Slide 1: First Quarter 2025 Earnings Presentation
First Quarter 2025 Earnings Presentation May 1, 2025 1 © 2025 DMC. All rights reserved. ARCADIA COMMERCIAL FRAMING SYSTEMS USED IN HILTON’S CANOPY HOTEL, TEMPE ARIZONA
Slide 2: Use of Non-GAAP Financial Measures & Safe Harbor Language
USE OF NON-GAAP FINANCIAL MEASURES & SAFE HARBOR LANGUAGE *Use of Non-GAAP Financial Measures Adjusted net income, adjusted diluted EPS, adjusted EBITDA, net debt, and free-cash flow are non-GAAP financial measures used by management to measure operating performance. For reconciliations of the most
Slide 3: Agenda
AGENDA Opening Remarks and Operational Update • James O’ Leary – Interim CEO Financial Results and Guidance • Eric Walter – Chief Financial Officer Questions and Answers Concluding Remarks AN EMPLOYEE AT NOBELCLAD’S LIEBENSCHEID, GERMANY FACILITY MANEUVERS A 30-METRIC-TON CLAD METAL PLATE – ONE OF 2
Slide 4: First Quarter Summary
FIRST QUARTER SUMMARY • Consolidated sales were $159.3 million, up 5% sequentially and down 5% vs Q1 ‘24 • YoY decline reflects softer demand and pricing pressure in DynaEnergetics’ primary North American market • Net income attributable to DMC was $0.7 million, while total net income was $1.9 milli
Slide 5: DMC Q1 2025 Financial Highlights
DMC Q1 2025 FINANCIAL HIGHLIGHTS Sales Adjusted EBITDA / % of Sales $200 $20 $19 / 11.4% $18 / 11.4% $167 2.4 $152 $159 3.7 $150 26.8 $15 28.4 28.2 $12 / 7.8% 1.5 $100 78.1 65.6 $10 63.7 16.7 14.4 $50 $5 10.4 61.9 60.3 65.6 $0 $0 Q1 ' 24 Q4 '24 Q1 ' 25 Q1 ' 24 Q4 '24 Q1 ' 25 $ In Millions $ In Milli
Slide 6: First Quarter 2025 Business-Level Financial Performance
FIRST QUARTER 2025 BUSINESS-LEVEL FINANCIAL PERFORMANCE Arcadia DynaEnergetics NobelClad Sales Sales Sales $78 $27 $28 $28 $80 $62 $66 $80 $64 $66 $30 $60 $60 $60 $20 $40 $40 $20 $20 $10 $0 $0 $0 Q1 ' 24 Q4 '24 Q1 ' 25 Q1 ' 24 Q4 '24 Q1 ' 25 Q1 ' 24 Q4 '24 Q1 ' 25 $ In Millions $ In Millions $ In Mi
Slide 7: Overview of Liquidity
OVERVIEW OF LIQUIDITY Liquidity Summary March 31, 2025(1) Debt-to-Adjusted EBITDA Leverage Ratio Cash and Cash Equivalents $15 Unused Credit Capacity (2) $224 Total $239 1.50 1.35 1.38 1.30 1.26 1.25 Total Outstanding Debt (3) $72 1.18 1.10 1.00 Net Debt $58 Q1 '23 Q2 '23 Q3 '2 3 Q4 ' 23 Q1 '24 Q2 '
Slide 8: Guidance for Second Quarter 2025
GUIDANCE FOR SECOND QUARTER 2025 Measure Expected Range DMC Consolidated Sales $149M - $157M Adjusted EBITDA attributable to DMC $10M - $13M 8 2025 First Quarter Earnings Presentation
Slide 9: Key Objectives for 2025
KEY OBJECTIVES FOR 2025 • Continue ”back-to-basics” initiatives across the portfolio • Adjust cost structure to match market realities • Strengthen Arcadia’s core commercial operations in western and southwestern U.S. regions • Right-size Arcadia’s high-end custom residential product offerings • Del
Slide 10: Net Debt and Free-Cash Flow
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – NET DEBT AND FREE-CASH FLOW ($000’s) Q1 2025 Long-term debt $69,921 Current portion of long-term debt 2,500 Less: Cash and cash equivalents (14,705) Total net debt $57,716 Net cash provided by operating activities $4,488 Less: Acquisition of prope
Slide 11: Consolidated Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – CONSOLIDATED ADJUSTED EBITDA ($000’s) Q1 2025 Q4 2024 Q1 2024 Net income (loss) 1,863 (1,156) 2,319 Interest expense, net 1,699 1,918 2,317 Income tax provision (benefit) 2,733 (1,313) 1,643 Depreciation 3,660 3,597 3,419 Amortization of purchased
Slide 12: Arcadia Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – ARCADIA ADJUSTED EBITDA ($000’s) Q1 2025 Q4 2024 Q1 2024 Operating income (loss), as reported 2,996 (3,645) (588) Adjustments Depreciation 1,006 1,004 875 Amortization of purchased intangible assets 4,763 5,278 5,277 Stock-based compensation 237 9
Slide 13: DynaEnergetics Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – DYNAENERGETICS ADJUSTED EBITDA ($000’s) Q1 2025 Q4 2024 Q1 2024 Operating income, as reported 5,588 3,322 8,842 Adjustments Depreciation 1,791 1,716 1,682 Amortization of purchased intangible assets - - 15 Restructuring expenses and asset impairme
Slide 14: NobelClad Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – NOBELCLAD ADJUSTED EBITDA ($000’s) Q1 2025 Q4 2024 Q1 2024 Operating income, as reported 4,622 5,050 5,100 Adjustments Depreciation 794 798 780 Adjusted EBITDA 5,416 5,848 5,880 2025 First Quarter Earnings Presentation 14