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HOUSTON - DynaEnergetics, a division of DMC Global Inc. (NASDAQ:BOOM), has announced the imposition of a tariff surcharge on its perforating systems sold in North America, starting from April 5, 2025. The surcharge will range between 7% and 9% and is a direct response to the increased costs of raw materials due to U.S. tariffs. The announcement comes as DMC Global’s stock has experienced a nearly 10% decline over the past week, according to InvestingPro data.
The company’s perforating systems, including the DS 2.0, DS Gravity™ 2.0, and DS NLine™ 2.0, along with other systems and components used by the onshore oil and gas industry in North America, will be affected by this surcharge. DynaEnergetics has stated that this move is aimed at maintaining transparency in its pricing strategy. Despite recent market challenges, InvestingPro analysis shows the company maintains a healthy current ratio of 2.53, indicating strong ability to meet short-term obligations.
Customers will be informed about the details of the surcharge’s implementation by their DynaEnergetics sales representatives. As the only global manufacturer of perforating systems that designs, manufactures, and qualifies all of its equipment and accessories in-house, DynaEnergetics emphasizes its commitment to delivering high-performance products with the lowest total cost of operations.
This decision by DynaEnergetics reflects the ongoing adjustments companies are making in the face of shifting trade policies and material costs. The information provided is based on a press release statement from DynaEnergetics.
In other recent news, DMC Global has reported a strong performance in its fourth-quarter 2024 earnings, surpassing analyst expectations. The company achieved an adjusted earnings per share (EPS) of $0.09, significantly better than the forecasted loss of $0.19. Additionally, DMC Global exceeded revenue expectations with $152.4 million, compared to the anticipated $146.87 million. The company’s adjusted EBITDA for the quarter was $10.4 million, outperforming Stifel’s estimate of $7.0 million.
The company also provided guidance for the first quarter of 2025, projecting sales between $146 million and $154 million and adjusted EBITDA of $8 million to $11 million. DMC Global is focusing on enhancing margins through operational efficiencies and new product lines, particularly at its subsidiary DynaEnergetics. In another development, DMC Global has deferred the put option for the remaining 40% stake in Arcadia, extending the expiration to September 2026. Analysts from Stifel have maintained a Hold rating on DMC Global stock with a price target of $8.00.
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