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BUSINESS SEGMENTS | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | 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. Segment information is as follows for the three months ended September 30, 2025:
| Arcadia Products |  | DynaEnergetics |  | NobelClad |  | Total
Net sales | $ | 61,661 |  |  | $ | 68,946 |  |  | $ | 20,925 |  |  | $ | 151,532 |
Cost of products sold | 43,944 |  |  | 58,970 |  |  | 15,717 |  |  | 118,631 |
Gross profit | 17,717 |  |  | 9,976 |  |  | 5,208 |  |  | 32,901 |
Stock-based compensation* | 18 |  |  | — |  |  | — |  |  | 18 |
General and administrative expenses | 6,062 |  |  | 2,416 |  |  | 2,076 |  |  | 10,554 |
Selling and distribution expenses | 4,156 |  |  | 4,514 |  |  | 1,870 |  |  | 10,540 |
Amortization of purchased intangible assets | 4,764 |  |  | — |  |  | — |  |  | 4,764 |
Restructuring expenses and asset impairments | 132 |  |  | 57 |  |  | 1,013 |  |  | 1,202 |
Operating income | 2,585 |  |  | 2,989 |  |  | 249 |  |  | 5,823 |
Unallocated corporate expenses |  |  |  |  |  |  | (3,871) |
Unallocated stock-based compensation* |  |  |  |  |  |  | (1,342) |
Other expense, net |  |  |  |  |  |  | (334) |
Interest expense, net |  |  |  |  |  |  | (1,632) |
Loss before income taxes |  |  |  |  |  |  | (1,356) |
Income tax provision |  |  |  |  |  |  | 714 |
Net loss |  |  |  |  |  |  | $ | (2,070) |
Segment information is as follows for the nine months ended September 30, 2025:
| Arcadia Products |  | DynaEnergetics |  | NobelClad |  | Total
Net sales | $ | 189,221 |  |  | $ | 201,359 |  |  | $ | 75,729 |  |  | $ | 466,309 |
Cost of products sold | 134,893 |  |  | 164,613 |  |  | 55,831 |  |  | 355,337 |
Gross profit | 54,328 |  |  | 36,746 |  |  | 19,898 |  |  | 110,972 |
Stock-based compensation* | 493 |  |  | — |  |  | — |  |  | 493 |
General and administrative expenses | 19,695 |  |  | 8,191 |  |  | 4,119 |  |  | 32,005 |
Selling and distribution expenses | 13,104 |  |  | 12,764 |  |  | 6,277 |  |  | 32,145 |
Amortization of purchased intangible assets | 14,290 |  |  | — |  |  | — |  |  | 14,290 |
Restructuring expenses and asset impairments | 649 |  |  | 803 |  |  | 1,224 |  |  | 2,676 |
Operating income | 6,097 |  |  | 14,988 |  |  | 8,278 |  |  | 29,363 |
Unallocated corporate expenses |  |  |  |  |  |  | (14,496) |
Unallocated stock-based compensation* |  |  |  |  |  |  | (3,847) |
Other expense, net |  |  |  |  |  |  | (898) |
Interest expense, net |  |  |  |  |  |  | (5,142) |
Income before income taxes |  |  |  |  |  |  | 4,980 |
Income tax provision |  |  |  |  |  |  | 4,866 |
Net income |  |  |  |  |  |  | $ | 114 |
Segment information is as follows for the three months ended September 30, 2024:
| Arcadia Products |  | DynaEnergetics |  | NobelClad |  | Total
Net sales | $ | 57,818 |  |  | $ | 69,679 |  |  | $ | 24,932 |  |  | $ | 152,429 |
Cost of products sold | 44,256 |  |  | 61,332 |  |  | 16,663 |  |  | 122,251 |
Gross profit | 13,562 |  |  | 8,347 |  |  | 8,269 |  |  | 30,178 |
Stock-based compensation* | 315 |  |  | — |  |  | — |  |  | 315 |
General and administrative expenses | 7,006 |  |  | 2,299 |  |  | 1,110 |  |  | 10,415 |
Selling and distribution expenses | 4,112 |  |  | 7,276 |  |  | 2,190 |  |  | 13,578 |
Amortization of purchased intangible assets | 5,278 |  |  | — |  |  | — |  |  | 5,278 |
Restructuring expenses and asset impairments | 248 |  |  | 1,821 |  |  | — |  |  | 2,069 |
Goodwill impairment | 141,725 |  |  | — |  |  | — |  |  | 141,725 |
Operating (loss) income | (145,122) |  |  | (3,049) |  |  | 4,969 |  |  | (143,202) |
Unallocated corporate expenses |  |  |  |  |  |  | (4,377) |
Unallocated stock-based compensation* |  |  |  |  |  |  | (1,356) |
Other expense, net |  |  |  |  |  |  | (520) |
Interest expense, net |  |  |  |  |  |  | (2,113) |
Loss before income taxes |  |  |  |  |  |  | (151,568) |
Income tax provision |  |  |  |  |  |  | 7,848 |
Net loss |  |  |  |  |  |  | $ | (159,416) |
Segment information is as follows for the nine months ended September 30, 2024:
| Arcadia Products |  | DynaEnergetics |  | NobelClad |  | Total
Net sales | $ | 189,491 |  |  | $ | 224,011 |  |  | $ | 76,975 |  |  | $ | 490,477 |
Cost of products sold | 135,959 |  |  | 183,560 |  |  | 51,840 |  |  | 371,359 |
Gross profit | 53,532 |  |  | 40,451 |  |  | 25,135 |  |  | 119,118 |
Stock-based compensation* | 938 |  |  | — |  |  | — |  |  | 938 |
General and administrative expenses | 22,049 |  |  | 8,201 |  |  | 3,207 |  |  | 33,457 |
Selling and distribution expenses | 12,451 |  |  | 17,540 |  |  | 6,927 |  |  | 36,918 |
Amortization of purchased intangible assets | 15,833 |  |  | 44 |  |  | — |  |  | 15,877 |
Restructuring expenses and asset impairments | 527 |  |  | 1,821 |  |  | — |  |  | 2,348 |
Goodwill impairment | 141,725 |  |  | — |  |  | — |  |  | 141,725 |
Operating (loss) income | (139,991) |  |  | 12,845 |  |  | 15,001 |  |  | (112,145) |
Unallocated corporate expenses |  |  |  |  |  |  | (14,531) |
Unallocated stock-based compensation* |  |  |  |  |  |  | (3,886) |
Other expense, net |  |  |  |  |  |  | (1,213) |
Interest expense, net |  |  |  |  |  |  | (6,746) |
Loss before income taxes |  |  |  |  |  |  | (138,521) |
Income tax provision |  |  |  |  |  |  | 12,283 |
Net loss |  |  |  |  |  |  | $ | (150,804) |
* 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.
