What is the outlook for increased well completions for DynaEnergetics in H2 FY26 and into FY27?

It's too early to predict for 2027, but anecdotes suggest a pickup in H2 FY26, with hopes for momentum into 2027. However, international supply chain disruptions, particularly in Europe, are impacting shipments to Middle Eastern customers. “Everyone is still expecting a pickup in the second half. and everyone is saying they're hoping there'll be momentum into 2027. We're not hearing anything that contradicts it. It's just been slow to come.”

What is the potential market size or growth for DynaEnergetics in enhanced geothermal systems (EGS) over the next few years?

It's too early to quantify the market size. The analyst was directed to Fervo's S-1 filings and website as the pioneer in this area for more information. “Way too early. I wouldn't say it's testing, but look, the best indicator and something I draw your attention to, take a look at Fervo's S-1, take a look at their website, they're the pioneer in this area.”

Is DynaEnergetics' integrated perf gun technology a differentiator in geothermal like it is in oil and gas, or just another opportunity?

The technology uses existing perf gun principles but with specific nuances (e.g., 5-inch gun, detonator tweaks) tailored for different rock formations in geothermal applications. DMC's expertise makes them a technology leader, enabling partnership and handholding in this emerging space. “The type of gun, we're using a 5-inch gun and some additional tweaks because we are -- I still think it's safe to say we're the technology leader there. We're doing a lot of handholding, a lot of partnership, and you can only really do that if you have an expertise in the area.”

BOOM

DMC Global (BOOM) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Energy· Jul 29, 2026

Source: earnings call transcript

Executive summary

DMC Global Q2 FY26 — Arcadia's Operational Turnaround Drives Stronger Consolidated Results

DMC Global delivered Q2 FY26 results at the high end of its guidance, primarily driven by a significant operational turnaround at Arcadia, which saw strong sequential sales and EBITDA margin improvement despite a challenging commercial construction market. While DynaEnergetics and NobelClad faced headwinds from commodity markets and input costs, the company is focused on disciplined execution and cost controls. Management also provided detailed clarity on the upcoming Arcadia non-controlling interest put/call option, emphasizing shareholder protections and redemption considerations.

Highlights

Consolidated sales of $157 million were at the high end of the forecasted range.
Adjusted EBITDA attributable to DMC of $10.7 million exceeded the high end of the range.
Arcadia's sales increased 9% year-over-year and 19% sequentially, marking its strongest quarterly sales performance since Q2 2024.
Arcadia achieved its best EBITDA performance in over a year, with adjusted EBITDA margin of 13.6%.
DynaEnergetics sales increased 13% sequentially, benefiting from a $1.5 million tariff refund.

Concerns

Continued headwinds in end markets, with the commercial construction market described as "still horrible" and the Architectural Billings Index showing 41 consecutive months without growth.
DynaEnergetics adjusted EBITDA margin declined to 8.4% from 13.4% year-over-year due to unfavorable mix, increased input costs, and price pressure.
NobelClad sales were down 17% year-over-year due to lower activity in the global oil and gas market.
Net debt increased to $30.5 million, up from $18.7 million at 2025 year-end, primarily due to higher credit facility borrowings.
Net cash used in operations was $8 million, reflecting investments in working capital.

Guidance & targets

Category	Target	Timeline	Confidence
Sales	$158 million to $168 million high materiality	Q3 · FY26	Medium
Adjusted EBITDA attributable to DMC	$10 million to $13 million high materiality	Q3 · FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Arcadia Strongest quarterly sales performance since Q2 2024 and best EBITDA performance in over a year, despite a "horrible" commercial construction market. Improvement reflects better product availability, service, and rightsizing residential offerings. Adjusted EBITDA margin before NCI allocation: 13.6%	—	9%	19%	13.6%
DynaEnergetics Sales were flat year-over-year but increased sequentially. Adjusted EBITDA margin was down from 13.4% last year due to unfavorable pricing, mix, and higher input costs, but benefited from a $1.5 million tariff refund. Adjusted EBITDA margin: 8.4%	—	flat	13%	8.4%
NobelClad Sales were down year-over-year due to lower global oil and gas activity but increased sequentially due to increased deliveries on a large petrochemical order. Maintains a healthy backlog expected to drive strong H2 results. Adjusted EBITDA margin: 13.7%	—	down 17%	up 15%	13.7%

Deals & partnerships

joint venture partner Put/call option for remaining 40% non-controlling interest in Arcadia approximately $162 million

The put option held by the JV partner becomes exercisable on September 6. Preferred shares are convertible on a one-for-one basis and mandatorily redeemable. NASDAQ rules limit conversion to 19.9% of outstanding common shares without shareholder approval. Redemption of preferred shares is subject to Delaware law, requiring the Board to determine sufficient legally available funds and ensure no impairment to DMC's solvency.

Risks & headwinds

Continued headwinds in end markets ongoing

Commercial construction market "still horrible"; Architectural Billings Index (ABI) 41 consecutive months without billings growth.

Mitigation:Successful initiatives at Arcadia to improve product availability and service, refocusing on attainable targets.

