Markets 'overly optimistic' on earnings improvement for Australia's Orica, Morningstar says

ORICA

10/05/2026 20:56

** Morningstar says the market is "overly optimistic" about earnings improvement for Orica ORI.AX, flagging that some longer-term demand headwinds are expected while margins are likely to lift

** Explosives maker last week logged 8% rise in 1H underlying NPAT to A$283.1 million ($205.30 million)

** Co expects FY underlying EBIT to increase across all segments and regions; added there are no immediate material constraints related to Middle East conflict

** Morningstar says underlying NPAT was 3% ahead of expectations, indicating lower depreciation and tax

** Investment research firm retains fair value estimate A$20; says shares are now "slightly overvalued"

** Orica down 10.5% so far this year, as of last close

 ($1 = 1.3789 Australian dollars)

 (Reporting by Nikita Maria Jino in Bengaluru; Editing by Edmund Klamann)

 ((Nikita.Jino@thomsonreuters.com;))