Orica's core business to drive growth in FY26, says Macquarie

ORICA

08/09/2025 05:46

** Macquarie says Australia's Orica's ORI.AX FY26 EPS to rise by 9% on positive margin/mix, digital segment expansion, stabilising acquired mining chemicals firm Cyanco ops, and continued buyback

** Notes mining and infra solutions provider's H2 FY25 earnings guidance above prior year on strong value-add products, services performance and a pick-up in co's digital segment

** Flags lower coal volumes in Indonesia, North America offset by A$25 million ($16.40 million) corporate cost reduction

** Raises SOTP-based valuation to A$22.71 from A$21.48 on higher market multiples, and rates it "outperform"

** Stock nearly flat at A$21.02; YTD up 26.8%

($1 = 1.5249 Australian dollars)

 (Reporting by Shruti Agarwal in Bengaluru)

 ((Shruti.Agarwal@thomsonreuters.com))