Orica flags stronger earnings and new cost saving program for FY26
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The news: Orica has flagged that the strong performance seen in 2025 is expected to continue through the first five months of 2026, citing strong strategy execution and higher earnings compared with the prior corresponding period.
The context: The company underlying performance has been supported by strong demand for its advanced blasting technologies, with revenue growth in 2026 to be boosted by favourable gold and copper prices. The completion of the Winnemucca plant project is expected to lift year-on-year earnings by around 15%.
Orica has also launched a company-wide cost reduction program targeting at least $100 million in annualised savings over the next three years as it prepares for the next phase of growth.
However, the company expects net operating cashflow for both the half and full year to be lower than in 2025 due to foreign exchange movements, US litigation costs and a supply disruption associated with an outage at CF Industries’ Yazoo City plant.
Orica said first-half significant items are expected to reduce statutory net profit after tax by between $45 million and $60 million, on the back of litigation costs, higher supply expenses and restructuring charges tied to the cost reduction program.
The company is scheduled to release its 2026 half-year results on 7 May.
What they said: “Despite a more volatile operating environment and increasing geopolitical complexity, we have continued to support customers by leveraging our global footprint, maintaining continuity of supply and focusing on operational excellence,” Orica CEO Sanjeev Gandhi said.
The source: ASX
