Dyno Nobel (DNL) H1 2026 earnings summary

Executive summary

• Delivered strong 1H26 performance with underlying earnings growth in the explosives business, driven by robust contributions from all major regions and successful completion of the fertilisers separation, positioning the group as a pure-play global explosives company.

• North American business achieved 42% EBIT growth, with new customer wins in Ghana, Brazil, Canada, and Western Australia.

• Transformation program delivered $49m in 1H26 benefits, with a FY26 exit run rate of 65%-75% of the $300m EBIT uplift ambition on track.

• Safety remains a top priority, with no serious harm incidents and improved lost workday severity, though TRIFR increased to 1.22.

• Net profit attributable to members rose 169% to $19.9m, driven by improved continuing operations and reduced losses from discontinued operations.

Financial highlights

• EBIT excluding IMIs increased 39% year-over-year to $243m; NPAT excluding IMIs up 83% to $161m; statutory revenue was $1,898m, down 16% YoY due to the sale of IPF Distribution.

• Explosives underlying EBIT grew 28% YoY to $224m; underlying revenue up 11% to $1,610m.

• North America delivered 42% EBIT growth; JVs earnings up 41% YoY; Asia Pacific EBIT up 16% YoY.

• Interim dividend of 4.6 cents per share (unfranked), 50% payout ratio; $1.058bn returned under capital return program; $558m of $900m share buyback completed.

• ROIC (excl. goodwill) improved to 9.5% from 7.8% YoY; net debt/EBITDA at 1.3x; net debt at $1,261m.

Outlook and guidance

• FY26 EBIT guidance reaffirmed at $460m–$500m; FY28 EBIT ambition set at $600m.

• CapEx expectations for FY26 reduced to $250m–$300m due to project phasing.

• Temporary headwinds of ~$30m expected in H2 from FX, Middle East conflict, supply disruptions, and stranded costs from Phosphate Hill.

• Transformation program expected to deliver 65–75% of $300m EBIT uplift by year-end.

• Net interest expense forecasted at $100m–$110m for FY26; effective tax rate (excl. IMIs) expected at 20%-25%.