Fertilisers Sale Deadline Looms as Dyno Nobel Boosts EBIT and Safety

Strong Financial Performance and Transformation Progress

Dyno Nobel Limited, formerly Incitec Pivot Limited until March 2025, delivered a solid financial performance for the full year 2025. The company reported a 23% increase in earnings before interest and tax (EBIT) to $714 million, underpinned by a 16% growth in its explosives business. This growth reflects successful turnaround initiatives at key manufacturing sites and operational efficiencies realized through its ongoing transformation program.

The transformation program has delivered $134 million in benefits to date, reaching nearly half of its targeted $300 million EBIT uplift. Dyno Nobel is on track to meet its FY28 ambition of $600 million EBIT, signaling confidence in its strategic execution and operational resilience.

Fertilisers Separation Nears Completion

A significant milestone for Dyno Nobel is the nearing completion of its fertilisers separation, with upfront cash proceeds of $579 million received. The company is progressing the sale of fertiliser assets, including the Phosphate Hill plant, with a March 2026 deadline to finalize the transaction. Should the sale not complete, an orderly closure is planned by September 2026. The separation is a critical step in Dyno Nobel’s evolution into a pure-play explosives company, sharpening its focus on core competencies and growth markets.

Safety and Sustainability Commitments

Safety remains a top priority, with a 19% reduction in the total recordable injury frequency rate (TRIFR) and no serious harm incidents reported in FY25. The company also achieved a 5% reduction in greenhouse gas emissions against its 2020 baseline, setting strengthened medium-term targets of 25% to 40% reductions by 2030 across its business units. These commitments align with Dyno Nobel’s ambition to reach net zero emissions by 2050, supported by targeted investments in emissions abatement technologies.

Strategic Growth Initiatives and Capital Deployment

Dyno Nobel is advancing several strategic initiatives to drive future growth. Notably, it is constructing the first US TNT manufacturing facility in four decades at its Graham, Kentucky site, funded by a US government grant of approximately US$435 million. This facility aims to reduce tariff exposure and secure critical raw material supply for booster production.

Additionally, Dyno Nobel formed a 50/50 joint venture, Nitradyn LLC, with Repkon USA Holdings to expand into the growing defence and commercial energetics markets in North America. The company is also leveraging proprietary product technologies, including electronic detonators and AI-driven manufacturing improvements, to enhance operational efficiency and customer value.

Capital expenditure for FY26 is forecast at around $35 million, focusing on sustaining operations and supporting growth in Latin American and European markets. The company continues its capital return program, having completed $930 million to date, with $470 million ongoing, reflecting strong cash generation and disciplined capital management.

Outlook and Market Position

Looking ahead, Dyno Nobel projects production volumes between 790,000 and 850,000 tonnes and cost per tonne between $720 and $780 for FY26. The explosives business EBIT is expected to range from $460 million to $500 million, with a weighted earnings split favoring the second half of the year. The company’s strategic focus on proprietary technology, privileged assets, and deep customer relationships positions it well to capitalize on demand for critical resources and higher-margin technical solutions.