Dyno Nobel 1H25: transformation on track; fertilisers sales agreed
- Statutory NPAT including IMIs was $7m; NPAT ex IMIs was $88m and EBIT ex IMIs $174m.
- Agreed sales: Distribution to Ridley for $375m plus $121m working capital release; offtake sold to Macquarie for up to $145m; Gibson Island land under conditional sale for $194m.
- Transformation program delivered $25m net benefit in 1H25; segment EBITs—Asia Pacific $81m, Americas $84m, EMEA & LATAM $11m, Fertilisers $18m.
- $900m on-market buyback program resumed 13 May 2025 after $237m bought back to date; LOMO N2O abatement installed to cut operational GHG by 19%.
Financial results
Statutory Net Profit After Tax including individually material items (IMIs) was $7m; NPAT excluding IMIs was $88m. EBIT ex IMIs was $174m and EBITDA ex IMIs $323m. Earnings per share ex IMIs were 4.7 cents; interim dividend 2.4 cents per share (unfranked). Return on Invested Capital including goodwill was 6.1%. IMIs after tax totalled $80m, mainly costs from the announced Geelong plant closure and a non‑cash impairment at St Helens. TRIFR for the rolling 12 months to 31 March 2025 was 1.03.
Operational highlights
The transformation program delivered net benefits of $25m in 1H25 driven by re‑contracting, new customer wins and procurement, supply chain and manufacturing initiatives. Segment EBITs were: Dyno Nobel Asia Pacific $81m (transformation $19m, offset by a $31m Moranbah turnaround), Dyno Nobel Americas $84m (transformation $8m, impacted by LOMO turnaround), Dyno Nobel EMEA & LATAM $11m, and Fertilisers $18m.
Fertilisers separation
Agreements executed include sale of the Distribution business to Ridley for gross proceeds of $375m plus $121m working capital release; sale of the Perdaman offtake agreement to Macquarie for up to $145m; and a conditional sale of the Gibson Island land for $194m. These transactions may generate gross proceeds of up to $835m. Completion of the Distribution and Perdaman transactions is expected in Q3 CY25, with Gibson Island expected before the end of September 2025. The St Helens Fertilisers manufacturing facility is expected to close in 1H CY26, and a decision on Phosphate Hill is targeted by no later than September 2025.
Capital management and outlook
The Group has repurchased $237m of shares since July 2024 (including $88m in the half) under a $900m on‑market program; the buyback was suspended in January 2025 and is expected to recommence on 13 May 2025. LOMO tertiary nitrous oxide abatement installation is complete and is expected to reduce the Group’s global operational GHG emissions by 19%. Management says the transformation remains on track to achieve a 40–50% EBIT exit run rate for FY25 and expects a stronger second half as major turnaround impacts recede.
Source: Dyno Nobel
