Full year earnings guidance reaffirmed as resilient explosives business drives strong 1H26 performance

1H26 performance

·       Zero Harm: Total Recordable Injury Frequency Rate (TRIFR) for the rolling 12-month period ended 31 March 2026 was 1.22, up from 0.92[1] at 30 September 2025

·       Statutory Net Profit after Tax and IMIs[2]: $20m (1H25: $7m)

·       NPAT ex IMIs: $161m (1H25: $88m)

·       EBIT ex IMIs: $243m, +39% YoY (1H25: $174m) / EBITDA ex IMIs: $378m, +17% YoY (1H25: $323m)

·       Earnings Per Share ex IMIs: 9.0 cents per share (1H25: 4.7 cps)

·       Return on Invested Capital including goodwill (ROIC): 9.5% (1H25: 6.1%)

·       Interim dividend of 4.6 cents per share (unfranked) representing a 50% payout ratio

·       Capital management: $558m of the $900m on-market share buyback program completed to date[3]

·       Fertilisers separation: concluded with binding agreement signed for Phosphate Hill and completion of the Perdaman Offtake Agreement sale.

1H26 highlights

Dyno Nobel (ASX:DNL) has delivered strong underlying[4] earnings growth in the explosives business, with EBIT of $224m up 28% on the prior corresponding period. The result was underpinned by robust earnings contributions from both DNAP and DNA, while supporting the strategic ramp-up of DNEL's expanding operations across key growth markets. This solid financial performance underscores the resilience of the established explosives businesses and continued momentum of the transformation program.

Statutory Net Profit After Tax including individually material items (IMIs) was $20m (1H25: $7m) which included IMIs totalling $141m (after tax) primarily relating to impairment and site exit costs from the sale of Phosphate Hill. Excluding IMIs, Dyno Nobel reported a Net Profit After Tax (NPAT) of $161m, an increase of 83% on the prior corresponding period.

Commentary from Dyno Nobel’s CEO & Managing Director

CEO & 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.

 

“Safety always remains our number one priority, and while I’m disappointed to record an increase in our total recordable injury frequency rate, no incidents were classified as serious harm and we saw an overall reduction in injury severity. We will continue our focus on field leadership and proactive hazard identification, with targeted explosives risk reviews at our key manufacturing facilities.

“Highlighting the resilience of our business in the volatile global landscape, I am pleased to report we remain on track to deliver both our FY26 EBIT guidance of $460m - $500m and our FY28 EBIT ambition of $600m as our transformation program continues to yield results.

“Looking ahead, our gas backed manufacturing facilities, high vertical integration and consistent earnings growth with low volatility position Dyno Nobel as an increasingly compelling investment proposition.”

Underlying business performance[5]

Dyno Nobel Asia Pacific (DNAP): EBIT of $130m, +16% YoY (1H25: $112m). EBIT growth reflects the continued delivery of the transformation program and strong demand in the metals segment. Performance was driven by the successful ramp-up of a new electronics contract, strategic customer wins and renewals across hard rock, and meaningful geographic expansion. Malaysia contributed as a new earnings stream while Indonesia delivered enhanced profitability through improved product mix and substitution efficiencies.

Dyno Nobel Americas (DNA): EBIT of $101m, +42% YoY (1H25: $71m). Strong performance was driven by successful transformation initiatives, robust customer and joint venture demand, and profitable trading of surplus ammonium nitrate. The business strengthened its competitive position by successfully mitigating most of the impacts from the current US tariff environment, with a substantial improvement in joint venture income demonstrating the strength of domestic market demand and the strategic value of DNA's joint venture distribution model in capturing market opportunities.

Dyno Nobel EMEA & LATAM (DNEL): EBIT of $9m, -29% YoY (1H25: $13m). DNEL achieved significant strategic progress in 1H26, with its growth strategy gaining traction with customers and positioning the business for sustained future performance. The EBIT variance for the half primarily reflects the comparison against 1H25's non-recurring asset sale gains within the French business unit, alongside foreign exchange headwinds from Turkish Lira movements against the Australian dollar.

Corporate: Corporate costs reduced by $6m following the successful implementation of transformation initiatives, noting the sale of Phosphate Hill will result in the absorption of some stranded costs in 2H26.

Fertilisers separation concluded

Separation of the Fertilisers business concluded in 1H26:

·       Phosphate Hill: signing of a binding agreement in March 2026 for the sale of Phosphate Hill to Ryowa II GPS Pty Ltd, a wholly owned subsidiary of Mayfair Australia Corporation Pty Ltd, an experienced Australian operator. Nominal NPV positive cashflows are expected from the transaction, with Asset Retirement Obligations offsetting tax benefits. The transaction is expected to deliver a clean exit from Phosphate Hill and enables continuity of operations for the North-West Queensland region.

·       Perdaman Offtake Agreement: Sale of the Perdaman Offtake Agreement to Macquarie Group’s Commodities and Global Markets business completed as planned in December 2025. Consideration receipts of up to $145m are subject to operational milestones for the project, which is expected to commence production in 2027.

Capital management initiatives

The Group has bought back a total of $558m worth of shares since the on-market buyback program of up to $900m commenced in July 2024, leaving a further $342m to be repurchased. Dyno Nobel will recommence the buyback from 12 May 2026 following the end of the share trading blackout in the lead up to today’s results release[6].

FY26 outlook

FY26 EBIT guidance for the Dyno Nobel explosives business is reaffirmed at ~$460m-$500m, as provided at FY25 results. Corporate costs are expected to be approximately $40m with the absorption of Phosphate Hill stranded costs in 2H26, while net interest expense is expected to be marginally lower at $100m-$110m.

Investor briefing

Dyno Nobel will hold an investor webcast at 10.00am today, Monday 11 May 2026 AEST.The link to register for the webcast is: https://webcast.openbriefing.com/dnl-hyr-2026/  

For more information:

Detailed analysis and information on Dyno Nobel’s financial and operating performance and FY26 outlook and sensitivities can be found in the Operating and Financial Review section of the 1H26 Financial Report, available on the Company’s website.

 

Investors Tom Dixon Vice President Investor Relations Mobile: +61 450 541 389 Email: tom.dixon@dynonobel.com

Media Amity Sturwohld Manager Corporate Communications Global Mobile: +61 439 095 043 Email: amity.sturwohld@dynonobel.com

 

This document has been authorised for release by Richa Puri, Company Secretary

 

This announcement and the Operating and Financial Review below contain certain forward-looking statements, including statements in relation to expectations, intentions, estimates, targets, and indications of, and guidance on, future outcomes, earnings, future financial position and performance and the implementation of DNL’s Fertilisers separation. The words “expect”, “would”, “could”, “potential”, “may”, “intend”, “will”, “believe”, “estimate”, “aim”, “target” and “forecast” and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, the impact of Dyno Nobel’s Fertilisers separation strategy and associated agreements, DNL’s buyback program, and guidance on FY26 EBIT and production metrics are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of DNL, its officers and employees. There can be no assurance that actual outcomes will not differ materially from these statements. There can be differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and their differences may be material. Undue reliance should not be placed on forward-looking statements. DNL, nor any other person, does not give any representation, warranty, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statement will occur. DNL disclaims any responsibility to update or revise any forward-looking statement to reflect any change in DNL’s financial condition, status or affairs or any change in the events, conditions or circumstances on which a statement is based, except to the extent required by law. Additionally, to the maximum extent permitted by law, DNL and its affiliates, directors, officers, partners, employees, agents and advisers disclaim any responsibility for the accuracy or completeness of any forward-looking statements whether as a result of new information, future events or results or otherwise.