Orica hits 20 year earnings high on tech advancements
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The news: Orica has reported an 8% rise in first-half underlying net profit after tax to $283.1 million, driven by strong demand for premium products and advanced technology.
The numbers: In the first half, earnings before interest and tax (EBIT) rose 5% to $512 million from the prior corresponding period.
Net operating cashflow fell to $230.6 million, down from $244.9 million in the prior year, while interim dividend saw a 14% year-on-year increase to 28.5 cents.
The company expects FY26 net operating cashflow to be lower than initially forecast due to impact of significant items, while depreciation and amortisation is expected to be at the lower end of the $520 million to $540 million range.
The context: Orica attributed its earnings lift to strong demand for premium products and robust gold and copper markets alongside disciplined commercial execution.
CEO Sanjeev Gandhi stated that despite a challenging environment, the company achieved its highest half-year EBIT in over 20 years, underpinned by its global supply network and manufacturing asset base.
What they said: “We will continue to work to mitigate potential external impacts by leveraging our global manufacturing and supply network,” Gandhi said.
“We continue to see opportunities to grow our earnings globally through supply security, adoption of premium products, technology and continued execution of our strategy,” he added.
The source: ASX
