DMC Global Inc. (BOOM) Q4 2024 Earnings Call Transcript
Prepared Remarks
Questions and Answers
Call Participants
Prepared Remarks:
Operator
Greetings, and welcome to the DMC Global Fourth Quarter Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note, this conference is being recorded.
I will now turn the conference over to your host, Geoff High, Vice President of Investor Relations. Thank you. You may begin.
Geoff High
Hello, and welcome to DMC's fourth quarter conference call. Presenting today are DMC's interim 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 fourth 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 at our website shortly after the conclusion of this call.
And with that, I'll turn the call over to Jim O'Leary. Jim?
James O'Leary
Thanks, Geoff, and thanks everyone for joining us for today's call. DMC's 2024 fourth quarter was a solid finish to a challenging year. Fourth quarter sales of $152.4 million and adjusted EBITDA attributable to DMC of $10.4 million both exceeded our guidance range, reflecting the progress we made to stabilize our two largest businesses, while executing on several self-help initiatives.
At Arcadia, our Architectural Building Products business, fourth quarter sales were $60.3 million, up 4% sequentially and down 11% versus the same quarter last year. Sales of commercial exterior products, which generate approximately three quarters of Arcadia's revenue, showed modest sequential and year-over-year growth. The sales decline versus last year's fourth quarter was principally due to soft demand for custom residential windows and doors focused on luxury price points.
Jim Schladen, who we recently recruited back as President of Arcadia is implementing a back-to-basics plan that includes rightsizing our cost structure to match market realities, while evaluating certain underperforming product offerings that serve principally high-end residential customers. We're refocusing on Arcadia's core commercial operations, which represented the vast majority of the sales and EBITDA at Arcadia when the original acquisition was made in 2021. While we're continuing the operating initiatives introduced recently, Arcadia's principal focus under Jim will be reinvigorating its commercial efforts, while rightsizing areas, notably in the custom residential operations.