Orica (ORI) investor relations material

Executive summary

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

• Interim dividend increased to 28.5 cents per share, up 14% year-over-year, with a $500 million on-market share buyback completed.

• Strategic acquisitions in the US Quarries & Construction market and copper processing chemistry (Nelson Brothers, Danafloat) progressed.

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

• Achieved 2026 emission reduction targets ahead of schedule, with ongoing commitment to net zero by 2050.

Financial highlights

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

• EPS pre-significant items increased to 60.7 cents per share; interim dividend of 28.5 cents per share declared.

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

• Net operating cash flow was $231 million, with strong cash generation partly offset by FX and litigation costs.

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

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.

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

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