Dyno Nobel Shares Sink 11% Despite Record Explosives Profit as Weak Cash Flow and Rising Debt Spook Investors

SYDNEY — Shares of Dyno Nobel Ltd. fell 11% on Monday after the explosives maker's full-year results showed record earnings in its core business but weak cash flow and higher debt.

Dyno Nobel shares lost 42 cents to A$3.40, near the day's low of A$3.39. More than 11 million shares changed hands, leaving the company valued at about A$6 billion.

Dyno Nobel led the market's fallers in the morning after its results showed group earnings fell following its exit from fertilisers.

Record explosives earnings

Explosives EBIT increased 17% to A$485 million, reflecting momentum from the company's transformation program and the impact of a fiscal 2025 plant turnaround in the comparison period. NPAT excluding individually material items was A$331 million.

The multiyear transformation program delivered A$51 million in net benefits in FY26, reaching a 70% exit run rate toward its A$300 million EBIT growth ambition.

Cash flow and debt

Investors focused on the balance sheet. Management said long-term cash conversion should normalize to 60% to 75%, but the weak FY26 cash conversion of 35.5% clearly weighed on sentiment.

Net debt rose to A$1,504 million, or 2.1 times earnings. Dividends fell to 9.6 cents a share from 11.9 cents, and the share buyback ended after returning A$574.4 million.

Outlook

Dyno Nobel expects FY27 underlying EBIT of A$515 million to A$555 million, growth of 6% to 14% from FY26.

Risks include shipping disruptions and softer markets in Europe and Latin America, along with turnarounds and supply limits that can affect near-term earnings.