Explosive ASX 200 share jumps 8% on first-half profit surge

Dyno Nobel Ltd (ASX: DNL) shares are pushing higher on Monday.

In morning trade, the ASX 200 share is up 8% to $3.60.

Why is this ASX 200 share jumping?

Investors have been buying the company’s shares on Monday after it released its half-year results and revealed strong growth from continuing operations.

According to the release, group revenue fell 15.7% on the prior corresponding period to $1.9 billion.

However, this was largely due to the separation of the Fertilisers business. On a continuing operations basis, the explosives business delivered revenue of $1.6 billion, which was up 11.4% on the prior corresponding period.

That growth was driven by strength in the company’s core regional businesses.

Dyno Nobel Asia Pacific delivered a 9% lift in revenue to $599.3 million, supported by strong demand in metals, growth from new contracts, and expansion in Malaysia and Indonesia.

But Dyno Nobel Americas was the standout. It posted a 17% increase in revenue to $891.3 million. This reflected strong demand across coal, quarry and construction, and metals markets, as well as profitable trading of surplus ammonium nitrate.

Dyno Nobel EMEA and LATAM revenue fell 8% to $144.5 million. This reflects foreign exchange headwinds.

The company’s group EBIT (excluding individually material items) rose 39.3% to $242.7 million, while EBITDA excluding individually material items increased 17.2% to $378 million.

On the bottom line, net profit after tax excluding individually material items increased 83.3% to $160.9 million. However, statutory net profit after tax was only $19.9 million. This is due to the impact of $141 million of after-tax individually material items, mainly relating to impairment and site exit costs from the sale of Phosphate Hill.

In light of its strong performance, the Dyno Nobel board declared an unfranked interim dividend of 4.6 cents per share, up 91.7%  on the prior corresponding period and representing a 50% payout ratio.

Management commentary

Commenting on the result, the ASX 200 share’s CEO, Mauro Neves, said:

1H26 marks the beginning of a new era for Dyno Nobel as we concluded our separation from the Fertilisers business and move forward as a pureplay global explosives leader. We continued the successful execution of our transformation program, and our explosives business delivered robust underlying earnings growth, driven by the strong operating performance of our privileged assets.

Outlook

Dyno Nobel reaffirmed its FY 2026 EBIT guidance for its explosives business of $460 million to $500 million. Neves said:

Highlighting the resilience of our business in the volatile global landscape, I am pleased to report we remain on track to deliver both our FY26 EBIT guidance of $460m – $500m and our FY28 EBIT ambition of $600m as our transformation program continues to yield results.

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.

The post Explosive ASX 200 share jumps 8% on first-half profit surge appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.