Dyno Nobel delivers half-year profit despite transformation challenges

Dyno Nobel Limited (ASX:DNL) reported a statutory net profit after tax of $7 million for the first half of 2025, marking a significant turnaround from the $148 million loss in the same period last year, according to financial results released on Monday.

The explosives and fertiliser company is making substantial progress on its strategy to become a focused global explosives business, with CEO Mauro Neves announcing key milestones in the separation of its Fertilisers division.

“I’m very pleased to announce that we are delivering on this ambition, with sale agreements for Distribution and the Perdaman Offtake Agreement, and a conditional contract of sale for the Gibson Island land,” Neves said.

The company has entered into agreements to sell its Fertilisers Distribution business to Ridley Corporation for $375 million plus $121 million in working capital release, and has executed an agreement to sell its offtake deal with Perdaman Chemicals and Fertilisers to Macquarie Group for up to $145 million.

Despite facing weather-related challenges and scheduled plant turnarounds that impacted first-half earnings, the company’s transformation program delivered $25 million in additional EBIT benefits, bringing total transformation benefits to $89 million.

Dyno Nobel declared an interim dividend of 2.4 cents per share (unfranked) and announced its $900 million share buyback program will resume on 13 May after being temporarily suspended in January.

The company expects a stronger second half with major turnaround impacts behind it and is continuing its strategic review of the Phosphate Hill operations, with a decision anticipated by September 2025.

Picture: credit Dyno Nobel