Dyno Nobel (DNL) Q4 2026 Earnings Report

The call was predominantly positive. Management reported record explosives earnings, strong transformation benefits, significant customer and technology wins, progress toward the FY28 EBIT ambition, and a solid balance sheet with substantial shareholder returns. The main challenges were the decline in group revenue following portfolio disposals, weaker DNEL performance, a full-year TRIFR above target, low FY26 cash conversion, temporary transformation offsets, and elevated FY27 capital expenditure and leverage. Management nevertheless expressed confidence in FY27 growth and longer-term opportunities in priority markets, premium technology and energetics.

For financial year '27, Dyno Nobel expects underlying EBIT in the range of approximately $515 million to $555 million, weighted approximately 40% to the first half and 60% to the second half, with another $30 million to $70 million in net transformation benefits, including $20 million to $30 million from commercial actions and up to $15 million from manufacturing, supply chain and procurement actions, offset by about $25 million; capital expenditure is expected to be approximately $370 million to $420 million, including approximately USD 40 million for the Cheyenne turnaround and approximately USD 20 million for defense and energetics investments, borrowing costs approximately $105 million to $120 million, an effective tax rate of approximately 20% to 25%, an AUD to U.S. dollar exchange rate of $0.70, corporate costs of approximately $45 million to $50 million, and an FY '27 transformation exit run rate of approximately 85% to 95%; net debt-to-EBITDA is expected to remain at the top end of the guided range of 1.75 to 2.25x, while long-term cash conversion post interest and tax is expected to be in the range of 60% to 75% from FY '27 onwards, with a $600 million EBIT ambition in FY '28 and an $800 million ambition in FY '31, including about $30 million to $40 million from North American energetics.