Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Dyno Nobel Returns to Profit as Explosives Business Strengthens, but Underlying Earnings Decline
Highlights:
Dyno Nobel Reports FY26 Financial Results
Dyno Nobel Limited (ASX: DNL), an Australian-listed explosives manufacturer and blasting services provider, announced its full-year financial results on 9 November 2026, reporting a return to statutory profitability for FY2026. Dyno Nobel reported a statutory NPAT of AU$66.1 million for FY2026, reversing the AU$53.2 million net loss recorded in the previous financial year. However, the improvement was largely influenced by lower individually material items, while underlying profitability remained under pressure.
Underlying Earnings Reveal a Different Picture
Despite the statutory turnaround, Dyno Nobel's underlying financial performance reflected softer earnings. NPAT excluding individually material items declined 21.8% to AU$330.9 million from AU$423.4 million a year earlier. Similarly, EBITDA excluding these items decreased 23.1% to AU$778.2 million, while EBIT fell 29.5% to AU$503.6 million.
The decline in consolidated revenue to AU$3.94 billion from AU$5.35 billion primarily reflected the company's exit from its fertilisers operations. However, its continuing explosives operations generated revenue of AU$3.41 billion, representing approximately 6% annual growth.
Explosives Operations and Strategic Expansion
The explosives division delivered stronger underlying results, with EBIT increasing 12% to AU$485 million. Dyno Nobel Asia Pacific generated EBIT of AU$281 million, up 10%, while its Americas division contributed AU$224 million, an increase of 19%. Conversely, EMEA and LATAM EBIT declined 40% to AU$18 million, reflecting challenging European market conditions.
The company also secured approximately US$1 billion in government-funded defence energetics contracts through projects at its Graham, Kentucky facility, strengthening its longer-term growth opportunities.
FY27 Outlook and Shareholder Returns
Looking ahead, management expects FY27 underlying EBIT of AU$515–555 million, with approximately 40% of earnings anticipated in the first half and 60% in the second half. Scheduled maintenance activities are expected to influence near-term performance, although transformation initiatives are projected to deliver an 85–95% exit run rate against the targeted AU$300 million EBIT uplift.
Dyno Nobel also declared a final dividend of 5.0 cents per share, 50% franked, payable on 18 December 2026.
The company's transition towards a pure-play explosives business and expanding defence exposure provide potential growth catalysts. Nevertheless, declining underlying earnings and operational execution risks remain important considerations as investors assess whether its strategic investments can translate into sustained profitability.
Note- All data presented is based on information available at the time of writing.
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