DMC Global Inc

Item 1A. Risk Factors

There have been no material changes in the risk factors identified as being attendant to our business in our Annual Report on Form 10-K for the year ended December 31, 2024, except as provided below.

New or existing tariffs and other trade measures could adversely affect our results of operations, financial position and cash flows.

New or existing tariffs and other trade measures could adversely affect our results of operations, financial position and cash flows, either directly or indirectly through various adverse impacts on our significant customers. In 2018, the U.S. announced tariffs of 25 percent on steel and 10 percent on aluminum imported from countries where we typically source metals. These tariffs were met with retaliatory tariffs from certain countries and increased, broader tariffs were levied by the U.S. on targeted countries, including China. The tariffs impacted the cost of the importation of steel, which we utilize in our steel plate and steel pipe, key materials in our NobelClad and DynaEnergetics businesses. Though in many cases we have been able to source metals from domestic suppliers, some materials are only available from sources subject to tariffs. The cost of domestic steel and aluminum also increased, along with the price of delivery, and the availability of certain materials has been limited. These higher costs have increased the price of our products to our customers and, in some instances, affected our ability to be competitive. For our NobelClad business, this has impacted our ability to compete on international projects and negatively impacted U.S. fabricators, which are the primary consumers of NobelClad products.

In the first quarter of 2025, the Unit.S. has announced Statesand/or imposed increasedlemented significant new tariffs on foreign iimports into the United States, including an additional 20% tariff on allfrom a wide range of countries, which has product imports from China, an additional 25% mpted retaliatory tariff on all product imports from Mexico and Canada, as well as additional proposeds by a number of countries and a cycle of retaliatory tariffs onby both the U.S. and other countries. The tariff policy environment has been and is expected to continue to be dynamic, and we cannot predict what additional actions may ultimately be taken by the United States.S. or other governments with respect to tariffs or trade relations, in. We may be required to take further responsive steps, as the prolonged duration of tariffs, including retaliatory trade measures taken by other countries in response to existing or future United States tariffs or other measures. As a rariffs, the imposition of additional tariffs and the risk of potential broader global trade conflicts could have a material adverse effect on our business, financial condition or result, s of operations if we have taken steps to mitigate the impact of tariffs on oare not able to pass through cost increases to our customers.

Changes in immigration laws or enforcement programs could adversely affect our businesses, su.

Certain states in which as the March 2025 DynaEnergeticwe operate are considering or have already adopted new immigration laws annound/or enforcement that it will institute a tariff surprograms, and the federal government from time to time considers and implements charge ranging from 7% to 9% on all perforating systenges to federal immigration laws, regulations, and/or enforcement programs. Recently, Immigration and Customs sold in North AmericaEnforcement (ICE) has significantly in response to higher raw material costs resulting from tariffs announced by thecreased its enforcement of immigration laws. Our employment eligibility verification process does not guarantee that we will properly identify all applicants who are ineligible for employment. Unitauthorized Statesworkers are subject to that date. We deportation and may be requiredsubject us to take other responsive stepsfines or penalties, as the prolonged duration of tariffs, including retaliatory tarnd if any of our workers are found to be unauthorized, we could experience adverse publicity that negatively impacts our brand and may make it more diffs, the imposicult to hire and retain qualified employees. Addition of addially, increased enforcement of immigrational tariffs and laws may reduce the risk ofoverall labor potential broader global tradol and as a byproduct, increase the conflictst of qualified employees. These factors could have a material adverse effect on our business, financial condition or, and results of operations if we are not able to pass through cost increases to our customers.

.

44