Highlights

• Orica has sourced FY2027 ammonium nitrate for contracted North American customers from US producers, Carseland and its global network.

• First-half EBIT rose 5% to A$512 million, and the interim dividend increased 14% to 28.5 cents per share.

• Orica completed its A$500 million buy-back and started a program targeting at least A$100 million of annualised savings.

• Final investment decision on the Hunter Valley Hydrogen Hub commits A$245 million to A$283 million of net capital through 2029.

Securing explosives raw material for a full year ahead is a quiet but critical task for a blasting company, and Orica Limited (ASX:ORI) said on 28 September 2026 that it has done it for North America. Shares were trading at A$22.87 on 23 October 2026, down 0.57%.

The company said it has sourced ammonium nitrate for its contracted North American customers for FY2027. Supply will come from US-based producers, higher volumes at its Carseland plant in Canada and its broader North American and global network. Sourcing costs have risen, but Orica does not expect a material effect on FY2027 margins, pointing to logistics optimisation, cost-out initiatives and customer arrangements.

A Bigger North American Footprint

The supply update follows a structural move earlier in the year. On 1 June 2026, Orica completed its acquisition of the Nelson Brothers explosives joint venture business in the United States, taking full ownership. The company said the deal simplifies its North American structure and strengthens its position in downstream markets such as quarries and construction.

Orica has completed integrating Nelson Brothers and Danafloat, and plans to keep diversifying its North American supply network.

Half-Year Earnings and Capital Returns

The half-year result for the period to 31 March 2026 gave the supply story a financial backdrop. Sales revenue slipped 1% to A$3,884 million, yet EBIT climbed 5% to A$512 million and EBITDA rose 4% to A$761 million. Net profit before significant items increased 8% to A$283 million, lifting earnings per share before significant items to 60.7 cents from 54.0 cents.

Significant items, mainly litigation costs, pulled the statutory result to a net loss of A$1 million, compared with a loss of A$89 million a year earlier. Net operating cash flow fell 6% to A$231 million, and leverage stood at 1.53 times, inside the target range of 1.25 to 2.00 times.

Shareholders received an interim dividend of 28.5 cents per share, up 14%, and Orica completed its A$500 million on-market buy-back in full. Management also started a cost program aimed at annualised savings of at least A$100 million over three years, with most benefits expected in 2027 and beyond.

Hydrogen Build and a Delayed Land Sale

On 1 July 2026, Orica approved a final investment decision on the Hunter Valley Hydrogen Hub, a renewable hydrogen facility planned alongside its ammonia plant at Kooragang Island, New South Wales. The plant is designed to produce about 4,700 tonnes of hydrogen a year, supporting roughly 26,600 tonnes of low-carbon ammonia annually and cutting natural gas feedstock demand by about 7.5%. Net capital spending is estimated at A$245 million to A$283 million across 2026 to 2029, with government support from the Australian and New South Wales governments and ARENA.

Not every item is moving to schedule. Negotiations to sell surplus land at Deer Park, Victoria, will now run beyond the FY2026 contract exchange timing the company had indicated, because of market conditions. Orica said the delay does not affect underlying operations.

Dates and Priorities Ahead

Orica will announce its full-year results and final dividend on 12 November 2026 and provide its FY2027 outlook at the same time. Its annual general meeting is scheduled for 16 December 2026. Hydrogen hub construction starts in 2026, with first production targeted for early 2029.