Citi has reaffirmed its buy rating for Dyno Nobel following the company’s decision to divest its Phosphate Hill fertiliser business. The sale, executed for a nominal $1 with up to $100 million in deferred performance-linked payments, will see Dyno Nobel fund approximately $126 million in remediation costs before its departure from the site. Dyno Nobel is an Australian company and a global leader in commercial explosives and blasting solutions, serving the mining, quarrying, and construction industries.
Citi analysts suggest the market’s attention will likely centre on the purchase price and deferred considerations associated with Phosphate Hill, especially in relation to Dyno Nobel’s full-year EBIT expectations. However, the firm contends that Dyno Nobel’s strategic shift now positions it as a pure-play blasting company. This refined focus should direct attention towards its core explosives operations spanning the Americas, APAC, EMEA, and LATAM regions.
The Phosphate Hill business generated roughly $33 million in EBIT during the initial five months of FY26. This performance fell short of expectations due to the impact of floods, gas supply disruptions, and elevated sulphur prices. Dyno Nobel has reiterated its FY26 explosives EBIT guidance, projecting between $460 million and $500 million. Citi indicated that this guidance remains largely consistent with previous expectations, despite the strengthening Australian dollar.