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Depreciation and amortization: |  |  |  |  |  |  |
Arcadia Products | $ | 5,784 |  |  | $ | 6,192 |  |  | $ | 17,332 |  |  | $ | 18,510 |
DynaEnergetics | 1,821 |  |  | 1,642 |  |  | 5,434 |  |  | 5,039 |
NobelClad | 813 |  |  | 807 |  |  | 2,388 |  |  | 2,377 |
Segment depreciation and amortization | 8,418 |  |  | 8,641 |  |  | 25,154 |  |  | 25,926 |
Corporate and other | 79 |  |  | 81 |  |  | 236 |  |  | 245 |
Consolidated depreciation and amortization | $ | 8,497 |  |  | $ | 8,722 |  |  | $ | 25,390 |  |  | $ | 26,171 |
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 September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
West | $ | 51,342 |  |  | $ | 48,020 |  |  | $ | 157,873 |  |  | 156,171 |
South | 4,153 |  |  | 5,656 |  |  | 15,147 |  |  | 18,967 |
Northeast | 3,664 |  |  | 2,025 |  |  | 9,300 |  |  | 7,410 |
Midwest | 2,502 |  |  | 2,117 |  |  | 6,901 |  |  | 6,943 |
Total Arcadia Products | $ | 61,661 |  |  | $ | 57,818 |  |  | $ | 189,221 |  |  | $ | 189,491 |
DynaEnergetics
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
United States | $ | 54,975 |  |  | $ | 53,924 |  |  | $ | 160,426 |  |  | $ | 170,916 |
United Arab Emirates | 2,652 |  |  | 56 |  |  | 3,375 |  |  | 181 |
Kuwait | 1,298 |  |  | 2,340 |  |  | 2,916 |  |  | 4,792 |
Canada | 1,255 |  |  | 5,809 |  |  | 9,121 |  |  | 18,920 |
Oman | 986 |  |  | 1,770 |  |  | 3,830 |  |  | 6,281 |
Indonesia | 376 |  |  | 306 |  |  | 2,912 |  |  | 1,748 |
India | 172 |  |  | 201 |  |  | 438 |  |  | 6,344 |
Rest of the world (1) | 7,232 |  |  | 5,273 |  |  | 18,341 |  |  | 14,829 |
Total DynaEnergetics | $ | 68,946 |  |  | $ | 69,679 |  |  | $ | 201,359 |  |  | $ | 224,011 |
(1) Rest of the world does not include any individual country comprising sales greater than 3% of total DynaEnergetics revenue. NobelClad
| Three months ended September 30, |  | Nine months ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
United States | $ | 7,031 |  |  | $ | 12,656 |  |  | $ | 24,379 |  |  | $ | 39,644 |
Canada | 2,982 |  |  | 1,225 |  |  | 8,020 |  |  | 8,697 |
South Korea | 1,985 |  |  | 116 |  |  | 3,704 |  |  | 640 |
Germany | 1,791 |  |  | 684 |  |  | 16,942 |  |  | 2,549 |
China | 1,731 |  |  | 2,273 |  |  | 2,302 |  |  | 3,562 |
France | 812 |  |  | 709 |  |  | 2,312 |  |  | 2,408 |
Bahrain | 717 |  |  | 758 |  |  | 1,028 |  |  | 1,739 |
South Africa | 641 |  |  | 7 |  |  | 906 |  |  | 1,323 |
United Arab Emirates | 594 |  |  | 1,340 |  |  | 2,010 |  |  | 2,495 |
Netherlands | 437 |  |  | 891 |  |  | 1,457 |  |  | 2,700 |
Belgium | 230 |  |  | 106 |  |  | 3,047 |  |  | 491 |
Saudi Arabia | 119 |  |  | 2,133 |  |  | 2,773 |  |  | 2,746 |
Rest of the world (1) | 1,855 |  |  | 2,034 |  |  | 6,849 |  |  | 7,981 |
Total NobelClad | $ | 20,925 |  |  | $ | 24,932 |  |  | $ | 75,729 |  |  | $ | 76,975 |
(1) Rest of the world does not include any individual country comprising sales greater than 3% of total NobelClad revenue. During the three and nine months ended September 30, 2025, one DynaEnergetics customer accounted for approximately 26% and 25%, respectively, of consolidated net sales. During the three and nine months ended September 30, 2024, one DynaEnergetics customer accounted for approximately 25% and 23%, respectively, of consolidated net sales. Additionally, the same DynaEnergetics customer accounted for approximately 33% and 30% of consolidated accounts receivable as of September 30, 2025, and December 31, 2024, respectively.

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