ASX 200 stock Dyno Nobel (ASX: DNL) has been under the microscope this week.
Dyno Nobel is a leading global manufacturer of explosives, as well as a producer of fertilisers and industrial chemicals. It's estimated the company's share of the international commercial explosives market is around 15%.
The company rocketed 10% on Monday following the release of its half-year results.
Image source: Getty Images
What did the company report?
As Laura Stewart reported on Monday, Dyno Nobel reaffirmed its full-year earnings guidance.
This reinforced strong underlying growth in its global explosives business and a sharp lift in first-half earnings.
The company also reported:
- Statutory net profit after tax (NPAT): $20 million (1H25: $7 million)
- NPAT excluding individually material items (IMIs): $161 million, up 83% (1H25: $88 million)
- EBIT excluding IMIs: $243 million, up 39% (1H25: $174 million)
- EBITDA excluding IMIs: $378 million, up 17% (1H25: $323 million)
- Interim dividend: 4.6 cents per share (unfranked), 50% payout ratio.
Commenting on the results, CEO and Managing Director Mauro Neves said:
1H26 marks the beginning of a new era for Dyno Nobel as we concluded our separation from the Fertilisers business and move forward as a pureplay global explosives leader. We continued the successful execution of our transformation program, and our explosives business delivered robust underlying earnings growth, driven by the strong operating performance of our privileged assets.
What did Morgans have to say?
Following the result, the team at Morgans said the 1H26 result from this ASX stock was materially stronger than expected.
After a stronger than expected 1H26, DNL would have upgraded its FY26 Explosives guidance had it not been for a stronger AUD, cost headwinds given the conflict in the Middle East and stranded costs post the sale of Phosphate Hill.
We have made material revisions to our FY26 forecasts reflecting the sale of Phosphate Hill for a poor price. Moving forward, DNL is now a pure play explosives company. We have made modest upgrades to FY27/28.
Limited upside for this ASX 200 stock
Following Monday's 10% gain, it appears this ASX 200 stock is now hovering close to fair value.
Following the results, Morgans maintained a hold rating, along with a new price target of $3.46.
From yesterday's closing price of $3.53, this indicates the ASX 200 stock is roughly 2% above fair value.
Elsewhere, 10 analysts forecasts via TradingView have a maximum estimate of $4.00 per share, and a minimum of $3.30.
