DMC Global Inc (BOOM) Reports Q3 2023 Earnings: Adjusted Net Income Up 47% YoY
DMC Global Inc (NASDAQ:BOOM) reported Q3 2023 sales of $172.1 million, a 1% decrease compared to Q3 2022.
Adjusted net income attributable to DMC was $9.9 million, marking a 47% increase YoY.
Adjusted EBITDA attributable to DMC was $24.6 million, up 13% YoY.
Free cash flow for Q3 2023 was reported at $21.9 million.
DMC Global Inc (NASDAQ:BOOM) released its Q3 2023 earnings report on November 2, 2023. The company reported Q3 sales of $172.1 million, a 1% decrease compared to the same period in 2022. Despite the slight decrease in sales, the company's adjusted net income and adjusted EBITDA showed significant growth.
Financial Highlights
Net income for the quarter was $11.5 million, while net income attributable to DMC was $8.9 million. Adjusted net income attributable to DMC was $9.9 million, marking a 47% increase compared to Q3 2022. Adjusted diluted EPS attributable to DMC was $0.50, up 43% YoY. Adjusted EBITDA attributable to DMC was $24.6 million, up 13% YoY. Total adjusted EBITDA, inclusive of non-controlling interest (NCI), was $30.0 million, or 17.4% of sales, up 220 basis points YoY.
Business Segment Performance
DMC Global's Arcadia business reported Q3 sales of $71.5 million, down 11% YoY due to lower product pricing and operational challenges related to the implementation of a new ERP system. However, its adjusted EBITDA margin was 18.8%, up from 15.0% in Q3 2022.
DynaEnergetics, DMC's energy products business, reported sales of $73.0 million, up 4% YoY but down 14% sequentially. Its adjusted EBITDA margin was 17.2%, down from 19.8% in Q3 2022 and 23.0% in Q2 2023.
NobelClad, DMC's composite metals business, reported Q3 sales of $27.7 million, up 18% YoY, marking the strongest quarterly performance in nearly 10 years. Its adjusted EBITDA margin was 23.1%, up from 14.6% in Q3 2022.
Looking Forward
Despite macro-economic uncertainties, DMC Global is encouraged by the resiliency of Arcadias and NobelClads diverse end markets, and by the expected acceleration in well-completion activity in DynaEnergetics core North American market beginning early next year. The company's long-term strategy is to deliver adjusted EBITDA margins of 20% or better at the business level.
Explore the complete 8-K earnings release (here) from DMC Global Inc for further details.
This article first appeared on GuruFocus.
