Full Year 2025 Dyno Nobel Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: William Park - Citibank Cameroon SA (Douala Branch) - Analyst : Just firstly, with respect to FY26 Explosives EBIT, can you just step through how you're internally thinking about, I guess, the DNEL's contribution to FY26 and the growth trajectory that you're expecting here? And what are some of the key drivers with respect to DNEL, please? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 09, 2025 / 11:00PM, DNL.AX - Full Year 2025 Dyno Nobel Ltd Earnings Call

Question: William Park - Citibank Cameroon SA (Douala Branch) - Analyst : That's very clear. And just while we are talking about the transformation benefit, can I just ask about whether if anything has changed in terms of the exit run rate that you're thinking about for the business? I note that for FY26, it's -- the exit run rate that you're expecting has been revised down by 5 percentage-points. I'm just wondering whether if that's driven by what you've seen or whether you expect sort of an acceleration into '27 and beyond? Just curious to know what's effectively changed in the last six months or so.

Question: William Park - Citibank Cameroon SA (Douala Branch) - Analyst : And then just one last one from me. In terms of one of your explosive plant, the minor turnaround that was originally scheduled for FY26 has been pushed out to '27. Just wondering whether if you could provide some insight as to why you decided to defer that minor turnaround?

Question: Brook Campbell-Crawford - Barrenjoey Markets Pty Ltd - Analyst : First one, just on the Nitradyn joint venture that you've announced today, more broadly outside of the TNT plant, which you previously disclosed. Can you just provide some more color on how big you see that opportunity as being over time? And maybe things like how we should think about magnitude of capital investment, potential EBIT or earnings from the JV, call it, over the next three years or so? Any sort of color would be super helpful. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 09, 2025 / 11:00PM, DNL.AX - Full Year 2025 Dyno Nobel Ltd Earnings Call

Question: Brook Campbell-Crawford - Barrenjoey Markets Pty Ltd - Analyst : That's helpful. And just on Phosphate Hill, the EBIT is skewed to the second half, I believe, given the comments in the presentation. So can you just sort of outline what's happening there? I presume it's a production phasing, but can you just provide some color on what's driving that? And then I have one final question, if you have time.

Question: Brook Campbell-Crawford - Barrenjoey Markets Pty Ltd - Analyst : Great. And one last one. Just on the DynoConsult project engagement, up 59% as highlighted in the materials, which is obviously a strong number. Just some commentary would be great on what's driving that increase? And is that a good gauge for sort of future new contracts or mix improvements? Just how should we sort of contextualize that really strong growth rate? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 09, 2025 / 11:00PM, DNL.AX - Full Year 2025 Dyno Nobel Ltd Earnings Call

Question: Mark Wilson - RBC Capital Markets Inc - Analyst : Just a couple of quick questions on Phosphate Hill. Just wondering what your assumptions are in relation to gas and met gas supply through the course of fiscal '26?

Question: Mark Wilson - RBC Capital Markets Inc - Analyst : Yeah. And so you have assumed that you're not getting any -- you're basically sourcing gas from the East Coast?

Question: Mark Wilson - RBC Capital Markets Inc - Analyst : Okay. Great. Great. And secondly, just on CapEx. I know you sort of spoke about the breakdown looking at customer growth, growth initiatives and digital and technology. Is it fair to assume, given the focus of the company on those elements, that we are seeing a step change and we should actually look for these three components to be relatively consistent going forward?

Question: Scott Ryall - Rimor Equity Research - Analyst : I just wanted to follow up on an earlier question on the US TNT opportunity. And just -- I get that you're not going to size it, and I understand all the production advantages and things like that. But just stepping back a little bit. So the US government is funding it. Repkon is building it. And so what's actually Dyno's role at the facility? And I guess if the US government is funding it, is that an equity contribution? Or is it debt? I'm just trying to get a sense of, I guess, who owns it? What are the economics? I'm not asking you to quantify anything, but how will Dyno make money out of this opportunity over the three to five years going forward, please?

Question: Scott Ryall - Rimor Equity Research - Analyst : Yeah, that does. I know you've got all sorts of disclosure requirements, et cetera. The second question, just you've given some really good color around Phosphate Hill. Are you -- it would seem that every smelting business, refining business, everything that looks pretty similar to Phosphate Hill from a high level is talking to government about support for the business. I wonder -- you've given a pretty clear outline of if you can't sell by March, you start planning for closure by September 30, a year away. Are you looking at the government as needing to support this facility in any way in order to get to that sale process closure, please?

Question: Scott Ryall - Rimor Equity Research - Analyst : Yeah. Understood. Okay. And a really quick one, hopefully. Fiscal '26, as we look forward, what are we thinking on material items, please? They've obviously been quite large for the last two years. So I'm just looking for some idea whether they drop back down to -- certainly to double-digit level and hopefully flat closer to zero.

Question: Lee Power - JPMorgan Chase & Co - Analyst : Mauro, just on the net transformation guidance you've given for FY26. You got asked on this a little bit earlier, but I kind of came away a little bit confused. So the range of $30 million to $70 million, is that a business target outcome? Or is it just something around the delivery in terms of a timing element? And the reason I ask is it seems a lot of them are around cost savings and also most of them are in kind of the very final stages in terms of actually being executed or realized now. So I'm just trying to work out why there is such a big range in '26.

Question: Lee Power - JPMorgan Chase & Co - Analyst : Okay. That's great color. And then just on your market commentary that's in your annual report, like you've done a very, very good job delivering the EBIT growth you have because when I look at Asia Pacific base, precious metals volumes were down 8% for the year. Americas down 6%, I think the first half was down 7%. I note in there, you've got some stuff around coal that seems to be improving. So when we have that backdrop, like how important is it for you that you get that volume piece positive again? Like how important is the market to your $600 million ambition in '28?

Question: John Purtell - Macquarie Research Ltd - Analyst : Just had two questions, please. Look, first one on Dyno Americas. Just a broader question around what benefits you're seeing in the US from the Trump administration. Obviously, TNT is an example of that in terms of your expansion there. But interested in terms of broader perspectives for US mine restarts and expansions and reshoring, et cetera.

Question: John Purtell - Macquarie Research Ltd - Analyst : The other question was just around acquisition opportunities relating to expansion into markets like EMEA and LatAm. Can we assume that there's potential for bolt-on acquisitions, but unlikely to be anything transformational?