DMC Global Inc.

Greetings and welcome to the DMC Global Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Geoff High, Vice President of Investor Relations. Thank you. You may begin.

Hello and welcome to DMC's third quarter conference call. Presenting today are President and CEO Jim O'Leary and Chief Financial Officer Eric Walter. I'd like to remind everyone that matters discussed during this call may include forward-looking statements that are based on our estimates, projections, and assumptions as of today's date and are subject to risks and uncertainties that are disclosed in our filings with the SEC. Our business is subject to certain risks that could cause actual results to differ materially from those anticipated in our forward-looking statements. DMC assumes no obligation to update forward-looking statements that become untrue because of subsequent events. Today's earnings release and a related presentation on our third quarter performance are available on the investors page of our website located at dmcglobal.com. A webcast replay of today's presentation will be available on our website shortly after the conclusion of this call. And with that, I'll turn the call over to Jim O'Leary. Jim?

Thanks, Geoff, and thanks to everyone for joining us. Today, we reported significantly improved financial results for the third quarter, with both sales and adjusted EBITDA attributable to DMC well above year-ago levels and comfortably above the high end of our guidance. These results were driven by initiatives implemented over the past two years to improve the performance of our businesses, despite continued uncertainty and highly challenging end market conditions. Consolidated third quarter sales were $172.8 million, a 14% increase versus last year's third quarter, and a 10% sequential improvement. Reported EBITDA attributable to DMC was $19 million, which included $5.4 million of tariff refunds at Dyne Energetics. Excluding tariff refunds, adjusted EBITDA attributable to DMC was $13.6 million, a 59% increase versus the year-ago third quarter, and 48% above the prior quarter. Sales at Arcadia, our building products business, were up 25% year-over-year, and up 14% sequentially. Adjusted EBITDA, attributable to DMC, increased 32% versus the year-ago quarter and was up 23% sequentially. This improvement was driven by higher sales of commercial aluminum framing products and high-end residential doors and windows. Arcadia's improved performance reflects its renewed focus on service levels and product availability in its short-cycle operations. Arcadia also benefited from higher residential sales and a large prestigious long cycle project in Los Angeles during the core. These efforts offset still difficult market conditions and included elevated interest rates and materially higher aluminum costs, which continued and negatively impacted larger, longer cycle commercial projects. However, we believe we have recently regained local market share and our key short cycle operations due to the focused initiatives just discussed. Dyna Energetics, our energy products business, delivered improved third quarter profitability on relatively flat year-over-year and sequential sales. Adjusted EBITDA was $11.9 million during the quarter, which included $5.4 million of tariff refunds. Excluding these refunds, adjusted EBITDA increased 34% versus last year's third quarter and was up 57% sequentially. The improvement was driven by cost-saving initiatives and a favorable sales mix that reflects Dyna's ongoing market diversification efforts with early contributions from the defense and enhanced geothermal sectors. Sales at Nobleclad Our composite metals business increased 38% year-over-year and 30% sequentially. Adjusted EBITDA increased 120% year-over-year and was up 51% sequentially. Nobleclad's improved performance resulted from increased shipments related to a record petrochemical order and the resolution of supply chain issues that had delayed shipments on a large defense order. Water activity was healthy during the quarter with significant new bookings from the energy, engineered wood, and defense sectors. Noble Flat ended the third quarter with an order backlog of $72.4 million, up from $63.5 million at the end of the second quarter. This included a quarterly record $16 million in orders related to U.S. Navy vessel construction. Now, I'll turn the call over to Eric for a closer look at our third quarter financial performance and our fourth quarter guidance. Eric? Thanks, Jim.