Dyno Nobel posts lower loss as transformation accelerates after fertilisers exit

Dyno Nobel trimmed its loss as underlying profit and dividends rose, with explosives now its sole focus after the fertilisers divestment.

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Key points

  • Dyno Nobel reported a statutory net loss of $53.2 million largely due to significant items, but net profit excluding these items rose by 5.6% to $423.4 million, with earnings before interest and tax up 23% to $714.1 million.
  • The company completed its separation from the Incitec Pivot business, focusing on explosives and aiming for $300 million in EBIT uplift through its transformation program while declaring a final unfranked dividend of 9.5 cps.
  • Looking ahead, Dyno Nobel forecasts increased EBIT for its explosives division, continued share buyback activities, and focuses on technology growth and US market expansion amidst the ongoing sale process for the Phosphate Hill facility.

The Dyno Nobel Ltd (ASX: DNL) share price is in focus today as the company posted a statutory net loss after tax of $53.2 million, despite group NPAT (excluding significant items) rising 5.6% to $423.4 million and earnings before interest and tax (ex items) jumping 23% to $714.1 million.

What did Dyno Nobel report?

  • Statutory group NPAT loss of $53.2 million (vs prior loss of $310.9 million), mainly due to $476.6 million in significant items
  • Net profit after tax excluding significant items up 5.6% to $423.4 million
  • Revenue dipped slightly to $5,345.2 million (down 0.4%)
  • EBITDA (ex significant items) up 9.5% to $1,012.4 million
  • Final dividend of 9.5 cps declared, unfranked; full year of 11.9 cps (vs 10.6 cps prior)
  • Share buyback: $430.6 million completed of $900 million program

What else do investors need to know?

Dyno Nobel completed its structural separation from the Incitec Pivot Fertilisers (IPF) business, finalising the sale of the IPF Distribution arm to Ridley Corporation and renaming from Incitec Pivot during the year. The company is still working through the potential sale or closure of the Phosphate Hill fertilisers manufacturing facility, which remains part of continuing operations for now.

The explosives division navigated major planned manufacturing turnarounds in FY25, resulting in a 10% decrease in EBIT for Dyno Nobel Explosives to $413.3 million, but the Americas and APAC operations achieved strong cost efficiency gains. Fertilisers EBIT jumped 151% to $300.8 million, buoyed by strong commodity prices and lower depreciation after impairments were booked last year.

What did Dyno Nobel management say?

Mauro Neves, CEO & Managing Director said:

As a focused explosives business following the separation of fertilisers, we have delivered cost and operational improvements while progressing strategic priorities. The transformation program is on track to reach $300 million in EBIT uplift, and we remain committed to delivering value for our shareholders.

What's next for Dyno Nobel?

Looking ahead, Dyno Nobel expects the explosives division to generate EBIT of $460–$500 million in FY26, up from this year's $413 million, supported by a planned $30–$70 million in transformation benefits and no major plant turnarounds. Phosphate Hill's sale process remains a focus; if no agreement is reached by March 2026, closure will follow by September 2026.

The company's on-market buyback will continue, with solid funding capacity and a stable capital position. Growth efforts centre on explosives technology, US market expansion and ongoing efficiency transformation.

Dyno Nobel share price snapshot

Dyno Nobel shares have risen 3% over the past 12 months, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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