Dyno Nobel’s FY25 Surge: Fertilisers Exit Nears as Explosives Earnings Soar

Strong Financial Recovery Amid Strategic Reshaping

Dyno Nobel has delivered a markedly improved financial performance for FY25, reporting a statutory net loss after tax of $53 million, a significant narrowing from the prior year’s $311 million loss. This result was heavily influenced by individually material items related to the ongoing separation of its Fertilisers business, including asset sales and impairments. Excluding these one-off impacts, the company posted a net profit after tax of $423 million, up 6% year-on-year, reflecting solid underlying operational strength.

EBIT before these material items surged 23% to $714 million, driven by favourable commodity prices, foreign exchange tailwinds, and the benefits of an ongoing transformation program that has delivered $134 million in net gains since FY24. Earnings per share rose to 22.8 cents, while return on invested capital improved to 8.2%, underscoring enhanced capital efficiency.

Fertilisers Business Separation Nears Completion

A major highlight of FY25 was the significant progress made in divesting the Fertilisers segment, a strategic move to focus Dyno Nobel as a pure-play global explosives leader. Key transactions completed include the sale of the distribution business to Ridley Corporation and the Gibson Island land to Goodman Group, generating substantial proceeds. The sale of the Perdaman Offtake Agreement is expected to close in early FY26, while production at the Geelong facility ceased in October 2025 with remediation underway.

The company has set a firm deadline to exit the Phosphate Hill asset by September 2026, with ongoing efforts to secure a qualified buyer. Should a sale not materialise, an orderly closure plan is in place. This portfolio reshaping marks a pivotal shift in Dyno Nobel’s business model and financial profile.

Safety and Sustainability at the Forefront

Safety performance improved significantly, with a 19% reduction in the total recordable injury frequency rate and a 40% decrease in injury severity, reflecting a strong safety culture. On the sustainability front, Dyno Nobel met its 2025 greenhouse gas emissions reduction target ahead of schedule and has set ambitious new goals – a 25% absolute reduction by 2030 and a 50% reduction by 2036, aiming for net zero emissions by 2050. These targets are supported by capital-intensive projects to reduce scope 1 and 2 emissions.

Capital Management and Growth Outlook

Capital management remains a priority with a $900 million on-market share buyback program underway, having repurchased $430 million to date and set to resume shortly. The company declared a final unfranked dividend of 9.5 cents per share, reflecting a 51% payout ratio.

Looking ahead, Dyno Nobel projects FY26 EBIT for its explosives business between $460 million and $500 million, with a production forecast for Phosphate Hill of 790,000 to 850,000 tonnes and expected costs per tonne between $720 and $780. The company is also advancing growth initiatives globally, including a US government-funded TNT plant in Kentucky and a new joint venture, Nitradyn, targeting energetics supply for resources and defence sectors.

CEO Mauro Neves emphasised the company’s strategic progress and operational discipline, highlighting the transformation program’s role in driving margin expansion and cost efficiencies. The focus on safety, sustainability, and portfolio optimisation positions Dyno Nobel for sustainable global growth.