Executive Summary

Q4 revenue of $152.4M was flat sequentially and down 12% YoY, while adjusted EBITDA attributable to DMC rose to $10.4M (7.8% margin before NCI), beating management’s guidance ($5–$8M) as operational stabilization offset end-market weakness .
GAAP diluted EPS was $(0.17); adjusted diluted EPS was $0.09, aided by lower SG&A and improved segment profitability at DynaEnergetics and NobelClad versus Q3; non-GAAP adds primarily reflected strategic review and restructuring costs .
Guidance: Q1 2025 sales $146–$154M and adjusted EBITDA (attributable) $8–$11M imply roughly flat activity versus Q4 as management monitors tariff policy and macro uncertainty in construction and energy markets .
Strategic/backdrop: DMC extended Arcadia put obligation to no earlier than Sep-2026 (deleveraging optionality). In Feb-2025, the Board rejected Steel Connect’s $10.18/share proposal as undervaluing the turnaround and cyclical upside; Q4 results exceeded the high end of guidance, reinforcing stabilization .

What Went Well and What Went Wrong

What Went Well
- Q4 outperformed guidance: revenue $152.4M vs guide $138–$148M; adjusted EBITDA (attributable) $10.4M vs guide $5–$8M, driven by stabilization across all three businesses and better execution .
- DynaEnergetics margin recovery: adjusted EBITDA improved to $5.1M (8.0% margin) from $0.4M (0.6%) in Q3 as Q3-specific inventory/bad-debt charges rolled off and cost actions took hold .
- NobelClad posted its second-best quarterly sales in a decade; strong shipments and sustained 20%+ EBITDA margin underscore resilient industrial demand despite backlog drawdown .
- Management quote: “Fourth quarter sales of $152.4 million and adjusted EBITDA… of $10.4 million both exceeded our guidance… reflecting the progress we made to stabilize our 2 largest businesses while executing on several self-help initiatives.” — Interim CEO Jim O’Leary .
What Went Wrong
- Arcadia exposure to luxury residential: net sales down 11% YoY and margin compression due to fixed cost absorption in high-end residential products; gross margin fell to 22.4% vs 27.8% in Q4’23 .
- DynaEnergetics top-line pressure: sales down 9% q/q and 15% y/y on North America pricing and seasonal completion slowdown; margins remain below prior-year levels .
- Backlog at NobelClad fell to $49M from $59M as robust Q4 shipments outpaced bookings; tariff-related competitiveness risks flagged for U.S. fabricators in Q&A .

Financial Results

Sequential trend (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Net Sales ($M)	$171.2	$152.4	$152.4
GAAP Diluted EPS ($)	$0.24	$(8.27)	$(0.17)
Adjusted Diluted EPS ($)	$0.29	$(0.49)	$0.09
Gross Margin %	27.1%	19.8%	20.8%
Adjusted EBITDA – attributable ($M)	$19.4	$5.7	$10.4
Adjusted EBITDA margin – before NCI	14.3%	4.6%	7.8%

YoY comparison (Q4 2023 → Q4 2024)

Metric	Q4 2023	Q4 2024
Net Sales ($M)	$174.0	$152.4
GAAP Diluted EPS ($)	$0.01	$(0.17)
Adjusted Diluted EPS ($)	$0.26	$0.09
Gross Margin %	26.1%	20.8%
Adjusted EBITDA – attributable ($M)	$19.6	$10.4
Adjusted EBITDA margin – before NCI	13.4%	7.8%

Segment breakdown (oldest → newest)

Segment	Q4 2023 Net Sales ($M)	Q3 2024 Net Sales ($M)	Q4 2024 Net Sales ($M)	Q4 2023 Adj. EBITDA ($M)	Q3 2024 Adj. EBITDA ($M)	Q4 2024 Adj. EBITDA ($M)	Q4 2024 Adj. EBITDA Margin
Arcadia	68.0	57.8	60.3	9.2 (pre-NCI)	3.4 (pre-NCI)	3.7 (pre-NCI)	6.2% (pre-NCI)
DynaEnergetics	75.3	69.7	63.7	9.3	0.4	5.1	8.0%
NobelClad	30.8	24.9	28.4	7.6	5.8	5.8	20.6%

KPIs and Balance Sheet

KPI	Q3 2024	Q4 2024
NobelClad Backlog ($M)	$59	$49
Rolling 12M Bookings (NobelClad)	$103.9M	$96.6M
12M Book-to-Bill (NobelClad)	0.96	0.92
Cash & Equivalents ($M)	$14.5	$14.3
Total Debt ($M)	~$74 incl. issuance costs (Q3 call)	~$71 incl. issuance costs (Q4 call)
Net Debt ($M)	~$60 (Q3 call)	~$57 (Q4 call)
Leverage (Debt/Adj. EBITDA)	1.18x (Q3)	1.35x (Q4)

Non-GAAP adjustments (Q4 2024)

Adjusted Net Income attributable: $1.8M; adds include strategic review ($1.36M, net of tax) and restructuring/impairment ($0.10M), yielding adjusted diluted EPS $0.09; diluted shares ~19.73M .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Sales	Q4 2024	$138M–$148M (Nov-2024)	Actual: $152.4M (for reference)	Outperformed prior guidance
Adjusted EBITDA (attributable)	Q4 2024	$5M–$8M (Nov-2024)	Actual: $10.4M (for reference)	Outperformed prior guidance
Consolidated Sales	Q1 2025	—	$146M–$154M	New
Adjusted EBITDA (attributable)	Q1 2025	—	$8M–$11M	New

Notes: Management reiterated limited guidance (sales and adjusted EBITDA only) amid volatility; businesses are monitoring evolving U.S./reciprocal tariff policies .

