DMC Global (NASDAQ: BOOM) has revealed key governance changes as part of its ongoing strategic review process, coinciding with an update on its business conditions and revised third-quarter financial guidance.
In a move to enhance leadership stability, the company announced that James O’Leary will take on the role of executive chairman, with Ouma Sananikone appointed as lead independent director. David Aldous has stepped down from his position as independent chairman, and Peter Rose will not seek re-election at the next annual meeting.
O’Leary, who joined the board in November 2023, brings nearly 40 years of executive leadership experience, while Sananikone, who joined in 2023, has more than 30 years of expertise in finance and asset management. These appointments aim to strengthen governance during a challenging period for the company.
DMC’s Board of Directors also announced that it is no longer actively marketing DynaEnergetics and NobelClad, which were under strategic review since January 2024. After exploring various options, the board concluded that focusing on internal improvements and stability would better serve shareholders amid recent macroeconomic challenges.
In terms of financial outlook, DMC anticipates third-quarter sales of approximately $152 million, down from earlier estimates, with adjusted EBITDA expected to be around $5 million. The results will include a significant non-cash goodwill impairment charge of about $142 million related to its acquisition of Arcadia in December 2021, reflecting the subsidiary’s recent performance and market conditions.
Broomfield-based DMC operates manufacturing businesses — Arcadia, DynaEnergetics and NobelClad — that provide engineered products and solutions for the architectural, energy, industrial infrastructure and transportation sectors.