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Revenue: Increased by 6% to $8.1 billion. EBIT: Rose 23% to $992 million, the highest in 13 years. Net Profit Before Significant Items: Increased 32% to $541 million. Earnings Per Share: Increased by 29% to $111.8. Net Operating Cash Flow: Up 18% to $949 million. Leverage Ratio: 1.39 times EBITDA. Return on Net Assets: Improved to 13.8%. Final Dividend: Declared at $0.32 per share, full-year dividend at $0.57 per share. On-Market Buyback: Increased to $500 million, nearly complete. Blasting Solutions EBIT: $868 million, up 15% year on year. Digital Solutions EBIT: $92 million, up 32% year on year. Specialty Mining Chemicals EBIT: $101 million, up 47% year on year. Capital Expenditure: Total of $460 million, with $286 million on sustenance and $172 million on growth. Net Debt: $1.9 billion, excluding lease liabilities. Cash and Undrawn Facilities: $747 million in cash and $1.6 billion in undrawn committed facilities.

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Release Date: November 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Orica Ltd (OCLDF) reported zero fatalities and a record low serious injury case rate, highlighting their strong safety performance. The company achieved a 51% reduction in gross Scope 1 and 2 emissions compared to 2019 levels, surpassing their interim target. Orica Ltd (OCLDF) reported a 23% increase in EBIT to $992 million, marking the highest earnings in 13 years. The company saw earnings growth across all core segments and regions, demonstrating the strength of their diversified portfolio. Orica Ltd (OCLDF) completed a successful on-market buyback of $400 million and announced an additional $100 million buyback, reflecting confidence in future growth.

Negative Points

The company faces headwinds in the US and Indonesian markets due to declining coal demand, impacting their Blasting Solutions segment. Orica Ltd (OCLDF) is dealing with a force majeure situation with CF Industries, potentially affecting ammonium nitrate supply. The company anticipates ongoing litigation costs of $50 million to $60 million in FY 2026. There is a planned major shutdown at the Carseland plant in Canada, which may impact earnings in FY 2026. Despite strong financial performance, Orica Ltd (OCLDF) faces challenges with high East Coast gas prices, impacting operational costs.

Q & A Highlights

Q: Could you provide some quantitative color around the earnings impact from headwinds in Indonesia and the US for your Blasting Solutions business in FY25 and expectations for FY26? A: In the US, coal extraction has been declining over the past decade, and while there might be an uptick due to increased energy demands from data centers, it's uncertain. For FY26, we anticipate a continued gradual decline in coal output. In Indonesia, since June, there's been a 10% decline in coal exports to China and India due to lower coal prices and increased Chinese coal output. This trend benefits us as demand shifts to regions where we are active, like Australia and Mongolia.

Story Continues

Q: Regarding the force majeure involving CF Industries, can you provide options to replenish volumes and any details on contracted versus spot prices? A: The force majeure notice was received recently, and while the contract allows for up to 800,000 tons, our nominations depend on market needs, so the risk isn't fully at that level. We are leveraging our global network to ensure no immediate supply disruptions to customers. It's early days, and we're assessing the situation to plan accordingly.

Q: Can you comment on exploration trends and Axis's performance in FY26? A: We've seen an uptick in exploration, particularly in gold and now copper, after a period of decline. Axis is performing well globally, and we are launching products into the production drilling market, which will double our addressable market. This expansion is promising for future growth.

Q: Do you expect GDP-plus growth levels in Blasting for FY26, adjusting for the carbon credit benefit in FY25? A: Yes, we expect GDP-plus growth through the mining cycle, driven by increased penetration and technology adoption. However, the Carseland shutdown and non-repeat of carbon credits will impact FY26, but overall, we anticipate growth in the Blasting segment.

Q: With the CF Industries force majeure, if there are additional costs, can they be recovered from customers or insurance? A: We are reviewing the legal aspects of the force majeure notice. Our focus is on ensuring supply continuity for our customers. If there are increased costs, we will explore options to manage and potentially pass them on, but it's too early to determine specifics.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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