Dyno Nobel (ASX: DNL) reported a stronger FY25 performance from its core explosives business while progressing the separation of its Fertilisers arm.
Headline numbers (ex-IMIs unless noted)
- Safety: TRIFR over the 12 months to 30 Sept 2025 fell to 0.89 (from 1.101 a year earlier).
- Statutory NLAT incl. IMIs: $53m loss (FY24: $311m loss), reflecting $477m after-tax IMIs tied mainly to Fertilisers sale and non-cash impairments.
- NPAT ex IMIs: $423m, up 6% (FY24: $401m).
- EBIT ex IMIs: $714m, up 23% (FY24: $580m).
- EBITDA ex IMIs: $1,012m, up 10% (FY24: $925m).
- EPS ex IMIs: 22.8c (FY24: 20.7c).
- ROIC (incl. goodwill): 8.2% (FY24: 6.3%).
- Dividend: Final 9.5c per share (unfranked), ~51% payout ratio.
- Buyback: Up to $900m on-market program expected to resume Tuesday 11 Nov 2025; $430m completed to date.
- Decarbonisation: 2025 GHG reduction target achieved; new targets set.
Operations and transformation
EBIT excluding Fertilisers rose 23% to $714m, supported by commodity and FX tailwinds and ongoing transformation benefits. On a like-for-like basis excluding Fertilisers, EBIT was $413m, down 10% given three planned plant turnarounds in FY25 and partial WALA earnings in FY24.
Explosives underlying EBIT increased 16% to $434m, driven by margin expansion and cost efficiencies. Net transformation benefits delivered $60m in FY25 and $134m cumulatively since FY24.
Portfolio reshaping
Separation of Fertilisers is “nearing completion”, with multiple sale processes concluded and a clear pathway to exit Phosphate Hill by 30 Sept 2026. IMIs in FY25 primarily related to the asset sales and impairments associated with the separation.
Strategy and growth initiatives
The company highlighted global growth priorities across Latin America, Europe and Africa, leveraging its brand, technology and customer relationships. In North America, Dyno Nobel has agreed to host a US Government-funded TNT plant at its Graham, Kentucky site to support supply continuity for customers. It also formed Nitradyn, a joint venture with REPKON USA Holdings, Inc., to develop and supply energetics for use across resources and defence; Nitradyn will operate independently from the commercial explosives business.
“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," CEO and managing director, Mauro Neves, said.
“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.”