Dyno Nobel (I5P0) AI Stock Analysis

Company Guidance

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.