Dyno Nobel (DNL) H2 2025 earnings summary

Executive summary

• Delivered strong FY2025 results, progressing transformation to a pure-play explosives business and achieving financial closure on fertilizer asset sales, with upfront cash proceeds of AUD 579 million.

• Transformation program delivered AUD 134 million in cumulative EBIT benefits over two years, with a 23% EBIT increase year-over-year, and underlying explosives EBIT up 16%.

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

• Strategic focus on technology, capital discipline, and growth in EMEA and LATAM regions, with new leadership appointments and new growth vectors including the Nitradyn JV and expansion into defence energetics markets.

Financial highlights

• Group statutory revenue was AUD 5,345 million (flat year-over-year), with EBITDA up 10% to AUD 1,012 million and EBIT up 23% to AUD 714 million.

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

• Statutory after-tax loss of AUD 53 million, including AUD 477 million in IMIs related to asset sales and impairments.

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

• Net debt to EBITDA at 1.4x, with AUD 930 million returned to shareholders under the AUD 1.4 billion capital return program.

Outlook and guidance

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

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

• Capex for FY2026 forecast at AUD 280–330 million, with continued investment in customer growth and digital initiatives.

• Phosphate Hill sale or closure targeted by March 2026, with capex of approximately AUD 35 million for safe operations.

• Effective tax rate (excluding IMIs) expected at 20–25%.