Dyno Nobel (DNL) H1 2025 earnings summary

Executive summary

• Statutory after-tax profit of $7 million for 1H25, reversing a $148 million loss in 1H24, with underlying NPAT ex IMIs at $88 million compared to $164 million in 1H24.

• Transformation program delivered $25 million EBIT uplift in 1H25, with total transformation benefits at $89 million to date and targeting a 40–50% EBIT exit run rate for FY25.

• Major progress on fertilizer business separation, with sale agreements for Distribution, Perdaman Offtake, and Gibson Island land, expected to deliver up to $835 million in gross proceeds.

• Major turnarounds at Moranbah and LOMO completed safely, on time, and on budget.

• Safety performance improved, with TRIFR reduced to 1.03 from 1.101 year-over-year.

Financial highlights

• Group revenue for 1H25 was $2,251 million, down 9% year-over-year, primarily due to asset sales and lower demand in coal and fertilizers.

• EBIT ex IMIs was $174 million (1H24: $249 million); EBITDA ex IMIs was $323 million (1H24: $425 million).

• NPAT ex IMIs was $88 million, down from $164 million in 1H24; statutory NPAT including IMIs was $7 million.

• Interim dividend of 2.4 cents per share (unfranked), representing a 51% payout ratio.

• Net debt/EBITDA increased to 1.6x, expected to return below 1.5x by year-end.

Outlook and guidance

• Transformation program expected to deliver a 40–50% EBIT uplift by FY25 exit, with full-year turnaround impact guided at $45–55 million.

• Second half earnings expected to be stronger as deferred fertilizer sales are recovered and turnaround impacts subside.

• Fertilizer earnings expected to be heavily second-half weighted, with full-year EBIT in the $40–60 million range.

• Net interest expense for FY25 forecast at $125–130 million; effective tax rate expected between 20–25%.

• Gas supply costs at Phosphate Hill expected to be $40–80 million above contract pricing in FY25.