“Amendment”). Pursuant to the Amendment, the expiration time of the Rights has been extended for one year to June 4, ~~2025~~2026, unless the Rights are earlier ~~terminated~~redeemed, exchanged or terminated in accordance with the terms and conditions of the Rights ~~are~~Agreement, ~~redeemed~~as oramended. ~~exchanged~~Except byfor the ~~Board~~extension of the expiration time, the Rights Agreement remains unaltered and in full force and effect. There is currently no impact on the Company’s Condensed Consolidated Financial Statements.

The Company’s Certificate of Incorporation authorizes the issuance of preferred stock. However, as of ~~March~~June 3130, 2025, no preferred stock has been issued.

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9. INCOME TAXES

The effective tax rate for each of the periods reported differs from the U.S. statutory rate primarily due to variation in contribution to consolidated pre-tax income from each jurisdiction for the respective periods, differences between the U.S. and foreign tax rates (which range from 20% to 32%), permanent differences between book and taxable income, and income or loss attributable to the redeemable noncontrolling interest holder.

Arcadia Products is treated as a partnership for U.S. tax purposes. With the exception of certain state taxes, income or loss flows through to the shareholders and is taxed at the shareholder level. Tax impacts related to income or loss from Arcadia Products that are included in consolidated pretax results but are attributable to the redeemable noncontrolling interest holder are not included in the consolidated income tax provision.

We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use existing deferred tax assets. Additionally, a three-year cumulative loss at a consolidated financial statement level may be viewed as negative evidence impacting a jurisdiction that by itself is not in a three-year cumulative loss position. During the three and six months ended ~~March~~June 3130, 2025, we were in a three-year cumulative loss position at the consolidated financial statement level, driven by historical losses in the U.S. primarily related to the impairment of Arcadia Products’ goodwill in 2024. Accordingly, we have maintained the previously established valuation allowance against the corresponding net deferred tax assets in the U.S. as of ~~March~~June 3130, 2025. The Company will continue to monitor the realizability of deferred tax assets and the need for valuation allowances and will record adjustments in the periods in which facts support such changes.

DMC files income tax returns in the U.S. federal jurisdiction, as well as various U.S. state and foreign jurisdictions. Our tax provisions reflect our best estimate of state, local, federal and foreign taxes. In 2024, tax audits in Germany of both our NobelClad and DynaEnergetics subsidiaries commenced for the years 2019 through 2021. While the audits are not unexpected, the outcomes cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with our expectations, the Company could be required to adjust its provisions for income taxes in the period such resolution occurs.

17On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The OBBBA includes significant tax provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. We are currently assessing the impact of the OBBBA on our Condensed Consolidated Financial Statements.

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10. BUSINESS SEGMENTS

Our business is organized into three segments: Arcadia Products, DynaEnergetics and NobelClad. In December 2021, DMC acquired a 60% controlling interest in Arcadia Products. Arcadia Products designs, engineers, fabricates, and finishes aluminum framing systems, windows, curtain walls, storefronts, entrance systems, and interior partitions to the commercial construction market. Additionally, Arcadia Products supplies customized windows and doors to the high-end residential construction market. DynaEnergetics designs, manufactures, markets, and sells perforating systems and associated hardware for the global oil and gas industry. NobelClad produces explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints for commuter rail cars, ships, and liquified natural gas (LNG) processing equipment.

Our reportable segments are separately managed, strategic business units that offer different products. Each segment’s products are marketed to different customer types and require different manufacturing processes and technologies, and each segment has separate financial information available. The Chief Operating Decision Maker ("CODM") uses segment operating income or loss to allocate resources (including employees, property, and financial or capital resources) for each segment in the budget and forecasting process and to assess ongoing performance on a monthly basis. The CODM does not review total assets by segment for purposes of assessing segment performance and allocating resources. As such, the disclosure of total assets by segment has not been included below. The accounting policies of our reportable segments are the same as those described in Note 2 "Significant Accounting Policies". The Company's CODM is our Board of Directors.

18Segment information is as follows for the three months ended June 30, 2025:

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Segment information is as follows for the three months ended March 31, 2025


	Arcadia Products		DynaEnergetics		NobelClad		Total
Net sales	$	61,980	$	66,862	$	26,645	$	155,487
Cost of products sold	45,730		52,903		20,052		118,685
Gross profit	16,250		13,959		6,593		36,802

Stock-based compensation*	238		—		—		238
General and administrative expenses	6,327		3,028		852		10,207
Selling and distribution expenses	4,214		3,774		2,123		10,111
Amortization of purchased intangible assets	4,763		—		—		4,763
Restructuring expenses and asset impairments	192		746		211		1,149

Operating income	516		6,411		3,407		10,334
Unallocated corporate expenses							(5,258)
Unallocated stock-based compensation*							(1,179)
Other expense, net							(346)
Interest expense, net							(1,811)
Income before income taxes							1,740
Income tax provision							1,419
Net income							$	321

	Arcadia Products		DynaEnergetics		NobelClad		Total
Net sales	$	65,580	$	65,551	$	28,159	$	159,290
Cost of products sold	45,219		52,740		20,062		118,021
Gross profit	20,361		12,811		8,097		41,269
Stock-based compensation*	237		—		—		237
General and administrative expenses	7,306		2,747		1,192		11,245
Selling and distribution expenses	4,734		4,476		2,283		11,493
Amortization of purchased intangible assets	4,763		—		—		4,763
Restructuring expenses	325		—		—		325
Operating income	2,996		5,588		4,622		13,206
Unallocated corporate expenses							(5,367)
Unallocated stock-based compensation*							(1,326)
Other expense, net							(218)
Interest expense, net							(1,699)
Income before income taxes							4,596
Income tax provision							2,733
Net income							$	1,863

Segment information is as follows for the six months ended June 30, 2025:

Segment information is as follows for the three months ended March 31, 2024:


	Arcadia Products		DynaEnergetics		NobelClad		Total
Net sales	$	127,560	$	132,413	$	54,804	$	314,777
Cost of products sold	90,949		105,643		40,114		236,706
Gross profit	36,611		26,770		14,690		78,071

Stock-based compensation*	475		—		—		475
General and administrative expenses	13,633		5,775		2,043		21,451
Selling and distribution expenses	8,948		8,250		4,407		21,605
Amortization of purchased intangible assets	9,526		—		—		9,526
Restructuring expenses and asset impairments	517		746		211		1,474

Operating income	3,512		11,999		8,029		23,540
Unallocated corporate expenses							(10,625)
Unallocated stock-based compensation*							(2,505)
Other expense, net							(564)
Interest expense, net							(3,510)
Income before income taxes							6,336
Income tax provision							4,152
Net income							$	2,184

	Arcadia Products		DynaEnergetics		NobelClad		Total
Net sales	$	61,925	$	78,122	$	26,822	$	166,869
Cost of products sold	45,112		61,151		18,178		124,441
Gross profit	16,813		16,971		8,644		42,428
Stock-based compensation*	342		—		—		342
General and administrative expenses	7,479		2,891		1,074		11,444
Selling and distribution expenses	4,303		5,223		2,470		11,996
Amortization of purchased intangible assets	5,277		15		—		5,292
Operating income (loss)	(588)		8,842		5,100		13,354
Unallocated corporate expenses							(5,531)
Unallocated stock-based compensation*							(1,135)
Other expense, net							(409)
Interest expense, net							(2,317)
Income before income taxes							3,962
Income tax provision							1,643
Net income							$	2,319

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Segment information is as follows for the three months ended June 30, 2024:


	Arcadia Products		DynaEnergetics		NobelClad		Total
Net sales	$	69,748	$	76,210	$	25,221	$	171,179
Cost of products sold	46,591		61,077		16,999		124,667
Gross profit	23,157		15,133		8,222		46,512

Stock-based compensation*	281		—		—		281
General and administrative expenses	7,564		3,011		1,023		11,598
Selling and distribution expenses	4,036		5,041		2,267		11,344
Amortization of purchased intangible assets	5,278		29		—		5,307
Restructuring expenses and asset impairments	279		—		—		279

Operating income	5,719		7,052		4,932		17,703
Unallocated corporate expenses							(4,623)
Unallocated stock-based compensation*							(1,395)
Other expense, net							(284)
Interest expense, net							(2,316)
Income before income taxes							9,085
Income tax provision							2,792
Net income							$	6,293

Segment information is as follows for the six months ended June 30, 2024:


	Arcadia Products		DynaEnergetics		NobelClad		Total
Net sales	$	131,673	$	154,332	$	52,043	$	338,048
Cost of products sold	91,703		122,228		35,177		249,108
Gross profit	39,970		32,104		16,866		88,940

Stock-based compensation*	623		—		—		623
General and administrative expenses	15,043		5,903		2,096		23,042
Selling and distribution expenses	8,339		10,263		4,738		23,340
Amortization of purchased intangible assets	10,555		44		—		10,599
Restructuring expenses and asset impairments	279		—		—		279

Operating income	5,131		15,894		10,032		31,057
Unallocated corporate expenses							(10,154)
Unallocated stock-based compensation*							(2,530)
Other expense, net							(693)
Interest expense, net							(4,633)
Income before income taxes							13,047
Income tax provision							4,435
Net income							$	8,612

*Stock-based compensation is not allocated to wholly owned segments DynaEnergetics and NobelClad. Stock-based compensation is allocated to the Arcadia Products segment as 60% of such expense is attributable to the Company, whereas the remaining 40% is attributable to the redeemable noncontrolling interest holder.

1921

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	Three months ended March 31,
	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Depreciation and amortization:
Arcadia Products	$	5,~~769~~779	$	6,~~152~~166	$	11,548	$	12,318
DynaEnergetics	1,~~791~~822		1,~~697~~700		3,613		3,397
NobelClad	~~794~~781		~~780~~790		1,575		1,570
Segment depreciation and amortization	8,~~354~~382		8,~~629~~656		16,736		17,285
Corporate and other	6988		82		157		164
Consolidated depreciation and amortization	$	8,~~423~~470	$	8,~~711~~738	$	16,893	$	17,449

The disaggregation of revenue earned from contracts with customers is based on the geographic location of the customer. For Arcadia Products, net sales have been presented consistent with United States regional definitions as provided by the American Institute of Architects. For DynaEnergetics and NobelClad, all net sales are from products shipped from our manufacturing facilities and distribution centers located in the United States, Germany, and Canada.

Arcadia Products

	Three months ended March 31,
	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
West	$	5650,~~360~~171	$	5057,~~765~~386	$	106,531	108,151
South	5,~~174~~820		57,~~614~~697		10,994		13,311
Northeast	23,~~146~~490		2,~~817~~568		5,636		5,385
Midwest	12,~~900~~499		2,~~729~~097		4,399		4,826
Total Arcadia Products	$	6561,~~580~~980	$	6169,~~925~~748	$	127,560	$	131,673

DynaEnergetics

	Three months ended March 31,
	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
United States	$	5352,~~296~~155	$	6056,~~069~~922	$	105,451	$	116,992
Canada	34,~~813~~053		6,~~431~~680		7,866		13,111
Oman	2,039		2,069
Ukraine	2,126		—		2,365		1,237
Indonesia	1,~~114~~422		~~355~~1,087		2,536		1,442
Kuwait	887		1,076
Oman	805		2,442		2,844		4,511
India	—266		23,~~942~~201		266		6,143
Rest of the world(1)	46,~~402~~035		5,~~180~~878		11,085		10,896
Total DynaEnergetics	$	6566,~~551~~862	$	7876,~~122~~210	$	132,413	$	154,332

(1) Rest of the world does not include any individual country comprising sales greater than 53% of total DynaEnergetics revenue.

