• Net Profit After Tax pre-significant items (NPAT pre-SI)⁽¹⁾ of $283.1 million, up 8% from the prior corresponding period (pcp) (1H2025 NPAT pre-SI: $263.0 million). Statutory Net Loss After Tax⁽²⁾ of $0.6 million, including $283.7 million of significant items⁽³⁾ after tax, as previously indicated
• EBIT⁽⁴⁾ of $512.0 million, up 5% from the pcp
• Strong underlying earnings supported by continued demand for premium products and advanced technology offerings, robust gold and copper fundamentals and strong commercial discipline
• Net operating cash flow of $230.6 million (1H2025: $244.9 million)
• Earnings per share (pre-SI)⁽⁵⁾ of 60.7 cents, up 6.7 cents and 12% from the pcp
• Interim dividend of 28.5 cents per share, up 3.5 cents and 14% from the pcp, representing a payout ratio⁽⁶⁾ of 47%
• Leverage (excluding leases)⁽⁷⁾ at 1.53x, remaining within the target range of 1.25x – 2.00x
• Return on Net Assets (RONA)⁽⁸⁾ at 14.7% (1H2025: 13.1%), the highest level in 13 years
• $500 million on-market share buy-back completed in full
• Organisation-wide program underway to deliver at least $100 million enduring reduction in the cost base of the business
• Agreement reached to acquire Nelson Brothers’ explosives business in North America⁽⁹⁾, providing increased exposure to the US Quarries and Construction sectors and direct channels to market
• Acquired the Danafloat™ product range, expanding Orica’s Specialty Mining Chemicals portfolio into the attractive copper processing market
• Settlement of US litigation and progress towards securing long-term diversified supply in North America

CEO commentary 

Summarising the strong first half performance, Orica Managing Director and CEO Sanjeev Gandhi said: 

“We have delivered record earnings in the first half, driven by strong demand for premium products and advanced technology offerings, robust gold and copper markets and disciplined commercial execution.

“Despite a challenging environment, our first half EBIT was the highest in over 20 years and highlights the continued commitment of our people and the resilience and adaptability of Orica’s diversified portfolio, manufacturing asset base and global supply network in a market that continues to value quality, security of supply and technology-enabled outcomes. 

“Importantly, we also made significant strategic progress to strengthen Orica’s portfolio for profitable growth into the future.”

Safety and sustainability

“Safety remains our number one priority, and we were deeply saddened by the fatal incident involving one of our people in North America during the half; our thoughts continue to be with their family and colleagues. We have completed the investigation and are implementing learnings across our operations.

“We maintained strong environmental performance with no significant environmental incidents, and we have successfully achieved our 2026 near-term emissions reduction target as we continue to work towards our long-term ambition of achieving net zero emissions by 2050.”

Strategy and performance 

“Security of supply is a core differentiator for Orica. Once again, Orica’s global manufacturing and supply network has positioned us to support customers and maintain continuity of supply, while responding quickly to changing market conditions.

“During the half we were able to successfully secure alternative ammonia and ammonium nitrate supply from our wholly owned manufacturing plants and our supplier networks in the market following an outage at a supplier’s ammonia facility in Western Australia.  

“During the first half, we also made progress towards securing long-term diversified ammonium nitrate supply in North America, strengthening resilience and supporting security of supply for our customers. 

“The Nelson Brothers and Danafloat acquisitions reflect our commitment to disciplined growth and building higher-quality earnings across our three business segments.

“This half, we also commenced an organisation-wide cost reduction program to deliver an enduring step change in the cost base of the business, to best position the company for the next phase of sustained profitable growth. The program is well underway with most of the benefits expected to be realised in 2027.”
 

Capital management

“Our balance sheet remains strong, with leverage at 1.53x - within the lower end of our target range. This provides resilience and capacity to support further investment in our strategic priorities.

