Key Highlights

• Now a pure-play explosives company after exiting fertilisers, Dyno Nobel supplies the blasting products and technology that mines depend on.

• First-half FY2026 explosives Earnings rose 28% to A$224 million, with group EBIT up 39% to A$243 million.

• Demand from global mining, including a strong US market, drives its earnings.

• How blasting technology connects Dyno Nobel to global Mining is the essence of the company - mining begins with blasting, so Dyno Nobel's products.

Dyno Nobel (ASX:DNL) is one of the world's leading suppliers of commercial explosives and blasting technology, and a member of the S&P/ASX 200 materials sector. Formerly known as Incitec Pivot, the company has transformed itself into a focused explosives Business by exiting fertilisers, and it now concentrates on supplying the explosives, initiating systems and blasting services that mines and quarries use to break rock. How blasting technology connects Dyno Nobel to global mining is the essence of the company - mining begins with blasting, so Dyno Nobel's products and expertise are essential to miners around the world, and its earnings rise and fall with mining activity.

The half-year FY2026 result, for the six months to 31 March 2026, showed strong growth in its explosives business as its transformation into a pure-play miner's supplier neared completion.

A transformed, focused business

Dyno Nobel reported group EBIT of A$243 million, up 39%, with underlying Earnings Per Share up 91%. Its explosives business delivered EBIT of A$224 million, up 28%, and the board increased the Interim Dividend to 4.6 cents a share, from 2.4 cents. The company also realised A$49 million of additional benefits from its transformation programme.

The defining strategic change has been the exit from fertilisers. During the period, Dyno Nobel completed the sale of its Phosphate Hill fertiliser business, allowing it to focus entirely on explosives. This transformation from a diversified chemicals-and-fertilisers company into a pure-play explosives supplier is central to the Investment case, sharpening its exposure to global mining.

Why blasting connects to mining

Blasting is the first step in mining. To extract ore, miners must break rock, and they do so with explosives - drilling holes, loading them with explosive products, and detonating them to fragment the rock so it can be dug and hauled. Every tonne of ore mined by drill-and-blast methods requires explosives, making companies like Dyno Nobel essential suppliers to the mining industry. Its products are consumables, used up in the course of mining, so demand recurs continuously as mines operate.

This direct link to mining activity is the foundation of the business. When mines are producing and expanding, they consume more explosives, driving Dyno Nobel's volumes and earnings. Its exposure spans many commodities and regions, giving it a broad stake in global mining. Because explosives are essential and consumed continuously, demand is more resilient than for one-off equipment, though it still depends on the overall level of mining activity.

The value of technology

Dyno Nobel supplies more than basic explosives; it provides blasting technology and services that help miners blast more effectively. This includes electronic initiating systems, blast-design expertise, and services delivered at the mine site. Better blasting can improve the fragmentation of rock, making it easier and cheaper to dig, haul and process, and can improve safety and efficiency across the mining operation.

By offering this technology and expertise, Dyno Nobel differentiates itself from suppliers of Commodity explosives and earns better margins. Higher-value products and services deepen its relationships with miners and tie its success to their productivity. As mines seek to improve efficiency and manage more complex ore bodies, demand for smarter blasting grows. This shift from simply supplying explosives toward providing technology and solutions is central to the company's strategy and to earning stronger returns.

A strong US market

Dyno Nobel has significant operations in the Americas, and the United States was a source of strength in the first half of FY2026, with Americas explosives earnings rising 60%, driven in part by demand from the US coal industry. Its Asia Pacific explosives business also grew, up 21%, while its Europe, Middle East, Africa and Latin America operations were weaker, down 18%, showing the regional variation across its markets.

This geographic spread gives Dyno Nobel exposure to mining activity in different regions and commodities, which can offset weakness in any one market. The strength in the Americas, particularly the United States, was a key driver of the strong first-half result, complementing the shift toward higher-value technology and services.