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NobelClad

	Three months ended March 31,
	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Germany	$	9,750	$	1,035
United States	$	8,385	$	14,627	$	17,347	$	26,988
United States	8,962		12,360
Germany	5,401		830		15,151		1,865
Canada	2,~~233~~804		52,~~435~~037		5,037		7,472
Saudi Arabia	1,799		166
Belgium	2,306		272		2,818		385
United Arab Emirates	975		556
South Korea	1,471		432		1,720		524
Sweden	713		386
France	1,094		835		1,501		1,699
Australia	521		—
Saudi Arabia	855		447		2,654		613
Belgium	512		113
Netherlands	653		938		1,020		1,809
France	407		864
China	542		60		571		1,289
Netherlands	367		871
United Arab Emirates	441		599		1,416		1,155
Italy	57		601
Bahrain	268		326		310		982
China	29		1,230
South Africa	266		522		266		1,316
South Africa	—		794
Australia	118		825		639		855
Rest of the world (1)	12,~~834~~041		2,~~411~~471		4,354		5,091
Total NobelClad	$	2826,~~159~~645	$	2625,~~822~~221	$	54,804	$	52,043

(1) Rest of the world does not include any individual country comprising sales greater than 53% of total NobelClad revenue.

During the three and six months ended ~~March~~June 3130, 2025, one DynaEnergetics customer accounted for approximately 24% and 25%, respectively, of consolidated net sales. During the three and six months ended June 30, 2024, one DynaEnergetics customer accounted for approximately 2622% and 23%, respectively, of consolidated net sales. Additionally, the same DynaEnergetics customer accounted for approximately 3529% and 30% of consolidated accounts receivable as of ~~March~~June 3130, 2025 and December 31, 2024, respectively.

11. DERIVATIVE INSTRUMENTS

We are exposed to foreign currency exchange risk resulting from fluctuations in exchange rates, primarily the U.S. dollar to the euro, the U.S. dollar to the Canadian dollar and, to a lesser extent, other currencies, arising from intercompany and third-party transactions entered into by our subsidiaries that are denominated in currencies other than their functional currency. Changes in exchange rates with respect to these transactions result in unrealized gains or losses if such transactions are unsettled at the end of the reporting period or realized gains or losses at settlement of the transaction. We use foreign currency forward contracts to offset foreign exchange rate fluctuations on foreign currency denominated asset and liability positions. None of these contracts are designated as accounting hedges, and all changes in the fair value of forward contracts are recognized in “Other expense, net” within our Condensed Consolidated Statements of Operations.

We execute derivatives with a specialized foreign exchange brokerage firm as well as other large financial institutions. The primary credit risk inherent in derivative agreements is the possibility that a loss may occur from the nonperformance of a counterparty to the agreements. We perform a review of the credit risk of our counterparties at the inception of the contract and on an ongoing basis. We anticipate that our counterparties will be able to fully satisfy their obligations under the agreements but will take action if doubt arises regarding the counterparties’ ability to perform.

As of ~~March~~June 3130, 2025 and December 31, 2024, the net notional amounts of forward contracts the Company held were $138,~~469~~045 and $8,331, respectively. At ~~March~~June 3130, 2025 and December 31, 2024, the fair value of outstanding forward contracts was $0.

The following table reflects the location and amount of net gains (losses) from hedging activities for the periods presented. These hedging net gains (losses) offset foreign currency gains and losses recorded in the normal course of business, which are not shown below.23

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		Three months ended March 31,
Derivative	Statements of Operations Location	2025		2024
Foreign currency contracts	Other expense, net	$	315	$	(855)


		Three months ended June 30,				Six months ended June 30,
Derivative	Statements of Operations Location	2025		2024		2025		2024
Foreign currency contracts	Other expense, net	$	642	$	(358)	$	957	$	(1,213)

12. COMMITMENTS AND CONTINGENCIES

Contingent Liabilities

The Company records an accrual for contingent liabilities when a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than any other amount within the range, that amount is accrued. When no amount within a range of loss appears to be a better estimate than any other amount, the lowest amount in the range is accrued.

Legal Proceedings

In the ordinary course of its business, the Company is involved in a number of lawsuits and claims, both actual and potential. In addition to the matters discussed below, various other lawsuits, claims, and proceedings have been or may be instituted or asserted against the Company, including those pertaining to environmental, safety and health, commercial, tax, product liability, intellectual property infringement and employment matters, and other actions and claims arising out of the normal course of business. Although it is difficult to accurately predict the outcome of any such proceedings, based on facts currently available, management believes that the disposition of these other matters that are pending or asserted will not have a material adverse effect, individually or in the aggregate, on the financial position of the Company.

Stockholder Litigation

On December 6, 2024, Samuel Garson, individually and on behalf of a putative class, filed a securities class action lawsuit in the United States District Court for the District of Colorado (the “District Court”) against the Company and other defendants (collectively, the “Defendants”). The complaint ~~asserts~~asserted violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b5-1 promulgated thereunder on behalf of a putative class of all persons who purchased the Company’s securities between May 3, 2024 and November 4, 2024. In particular, the complaint ~~alleges~~alleged that the Defendants made false and misleading statements during the class period concerning the Company’s business resulting in injury to the purported class members. On January 27, 2025, a second securities class action lawsuit was filed in the ~~same~~ District Court by Alessandro Laurent, individually and of behalf of a putative class, asserting substantially the same allegations, but on behalf of all purchasers of the Company’s securities between January 29, 2024 and November 4, 2024. Both complaints sought certification of a class of purchasers of the Company’s securities during the respective class periods and an award of damages, interest, costs and expenses (including attorney’s fees) to the respective plaintiffs and class members. On February 5, 2025, the District Court ordered the two lawsuits consolidated., ~~The~~and ~~Company~~on ~~intends~~June to23, ~~vigorously~~2025, ~~defend~~the ~~itself~~lead ~~against~~plaintiff ~~this~~in ~~consolidated action. Due to~~ the ~~nature~~consolidated ofcase ~~these~~filed ~~matters and inherent uncertainties, it is not possible to provide~~ an ~~evaluation~~amended ofcomplaint ~~the~~adding ~~likelihood~~additional ofallegations anwithin ~~unfavorable outcome or an estimate of~~ the ~~amount~~class ~~or range of potential loss, if any, in this circumstance~~period.

~~Environmental~~On ~~Matter~~June 6, 2025, Michael Lewis filed a related stockholder derivative lawsuit in the District Court against the Company as nominal defendant and certain directors and officers, alleging breaches of fiduciary duties under Delaware law and violations of Section 14(a) of the Exchange Act, based in significant part on the allegations made in the Garson and Laurent complaints. On July 16, 2025, Lee Runey filed another related stockholder derivative lawsuit, also in the District Court, against the Company as nominal defendant and certain directors and officers, alleging breaches of fiduciary duties and other similar claims under Delaware law as well as violations of Section 14(a) of the Exchange Act, based in significant part on the allegations made in Lewis and the amended complaint in Garson.

In 2024, the Company entered into a Consent Decree with Los Angeles Waterkeeper (Waterkeeper) to settle alleged stormwater-related violations of the Clean Water Act at three Arcadia Products facilities located in Vernon, California. The ~~Consent Decree requires the~~ Company tointends ~~undertake certain improvements~~ to ~~its~~vigorously ~~stormwater~~defend ~~management~~itself ~~infrastructure~~against ~~and practices at all three facilities over~~ the ~~next~~foregoing ~~several years~~actions. It also required the Company to reimburse Waterkeeper for $70 in claimed costs and spend $100 on a Supplemental Environmental Project. The Consent Decree was approved by the Court and U.S. Department of Justice.

~~The~~Due ~~Company~~to ~~also~~the ~~has~~nature ~~been~~of inthese ~~contact~~matters ~~with~~and ~~the~~inherent ~~Los~~uncertainties, ~~Angeles~~it ~~Regional~~is ~~Water~~not ~~Quality~~possible ~~Control Board (LARWQCB)~~ to ~~address~~provide ~~certain~~an ~~alleged~~evaluation ~~violations~~ of ~~stormwater~~the ~~regulatory~~likelihood ~~requirements~~of ~~that~~an ~~may~~unfavorable beoutcome ~~subject~~or toan ~~mandatory~~estimate ~~minimum~~of ~~penalties~~the ~~under~~amount ~~applicable~~or ~~California~~range ~~law.~~of ~~The~~potential ~~Company~~loss, ~~cannot~~if ~~predict how this matter will be resolved~~any, ~~but has accrued $762~~ in ~~aggregate to address~~ these ~~potential claims~~circumstances.

2224

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Environmental Matter

In 2024, the Company entered into a Consent Decree with Los Angeles Waterkeeper (Waterkeeper) to settle a citizen suit alleging stormwater-related violations of the Clean Water Act at three Arcadia Products facilities located in Vernon, California. The Consent Decree requires the Company to undertake certain improvements to its stormwater management infrastructure and practices at all three facilities over the next several years. It also required the Company to reimburse Waterkeeper for $70 in claimed costs and spend $100 on a Supplemental Environmental Project. The Consent Decree was entered by the U.S. District Court for the Central District of California following a U.S. Department of Justice 45-day review period.

The Company also has been in contact with the Los Angeles Regional Water Quality Control Board (LARWQCB) to address certain alleged violations of stormwater regulatory requirements that may be subject to mandatory minimum penalties under applicable California law. The Company cannot predict how this matter will be resolved, but has accrued $762 in aggregate to address potential outstanding claims.

13. STRATEGIC REVIEW AND RELATED EXPENSES

During the first quarter of 2024, the Company announced that the Board had initiated a review of strategic alternatives for the DynaEnergetics and NobelClad segments. In conjunction with the Board’s consideration of various strategic, business, and financial alternatives, the Company incurred significant expenses. In October 2024, the Company announced that the Board was no longer actively marketing the DynaEnergetics and NobelClad segments. However, in response to subsequent inquiries and actions of certain stockholders, the Company has continued to incur significant expenses as the Board satisfies its fiduciary obligations with respect to such inquiries. During the three months ended ~~March~~June 3130, 2025, such expenses incurred were $1775 and related primarily to professional service fees. During the six months ended June 30,~~298~~ 2025, strategic review and related expenses were $2,073, and primarily included $~~932~~1,507 in professional service fees and $366 in employee retention compensation, including $36 of stock-based compensation. ~~There will be no further employee retention compensation costs in subsequent periods.~~

During the three months ended ~~March~~June 3130, 2024, strategic review expenses incurred were $2,020 and primarily included $1,030 in professional service fees and $863 in employee retention compensation, including $106 of stock-based compensation. During the six months ended June 30, 2024, strategic review and related expenses incurred were $24,~~169~~189 and primarily included $12,~~138~~170 in professional service fees and $~~489~~1,351 in employee retention compensation, including $72178 of stock-based compensation.

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with our historical Consolidated Financial Statements and notes that are included in our Annual Report filed on Form 10-K for the year ended December 31, 2024.

Unless stated otherwise, all dollar figures are presented in thousands (000s).

Overview

General

DMC Global Inc. (“DMC”, "we", "us", "our", or the "Company") owns and operates Arcadia Products, DynaEnergetics and NobelClad, three innovative, asset-light manufacturing businesses that provide differentiated products and engineered solutions to segments of the construction, energy, industrial processing and transportation markets. Our businesses seek to capitalize on their product and service differentiation to expand profit margins, increase cash flow and enhance shareholder value. Based in Broomfield, Colorado, DMC trades on Nasdaq under the symbol “BOOM.”

