Dyno Nobel’s FY25 results have surpassed market expectations, according to RBC Capital Markets analyst Mark Wilson. The company reported underlying EBIT of $714 million, a 23 per cent increase from the previous year, and above the market estimate of $682 million. Dyno Nobel is a global manufacturer of explosives and blasting services for the mining, quarrying, seismic and construction industries, and also produces agricultural fertilisers. The company’s strong performance indicates its transformation program is yielding positive results.
Explosives EBIT reached $434 million, exceeding guidance of $405 to $413 million, while fertilisers EBIT of $301 million was within expectations. However, DNA divisional results fell short of forecasts. Net profit of $423 million was slightly below market forecasts, but earnings per share of 22.8 cents met expectations. The final dividend of 9.5 cents per share beat consensus estimates.
Net debt of $1.18 billion was higher than anticipated but below RBC’s forecast, while cash flow of $575 million fell short of estimates. Wilson highlighted the strong Asia-Pacific EBIT margins in the second half of FY25, suggesting that the transformation program is driving growth and earnings leverage. Wilson noted that the margin above the 19.8 per cent baseline indicates that transformation benefits are driving growth beyond production recovery, with a 21 to 22 per cent margin signalling new earnings leverage.
Following the announcement, Dyno Nobel’s shares experienced a surge in morning trade, climbing by 5.8 per cent. The strong results and positive outlook have instilled confidence among investors, reflecting the company’s solid performance and successful execution of its strategic initiatives.
