Dyno Nobel (DNL) H1 2025 earnings summary

Executive summary

• Statutory after-tax profit of AUD 7 million, reversing a prior loss, with a loss of AUD 18 million from material items related to asset closures and impairments.

• Transformation program delivered AUD 25 million EBIT uplift in 1H25, with total transformation earnings at AUD 89 million and targeting a 40–50% EBIT exit run rate by FY25.

• Major progress on fertilizer business separation, with sale agreements for Fertilisers Distribution, Perdaman offtake, and Gibson Island land, with gross proceeds up to AUD 835 million and net proceeds up to AUD 606 million.

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

• New EMEA & LATAM business unit established to support international growth.

Financial highlights

• Group revenue for 1H25 was AUD 2,251 million, down 9% year-over-year, primarily due to the WALA sale and lower demand in coal and fertilisers.

• EBIT excluding material items was AUD 174 million, down 30% year-over-year; EBITDA (excl. IMIs) was AUD 323 million.

• NPAT (excl. IMIs) was AUD 88 million, down from AUD 164 million in 1H24; NPAT (incl. IMIs) was AUD 7 million, up from a loss of AUD 148 million in 1H24.

• Interim dividend of AUD 0.024 per share (2.4cps), representing a 51% payout ratio of NPAT ex IMIs.

• Net debt/EBITDA increased to 1.6x from 0.5x in 1H24, 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 AUD 45–55 million.

• Second half earnings expected to be stronger across all segments, with deferred fertiliser sales and improved conditions.

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

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

• Buyback program to recommence in May 2025, with AUD 663 million remaining.