Arcadia Products

On December 23, 2021, DMC completed the acquisition of 60% of the membership interests in Arcadia Products, LLC, a Colorado limited liability company resulting from the conversion of Arcadia, Inc. (collectively, “Arcadia Products”). Arcadia Products designs, engineers, fabricates, and finishes aluminum framing systems, windows, curtain walls, storefronts, entrance systems, and interior partitions to the commercial construction market. Additionally, Arcadia Products supplies customized windows and doors to the high-end residential construction market.

Cost of products sold for Arcadia Products includes the cost of aluminum, paint, and other raw materials used in manufacturing as well as employee compensation and benefits, manufacturing facility lease expense, depreciation of manufacturing equipment, supplies and other manufacturing overhead expenses.

DynaEnergetics

DynaEnergetics designs, manufactures, markets, and sells perforating systems and associated hardware for the global oil and gas industry. These products are primarily sold to oilfield service companies in the U.S., Europe, Canada, Africa, the Middle East, and Asia. The market for perforating products, which are used during the well completion process, generally corresponds with oil and gas exploration and production activity. Well completion operations are increasingly complex, which in turn has increased the demand for intrinsically-safe, reliable and technically advanced perforating systems.

Cost of products sold for DynaEnergetics includes the cost of metals, explosives and other raw materials used to manufacture shaped charges, detonating products and perforating guns as well as employee compensation and benefits, depreciation of manufacturing facilities and equipment, supplies and other manufacturing overhead expenses.

NobelClad

NobelClad produces explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints for commuter rail cars, ships, and liquified natural gas (LNG) processing equipment. While most demand for our products is driven by maintenance and retrofit projects at existing plants and facilities, new projects for petrochemical processing, oil refining, and aluminum smelting facilities also account for a significant portion of total demand. These industries tend to be cyclical in nature and the timing of new order inflow remains difficult to predict. We use backlog, defined as all unfilled firm purchase orders and commitments at a point in time, to measure the immediate outlook for our NobelClad business. Most firm purchase orders and commitments are realized and shipped within twelve months. NobelClad's backlog was $4137,~~014~~263 at ~~March~~June 3130, 2025 compared to $48,885 at December 31, 2024.

Cost of products sold for NobelClad includes the cost of metals, explosive powders and other raw materials used to manufacture clad metal plates and transition joints as well as employee compensation and benefits, outside processing costs, depreciation of manufacturing facilities and equipment, manufacturing facility lease expense, supplies and other manufacturing overhead expenses.

Factors Affecting Results

•Consolidated sales were $~~159~~155,~~290~~487 in the ~~first~~second quarter of 2025 versus $~~166~~171,~~869~~179 in the ~~first~~second quarter of 2024, a decrease of 59%. The decline in consolidated sales performance was driven by lower sales at Arcadia Products and DynaEnergetics.

•Arcadia Products reported sales of $6561,~~580~~980 in the ~~first~~second quarter of 2025, representing ana ~~increase~~decrease of 611% compared to the ~~first~~second quarter of 2024. The ~~increase~~decrease was primarily attributable to ~~higher~~lower sales volumes ~~for~~in ~~longer-cycle~~ commercial ~~projects,~~exterior ~~partially~~and ~~offset by lower sales volumes in~~ high-end residential markets.

•DynaEnergetics’ sales of $6566,~~551~~862 in the ~~first~~second quarter of 2025 represented a 1612% decrease compared to the ~~first~~second quarter of 2024. The decline was due to a decrease in volume of DynaStage® (DS) perforating systems attributable to lower well completions in North America, pricing decreases due to industry consolidation in the United States, and a ~~27%~~ reduction in international sales due to project timing.

•NobelClad’s sales of $2826,~~159~~645 in the ~~first~~second quarter of 2025 increased 56% compared to the ~~first~~second quarter of 2024 primarily due to timing of shipments out of backlog.

•The Company’s leverage ratio, calculated in accordance with its credit facility, was 1.3823 to 1.0 as of ~~March~~June 3130, 2025 in comparison to the maximum ratio permitted of 3.0 to 1.0. The Company’s adjusted leverage ratio, calculated using net debt, a non-GAAP measure, as of ~~March~~June 3130, 2025, was 10.1198 to 1.0.

Outlook

Our three manufacturing businesses continue to closely monitor evolving U.S. and reciprocal tariff policies,. ~~and~~In addition, our DynaEnergetics and NobelClad businesses ~~also~~ are ~~evaluating~~tracking the implications of ~~recent~~continued volatility in U.S. and global energy ~~prices~~markets. If our businesses cannot mitigate tariff impacts or if tariffs significantly reduce product demand, both net sales and profitability will ~~suffer~~decline. For further details on potential tariff impacts, see Part II, Item 1A. Risk Factors.

AtOur Arcadia Products, ~~former~~business ~~president~~has ~~Jim~~rightsized ~~Schladen recently returned to lead the organization. He is focused on strengthening Arcadia Products’ core commercial operations and stabilizing and developing an improvement plan for~~ its high-end residential ~~products.~~cost ~~Lower~~structure ~~project~~to ~~billings~~align ~~are~~with ~~anticipated~~current inmarket ~~the~~conditions, ~~second~~which ~~quarter~~include ~~given~~persistently ~~the~~high ~~recent~~interest ~~completion~~rates ofand agenerally ~~substantial~~lower ~~portion~~construction ~~of a large mixed-use project in California~~activity. ~~Additionally,~~Management ~~Arcadia~~also ~~Products’~~continues ~~second quarter results are expected~~ to befocus ~~below~~on ~~the~~its ~~year-ago~~core ~~second~~commercial ~~quarter~~operations, which ~~benefited~~generate ~~from~~approximately ~~stronger~~75% ~~demand~~of ~~for~~the ~~residential~~segment’s ~~and commercial exterior products~~sales.

~~Our~~ DynaEnergetics ~~business~~is ~~has~~pursuing ~~completed~~ a ~~value-engineering~~range ~~initiative~~of ~~designed~~initiatives toaimed ~~reduce~~at ~~the~~reducing ~~cost~~costs and ~~improve~~increasing ~~the~~market ~~performance of its flagship DynaStage product offering~~share. ~~DynaEnergetics~~These ~~also~~efforts ~~has~~are ~~completed~~intended ~~an initiative~~ to ~~automate~~offset ~~the~~an ~~assembly~~expected ofdecline ~~its perforating systems at its North American manufacturing center~~ in ~~Blum,~~demand ~~Texas.~~during ~~Cost~~the ~~benefits~~second ~~from~~half ~~these~~of ~~initiatives~~the ~~are~~year ~~expected~~due to belower ~~realized~~oil inprices ~~2025~~ and ~~could~~reduced ~~help~~well ~~mitigate~~completion ~~the potential impacts of tariffs and energy price volatility~~activity.

At NobelClad, continued uncertainty ~~associated~~related ~~with~~to tariffs has ~~led~~reduced ~~to a slowdown in~~ bookings activity. Order backlog at the end of the ~~first~~second quarter was $4137,~~014~~263 versus $4841,~~885~~014 at the end of ~~last~~the ~~year’s~~first ~~fourth~~ quarter. ~~Quoting~~NobelClad ~~activity~~continues ~~has~~to ~~remained~~believe ~~healthy, and NobelClad believes~~ order activity could improve once customers gain clarity on ~~the implications of~~ future ~~tariffs~~tariff actions.

Use of Non-GAAP Financial Measures

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States (GAAP), the Company also discloses certain non-GAAP financial measures that we use in operational and financial decision making. Non-GAAP financial measures include the following:

•EBITDA: defined as net income (loss) plus net interest, taxes, depreciation and amortization.

•Adjusted EBITDA: excludes from EBITDA stock-based compensation, restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance (as further described in the tables below).

•Adjusted EBITDA attributable to DMC Global Inc.: excludes the Adjusted EBITDA attributable to the 40% redeemable noncontrolling interest in Arcadia Products.

•Adjusted EBITDA for DMC business segments: defined as operating income (loss) plus depreciation, amortization, allocated stock-based compensation (if applicable), restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC's operating performance.

•Adjusted net income (loss): defined as net income (loss) attributable to DMC Global Inc. stockholders prior to the adjustment of redeemable noncontrolling interest plus restructuring expenses and asset impairment charges (if ~~applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC's operating performance.~~

applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC's operating performance.

•Adjusted diluted earnings per share: defined as diluted earnings per share attributable to DMC Global Inc. stockholders (exclusive of adjustment of redeemable noncontrolling interest) plus restructuring expenses and asset impairment charges (if applicable) and, when appropriate, nonrecurring items that management does not utilize in assessing DMC’s operating performance.

•Net debt: defined as total debt less total cash, cash equivalents and marketable securities.

•Free-cash flow: defined as cash flows from operating activities less net acquisitions of property, plant and equipment.

Management believes providing these additional financial measures is useful to investors in understanding the Company’s operating performance, excluding the effects of restructuring, impairment, and other nonrecurring charges, as well as its liquidity. Management typically monitors the business utilizing the above non-GAAP measures, in addition to GAAP results, to understand and compare operating results across accounting periods, and certain management incentive awards are based, in part, on these measures. The presence of non-GAAP financial measures in this report is not intended to suggest that such measures be considered in isolation or as a substitute for, or as superior to, DMC’s GAAP information, and investors are cautioned that the non-GAAP financial measures are limited in their usefulness. Given that not all companies use identical calculations, DMC’s presentation of non-GAAP financial measures may not be comparable to similarly titled measures of other companies.

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Consolidated Results of Operations

Three months ended ~~March~~June 3130, 2025 compared with three months ended ~~March~~June 3130, 2024

	Three months ended March 31,
	Three months ended June 30,
	2025			2024			$ change		% change
Net sales	$	~~159~~155,~~290~~487		$	~~166~~171,~~869~~179		$	(715,~~579~~692)	(59	%)
Gross profit	4136,~~199~~731			4246,~~352~~413			(19,~~153~~682)		(321	%)
Gross profit percentage	2523.96		%	2527.41		%
COSTS AND EXPENSES:
General and administrative expenses	1615,~~674~~905			15,~~980~~623			~~694~~282		42	%
% of net sales	10.52		%	9.61		%
Selling and distribution expenses	1110,~~626~~242			1211,~~223~~499			(~~597~~1,257)		(511	%)
% of net sales	76.36		%	76.37		%
Amortization of purchased intangible assets	4,763			5,~~292~~307			(~~529~~544)		(10	%)
% of net sales	3.01		%	3.21		%
Strategic review and related expenses	~~1,298~~775			2,~~169~~020			(~~871~~1,245)		(4062	%)
Restructuring expenses	325			—			325		100	%
Restructuring expenses and asset impairments	1,149			279			870		312	%
Operating income	63,~~513~~897			611,~~688~~685			(~~175~~7,788)		(367	%)
Other expense, net	(~~218~~346)			(~~409~~284)			~~191~~(62)		~~(47~~22	%)
Interest expense, net	(1,~~699~~811)			(2,~~317~~316)			~~618~~505		(2722	%)
Income before income taxes	41,~~596~~740			39,~~962~~085			~~634~~(7,345)		16(81	%)
Income tax provision	21,~~733~~419			12,~~643~~792			(1,~~090~~373)		66(49	%)
Net income	~~1,863~~321			26,~~319~~293			(~~456~~5,972)		(2095	%)
Less: Net income (loss) attributable to redeemable noncontrolling interest	1,186			(244)			1,430		586	%
Less: Net income attributable to redeemable noncontrolling interest	205			2,281			(2,076)		(91	%)
Net income attributable to DMC Global Inc.	~~677~~116			24,~~563~~012			(13,~~886~~896)		(7497	%)
Adjusted EBITDA attributable to DMC Global Inc.	$	1413,~~391~~538		$	1619,~~683~~420		$	(25,~~292~~882)	(1430	%)

Net sales were $~~159~~155,~~290~~487 for the three months ended ~~March~~June 3130, 2025, or a decrease of 59% compared with the same period in 2024, due to lower sales at Arcadia Products and DynaEnergetics. The 1611% decline at Arcadia Products was due to lower sales volumes in commercial exterior and high-end residential markets. The 12% decline at DynaEnergetics was due to a decrease in volume of DS perforating systems attributable to lower well completions in North America, pricing decreases due to industry consolidation in the United States, and lower international sales due to project timing. ~~This~~These ~~decrease~~decreases ~~was~~were partially offset by a 6% ~~and 5%~~ increase in net sales at ~~Arcadia Products and~~ NobelClad~~, respectively~~. The increase in net sales at ~~Arcadia was primarily attributable to higher sales volumes for longer-cycle commercial projects while the increase in net sales at~~ NobelClad was due to the timing of shipments out of backlog.

