What Lifted Orica's (ASX:ORI) FY26 Profit Before Significant Items by 9 Percent?

Sonal Goyal

12 November 2026 11:33 AM AEDT

What Lifted Orica's (ASX:ORI) FY26 Profit Before Significant Items by 9 Percent?

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Key Highlights

NPAT before significant items rose 9 percent to $589.7 million, while statutory NPAT was $264.2 million.
Significant items after tax totalled $325.5 million, weighing on statutory Earnings and operating cash flow.
EBIT was $1,056.9 million, up 7 percent, or 11 percent on a constant currency basis.
The full-year Dividend rose 12 percent to 64.0 cents per share, with a Payout Ratio of 50 percent.

Orica Limited (ASX:ORI) has reported its full-year results for FY26, with an announcement dated 12 November 2026. Net profit after tax before significant items was $589.7 million, up 9 percent on the prior year, while statutory NPAT was $264.2 million after $325.5 million of significant items after tax. Earnings before interest and tax were $1,056.9 million, up 7 percent, or 11 percent in constant currency. The company attributes the result to Demand for premium products, activity in gold and copper Mining and commercial discipline.

Segment and earnings drivers

The company says its Digital Solutions and Specialty Mining Chemicals segments now deliver nearly 23 percent of group earnings. Earnings Per Share before significant items were 126.8 cents, up 13 percent. Return on net Assets rose to 15.6 percent from 13.8 percent, and return on invested Capital rose to 11.3 percent from 9.8 percent. Savings from an organisation-wide cost reduction program are described as on track.

The company also completed the Acquisition of the Danafloat metals processing range and the Nelson Brothers explosives Business during the year, and it reported record sodium cyanide production from its Yarwun and Winnemucca operations.

Cash flow, capital and dividend

Net Operating Cash Flow was $758.3 million, down from $949.2 million, after $344.2 million of cash outflows related to significant items. Leverage was 1.46 times, at the lower end of the company's 1.25 to 2.00 times target range. The $500 million on-market share buy-back was completed in full. The final dividend is 35.5 cents per share, bringing the full-year dividend to 64.0 cents, a payout ratio of 50 percent.

Final Word

Orica's underlying earnings rose, while statutory earnings and operating cash flow were lower because of significant items. The gap between the two measures is the central question for investors to assess, along with whether the growth in digital and specialty segments can continue. The buy-back and higher dividend show the company returning capital while its leverage sits within its target range.

FAQs

Q: What was Orica's statutory NPAT?

A: Statutory NPAT was $264.2 million, after $325.5 million of significant items after tax.

Q: What is the full-year dividend?

A: The full-year dividend is 64.0 cents per share, up 12 percent, with a final dividend of 35.5 cents.

Q: How did operating cash flow change?

A: Net operating cash flow was $758.3 million, compared with $949.2 million in FY25, after significant item outflows of $344.2 million.

Q: Where is leverage positioned?

A: Leverage was 1.46 times, at the lower end of the company's 1.25 to 2.00 times target range.

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