Dyno Nobel shares rally after earnings beat analyst forecasts
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More news: Shares in Dyno Nobel rallied in afternoon trade after the explosives manufacturer reported a 39% year-on-year increase in first half earnings, driven by strong demand across its Americas and Asia Pacific divisions.
Shares surged 10.54% to $3.67 at 1:08pm AEST.
UBS analyst Nathan Reilly said the earnings result was 25% ahead of consensus estimates. He maintains a neutral rating with a price target of $3.55.
Dyno Nobel maintains FY26 earnings guidance on stronger explosives demand
The news: Commercial explosives manufacturer Dyno Nobel has reaffirmed its FY26 earnings before interest and tax (EBIT) guidance of between $460 million and $500 million, while downgrading its net interest expense guidance to between $100 million and $110 million.
The numbers: For the first half of 2026, statutory net profit after tax (NPAT) including individually material items (IMI) was $20 million, up from $7 million in the prior year.
EBIT increased 39% year-on-year to $243 million, while earnings per share rose to 9 cents per share, up from 4.7 cents in the prior corresponding period.
The company declared an unfranked interim dividend of 4.6 cents per security, representing a 50% payout ratio.
The context: Dyno Nobel stated that the higher year-on-year EBIT was primarily driven by the strength in the explosives business, underpinned by robust earnings contributions from across the Americas and Asia Pacific divisions.
Statutory NPAT included IMI totalling $141 million, primarily related to non-cash impairments and site exit costs from the sale of Phospate Hill.
What they said: “Looking ahead, our gas backed manufacturing facilities, high vertical integration and consistent earnings growth with low volatility position Dyno Nobel as an increasingly compelling investment proposition,” Dyno Nobel CEO Mauro Neves said.
The source: ASX
