Dyno Nobel (DNL) H1 2026 earnings summary

Executive summary

• Delivered strong half-year financial results, with transformation program on track and guidance unchanged despite macro challenges; completed separation of fertilizers business, now positioned as a pure-play global explosives company.

• North American business achieved impressive growth, with 42% YoY EBIT growth and 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.

• Revenue from ordinary activities decreased 16% YoY to $1,897.8m, mainly due to the sale of the Fertilisers business and lower discontinued operations revenue.

Financial highlights

• EBIT grew 39% to AUD 243 million (excluding IMIs); NPAT up 83% YoY to AUD 161 million (excluding IMIs); explosives underlying EBIT grew 28% YoY to $224m.

• Revenue from continuing operations increased 9% YoY to $1,609.8m; underlying revenue up 11%.

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

• Interim dividend of 4.6 cents per share (unfranked), up from 2.4 cents; AUD 1.058 billion returned under capital return program.

• Net debt/EBITDA at 1.3x; net debt at $1,260.8m as of 31 March 2026; average debt tenor 4.2–4.9 years.

Outlook and guidance

• FY26 EBIT guidance reaffirmed at AUD 460–500 million; capex guidance lowered to AUD 250–300 million.

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

• Temporary headwinds expected in H2: FX impacts, Middle East conflict, stranded costs from Phosphate Hill, and higher raw material/freight costs.

• Effective tax rate (excl. IMIs) expected at 20%-25%; net interest expense guided at $100m–$110m.

• The group will continue its $900m on-market share buyback program, with $558m completed to date.