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Upfront Cash Proceeds: $579 million from the sale of fertilizer distribution and Gibson Island. Statutory Loss After Tax: $53 million, including IMIs of $477 million. EBIT Growth: 23% increase, contributing an additional $60 million in 2025. Explosives Business EBIT Growth: 16% underlying growth. Return on Invested Capital (ROIC): Increased to 8.2%, up from 6.3% a year ago. Final Dividend: $0.09 per share, unfranked, with a 51% payout ratio. Net Debt to EBITDA Ratio: 1.4 times. Electronic Detonator Sales Growth: 15% year-on-year increase. Delta E Enabled MPU Fleet Expansion: 24% increase. Underlying Revenue Growth: 6% for the group, 2% for explosives. Operating Margin Increase: 2 percentage points at group and explosives level. Capital Return Program: $1.4 billion, with $930 million returned so far. Joint Venture Income Growth: 29% year-on-year increase. Capital Expenditure: Maintained discipline, meeting all outlook ranges. FY26 Explosives EBIT Forecast: $460 to $500 million after corporate costs.

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Release Date: November 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Dyno Nobel Ltd (ICPVF) achieved a 23% growth in EBIT, driven by favorable commodity prices and a successful transformation program. The company completed the sale of its fertilizer distribution business and Gibson Island, receiving upfront cash proceeds of $579 million. Significant improvements in safety were reported, with a 40% reduction in injury severity and a 19% reduction in recordable injury frequency rate. The Dyno Nobel LATAM business grew earnings by 33%, indicating strong performance in key growth regions. The company announced a final dividend of $0.09 per share, representing a 51% payout ratio, consistent with its capital allocation framework.

Negative Points

Dyno Nobel Ltd (ICPVF) reported a statutory loss of $53 million after tax, including significant impairments related to the sale of fertilizer assets. The company faced challenges due to gas supply interruptions, impacting operations and forcing reliance on more expensive east coast gas. The explosives business experienced a 10% decline in headline earnings, attributed to significant turnaround activities at manufacturing sites. The competitive landscape remains challenging, with ongoing pressure from tariffs and geopolitical factors affecting market conditions. The strategic review of manufacturing operations led to the closure of Geelong and uncertainty regarding the future of the Fawcett Hill site.

Story Continues

Q & A Highlights

Q: Can you discuss the expected contribution of Dyno Nobel Explosives Latin America (DNEL) to FY26 and the growth trajectory? A: Mauro De Moraes, CEO, explained that DNEL's growth is driven by following their customers into regions like Latin America and India, where mining is expanding. They have invested in leadership and infrastructure to support this growth. Nitesh Naidoo, CFO, added that DNEL's contribution to EBIT for FY26 is expected to be in the range of $8 to $15 million.

Q: Why was the minor turnaround at one of your explosive plants deferred from FY26 to FY27? A: Nitesh Naidoo, CFO, clarified that the deferral was due to engineering plans and supplier mobilization, allowing the assets to run safely for a few more months. It was a minor scheduling adjustment rather than a major issue.

Q: Can you provide insights into the situation in Indonesia and the competitive landscape in the Asia Pacific region? A: Mauro De Moraes, CEO, noted that the Indonesian market has become predominantly domestic due to local production, affecting their trading position. The exchange rate has also impacted business. Despite these challenges, the team has been successful in securing new contracts and leveraging technology developed in Indonesia for regional growth.

Q: What are the expectations for additional production from Moranbah in FY26, and how will the new gas contract affect costs? A: Nitesh Naidoo, CFO, stated that Moranbah's production is expected to increase by 15,000 tons, reaching approximately 365,000 tons per year. The new gas contract starting in April is factored into their financial projections, with gas costs expected to wash through their results without being material.

Q: How is Dyno Nobel approaching capital allocation following the transformation and sale of fertilizer businesses? A: Nitesh Naidoo, CFO, emphasized a disciplined approach to capital allocation, focusing on projects that exceed their weighted average cost of capital. They aim to improve capital efficiency and effectiveness, with a consistent dividend payout ratio. The company is assessing its debt position and will update stakeholders in future presentations.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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