~~General~~Gross ~~and~~profit ~~administrative~~percentage ~~expenses~~was ~~increased~~23.6% ~~$694~~versus ~~for~~27.1% in 2024. The decline compared to the ~~three~~prior ~~months~~year ~~ended~~was ~~March~~primarily ~~31,~~attributable ~~2025~~to ~~compared~~lower ~~with~~absorption ~~the~~of ~~same~~fixed ~~period~~manufacturing overhead costs as a result of the decrease in ~~prior~~net ~~year~~sales ~~primarily~~at ~~due~~Arcadia toand ~~higher~~a ~~compensation~~less ~~costs~~favorable project and regional mix at NobelClad.

~~Selling~~General and ~~distribution~~administrative expenses ~~decreased~~increased $~~597~~282 for the three months ended ~~March~~June 3130, 2025 compared with the same period in ~~2024.~~the ~~The~~prior ~~lower~~year ~~expense~~primarily ~~was~~due ~~driven~~to byprofessional ~~cost~~service ~~reductions~~fees atincurred ~~DynaEnergetics,~~to ~~including~~secure ~~compensation~~a permanent Chief Executive Officer (“executive transition costs”) of $~~413~~520 and ~~marketing~~higher ~~consulting~~outside services costs of $~~182~~300, which were partially offset by lower expenses related to the Waterkeeper matter of $450.

~~Amortization~~Selling ofand ~~purchased~~distribution ~~intangible~~expenses ~~assets~~ decreased $~~529~~1,257 for the three months ended ~~March~~June 3130, 2025 compared towith the same period in 2024 asdriven ~~the~~by ~~Arcadia~~lower ~~Products~~bad ~~customer~~debt ~~relationship~~expense ~~purchased~~of ~~intangible~~$570, ~~asset~~a isdecrease ~~amortized~~in ~~using~~selling ancosts ~~accelerated~~at ~~amortization~~DynaEnergetics ~~method.~~of $402 due to lower sales volumes, and a reduction in marketing consulting costs of $264.

~~Strategic~~Amortization ~~review~~of ~~and~~purchased ~~related~~intangible ~~expenses~~assets ofdecreased $~~1,298~~544 for the three months ended ~~March~~June 3130, 2025 ~~include~~compared ~~$932~~to the same period in ~~professional~~2024 ~~service~~as ~~fees~~the ~~and~~Arcadia ~~$366~~Products incustomer ~~employee~~relationship ~~retention~~purchased ~~compensation,~~intangible ~~including~~asset ~~$36~~is ofamortized ~~stock-based~~using ~~compensation~~an accelerated amortization method.

For the three months ended March 31, 2024, strategic review and related expenses were $2,169 and primarily include $1,138 in professional service fees and $489 in employee retention compensation, including $72 of stock-based compensation.27

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~~Restructuring~~Strategic review and related expenses of $~~325~~775 for the three months ended ~~March~~June 3130, 2025 ~~relate~~included toprimarily ~~employee~~professional ~~severance~~service ~~associated with headcount reductions at Arcadia Products~~fees.

~~Income~~For ~~tax provision of $2,733 was recorded on income before income taxes of $4,596 for~~ the three months ended ~~March~~June 3130, ~~2025. Our most significant operations are in the United States~~2024, ~~which~~strategic ~~has~~review aexpenses ~~21%~~incurred ~~statutory~~were ~~income tax rate~~$2,020 and ~~Germany,~~primarily ~~which~~included has a 32% combined statutory income tax rate. The mix of income or loss before income taxes between these jurisdictions is one of the primary drivers of the difference between our 21% statutory tax rate and our effective tax rate. Additionally$1,030 ~~the~~in ~~effective~~professional ~~rate~~service ~~was~~fees ~~impacted unfavorably by state taxes~~ and a$863 ~~valuation allowance~~ in ~~the~~employee ~~U.S.~~retention ~~which results in no benefit for losses generated domestically. We recorded an income tax provision of $1~~compensation,~~643~~ onincluding ~~income before income taxes of~~ $~~3,962~~106 ~~for the three months ended March 31, 2024. The prior year rate was impacted unfavorably by the geographic mix~~ of ~~pretax~~stock-based ~~income, state taxes and certain~~ compensation ~~expenses that are not tax deductible in the U~~.S. The operating results of Arcadia Products that are attributable to the redeemable noncontrolling interest holder are not taxed at DMC, which resulted in a partially offsetting favorable impact to the effective tax rate.

~~Net~~Restructuring ~~income~~expenses ~~attributable~~and toasset ~~DMC~~impairments ~~Global~~of ~~Inc.~~$1,149 for the three months ended ~~March~~June 3130, 2025 ~~was~~included ~~$677,~~an ~~compared~~asset toimpairment charge and related contract termination costs associated with exiting a lease at DynaEnergetics totaling $~~2,563~~605 ~~for~~and ~~the~~$544 ~~same~~of ~~period~~employee inseverance ~~2024~~associated ~~primarily~~with ~~due~~headcount toreductions ~~the~~across ~~factors~~all ~~discussed~~three ~~above~~business segments.

~~Adjusted~~Income ~~EBITDA~~tax ~~decreased~~provision of $1,419 was recorded on income before income taxes of $1,740 for the three months ended ~~March~~June 3130, 2025. ~~compared~~Our ~~with~~most ~~the~~significant ~~same~~operations ~~period~~are in ~~2024~~the ~~primarily~~United ~~due~~States, towhich ~~the~~has ~~factors~~a ~~discussed~~21% ~~above~~statutory income tax rate, and Germany, which has a 32% combined statutory income tax rate. ~~See~~The ~~“Use~~mix of ~~Non-GAAP~~income ~~Financial~~or ~~Measures”~~loss ~~above~~before ~~for~~income taxes between these jurisdictions is one of the ~~explanation~~primary drivers of the ~~use~~difference between our 21% statutory tax rate and our effective tax rate. Additionally, the effective rate was impacted unfavorably by state taxes and a valuation allowance in the U.S. which results in no benefit for losses generated domestically. We recorded an income tax provision of ~~Adjusted~~$2,792 ~~EBITDA~~on income before income taxes of $9,085 for the three months ended June 30, 2024. The ~~following~~prior isyear arate ~~reconciliation~~was impacted unfavorably by the geographic mix of pretax income, state taxes and certain compensation expenses that are not tax deductible in the ~~most~~U.S. ~~directly~~The ~~comparable~~operating ~~GAAP~~results ~~measure~~of Arcadia Products that are attributable to ~~Adjusted~~the ~~EBITDA~~redeemable noncontrolling interest holder are not taxed at DMC, which resulted in a partially offsetting favorable impact to the effective tax rate.

	Three months ended March 31,
	2025		2024
Net income	$	1,863	$	2,319
Interest expense, net	1,699		2,317
Income tax provision	2,733		1,643
Depreciation	3,660		3,419
Amortization of purchased intangible assets	4,763		5,292
EBITDA	14,718		14,990
Stock-based compensation	1,563		1,477
Strategic review and related expenses	1,298		2,169
Restructuring expenses	325		—
Other expense, net	218		409
Adjusted EBITDA	18,122		19,045
Less: adjusted EBITDA attributable to redeemable noncontrolling interest	(3,731)		(2,362)
Adjusted EBITDA attributable to DMC Global Inc.	$	14,391	$	16,683

Net income attributable to DMC Global Inc. for the three months ended June 30, 2025 was $116, compared to $4,012 for the same period in 2024 primarily due to the factors discussed above.

26Adjusted EBITDA decreased for the three months ended June 30, 2025 compared with the same period in 2024 primarily due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of Adjusted EBITDA. The following is a reconciliation of the most directly comparable GAAP measure to Adjusted EBITDA.


	Three months ended June 30,
	2025		2024
Net income	$	321	$	6,293
Interest expense, net	1,811		2,316
Income tax provision	1,419		2,792
Depreciation	3,707		3,431
Amortization of purchased intangible assets	4,763		5,307
EBITDA	12,021		20,139
Stock-based compensation	1,417		1,676

Strategic review and related expenses	775		2,020
Restructuring expenses and asset impairments	1,149		279
Executive transition costs	520		—






Other expense, net	346		284
Adjusted EBITDA	16,228		24,398
Less: adjusted EBITDA attributable to redeemable noncontrolling interest	(2,690)		(4,978)
Adjusted EBITDA attributable to DMC Global Inc.	$	13,538	$	19,420

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Adjusted Net Income and Adjusted Diluted Earnings per Share decreased for the three months ended ~~March~~June 3130, 2025 compared with the same period in 2024 primarily due to the factors discussed above. See "Use of Non-GAAP Financial Measures" above for the explanation of the use of non-GAAP measures. The following is a reconciliation of the most directly comparable GAAP measures to Adjusted Net Income and Adjusted Diluted Earnings Per Share.

	Three months ended March 31, 2025
	Three months ended June 30, 2025
	Amount		Per Share (1)
Net income attributable to DMC Global Inc. (2)	$	~~677~~116	$	~~0.03~~—
Strategic review and related expenses, net of tax	~~1,298~~775		0.0704
Restructuring expenses, net of tax	195		0.01
Restructuring expenses and asset impairments, net of tax	1,062		0.05
As adjusted	$	2,170	$	0.11
Executive transition costs, net of tax	520		0.03
As adjusted	$	2,473	$	0.12

(1) Calculated using diluted weighted average shares outstanding of 1920,~~816~~134,~~281~~760

(2) Net income attributable to DMC Global Inc. prior to the adjustment of redeemable noncontrolling interest ~~for purposes of calculating earnings per share~~.

	Three months ended March 31, 2024
	Three months ended June 30, 2024
	Amount		Per Share (1)
Net income attributable to DMC Global Inc. (2)	$	24,~~563~~012	$	0.1320
Strategic review and related expenses, net of tax	1,~~604~~538		0.08
As adjusted	$	4,167	$	0.21
Restructuring expenses and asset impairments, net of tax	125		0.01
As adjusted	$	5,675	$	0.29

(1) Calculated using diluted weighted average shares outstanding of 19,~~622~~671,~~455~~169

(2) Net income attributable to DMC Global Inc. prior to the adjustment of redeemable noncontrolling interest ~~for purposes of calculating earnings per share~~.

