Australia's Dyno Nobel faces cost headwinds amid upbeat broader guidance, says Citi

Dyno Nobel

12/11/2025 04:29

**  Australian explosives maker Dyno Nobel DNL.AX rises nearly 2% to A$3.495

** Co guides FY26 explosives EBIT of A$460 mln to A$500 mln  ($324.90 mln), with midpoint up 16% YoY but 4% below Citi's forecast due to higher costs

** Citi cuts FY26/27E EPS estimates by 5% on reduced explosives earnings and interest expenses

** FY25 underlying NPAT of A$424.5 mln missed Citi's A$431 mln estimate by 1.5%

   ** Lower volumes hit Asia Pacific, North America divisions in H1 2025, though co expects U.S., Australia recovery

** DNL trades at discount to peer Orica ORI.AX on FY26E PE but slight premium on FY27E PE - Citi

** YTD, shares up 19.3%

($1 = 1.5389 Australian dollars)

($1 = 1.5389 Australian dollars)

 (Reporting by Shruti Agarwal in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))