Orica annual profit climbs 63% as digital and chemicals grow

The Australia-based company, the world’s largest maker of commercial explosives, reported net profit of A$264.2 million (US$181.4 million) for the year through September, compared with A$162.3 million a year earlier. The earlier result included nearly A$379 million in significant items, primarily an impairment and restructuring costs in Latin America. Orica recorded A$325.5 million in significant items in fiscal 2026, including litigation costs and restructuring expenses.

Underlying Ebit rose 7% to nearly A$1.06 billion, in line with company guidance. Earnings increased across all business segments and regions. Ebit in the core blasting solutions unit grew 2% year over year, while digital solutions and specialty mining chemicals each recorded 25% growth. Together, those two smaller, high-growth businesses contributed nearly 23% of group earnings, Orica said.

The company has been expanding beyond blasting through acquisitions in digital technologies and specialty chemicals. Directors declared a final dividend of 35.5 Australian cents a share, bringing the full-year payout to 64 cents, up 12% from a year earlier. Analysts had forecast net profit of about A$230.8 million, Ebit of A$1.04 billion and a final dividend of 35 Australian cents, according to Visible Alpha consensus estimates.

For fiscal 2027, Orica expects blasting earnings to benefit from demand for premium products and corporate cost-cutting, although weaker Indonesian thermal-coal demand is expected to weigh on the business. Digital growth is expected to reflect wider adoption in mining, exploration and infrastructure; specialty mining chemicals are forecast to be supported by robust gold-sector demand.

“While the external environment remains complex, our global manufacturing and supply network, technology capabilities and disciplined execution position us to continue supporting our customers and delivering sustainable growth and long-term shareholder value,” Chief Executive Sanjeev Gandhi said.