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Six months ended June 30, 2025 compared with six months ended June 30, 2024


	Six months ended June 30,
	2025			2024			$ change		% change
Net sales	$	314,777		$	338,048		$	(23,271)	(7	%)
Gross profit	77,930			88,765			(10,835)		(12	%)
Gross profit percentage	24.8		%	26.3		%
COSTS AND EXPENSES:
General and administrative expenses	32,579			31,603			976		3	%
% of net sales	10.3		%	9.3		%
Selling and distribution expenses	21,868			23,722			(1,854)		(8	%)
% of net sales	6.9		%	7.0		%
Amortization of purchased intangible assets	9,526			10,599			(1,073)		(10	%)
% of net sales	3.0		%	3.1		%


Strategic review and related expenses	2,073			4,189			(2,116)		(51	%)

Restructuring expenses and asset impairments	1,474			279			1,195		428	%


Operating income	10,410			18,373			(7,963)		(43	%)
Other expense, net	(564)			(693)			129		(19	%)
Interest expense, net	(3,510)			(4,633)			1,123		(24	%)
Income before income taxes	6,336			13,047			(6,711)		(51	%)
Income tax provision	4,152			4,435			(283)		(6	%)
Net income	2,184			8,612			(6,428)		(75	%)
Net income attributable to redeemable noncontrolling interest	1,391			2,037			(646)		(32	%)
Net income attributable to DMC Global Inc.	793			6,575			(5,782)		(88	%)
Adjusted EBITDA attributable to DMC Global Inc.	$	27,929		$	36,103		$	(8,174)	(23	%)

Net sales were $314,777 for the six months ended June 30, 2025, a decrease of 7% compared with the same period in 2024, primarily due to lower sales at DynaEnergetics. The 14% decline at DynaEnergetics was due to a decrease in volume of DS perforating systems attributable to lower well completions in North America, pricing decreases due to industry consolidation in the United States, and lower international sales due to project timing.

Gross profit percentage was 24.8% versus 26.3% in 2024. The decline compared to the prior year was primarily attributable to lower absorption of fixed manufacturing overhead costs as a result of the decrease in net sales at Arcadia and DynaEnergetics, as well as a less favorable project and regional mix at NobelClad.

General and administrative expenses increased $976 for the six months ended June 30, 2025 compared with the same period in 2024. The year-over-year increase was primarily attributable to executive transition costs of $520, higher compensation costs of $854, and higher outside services costs of $422. These increases were partially offset by lower expenses related to the Waterkeeper matter of $450 and a reduction in business related travel of $410.

Selling and distribution expenses decreased $1,854 for the six months ended June 30, 2025 compared with the same period in 2024. The year-over-year decrease was driven by lower selling costs of $568 at DynaEnergetics due to decreased sales volumes, a reduction in marketing consulting costs of $449, lower bad debt expense of $340, decreased compensation costs of $276, and lower business related travel of $189.

Amortization of purchased intangible assets decreased $1,073 for the six months ended June 30, 2025 compared to the same period in 2024 as the Arcadia Products customer relationship purchased intangible asset is amortized using an accelerated amortization method.

Strategic review and related expenses of $2,073 for the six months ended June 30, 2025 relate primarily to $1,507 in professional service fees and $366 in employee retention compensation, including $36 of stock-based compensation.

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For the six months ended June 30, 2024, strategic review and related expenses were $4,189 and primarily included $2,170 in professional service fees and $1,351 in employee retention compensation, including $178 of stock-based compensation.

Restructuring expenses and asset impairments of $1,474 for the six months ended June 30, 2025 include an asset impairment charge and related contract termination costs associated with exiting a lease at DynaEnergetics totaling $605 and $869 of employee severance associated with headcount reductions across all three business segments.

Income tax provision of $4,152 was recorded on income before income taxes of $6,336 for the six months ended June 30, 2025. Our most significant operations are in the United States, which has a 21% statutory income tax rate, and Germany, which has a 32% combined statutory income tax rate. The mix of income or loss before income taxes between these jurisdictions is one of the primary drivers of the difference between our 21% statutory tax rate and our effective tax rate. Additionally, the effective rate was impacted unfavorably by state taxes and a valuation allowance in the U.S. which results in no benefit for losses generated domestically. We recorded an income tax provision of $4,435 on income before income taxes of $13,047 for the six months ended June 30, 2024. The prior year rate was impacted unfavorably by the geographic mix of pretax income, state taxes and certain compensation expenses that are not tax deductible in the U.S. The operating results of Arcadia Products that are attributable to the redeemable noncontrolling interest holder are not taxed at DMC, which resulted in a partially offsetting favorable impact to the effective tax rate.

Net income attributable to DMC Global Inc. for the six months ended June 30, 2025 was $793, compared to $6,575 for the same period in 2024 primarily due to the factors discussed above.

Adjusted EBITDA decreased for the six months ended June 30, 2025 compared with the same period in 2024 primarily due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of Adjusted EBITDA. The following is a reconciliation of the most directly comparable GAAP measure to Adjusted EBITDA.


	Six months ended June 30,
	2025		2024
Net income	$	2,184	$	8,612
Interest expense, net	3,510		4,633
Income tax provision	4,152		4,435
Depreciation	7,367		6,850
Amortization of purchased intangible assets	9,526		10,599
EBITDA	26,739		35,129
Stock-based compensation	2,980		3,153

Strategic review and related expenses	2,073		4,189


Restructuring expenses and asset impairments	1,474		279



Executive transition costs	520		—
Other expense, net	564		693
Adjusted EBITDA	34,350		43,443
Less: adjusted EBITDA attributable to redeemable noncontrolling interest	(6,421)		(7,340)
Adjusted EBITDA attributable to DMC Global Inc.	$	27,929	$	36,103

Adjusted Net Income and Adjusted Diluted Earnings per Share decreased for the six months ended June 30, 2025 compared with the same period in 2024 primarily due to the factors discussed above. See "Use of Non-GAAP Financial Measures" above for the explanation of the use of non-GAAP measures. The following is a reconciliation of the most directly comparable GAAP measures to Adjusted Net Income and Adjusted Diluted Earnings Per Share.

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	Six months ended June 30, 2025
	Amount		Per Share (1)
Net income attributable to DMC Global Inc. (2)	$	793	$	0.04

Strategic review and related expenses, net of tax	2,073		0.10



Restructuring expenses and asset impairments, net of tax	1,257		0.06
Executive transition costs, net of tax	520		0.03

As adjusted	$	4,643	$	0.23

(1) Calculated using diluted weighted average shares outstanding of 19,861,073

(2) Net loss attributable to DMC Global Inc. prior to the adjustment of redeemable noncontrolling interest.


	Six months ended June 30, 2024
	Amount		Per Share (1)
Net income attributable to DMC Global Inc. (2)	$	6,575	0.33
Strategic review and related expenses, net of tax	3,142		0.16
Restructuring expenses and asset impairments, net of tax	125		0.01





As adjusted	$	9,842	$	0.50

(1) Calculated using diluted weighted average shares outstanding of 19,647,005

(2) Net income attributable to DMC Global Inc. prior to the adjustment of redeemable noncontrolling interest.

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Business Segment Financial Information

We primarily evaluate performance and allocate resources based on segment revenues, operating income and Adjusted EBITDA as well as projected future performance. Segment operating income is defined as revenues less expenses identifiable to the segment. DMC consolidated operating income and Adjusted EBITDA include unallocated corporate expenses and unallocated stock-based compensation expense. Stock-based compensation is not allocated to wholly owned segments, DynaEnergetics and NobelClad. Stock-based compensation is allocated to the Arcadia Products segment as 60% of such expense is attributable to the Company, whereas the remaining 40% is attributable to the redeemable noncontrolling interest holder. Segment operating income will reconcile to consolidated income before income taxes by deducting unallocated corporate expenses, unallocated stock-based compensation, other expense, net, and interest expense, net.

Arcadia Products

Three months ended ~~March~~June 3130, 2025 compared with three months ended ~~March~~June 3130, 2024

	Three months ended March 31,
	Three months ended June 30,
	2025			2024			$ change		% change
Net sales	$	6561,~~580~~980		$	6169,~~925~~748		$	3(7,~~655~~768)	6(11	%)
Gross profit	2016,~~361~~250			1623,~~813~~157			3(6,~~548~~907)		21(30	%)
Gross profit percentage	3126.02		%	2733.2		%
COSTS AND EXPENSES:
General and administrative expenses	76,~~459~~489			7,~~656~~765			(~~197~~1,276)		(316	%)
Selling and distribution expenses	4,~~818~~290			4,~~468~~116			~~350~~174		84	%
Amortization of purchased intangible assets	4,763			5,~~277~~278			(~~514~~515)		(10	%)
Restructuring expenses	325			—			325		100	%
Restructuring expenses and asset impairments	192			279			(87)		(31	%)
Operating income (loss)	2,996			(588)			3,584		610	%
Operating income	516			5,719			(5,203)		(91	%)
Adjusted EBITDA	96,~~327~~725			512,~~906~~445			3(5,~~421~~720)		58(46	%)
Less: adjusted EBITDA attributable to redeemable noncontrolling interest	(32,~~731~~690)			(24,~~362~~978)			1(2,~~369~~288)		58(46	%)
Adjusted EBITDA attributable to DMC Global Inc.	$	54,~~596~~035		$	37,~~544~~467		2(3,~~052~~432)		58(46	%)

Net sales ~~increased~~decreased $37,~~655~~768 for the three months ended ~~March~~June 3130, 2025 compared to the same period in 2024 primarily due to ~~higher~~lower sales volumes ~~for~~in ~~longer-cycle~~ commercial ~~projects.~~exterior ~~This~~and ~~increase was partially offset by lower sales volumes in longer-cycle~~ high-end residential markets.

Gross profit percentage ~~increased~~decreased to 3126.02% for the three months ended ~~March~~June 3130, 2025 compared to the same period in 2024 primarily due to ~~higher~~lower absorption of fixed manufacturing overhead costs as a result of the ~~increase~~decrease in net sales as mentioned above.

General and administrative expenses decreased $~~197~~1,276 for the three months ended ~~March~~June 3130, 2025 compared with the same period in prior year primarily due to lower compensation costs of $645 as a result of a reduction in headcount, lower expenses related to the Waterkeeper matter of $450, and a reduction in business related travel of $~~190~~170.

Selling and distribution expenses increased $~~350~~174 for the three months ended ~~March~~June 3130, 2025 compared with the same period in 2024. ~~The~~primarily ~~higher expense was~~ driven by anhigher ~~increase in bad debt expense of $235 and~~ incentive compensation costs ~~of $152~~.

Amortization of purchased intangible assets decreased $~~514~~515 for the three months ended ~~March~~June 3130, 2025 compared to the same period in 2024 as the customer relationship purchased intangible asset is amortized using an accelerated amortization method.

Restructuring expenses and asset impairments of $~~325~~192 for the three months ended ~~March~~June 3130, 2025 relate to employee severance associated with headcount reductions.

Operating income of $~~2,996~~516 for the three months ended ~~March~~June 3130, 2025 ~~increased~~decreased compared to operating ~~loss~~income of $~~588~~5,719 in the same period in 2024 due primarily to ~~higher~~lower gross profit.

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Adjusted EBITDA ~~increased~~decreased for the three months ended ~~March~~June 3130, 2025 compared with the same period in 2024 due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of Adjusted EBITDA. The following is a reconciliation of the most directly comparable GAAP measure to Adjusted EBITDA.