Earnings Call Themes & Trends

Topic	Q2 2024 (8/1)	Q3 2024 (11/4)	Q4 2024 (2/24)	Trend
Arcadia: residential vs. commercial mix	Q2 margin rebound via finishing ops debottlenecking; weak end-markets; cost actions .	Goodwill impairment; high-end residential softness; supply chain/ERP/process fixes under interim president .	“Back-to-basics”; rightsizing high-end residential; refocus on core commercial; potential LA wildfire rebuild tailwind .	Stabilizing; pivot to core; cautious near term.
DynaEnergetics: pricing/automation	Softer NA completions; pricing pressure; automation Phase 1; next-gen DynaStage timing to aid margins .	Further NA completion decline; low-margin mix; margin hit incl. charges .	Next-gen DynaStage fully adopted; Phase 2 automation to complete in Q2; sequential margin recovery .	Self-help driving margin rebuild despite flat macro.
NobelClad: backlog/mix	Strong backlog ($64M), favorable mix; bookings robust .	23%+ EBITDA margin; backlog $59M; book-to-bill 0.96 .	Second-best sales in decade; backlog $49M; healthy inquiries; tariff sensitivity for U.S. fabricators .	Solid execution; watch backlog replenishment, tariffs.
Tariffs/macro	Not prominent.	High rates hurting Arcadia; frac holiday expected Q4 .	Monitoring evolving U.S./reciprocal tariffs; uncertainty across segments .	Elevated uncertainty persists.
Capital/structure	—	Strategic review context; impairment at Arcadia .	Extended Arcadia put to ≥ Sep-2026; focus on FCF and deleveraging .	Improved optionality; delever focus.

Management Commentary

“Our #1 priority is free cash flow. Our tenth priority is free cash flow. And every number in between is free cash flow and debt repayment.” — Jim O’Leary (closing remarks) .
“Dyna’s latest DynaStage… has been value reengineered to use less raw material… more compact… delivers a further improvement in downhole reliability… customers have completed the transition to the new system.” .
“Arcadia… refocusing on… core commercial operations… rightsizing areas, notably in the custom residential operations.” .
CFO: “We ended the fourth quarter with cash and cash equivalents of approximately $14 million… total debt… approximately $71 million… net debt roughly $57 million… leverage ratio 1.35x, below the 3.0x covenant.” .

Q&A Highlights

Arcadia rightsizing: Headcount in high-end residential cut from ~100–120 FTEs to ~20–30%; absorption issues largely “in the rear view mirror” on an EBITDA basis, with optionality to downsize further if needed .
Dyna forward margins: In flattish/soft completion environment, margin improvement expected primarily from self-help; company-wide EBITDA margins viewed as “high single digits” until macro improves .
NobelClad confidence/backlog: Despite lower backlog, management expects momentum to continue near term; flagged potential competitiveness impact on U.S. fabricators from tariffs .
Segment cadence: No large moving pieces called out for Q1; overarching uncertainty tied to tariffs and macro demand .

Estimates Context

S&P Global consensus (EPS and revenue) for Q4 2024 could not be retrieved due to provider rate limits at the time of request; as a result, Street beat/miss versus consensus cannot be determined here. Values retrieved from S&P Global.
Notably, Q4 results exceeded DMC’s own Q4 guidance on both sales and adjusted EBITDA, providing a positive fundamental surprise relative to internal expectations .

Key Takeaways for Investors

Q4 execution beat internal guidance as stabilization and self-help actions (Arcadia rightsizing, Dyna automation/value engineering) drove sequential EBITDA improvement; near-term guide implies flattish Q1 as macro/tariff uncertainties persist .
Arcadia strategy has pivoted decisively to core commercial; residential exposure is rightsized, with potential medium-term tailwind from LA wildfire rebuild efforts, though timing is extended and uncertain .
Dyna’s product and automation upgrades should support margin recovery even if U.S. completions remain flat; monitoring pricing and mix in North America remains critical .
NobelClad continues to generate strong margins; watch backlog rebuild and tariff pass-through/competitiveness for U.S. fabricators .
Balance sheet manageable (net debt ~$57M; leverage 1.35x) with explicit focus on FCF and deleveraging; Arcadia put extension to ≥ Sep-2026 reduces near-term refinancing/dilution risk .
Strategic interest highlights underlying asset value (Steel Connect approach rejected); stabilization plus self-help initiatives are central to re-rating potential as end markets recover .

Appendix: Source Tables and Select Disclosures

Summary Q4’24 results and segment detail (press release and 8-K) .
Non-GAAP reconciliation detail for adjusted EPS/EBITDA (quarter and year) .
Prior quarter trend (Q2, Q3) and guidance bridge to Q4 actuals .
Q1’25 guidance commentary and tariff monitoring .
Backlog/bookings for NobelClad .
Liquidity/leverage from CFO remarks .

DMC Global Inc. (BOOM)·Q4 2024 Earnings Summary