Unfavorable mix, increased input costs, and price pressure Q2 FY26

DynaEnergetics adjusted EBITDA margin was 8.4%, down from 13.4% year-over-year.

Mitigation:Focus on disciplined execution and tight cost controls.

Lower activity in the global oil and gas market Q2 FY26

NobelClad second quarter sales were down 17% year-over-year.

Mitigation:Healthy backlog with expected increased shipments to drive strong results during the second half of the year.

Increased disruptions in international supply chains due to renewed hostilities in the Middle East Q3 FY26 guidance

Could impact both DynaEnergetics and NobelClad.

Mitigation:Not contemplated in guidance, but company is mindful of potential impact.

Continued volatility in aluminum input costs at Arcadia Q3 FY26 guidance

Exacerbated by geopolitical events.

Mitigation:Not contemplated in guidance, but company is mindful of potential impact.

Generally weaker end market conditions Q3 FY26 guidance

Macroeconomic conditions, including evolving tariff policies, particularly in core energy and construction markets.

Mitigation:Not contemplated in guidance, but company is mindful of potential impact.

Competitive landscape and pricing dynamics for perf guns ongoing

Still very challenging; no price increases, very competitive.

Mitigation:Focus on disciplined execution and tight cost controls.

Margin squeeze due to tariffs and input costs ongoing

Painful and visible in results.

Mitigation:Focus on disciplined execution and tight cost controls.

What to watch in Q3 FY26

Arcadia short-cycle business recovery

next quarter

Current Consistently up day after day

Target Continued growth and further market share recapture

Why it matters

Indicates successful operational improvements despite macro headwinds, crucial for Arcadia's stability and overall company performance.

The basic, Jim calls it the bread and butter business, the stuff that Arcadia was really I don't know, founded on is wrong. But the thing that made it successful in good times, bad times through recessions was just how important it was in the supply chain for its customers. And we think we're getting that business back.

Find out whether BOOM delivers this. Inve re-checks your case every morning.

Q&A highlights

Did Arcadia recapture all lost business from Q1 supply chain constraints, or is there still opportunity for market share gain?

Arcadia has likely recaptured a significant portion of its lost short-cycle business by stabilizing the supply chain and rebuilding customer trust. Some market share lost to aggressive pricing from competitors is not currently being pursued, but could be regained in better market conditions.

“I think we've probably gotten back a lot of the share that's within our control, and the rest, we probably don't want to participate in, but at least right now.”

asked by Gerard Sweeney · answered by James O'Leary

2 min read 5 chapters

Detailed narrative

Arcadia's Operational Turnaround

Arcadia demonstrated significant improvement in Q2 FY26, with sales up 9% YoY and 19% sequentially, achieving its strongest quarterly sales since Q2 2024 and best EBITDA performance in over a year. This recovery was driven by successful initiatives to improve product availability and service, particularly for core short-cycle products, and a refocus on attainable targets for residential offerings.

The return of Jim Slaten and stabilization of the supply chain were critical, allowing Arcadia to recapture market share in its 'bread and butter' storefront business despite a "horrible" commercial construction market.

DynaEnergetics Market Dynamics and EGS Opportunity

DynaEnergetics' sales were flat YoY but increased 13% sequentially, benefiting from a $1.5 million tariff refund. However, profitability was impacted by unfavorable mix, increased input costs, and persistent price pressure, leading to an adjusted EBITDA margin of 8.4%, down from 13.4% YoY.

The company anticipates a pickup in well completion activity in North America in H2 FY26, with potential momentum into 2027, though international supply chain disruptions remain a concern. DynaEnergetics also completed its first shipment of a new perforating system for enhanced geothermal systems (EGS), an emerging market with significant potential, though still in early stages.

NobelClad's Backlog and H2 Outlook

NobelClad experienced a 17% YoY sales decline in Q2 FY26 due to lower activity in the global oil and gas market, but sales were up 15% sequentially driven by increased deliveries on a large petrochemical order. The business maintains a healthy backlog, and management expects increased shipments from this backlog, including previously delayed customer orders, to drive strong financial results during the second half of the year.

This anticipated performance is crucial for offsetting current market headwinds.

Clarity on Arcadia Non-Controlling Interest (NCI) Put/Call Option

Management provided extensive detail on the put/call option for the remaining 40% non-controlling interest in Arcadia, exercisable by the JV partner on September 6. DMC can acquire the interest via a call option, or settle the put option with cash or a combination of 20% cash and 80% preferred shares.

Critical considerations include NASDAQ rules limiting preferred share conversion to 19.9% without shareholder approval, ensuring shareholder control over dilution. Additionally, preferred share redemption is subject to Delaware law, requiring the Board to determine sufficient legally available funds and ensure no impairment to DMC's solvency.

Company-Wide Operational Discipline

Across all segments, DMC Global is emphasizing disciplined execution and tight cost controls to navigate challenging market conditions. This focus aims to allow each business to capitalize on eventual market improvements. The company acknowledged that while internal initiatives are yielding results, particularly at Arcadia, external factors such as interest rates, aluminum input costs, and geopolitical events continue to present significant headwinds.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.