	Three months ended March 31,
	Three months ended June 30,
	2025		2024
Operating income (loss)	$	2,996	$	(588)
Operating income	$	516	$	5,719
Adjustments:
Depreciation	1,~~006~~016		~~875~~888
Amortization of purchased intangible assets	4,763		5,~~277~~278
Stock-based compensation	~~237~~238		~~342~~281
Restructuring expenses	325		—
Restructuring expenses and asset impairments	192		279
Adjusted EBITDA	96,~~327~~725		512,~~906~~445
Less: adjusted EBITDA attributable to redeemable noncontrolling interest	(32,~~731~~690)		(24,~~362~~978)
Adjusted EBITDA attributable to DMC Global Inc.	$	54,~~596~~035	$	37,~~544~~467

Six months ended June 30, 2025 compared with six months ended June 30, 2024


	Six months ended June 30,
	2025			2024			$ change		% change
Net sales	$	127,560		$	131,673		$	(4,113)	(3	%)
Gross profit	36,611			39,970			(3,359)		(8	%)
Gross profit percentage	28.7		%	30.4		%
COSTS AND EXPENSES:
General and administrative expenses	13,949			15,421			(1,472)		(10	%)
Selling and distribution expenses	9,107			8,584			523		6	%
Amortization of purchased intangible assets	9,526			10,555			(1,029)		(10	%)

Restructuring expenses and asset impairments	517			279			238		85	%

Operating income	3,512			5,131			(1,619)		(32	%)
Adjusted EBITDA	16,052			18,351			(2,299)		(13	%)
Less: adjusted EBITDA attributable to redeemable noncontrolling interest	(6,421)			(7,340)			(919)		(13	%)
Adjusted EBITDA attributable to DMC Global Inc.	$	9,631		$	11,011		(1,380)		(13	%)

Net sales decreased $4,113 for the six months ended June 30, 2025 compared to the same period in 2024 due to lower sales volumes in longer-cycle high-end residential markets.

Gross profit percentage decreased to 28.7% for the six months ended June 30, 2025 primarily due to lower absorption of fixed manufacturing overhead costs as a result of the decrease in net sales mentioned above.

General and administrative expenses were lower by $1,472 for the six months ended June 30, 2025 compared to the same period in 2024. The year-over-year decrease is the result of lower compensation costs of $466 as a result of a reduction in headcount, lower expenses related to the Waterkeeper matter of $450, decreased business related travel of $360, and a nonrecurring legal settlement recorded in 2024 of $146.

Selling and distribution expenses increased $523 for the six months ended June 30, 2025 compared to the same period in 2024 due to higher incentive compensation costs.

Amortization of purchased intangible assets decreased $1,029 for the six months ended June 30, 2025 compared to the same period in 2024 as the customer relationship purchased intangible asset is amortized using an accelerated amortization method.

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Restructuring expenses and asset impairments of $517 for the six months ended June 30, 2025 related to employee severance associated with headcount reductions.

Operating income of $3,512 for the six months ended June 30, 2025 decreased compared to operating income of $5,131 in the same period in 2024 due primarily to the decline in gross profit.

Adjusted EBITDA decreased for the six months ended June 30, 2025 compared with the same period in 2024 due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of Adjusted EBITDA. The following is a reconciliation of the most directly comparable GAAP measure to Adjusted EBITDA.


	Six months ended June 30,
	2025		2024
Operating income	$	3,512	$	5,131
Adjustments:
Depreciation	2,022		1,763
Amortization of purchased intangible assets	9,526		10,555
Stock-based compensation	475		623


Restructuring expenses and asset impairments	517		279


Adjusted EBITDA	16,052		18,351
Less: adjusted EBITDA attributable to redeemable noncontrolling interest	(6,421)		(7,340)
Adjusted EBITDA attributable to DMC Global Inc.	$	9,631	$	11,011

DynaEnergetics

Three months ended June 30, 2025 compared with three months ended June 30, 2024

	Three months ended March 31,
	Three months ended June 30,
	2025			2024			$ change		% change
Net sales	$	6566,~~551~~862		$	7876,~~122~~210		$	(129,~~571~~348)	(1612	%)
Gross profit	1213,~~811~~959			1615,~~971~~133			(41,~~160~~174)		(258	%)
Gross profit percentage	1920.59		%	2119.79		%
COSTS AND EXPENSES:
General and administrative expenses	23,~~747~~028			23,~~891~~011			~~(144)~~17		(51	%)
Selling and distribution expenses	43,~~476~~774			5,~~223~~041			(~~747~~1,267)		(1425	%)
Amortization of purchased intangible assets	—			1529			(1529)		(100	%)
Operating income	5,588			8,842			(3,254)		(37	%)
Restructuring expenses and asset impairments	746			—			746		100	%
Adjusted EBITDA	$	7,379		$	10,539		$	(3,160)	(30	%)
Operating income	6,411			7,052			(641)		(9	%)
Adjusted EBITDA	$	8,979		$	8,752		$	227	3	%

Net sales decreased $129,~~571~~348 for the three months ended ~~March~~June 3130, 2025 compared to the same period in 2024 ~~primarily~~ due to a decrease in volume of DS perforating systems attributable to lower well completions in North America, ~~as well as a decrease in~~ pricing decreases due to industry consolidation in the United States., ~~There~~and ~~was also~~ a ~~27%~~ reduction in international sales due to project timing.

~~Gross~~Selling ~~profit~~and ~~percentage~~distribution ~~decreased~~expenses towere ~~19.5%~~lower by $1,267 for the three months ended ~~March~~June 3130, 2025 compared to the same period in 2024 primarily due to ~~lower~~a ~~customer~~reduction ~~pricing~~in ~~and~~bad ~~lower~~debt ~~absorption~~expense of ~~fixed~~$602, ~~manufacturing~~decreased ~~overhead~~selling costs asof a$402 ~~result~~due ofto ~~the~~lower ~~decrease~~sales involume, ~~net~~and ~~sales.~~reduced consulting costs of $156.

~~General~~Restructuring ~~and administrative~~ expenses ~~were~~and ~~lower~~asset byimpairments of $~~144~~746 for the three months ended ~~March~~June 3130, 2025 ~~compared~~include toan ~~the~~asset ~~same~~impairment ~~period~~charge inand ~~2024~~related ~~driven~~contract bytermination costs associated with exiting a ~~decrease~~lease intotaling ~~outside~~$605 ~~service~~and ~~costs~~employee severance of $~~122~~141 due to headcount reductions.

Selling and distribution expenses were lower by $747 for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to decreases in compensation costs of $413, marketing consulting costs of $182, rental expense of $61, and business related travel expense of $60.35

Operating income of $5,588 for the three months ended March 31, 2025 decreased compared to operating income of $8,842 in the same period in 2024 due to the decline in gross profit.

Adjusted EBITDA decreased for the three months ended March 31, 2025 compared with the same period in 2024 due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of Adjusted EBITDA. The following is a reconciliation of the most directly comparable GAAP measure to Adjusted EBITDA.

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	Three months ended March 31,
	2025		2024
Operating income	$	5,588	$	8,842
Adjustments:
Depreciation	1,791		1,682
Amortization of purchased intangible assets	—		15
Adjusted EBITDA	$	7,379	$	10,539

Operating income of $6,411 for the three months ended June 30, 2025 decreased compared to operating income of $7,052 in the same period in 2024 due to the decline in net sales as well as the restructuring expenses and asset impairment charges incurred.

Adjusted EBITDA increased for the three months ended June 30, 2025 compared with the same period in 2024 due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of Adjusted EBITDA. The following is a reconciliation of the most directly comparable GAAP measure to Adjusted EBITDA.


	Three months ended June 30,
	2025		2024
Operating income	$	6,411	$	7,052
Adjustments:


Depreciation	1,822		1,671
Amortization of purchased intangible assets	—		29
Restructuring expenses and asset impairments	746		—
Adjusted EBITDA	$	8,979	$	8,752

Six months ended June 30, 2025 compared with six months ended June 30, 2024


	Six months ended June 30,
	2025			2024			$ change		% change
Net sales	$	132,413		$	154,332		$	(21,919)	(14	%)
Gross profit	26,770			32,104			(5,334)		(17	%)
Gross profit percentage	20.2		%	20.8		%
COSTS AND EXPENSES:
General and administrative expenses	5,775			5,903			(128)		(2	%)
Selling and distribution expenses	8,250			10,263			(2,013)		(20	%)
Amortization of purchased intangible assets	—			44			(44)		(100	%)

Restructuring expenses and asset impairments	746			—			746		100	%
Operating income	11,999			15,894			(3,895)		(25	%)
Adjusted EBITDA	$	16,358		$	19,291		$	(2,933)	(15	%)

Net sales decreased $21,919 for the six months ended June 30, 2025 compared to the same period in 2024 primarily due to a decrease in volume of DS perforating systems attributable to lower well completions in North America, pricing decreases due to industry consolidation in the United States, and a reduction in international sales due to project timing.

Selling and distribution expenses were lower by $2,013 for the six months ended June 30, 2025 compared to the same period in 2024 primarily due to a reduction in bad debt expense of $606, decreased selling costs of $568 due to lower sales volumes, reduced marketing consulting costs of $338, lower compensation costs of $278, and a decrease in business related travel of $64.

Restructuring expenses and asset impairments of $746 for the six months ended June 30, 2025 include an asset impairment charge and related contract termination costs associated with exiting a lease totaling $605 and employee severance of $141 due to headcount reductions.

Operating income decreased $3,895 for the six months ended June 30, 2025 compared to the same period in 2024 due to the decline in gross profit as well as the restructuring expenses and asset impairment charges incurred.

Adjusted EBITDA decreased for the six months ended June 30, 2025 compared to the same period in 2024 due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of Adjusted EBITDA. The following is a reconciliation of the most directly comparable GAAP measure to Adjusted EBITDA.

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	Six months ended June 30,
	2025		2024
Operating income	$	11,999	$	15,894
Adjustments:
Depreciation	3,613		3,353
Amortization of purchased intangible assets	—		44
Restructuring expenses and asset impairments	746		—
Adjusted EBITDA	$	16,358	$	19,291

NobelClad

Three months ended June 30, 2025 compared with three months ended June 30, 2024

	Three months ended March 31,
	Three months ended June 30,
	2025			2024			$ change		% change
Net sales	$	2826,~~159~~645		$	2625,~~822~~221		$	1,~~337~~424	56	%
Gross profit	86,~~097~~593			8,~~644~~222			(~~547~~1,629)		(620	%)
Gross profit percentage	2824.87		%	32.26		%
COSTS AND EXPENSES:
General and administrative expenses	~~1,192~~852			1,~~074~~023			~~118~~(171)		11(17	%)
Selling and distribution expenses	2,~~283~~123			2,~~470~~267			(~~187~~144)		(86	%)
Operating income	4,622			5,100			(478)		(9	%)
Restructuring expenses and asset impairments	211			—			211		100	%
Adjusted EBITDA	$	5,416		$	5,880		$	(464)	(8	%)
Operating income	3,407			4,932			(1,525)		(31	%)
Adjusted EBITDA	$	4,399		$	5,722		$	(1,323)	(23	%)

Net sales increased $1,~~337~~424 for the three months ended ~~March~~June 3130, 2025 compared to the same period in 2024 ~~primarily~~ due primarily to the timing of shipments out of backlog.

Gross profit percentage decreased to 2824.87% for the three months ended ~~March~~June 3130, 2025 due to a less favorable project and regional mix.

General and administrative expenses were ~~higher~~lower by $~~118~~171 for the three months ended ~~March~~June 3130, 2025 compared to the same period in 2024 due primarily to ~~increases~~a decrease in incentive compensation costs ~~from higher headcount~~.

Selling and distribution expenses were lower by $~~187~~144 for the three months ended ~~March~~June 3130, 2025 compared to the same period in 2024 due primarily to ~~decreases~~a decrease in incentive compensation costs of $~~67,~~107 ~~business~~and ~~related~~a ~~travel~~reduction ofin ~~$62,~~business ~~and~~related ~~outside~~travel ~~services costs~~ of $5748.

