Orica (ORI) investor relations material

Executive summary

• Record first-half financial performance with EBIT up 5% to $512 million and NPAT pre-significant items up 8% to $283.1 million, reflecting strong commercial discipline, strategic execution, and resilient operations.

• Strategic acquisitions of Nelson Brothers and Danafloat expanded presence in North America and specialty mining chemicals, supporting growth in US Quarries & Construction and copper processing chemistry.

• Organisation-wide cost reduction program underway targeting at least $100 million in annualized savings over three years.

• Achieved 2026 emission reduction targets ahead of schedule, maintaining strong environmental performance and ongoing commitment to net zero by 2050.

• Positive outlook supported by a global manufacturing and supply network, strong balance sheet, and focus on shareholder returns.

Financial highlights

• EBIT rose to $512 million, up 5% year-over-year; NPAT pre-significant items increased 8% to $283.1 million; statutory net loss after tax of $0.6–1 million due to significant items totaling $283.7–307 million, mainly litigation and restructuring costs.

• EPS pre-significant items increased 12% to 60.7 cents per share; interim dividend of 28.5 cents per share, up 14% year-over-year, with a payout ratio of 46.6–47%.

• Net operating cash flow was $230.6–231 million, down 6% year-over-year, impacted by FX and litigation costs.

• Net debt increased to $2.2–2.47 billion, with leverage at 1.53x EBITDA, within the lower half of the 1.25–2x target range.

• Return on net assets reached 14.7%, a 13-year high.

Outlook and guidance

• Full-year underlying EBIT expected to increase across all segments and regions, barring unforeseen external shocks.

• Capital expenditure for 2026 to be broadly in line with 2025; net operating cash flow expected to be lower due to FX and significant items.

• Depreciation and amortisation forecast at lower end of $520–540 million; net finance costs to be slightly higher.

• Dividend Reinvestment Plan reinstated following share buyback.

• Positive medium-term outlook with continued focus on supply security, premium products, and technology adoption.