“Return on Net Operating Assets is 14.7% in the first half of 2026, the highest in 13 years and we completed our $500 million on-market share buy-back in full, reflecting our confidence in the outlook and our disciplined approach to capital management while maintaining our investment grade credit rating.

“We continue to prioritise safe and reliable operations, funding value-accretive growth, and our commitment to maximising shareholder value over time consistent with our capital management framework.”

Dividend

The Board has declared an unfranked interim ordinary dividend of 28.5 cents per share, representing a payout ratio of 47 per cent. The dividend is payable to shareholders on 3 July 2026 and shareholders registered as at the close of business on 22 May 2026 will be eligible for the interim dividend. 

Orica maintains a dividend policy with expected total payout ratio to be in the range of 40% to 70% of underlying earnings. It is also expected that the total dividend paid each year will be weighted towards the final dividend.
Following successful completion of the on-market share buyback, the Directors approved recommencement of the Orica Dividend Reinvestment Plan.

2026 Outlook

• Full year underlying EBIT is expected to increase across all segments and all regions versus the prior period, subject to no new unforeseen factors impacting the business given the very volatile external environment.  

  Orica is currently not experiencing any immediate material constraints related to the conflict in the Middle East and the company’s products (inputs or components) are generally not transported through the Strait of Hormuz.

  We will continue to closely monitor any potential external impacts such as those related to future geopolitical and market volatility and any future movements in foreign exchange.

• Balance sheet strength remains a key focus, with leverage operating within the target range.
• Existing business capital expenditure is expected to be broadly in line with 2025.
• Net operating cash flow is expected to be lower than 2025 primarily due to movements in foreign exchange and the impact of significant items.
• Depreciation and amortisation is expected to be at the lower end of $520 million to $540 million.
• Net finance costs are expected to be slightly higher than 2025.
• Non-controlling interests are expected to be broadly in line with 2025.
• Effective tax rate is expected to be slightly below 2025 based on regional earnings mix.

Commenting on the 2026 outlook and beyond, Mr Gandhi said:

“We enter the second half with good momentum, demand remains robust and our outlook remains positive. We will continue to work to mitigate potential external impacts by leveraging our global manufacturing and supply network. We continue to see opportunities to grow our earnings globally through supply security, adoption of premium products, technology and continued execution of our strategy. 

“We remain focused on disciplined capital management and rebasing our costs while advancing our growth initiatives and delivering sustainable value for customers and shareholders.

“Looking beyond FY2026, we see positive momentum and growth for Orica, and the company’s medium-term outlook remains unchanged.”

Market briefing 

Orica provided a market briefing at 11:00am (AEST), 7 May 2026. A webcast of the briefing is available here.

Footnotes

The following footnotes apply to this results announcement:

1. Equivalent to profit after income tax expense before individually significant items attributable to shareholders of Orica Limited, as disclosed in Note 2(a), Appendix 4D – Half-Year Report.

2. Equivalent to net profit/(loss) for the year attributable to shareholders of Orica limited, as disclosed in the Income Statement within the Appendix 4D – Half-Year Report.

3. Significant items as disclosed in Note 3(c) of Appendix 4D – Half-Year Report.

4. Earnings before interest and tax (EBIT) or 'earnings' is equivalent to profit/loss before net financing costs and income tax, excluding individually significant items, as disclosed in Note 2(a), Appendix 4D - Half-Year Report.

5. Basic earnings per share excluding individually significant items as disclosed in Note 5 of Appendix 4D – Half-Year Report. 

6. Dividend payout ratio = Dividend amount / NPAT before individually significant items.

7. Leverage calculated as Net Debt (pre-IFRS16) divided by 12 month EBITDA (pre-IFRS16).

8. 12 Month EBIT divided by rolling 12-month average net operating assets. Net operating assets include property, plant and equipment; intangible assets; investments in equity-accounted investees; trade working capital and non-trade working capital, excluding environmental provisions.

9. Signing of final agreements occurred on 6 May 2026.