How Dyno Nobel’s Fertilisers Sale and US TNT Venture Could Reshape Its Future
Dyno Nobel has finalised the sale of its Fertilisers Distribution business and is advancing strategic shifts including a new US TNT manufacturing partnership, underpinning a strong FY25 outlook.
- Sale of Fertilisers Distribution business to Ridley Corporation completed
- Gibson Island land sale progressing with increased remediation costs
- Strategic closure of Geelong manufacturing and sale of St Helens facility
- New US joint venture with Repkon USA to build first TNT plant since 1980s
- Strong FY25 EBIT expected, supported by explosives and fertilisers segments
Fertilisers Business Transformation
Dyno Nobel Limited has officially completed the sale of its Fertilisers Distribution business to Ridley Corporation, marking a significant step in its strategic reshaping. The transaction, which closed on 30 September 2025, delivered upfront proceeds of $381 million, with further purchase price adjustments expected post-completion. Alongside this, the sale of the Gibson Island land is advancing, though final completion awaits, with remediation costs now estimated at approximately $157 million pre-tax; substantially higher than earlier forecasts.
Manufacturing Footprint and Strategic Review Outcomes
The company has also concluded its strategic review of fertiliser manufacturing operations, resulting in the planned closure of the Geelong facility by October 2025 and the sale of the St Helens, Oregon plant to the Columbia River Nitrogen consortium. Phosphate Hill remains a focal point, with Dyno Nobel actively pursuing solutions to secure critical natural gas supplies in collaboration with government bodies. The sale process for Phosphate Hill continues, with a potential closure planned for late 2026 if a buyer is not found.
Expanding US Presence with TNT Manufacturing
In a notable development, Dyno Nobel has partnered with Repkon USA Holdings to construct a new TNT manufacturing facility in Kentucky, marking the first such plant in the US since the 1980s. Funded by a $435 million investment from the US Federal Government, this facility will secure a domestic supply of TNT for commercial explosives, enhancing supply chain resilience for mining and construction sectors. Additionally, the two companies plan to form a joint venture to develop energetics for both resource and defence industries, signaling Dyno Nobel’s strategic diversification in North America.
Financial Performance and Outlook
Dyno Nobel anticipates a strong underlying EBIT for FY25, with explosives operations delivering between $405 million and $413 million, and fertilisers contributing $289 million to $302 million combined from Phosphate Hill and the Distribution business. The group’s overall EBIT is forecast between $695 million and $715 million. The company has also progressed its $900 million share buyback program, having completed $430 million to date. Investors will look to the full-year results announcement in November for further clarity on financial outcomes and strategic progress.
Bottom Line?
Dyno Nobel’s strategic divestments and US expansion position it for resilient growth, but rising remediation costs and Phosphate Hill’s uncertain future warrant close watch.
Questions in the middle?
- Will remediation cost overruns impact Dyno Nobel’s cash flow beyond FY25?
- Can Dyno Nobel secure a buyer or viable solution to sustain Phosphate Hill operations?
- How will the new US TNT facility and joint venture influence Dyno Nobel’s long-term earnings?
