Dyno Nobel positioned for sustainable global growth after delivering a strong FY25 Explosives performance

FY25 performance

·       Zero Harm: Total Recordable Injury Frequency Rate (TRIFR) for the rolling 12 month period ended 30 September 2025 was 0.89, down from 1.10[1] at 30 September 2024

·       Statutory Net Loss after Tax and IMIs[2]: $53m (FY24: $311m loss)

·       NPAT ex IMIs: $423m (FY24: $401m)

·       EBIT ex IMIs: $714m, +23% YoY (FY24: $580m) / EBITDA ex IMIs: $1,012m, +10% YoY (FY24: $925m)

·       Earnings Per Share ex IMIs: 22.8 cents per share (FY24: 20.7 cps)

·       Return on Invested Capital including goodwill (ROIC): 8.2% (FY24: 6.3%)

·       Final dividend of 9.5 cents per share (unfranked) representing a 51% payout ratio

·       Capital management: $900m on-market share buyback program expected to resume on Tuesday 11 November 2025, with $430m completed to date[3]

·       Decarbonisation: 2025 GHG emissions reduction target achieved with new targets set[4]

·       Fertilisers separation: nearing completion, marking major progress in portfolio reshaping

FY25 highlights

Dyno Nobel (ASX:DNL) has continued the successful execution of its strategy to become a pure play global explosives leader, with significant progress made on the separation of its Fertilisers business. Multiple sale processes have now completed, with a clear pathway established to exit Phosphate Hill no later than 30 September 2026.

Statutory Net Loss After Tax including individually material items (IMIs) was $53m (FY24: $311m loss). The result included IMIs totalling $477m (after tax) primarily relating to the sale of the Fertilisers business and non-cash impairments. Excluding IMIs, Dyno Nobel reported a Net Profit After Tax (NPAT) of $423m, an increase of 6% over the previous year.

EBIT ex IMIs was up 23% to $714m, driven by commodity and FX tailwinds and the sustained wins generated from the transformation program. Dyno Nobel EBIT (excluding Fertilisers) was down 10% to $413m, impacted by the successful completion of three planned manufacturing facility turnarounds in FY25 and the partial WALA earnings in FY24.

Strong underlying[5] earnings growth was delivered across the explosives business, with EBIT up 16% to $434m, driven by margin expansion and cost efficiencies, with $60m of net transformation benefits achieved during the year. The transformation program has continued to deliver in line with expectations and remains on track, with $134m in total net transformation benefits generated since FY24.

 

Commentary from Dyno Nobel’s CEO & Managing Director

CEO & Managing Director, Mauro Neves, said:

“FY25 was a year of significant progress for Dyno Nobel as we delivered on our separation and transformation strategy, generating strong underlying earnings growth across the business.

“Safety remains our number one priority, and I am very proud that we achieved a 19% reduction in our total recordable injury frequency rate, with injury severity down 40%. These outcomes reflect the company’s outstanding safety culture and the team’s continued focus and daily commitment to Zero Harm.

“We are nearing completion of our separation activities, with defined milestones in place for Phosphate Hill, and we continue to prioritise the sale of the asset to a qualified buyer by March 2026.

“Looking forward, Dyno Nobel’s strong partnerships, network of assets and infrastructure continues to be an important part of our growth strategy globally. In addition to the strategic deal to build a US Government funded TNT plant on our site in Graham, Kentucky – which will ensure continuity of TNT for our customers in North America – we have formed the Nitradyn joint venture with US-based industrial manufacturer REPKON USA Holdings, Inc. Nitradyn will focus on developing and supplying energetics for broad industry use across the resources and defence sectors and will operate independently from our core commercial explosives business.

“Our growth strategy in Latin America, Europe, and Africa is yielding results. This approach leverages Dyno Nobel’s globally recognised brand, proprietary technology, and strong customer relationships to capture opportunities in new, high growth markets.

“Dyno Nobel’s FY25 results are a testament to the execution of our strategy, made possible by our outstanding people. I am incredibly proud of the team’s professionalism and commitment as we continue to deliver on the company’s transformation.”