~~Operating~~Restructuring ~~income~~expenses ~~decreased~~and asset impairments of $~~478~~211 for the three months ended ~~March~~June 3130, 2025 ~~compared~~relate to ~~the~~employee ~~same~~severance ~~period~~associated inwith ~~2024~~headcount ~~due primarily to the decline in gross profit~~reductions.

~~Adjusted~~Operating ~~EBITDA~~income decreased $1,525 for the three months ended ~~March~~June 3130, 2025 compared ~~with~~to the same period in 2024 due primarily to the ~~factors~~decline ~~discussed~~in ~~above.~~gross ~~See “Use of Non-GAAP Financial Measures” above for the explanation of the use of Adjusted EBITDA~~profit. ~~The following is a reconciliation of the most directly comparable GAAP measure to Adjusted EBITDA.~~

	Three months ended March 31,
	2025		2024
Operating income	$	4,622	$	5,100
Adjustments:
Depreciation	794		780
Adjusted EBITDA	$	5,416	$	5,880

Adjusted EBITDA decreased for the three months ended June 30, 2025 compared with the same period in 2024 due to the factors discussed above. See “Use of Non-GAAP Financial Measures” above for the explanation of the use of Adjusted EBITDA. The following is a reconciliation of the most directly comparable GAAP measure to Adjusted EBITDA.

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	Three months ended June 30,
	2025		2024
Operating income	$	3,407	$	4,932
Adjustments:
Depreciation	781		790

Restructuring expenses	211		—



Adjusted EBITDA	$	4,399	$	5,722

Six months ended June 30, 2025 compared with six months ended June 30, 2024


	Six months ended June 30,
	2025			2024			$ change		% change
Net sales	$	54,804		$	52,043		$	2,761	5	%
Gross profit	14,690			16,866			(2,176)		(13	%)
Gross profit percentage	26.8		%	32.4		%
COSTS AND EXPENSES:
General and administrative expenses	2,043			2,096			(53)		(3	%)
Selling and distribution expenses	4,407			4,738			(331)		(7	%)


Restructuring expenses and asset impairments	211			—			211		100	%
Operating income	8,029			10,032			(2,003)		(20	%)
Adjusted EBITDA	$	9,815		$	11,602		$	(1,787)	(15	%)

Net sales increased $2,761 for the six months ended June 30, 2025 compared to the same period in 2024 due primarily to the timing of shipments out of backlog.

Gross profit percentage decreased to 26.8% for the six months ended June 30, 2025 due to a less favorable project and regional mix.

Selling and distribution expenses decreased $331 for the six months ended June 30, 2025 compared to the same period in 2024 due to lower incentive compensation costs of $136, a decrease in business related travel of $110, and reduced outside services costs of $102.

Restructuring expenses and asset impairments of $211 for the six months ended June 30, 2025 relate to employee severance associated with headcount reductions.

Operating income decreased $2,003 for the six months ended June 30, 2025 compared to the same period in 2024 due primarily to lower gross profit.


	Six months ended June 30,
	2025		2024
Operating income	$	8,029	$	10,032
Adjustments:
Depreciation	1,575		1,570

Restructuring expenses and asset impairments	211		—

Adjusted EBITDA	$	9,815	$	11,602

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Liquidity and Capital Resources

We have historically financed our operations from a combination of internally generated cash flow, revolving credit borrowings, and various long-term debt arrangements. Our net debt position was $5746,~~716~~248 at ~~March~~June 3130, 2025 compared to $56,529 at December 31, 2024. The ~~increase~~decrease ~~in net debt during the first quarter~~ was due primarily to ~~net~~improved ~~borrowings~~financial ofperformance ~~$1,500~~ which ~~assisted~~resulted in ~~funding~~net ~~the~~credit ~~payment~~facility repayments of ~~various liabilities~~$12, ~~including employee retention bonuses associated with the strategic review and incentive compensation earned in 2024~~278.

We believe that cash and cash equivalents on hand, cash flow from operations, funds available under our current credit facilities and any future replacement thereof will be sufficient to fund the working capital, required minimum debt service payments, and other capital expenditure requirements of our current business operations for the foreseeable future. We may also execute capital markets transactions, including at-the-market offering programs, to raise additional funds if we believe market conditions are favorable, but there can be no assurance that any future capital will be available on acceptable terms or at all. Nevertheless, our ability to generate sufficient cash flows from operations will depend upon our success in executing our strategies. If we are unable to (i) realize sales from our backlog; (ii) secure new customer orders; (iii) continue selling products at profitable margins; and (iv) continue to implement cost-effective internal processes, our ability to meet cash requirements through operating activities could be impacted. Furthermore, any restriction on the availability of borrowings under our credit facilities could negatively affect our ability to meet future cash requirements. We will continue to monitor financial market conditions, including the related impact on credit availability and capital markets.

Debt facilities

Borrowings under the $200,000 revolving loan limit and $50,000 ~~Term~~term ~~Loan~~loan can be in the form of Adjusted Daily Simple Secured Overnight Financing Rate ("SOFR") loans or one month Adjusted Term SOFR loans. Additionally, U.S. dollar borrowings on the revolving loan can be in the form of Base Rate loans (Base Rate borrowings are based on the greater of the administrative agent’s Prime rate, an adjusted Federal Funds rate or an adjusted SOFR rate). SOFR loans currently bear interest at the applicable SOFR rate plus an applicable margin (varying from 2.25% to 3.25%). Base Rate loans currently bear interest at the defined Base Rate plus an applicable margin (varying from 1.25% to 2.25%).

The leverage ratio is defined in the credit facility as the ratio of Consolidated Funded Indebtedness (as defined in the credit facility) on the last day of any trailing four quarter period to Consolidated EBITDA (as defined in the credit facility) for such period. The maximum leverage ratio currently permitted by our credit facility is 3.0 to 1.0; provided, however, that the Second Amendment (as defined below) provides for a temporary increase in the maximum leverage ratio under certain circumstances as described below. The maximum leverage ratio currently permitted by our credit facility is 3.0 to 1.0. The actual leverage ratio as of ~~March~~June 3130, 2025, calculated in accordance with the ~~amended~~Second ~~credit facility~~Amendment, was 1.3823 to 1.0.

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WeThe ~~also~~debt ~~maintain~~service acoverage ~~line~~ratio ofis defined in the credit ~~with~~facility aas ~~German~~the ~~bank~~ratio ~~for~~of ~~certain~~Consolidated ~~European~~EBITDA ~~operations.~~less ~~This~~the ~~line~~sum of capital distributions paid in cash (other than those made with respect to preferred stock issued under the Operating Agreement), Consolidated Unfunded Capital Expenditures (as defined in the credit ~~provides~~facility), aand ~~borrowing~~net ~~capacity~~cash income taxes divided by the sum of €7cash interest expense,~~000~~ any dividends on ~~which~~the nopreferred ~~amounts~~stock ~~were~~paid ~~outstanding~~in ascash, ofand ~~March~~scheduled 31principal payments on funded indebtedness. Under our credit facility, the minimum debt service coverage ratio permitted is 1.25 to 1.0. The actual debt service coverage ratio for the trailing twelve months ended June 30, 2025 was 3.83 to 1.0.

We also maintain a line of credit with a German bank for certain European operations. This line of credit provides a borrowing capacity of €7,000 of which €637 was outstanding as of June 30, 2025.

Redeemable noncontrolling interest

The Operating Agreement for Arcadia Products contains a right for the Company to purchase the remaining interest in Arcadia Products from the minority interest holder on or after December 23, 2024 (“Call Option”). The minority interest holder of Arcadia Products also has the right to sell its remaining interest in Arcadia Products to the Company (“Put Option”). On December 3, 2024, the Company and minority interest holder entered into an amendment to the Operating Agreement whereby the minority interest holder agreed not to exercise the Put Option until on or after September 6, 2026 ~~in exchange for, among other terms, a one-time payment of $2,500~~. Both the Call Option and Put Option enable the respective holder to exercise their rights based upon a predefined calculation as included within the Operating Agreement, subject to a floor value also as defined within the Operating Agreement which is based primarily upon a contractually stated equity value.

As of ~~March~~June 3130, 2025, the settlement amount of the redeemable noncontrolling interest was $187,080 and equals the floor value as defined within the Operating Agreement. Upon settlement, consideration paid will be net of the $24,902 promissory note outstanding due from the redeemable noncontrolling interest holder. Refer to Note 2 within Item 1 for further information related to the valuation of the redeemable noncontrolling interest and promissory note outstanding.

Other contractual obligations and commitments

Our debt balance, net of deferred debt issuance costs, ~~increased~~decreased to $7258,~~421~~675 at ~~March~~June 3130, 2025 from $70,818 at December 31, 2024 for the reasons discussed above. Our other contractual obligations and commitments have not materially changed since December 31, 2024.

Cash flows from operating activities

Net cash provided by operating activities of $419,~~488~~734 for the ~~three~~six months ended ~~March~~June 3130, 2025 ~~decreased~~increased compared to $1315,~~440~~783 in the same period last year driven primarily by ~~the~~lower ~~use of cash for~~ working capital balances, which included ~~higher~~lower ~~accounts~~inventory ~~receivable~~ balances ~~due~~at toArcadia ~~temporary~~Products ~~customer payment delays in DynaEnergetics~~ and ~~lower contract liability balances in~~ NobelClad ~~due to significant project shipments during the quarter for orders which included large customer prepayments~~.

Cash flows from investing activities

Net cash used in investing activities for the ~~three~~six months ended ~~March~~June 3130, 2025 of $~~3,332~~718 was attributable to the acquisition, net of proceeds received, of property, plant and equipment. ~~Net cash provided by investing activities for the three months ended March 31, 2024~~ of $94,~~651 related to proceeds from sales and maturities of marketable securities of $12~~885,~~619,~~ partially offset by the ~~acquisition~~settlement of ~~property,~~a ~~plant~~note ~~and~~receivable ~~equipment~~ of $24,~~968~~167.

Net cash provided by investing activities for the six months ended June 30, 2024 of $7,204 related to proceeds from sales and maturities of marketable securities of $12,619, partially offset by the acquisition of property, plant and equipment of $5,515.

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Cash flows from financing activities

Net cash flows used in financing activities for the ~~three~~six months ended ~~March~~June 3130, 2025 of $~~135~~19,746 included net credit facility repayments of $12,278, distributions to the redeemable noncontrolling interest holder of $16,~~151~~255, ~~and~~payment ~~treasury~~of ~~stock~~debt ~~purchases~~issuance costs of $~~484~~650, ~~which~~and ~~were~~treasury ~~partially~~stock ~~offset~~purchases ~~by net credit facility borrowings~~ of $~~1,500~~563.

Net cash flows used in financing activities for the ~~three~~six months ended ~~March~~June 3130, 2024 of $3439,~~296~~727 primarily included net credit facility repayments of $2731,500. Additional cash flows used in financing activities included distributions to the redeemable noncontrolling interest holder of $34,~~125~~672, payment of debt issuance costs of $2,735 and treasury stock purchases of $~~936~~952.

Payment of Dividends

Any determination to pay cash dividends is at the discretion of the Board of Directors. On April 23, 2020, DMC announced that its Board of Directors suspended the quarterly dividend indefinitely. Future dividends may be affected by, among other items, our views on potential future capital requirements, future business prospects, debt covenant compliance considerations, changes in income tax laws, and any other factors that our Board of Directors deems relevant.

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Critical Accounting Estimates

Preparation of financial statements in conformity with generally accepted accounting principles in the United States requires that management make estimates, judgments and assumptions that affect the amounts reported for revenues, expenses, assets, liabilities, and other related disclosures. Our critical accounting estimates have not changed from those reported in Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

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ITEM 3. Quantitative and Qualitative Disclosure about Market Risk

There were no material changes in market risk for changes in foreign currency exchange rates and interest rates from the information provided in Item 7A – Quantitative and Qualitative Disclosures About Market Risk in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

ITEM 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, under the supervision and with the participation of the ~~Interim~~ Chief Executive Officer and Chief Financial Officer have evaluated the Company’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended, as of the end of the period covered by this report, and they have concluded that these controls and procedures are effective.

