Dyno Nobel (DNL) H2 2025 earnings summary

Executive summary

• Achieved strong FY2025 performance with EBIT ex IMIs up 23% to $714m, NPAT ex IMIs up 6% to $423m, and transformation benefits totaling $134m, progressing to a pure-play explosives business with major asset sales and $579m upfront cash proceeds.

• Safety performance improved, with a 19% reduction in TRIFR and a 40% decrease in injury severity, and no serious harm incidents.

• Strategic focus on technology, capital discipline, and growth in EMEA and LATAM, with new leadership and the Nitradyn JV expanding into defence energetics.

• Fertilisers business separation nearly complete, with a clear exit path for Phosphate Hill by September 2026.

Financial highlights

• Group statutory revenue was $5,345m (flat YoY), with EBITDA ex IMIs up 10% to $1,012m and EBIT ex IMIs up 23% to $714m.

• Explosives underlying revenue grew 2% to $2,970m, with underlying EBIT up 16% to $434m.

• Statutory after-tax loss of $53m, including $477m in IMIs from asset sales and impairments.

• ROIC including goodwill improved to 8.2% (from 6.3%); excluding goodwill, ROIC at 11.5%.

• Net debt/EBITDA at 1.4x, with $930m returned to shareholders under the $1.4bn capital return program.

Outlook and guidance

• FY2026 explosives EBIT forecasted at $460m–$500m, with transformation benefits exit run rate targeted at 65–75% of the $300m ambition.

• Earnings expected to be second-half weighted; debottlenecking at Moranbah to offset lost capacity from Gibson Island.

• Phosphate Hill FY26 production forecast: 790kmt–850kmt; costs per tonne: $720–$780.

• New GHG reduction targets: 25% by 2030, 50% by 2036, net zero by 2050.