Underlying business performance[6]

Dyno Nobel Asia Pacific (DNAP): EBIT of $255m, +8% YoY (FY24: $236m). Disciplined execution drove margin improvement despite revenue headwinds due to weather related impacts on the East Coast coal business and restrictions on AN imports to Indonesia. Transformation initiatives across pricing, supply chain and operations delivered $19m in EBIT uplift, with the major Moranbah turnaround completed on time and budget, reflecting strong planning and execution. Joint venture income rose 71% on the back of customer recontracting by Queensland Nitrates Pty Limited.

Dyno Nobel Americas (DNA): EBIT of $189m, +13% YoY (FY24: $168m). DNA delivered a strong performance in FY25, with successful transformation initiatives across pricing, procurement, and operations delivering structural cost reductions and efficiency gains. Commercial momentum accelerated with new contracts in key sectors and improved manufacturing reliability following the scheduled turnarounds at Cheyenne and LOMO.

Dyno Nobel EMEA & LATAM (DNEL): EBIT of $31m, +33% YoY (FY24: $23m). Despite FX volatility and inflationary pressures, DNEL delivered a strong financial performance and advanced its growth agenda across Latin America, Europe, and Africa. Revenue grew 12%, supported by margin improvement and joint venture income up 72%, driven by the Sasol Dyno Nobel JV contract repricing and improved market conditions. Growth was underpinned by expansion in LATAM and EMEA, with Türkiye emerging as a key driver through major infrastructure projects and enhanced electronics manufacturing capability.

Corporate: Corporate costs for FY25 decreased by $13m, driven by transformation benefits including operating model savings, disciplined overhead management, procurement efficiencies, and strategic IT enhancements.

Fertilisers: EBIT of $301m, +151% YoY (FY24: $120m). Strong second-half production at Phosphate Hill allowed the business to fully capture the benefits of favourable commodity pricing and FX movements. IPF Distribution delivered a solid EBIT before divestment, supported by margin resilience and cost discipline.

Fertilisers separation and manufacturing operations strategic review

Separation of the Fertilisers business is nearing completion, with several major milestones achieved in FY25 and early FY26:

·       Distribution business: Sale completed to Ridley Corporation with upfront proceeds of $381m ($250m purchase consideration and a net $131m working capital and net debt adjustment). Based on completion accounts prepared by Dyno Nobel, it is anticipated that a payment of $16m will be made to Ridley for post-completion purchase price adjustments in accordance with the sale agreement[7].

·       Gibson Island land: Sale completed to Goodman Group, with proceeds of $198m received on 8 October 2025. Remediation and leaseback costs are expected to be approximately ~$157m (~$110m after tax).

·       Perdaman Offtake Agreement: Sale to Macquarie Group’s Commodities and Global Markets business continues to progress and is now expected to complete in Q1 FY26[8]. Consideration payments are subject to completion and operational milestones for the project, which is expected to commence production in 2027.

·       Geelong: Production ceased in October 2025, with remediation activities to be performed by Dyno Nobel expected to cost ~$61m[9] (~$43m after tax).

·       St Helens: Dyno Nobel signed an asset sale and purchase agreement with the Columbia River Nitrogen consortium for the sale of the St Helens, Oregon facility. The purchase price of US$1.8m was the value of the product inventory at the completion date of 31 August 2025, with no ongoing environmental liabilities or future remediation requirements to be incurred by Dyno Nobel.

·       Phosphate Hill: The sale process for Phosphate Hill is continuing. If an agreed sale cannot be reached by 31 March 2026, Dyno Nobel will progress an orderly closure of Phosphate Hill by 30 September 2026.

Sustainability and decarbonisation

During FY25, Dyno Nobel made significant progress on its net zero pathway, meeting its short-term absolute reduction target of ‘5% by 2025’ against its 2020 baseline[10] and installing the second of two major capital intensive projects to reduce its scope 1 and 2 GHG emissions.

As a result, the Company reviewed and updated its GHG emissions reduction targets in FY25. Building on its previous scope 1 and 2 targets[11], Dyno Nobel has:

·       Adopted its ‘25% by 2030’ absolute reduction target[12] as its new short-term reduction target.

·       Set a new medium-term ‘50% by 2036’ absolute reduction target[13], underpinned by a pipeline of identified projects.

·       Maintained its long-term ambition of net zero GHG emissions by 2050.

Capital management initiatives