Orica (ORI) investor relations material

Executive summary

• Achieved record first half performance with EBIT up 5% and NPAT pre-significant items up 8% year-over-year, reflecting strong commercial discipline, strategic execution, and resilient operations.

• Strategic acquisitions in US Quarries & Construction and copper processing chemistry, including Nelson Brothers and Danafloat, expanded market exposure.

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

• Interim dividend increased to AUD 0.285 per share, with a completed AUD 500 million share buyback reflecting higher shareholder returns.

• Positive outlook supported by a global manufacturing and supply network, strong balance sheet, and progress on emissions reduction targets.

Financial highlights

• EBIT rose to AUD 512 million, up 5% year-over-year; NPAT pre-significant items increased 8% to AUD 283 million.

• EPS pre-significant items increased to 60.7 cents per share; interim dividend up 14% to 28.5 cents per share.

• Net operating cash flow was AUD 231 million, down 6% year-over-year due to FX and significant items.

• Leverage ratio increased to 1.53x EBITDA, within the lower half of the 1.25–2x target range.

• Statutory net loss after tax of AUD 1 million due to significant items totaling AUD 284 million, mainly litigation and restructuring costs.

Outlook and guidance

• Full-year 2026 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.

• Dividend Reinvestment Plan reinstated following completion of the on-market share buyback.

• Medium-term outlook remains positive with continued focus on maximizing shareholder returns.

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