Morgans research analyst Belinda Moore has reported that Orica’s first-half business update was “better than expected,” with momentum from 2025 continuing into the first five months of 2026. Underlying earnings before interest and tax for the first half are now expected to be slightly higher than the prior corresponding period. This exceeds Morgans’ forecast and aligns with consensus expectations. Orica is a global company that provides mining and infrastructure solutions, including blasting systems, digital solutions, and ground support. Orica’s products and services are used in mining, quarrying, construction, and infrastructure projects around the world.
Moore noted that growth in Orica’s digital solutions and specialty mining chemical offerings had offset headwinds in blasting solutions. These headwinds were caused by a stronger Australian dollar and lower Indonesian coal quotas. The analyst also highlighted Orica’s new cost-reduction program, which is expected to deliver at least $100 million of annualised savings over three years. This program is seen as a positive factor for the company’s long-term profitability.
However, Moore cautioned that operating cash flow would be lower than FY25. This is due to foreign exchange impacts, US litigation costs, and the CF Industries supply disruption in North America. Production at Yazoo City is not expected to resume until late 2026, further impacting cash flow. Despite these challenges, the overall outlook for Orica remains positive, driven by growth in key business segments and cost-saving initiatives.