Changes in Internal Control over Financial Reporting

There were no changes that occurred during the fiscal quarter covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II - OTHER INFORMATION

Item 1. Legal Proceedings

Please see Note 12 to the Condensed Consolidated Financial Statements.

Item 1A. Risk Factors

There have been no material changes in the risk factors identified as being attendant to our business in our Annual Report on Form 10-K for the year ended December 31, 2024, except as provided below.

New or existing tariffs and other trade measures could adversely affect our results of operations, financial position and cash flows.

New or existing tariffs and other trade measures could adversely affect our results of operations, financial position and cash flows, either directly or indirectly through various adverse impacts on our significant customers. In 2018, the U.S. announced tariffs of 25 percent on steel and 10 percent on aluminum imported from countries where we typically source metals. These tariffs were met with retaliatory tariffs from certain countries and increased, broader tariffs were levied by the U.S. on targeted countries, including China. The tariffs impacted the cost of the importation of steel, which we utilize in our steel plate and steel pipe, key materials in our NobelClad and DynaEnergetics businesses. Though in many cases we have been able to source metals from domestic suppliers, some materials are only available from sources subject to tariffs. The cost of domestic steel and aluminum also increased, along with the price of delivery, and the availability of certain materials has been limited. These higher costs have increased the price of our products to our customers and, in some instances, affected our ability to be competitive. For our NobelClad business, this has impacted our ability to compete on international projects and negatively impacted U.S. fabricators, which are the primary consumers of NobelClad products.

In ~~the first quarter of~~ 2025, the ~~United~~U.S. ~~States~~has ~~imposed~~announced ~~increased~~and/or implemented significant new tariffs on ~~foreign~~ imports ~~into~~from ~~the~~a ~~United~~wide ~~States,~~range ~~including~~of ~~an additional 20% tariff on all product imports from China~~countries, anwhich ~~additional~~has ~~25%~~prompted ~~tariff~~retaliatory ontariffs ~~all~~by ~~product~~a ~~imports~~number ~~from~~of ~~Mexico~~countries and ~~Canada,~~a ascycle ~~well~~of asretaliatory ~~additional~~tariffs ~~proposed~~by ~~tariffs~~both onthe U.S. and other countries. The tariff policy environment has been and is expected to continue to be dynamic, and we cannot predict what additional actions may ultimately be taken by the ~~United~~U.S. ~~States~~ or other governments with respect to tariffs or trade relations~~, including retaliatory trade measures taken by other countries in response to existing or future United States tariffs or other measures~~. As a result, we have taken steps to mitigate the impact of tariffs on our businesses, such as the March 2025 DynaEnergetics announcement that it will institute a tariff surcharge ranging from 7% to 9% on all perforating systems sold in North America in response to higher raw material costs resulting from tariffs announced by the United States to that date. We may be required to take ~~other~~further responsive steps, as the prolonged duration of tariffs, including retaliatory tariffs, the imposition of additional tariffs and the risk of potential broader global trade conflicts could have a material adverse effect on our business, financial condition or results of operations if we are not able to pass through cost increases to our customers.

~~Item~~Changes 2.in ~~Unregistered~~immigration ~~Sales~~laws ofor ~~Equity~~enforcement ~~Securities~~programs ~~and~~could ~~Use~~adversely ofaffect ~~Proceeds~~our business.

InCertain ~~connection~~states ~~with~~in ~~the~~which ~~vesting~~we ofoperate ~~Company~~are ~~restricted~~considering ~~common~~or ~~stock~~have ~~under~~already ~~our~~adopted ~~equity~~new ~~incentive~~immigration ~~plans~~laws and/or ~~distributions~~enforcement ofprograms, ~~shares~~and ofthe ~~common~~federal ~~stock~~government ~~pursuant~~from time to ~~our~~time ~~Amended~~considers and ~~Restated~~implements ~~Non-Qualified~~changes ~~Deferred~~to ~~Compensation~~federal ~~Plan~~immigration ~~(“deferred~~laws, ~~compensation~~regulations, ~~plan”~~and/or enforcement programs. Recently, Immigration and Customs Enforcement (ICE) ~~during~~has ~~the~~significantly ~~first~~increased ~~quarter~~its enforcement of ~~2025,~~immigration welaws. ~~retained~~Our ~~shares~~employment ofeligibility ~~common~~verification ~~stock~~process indoes ~~satisfaction~~not ofguarantee ~~withholding~~that ~~tax~~we ~~obligations~~will properly identify all applicants who are ineligible for employment. WeUnauthorized ~~also~~workers ~~retained~~are ~~shares~~subject ofto ~~common~~deportation ~~stock~~and asmay ~~the~~subject ~~result~~us to fines or penalties, and if any of ~~participants’~~our ~~diversification~~workers are found to be unauthorized, we could experience adverse publicity that negatively impacts our brand and may make it more difficult to hire and retain qualified employees. Additionally, increased enforcement of ~~equity~~immigration ~~awards~~laws ~~held~~may inreduce the ~~deferred~~overall ~~compensation~~labor ~~plan~~pool ~~into~~and ~~other~~as ~~investment~~a ~~options~~byproduct, increase the cost of qualified employees. These ~~shares~~factors ~~are~~could ~~held~~have asa ~~treasury~~material ~~shares~~adverse byeffect ~~the~~on ~~Company~~our business, financial condition, and results of operations.

	Total number of shares purchased (1) (2)	Average price paid per share
January 1 to January 31, 2025	10,328	$	7.23
February 1 to February 28, 2025	17,350	$	8.18
March 1 to March 31, 2025	32,940	$	8.13
Total	60,618	$	7.99

(1) Share purchases during the period were to offset tax withholding obligations that occurred upon (i) vesting of restricted common stock under the terms of the 2016 Equity Incentive Plan and (ii) distributions of shares of common stock pursuant to deferred compensation obligations.

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(Item 2). AsUnregistered ofSales ~~March 31, 2025, the maximum number~~ of ~~shares~~Equity ~~that~~Securities ~~could~~and beUse ~~purchased would not exceed the employees’ portion~~ of taxes to be withheld on unvested shares (1,046,535) and potential purchases upon participant elections to diversify equity awards held in the deferred compensation plan (35,479) into other investment options available to participants in the Plan.Proceeds

In connection with the vesting of Company restricted common stock under our equity incentive plans or distributions of shares of common stock pursuant to our Amended and Restated Non-Qualified Deferred Compensation Plan (“deferred compensation plan”) during the second quarter of 2025, we retained shares of common stock in satisfaction of withholding tax obligations. We also retained shares of common stock as the result of participants’ diversification of equity awards held in the deferred compensation plan into other investment options. These shares are held as treasury shares by the Company.


	Total number of shares purchased (1) (2)	Average price paid per share
April 1 to April 30, 2025	—	$	—
May 1 to May 31, 2025	12,174	$	6.49
June 1 to June 30, 2025	482	$	8.06
Total	12,656	$	6.55

(1) Share purchases during the period were to offset tax withholding obligations that occurred upon (i) vesting of restricted common stock under the terms of the 2016 Omnibus Incentive Plan and (ii) distributions of shares of common stock pursuant to deferred compensation obligations.

(2) As of June 30, 2025, the maximum number of shares that could be purchased would not exceed the employees’ portion of taxes to be withheld on unvested shares (1,068,148) and potential purchases upon participant elections to diversify equity awards held in the deferred compensation plan (8,699) into other investment options available to participants in the Plan.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Our Coolspring property is subject to regulation by the Federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities. During the quarter ended ~~March~~June 3130, 2025, we had no such specified health and safety violations, orders or citations, related assessments or legal actions, mining-related fatalities, or similar events in relation to our United States operations requiring disclosure pursuant to Section 1503(a) of the Dodd-Frank Act.

Item 5. Other Information

During the quarter ended ~~March~~June 3130, 2025, no director or officer (as defined in Rule 16a-1(f) under the Exchange Act) of the Company adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of Regulation S-K).

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Item 6. Exhibits

104.1 ~~Offer~~Amendment ~~Letter~~No. ~~from~~1 ~~Arcadia~~to ~~Products,~~Stockholder ~~LLC~~Protection toRights ~~James Schladen~~Agreement, dated ~~January~~as of May 30, 2025, between DMC Global Inc. and Computershare Trust Company, N.A., as Rights Agent (incorporated by reference to Exhibit 104.12 to the Company’'s Current Report on Form 8-K filed on ~~February~~June 53, 2025).

10.21 DMC Global Inc. ~~Executive~~2025 ~~Severance~~Omnibus Incentive Plan, (incorporated by reference to Exhibit 99.1 to the Company's ~~Current~~Registration ~~Report~~Statement on Form S-8 (File No. 333-K287265) filed on ~~March~~May 1814, 2025).

3110.12 ~~Certification~~Second ofAmendment to the ~~Interim~~Credit ~~President~~Agreement, ~~and~~dated ~~Chief~~June ~~Executive~~10, ~~Officer~~2025, ~~pursuant~~by toand 17between ~~CFR~~DMC ~~240~~Global Inc.~~13a-14(a) or~~, 17certain ~~CFR~~of ~~240.15d-14(a)~~its domestic subsidiaries as borrowers, the lenders party thereto and KeyBank National Association, as ~~adopted~~administrative ~~pursuant~~agent, a swing line lender and an issuing lender (incorporated by reference to Exhibit ~~Section 302~~10.1 ofto the ~~Sarbanes~~Company’s Current Report on Form 8-~~Oxley~~K ~~Act~~filed ofon ~~2002~~June 11, 2025).

10.3 Form of Executive Officer Restricted Stock Award Agreement under the 20 25 Omnibus Incentive Plan .

10.4 F orm of Director Restricted Stock Award Agreement under the 202 5 Omnibus Incentive Plan.

10.5 F or m of Exec utive Officer R estr icted Stock Unit Award Agreement under the 2025 O mnibus Incentive Plan.

10.6 Form of Executive Officer Performance Unit Agreement under the 2025 Om nibus Incentive Plan.

10.7 President and Chief Executive Officer Letter Agreement between James O’Leary and DMC Global Inc., dated as of June 20, 2025, incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on June 23, 2025.

10.8 Restricted Stock Unit Award Agreement (Chief Executive Officer Form), (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on June 23, 2025).

10.9 Performance Share Unit Award Agreement (Chief Executive Officer Form), (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on June 23, 2025).

31.1 Certification of the President and Chief Executive Officer pursuant to 17 CFR 240.13a-14(a) or 17 CFR 240.15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 Certification of the Chief Financial Officer pursuant to 17 CFR 240.13a-14(a) or 17 CFR 240.15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 Certification of the ~~Interim~~ President and Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2 Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101 The following materials from the Quarterly Report on Form 10-Q of DMC Global Inc. for the quarter ended ~~March~~June 3130, 2025, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statement of Stockholders’ Equity and Redeemable Noncontrolling Interest, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) the Notes to Condensed Consolidated Financial Statements, tagged as blocks of text.*

* Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

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SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		DMC Global Inc.
		(Registrant)
Date:	~~May~~August 15, 2025	/s/ Eric V. Walter
		Eric V. Walter, Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer)
Date:	~~May~~August 15, 2025	/s/ Brett Seger
		Brett Seger, Chief Accounting Officer (Duly Authorized Officer and Principal Accounting Officer)

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