Full Year 2025 Orica Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: William Park - Citi Infrastructure Investments LLC - Analyst : Thanks, Sanjeev; thanks, Jamie for taking my questions. Firstly, just with respect to the headwinds that you've called out in Indonesia and the US, could you be able to provide some quantitative color around the earnings impact that you've seen in FY25 for your Blasting Solutions business and your expectation of those headwinds, in 26, please? Thank you.

Question: William Park - Citi Infrastructure Investments LLC - Analyst : Thank you. That's very clear. And then, my second question relates to the force majeure that you've alluded to involving CF Industries. Can you just remind us -- so the volume to take up on an annualized basis was around 800,000 tons, from memory. Presumably, all of this is at risk. Can you just provide some color around some of the options that you have available to effectively replenish these volumes; and maybe some color around, the contracted price and spot price? Any color around that would be great. Thank you.

Question: William Park - Citi Infrastructure Investments LLC - Analyst : Thank you. Just the last one, around the trend with respect to exploration that you're seeing and the acceleration in momentum, particularly in Axis, that you've alluded to. Could you provide some comment around some of the observations that you're having, with respect to the exploration levels across the regions that you're operating and how Axis is performing in the first month and a half in the FY26? Thank you.

Question: William Park - Citi Infrastructure Investments LLC - Analyst : Thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 13, 2025 / 12:00AM, ORI.AX - Full Year 2025 Orica Ltd Earnings Call

Question: Brook Campbell-Crawford - Barrenjoey Markets Pty Ltd - Analyst : Yeah. Thanks for taking my question. Sanjeev, just a quick one on the outlook. Just note that you expect growth in Blasting in FY26. Just want to check if you expect GDP-plus type growth levels in FY26 in Blasting adjusting for the carbon credit benefit you had in FY25, which would be similar to the midterm target.

Question: Brook Campbell-Crawford - Barrenjoey Markets Pty Ltd - Analyst : That's helpful. Just on the buyback, you have increased at $100 million. It just seem a little bit light. For context, I think you did more than $100 million in the month of September alone. So just want to check why perhaps it's a conservative increase in that program through to the end of March.

Question: Brook Campbell-Crawford - Barrenjoey Markets Pty Ltd - Analyst : Just really a quick one on the Blasting, in term growth. I just want to confirm, are you talking nominal or real GDP growth?

Question: Mark Wilson - RBC Capital Markets Inc - Analyst : Just a couple of quick comments about the CF Industries' force majeure. I realize it is early days. Just with your contractual arrangements, should this be a prolonged shutdown? You do have to take on additional freight and sourcing costs. Would you be able to recover those from other customers offering CF Industries or insurance? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 13, 2025 / 12:00AM, ORI.AX - Full Year 2025 Orica Ltd Earnings Call

Question: Mark Wilson - RBC Capital Markets Inc - Analyst : Okay. That's great. And then, just on the cash flow, good improvement there, particularly on the trade working capital side. Just wondering how much more progress you think you can make. I did notice there was a reasonable increase in non-trade working capital. Can you just touch upon that?

Question: John Purtell - Macquarie Group Ltd - Analyst : Just had a couple of questions, please. Just the first one, obviously, you've upped your medium-term EBIT growth targets for Mining Chems and Digital. I know you've alluded to some of the factors, Sandeep, here. But, obviously, the gold price moves around. So just be interested in what are the factors outside of the gold price that are giving you the confidence to up those targets?

Question: John Purtell - Macquarie Group Ltd - Analyst : Just a second question on the profit bridge slide there, the margin mix is obviously up $81 million for EBIT in blasting. I think you mentioned that that includes the $15 million carbon credit benefit. So you've got a $66 million underlying there. I think the broader question is, do you think you can maintain that level of improvement in '26? Or is that going to be difficult, given some of the thermal coal regional weakness you've called out?

Question: Scott Ryall - Rimor Equity Research Pty Ltd - Analyst : Sanjeev, I just want to follow up on your carbon credits comments just then, you still get carbon credit issued under the scheme that you've agreed with government, right?

Question: Scott Ryall - Rimor Equity Research Pty Ltd - Analyst : All right. Perfect. And then, just, if I can touch on the CF Industries issues again. You've given color that it's all very recent. If I look at the facility in question, just -- it does just shy of 600,000 tons of ammonia, which, if that was all channels to ammonium nitrate, would be over 2 million tons. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 13, 2025 / 12:00AM, ORI.AX - Full Year 2025 Orica Ltd Earnings Call You've said you're up to 800,000 but, obviously, less than that. Do you have a sense of how this puts the US or the North American market, more broadly, than just your supply of ammonium nitrate? What I'm looking at is, you made a good comment that during COVID, you managed your supply chain pretty well as a global player, do you have regional players who are highly exposed for this incident, as well?

Question: Scott Ryall - Rimor Equity Research Pty Ltd - Analyst : Okay. So you're more focused on your internal ability to service your own customers' needs, as opposed to the competitive advantage that may give you from being a global player?

Question: Lee Power - JPMorgan Chase & Co - Analyst : Sanjeev, just on slide 10, to churn rates that have come down. Is there something specific going on with the type of contracts up for renewal? Or something else going on around how you're approaching pricing or your competitors approaching pricing that might explain the change in churn rate? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 13, 2025 / 12:00AM, ORI.AX - Full Year 2025 Orica Ltd Earnings Call

Question: Lee Power - JPMorgan Chase & Co - Analyst : Yeah. I was coming from, like, the other side, often, like, churn rate and price go somewhat in opposite direction. So I was trying to work out if there's something else where maybe the rest of the industry has started pushing price, as well, and that's starting to show through in churn rates.

Question: Lee Power - JPMorgan Chase & Co - Analyst : That's a good sign. And then, sorry, just to go back to Brook's question around Blasting Solutions. Is your point that -- you've obviously got the medium-term targets, you're going to grow but you -- given the Carseland shut, you might be below that medium-term target you've set. Is that what I should take out of your answer to Brook's question? Or if I'm mistaken, what should I be taking out of that?

Question: Lee Power - JPMorgan Chase & Co - Analyst : Yeah. Sorry. I was asking just a follow-up on Brook's question around Blasting Solutions and the '26 guide. There's obviously a lot of moving parts. You said there is going to be growth. I'm just trying to work out is, do those moving parts end up that your growth rate will be positive and yet below the GDP-plus EBIT growth target you have in the medium term? Or is it going to be at or above that rate? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 13, 2025 / 12:00AM, ORI.AX - Full Year 2025 Orica Ltd Earnings Call

Question: Lee Power - JPMorgan Chase & Co - Analyst : Yeah. No. That makes sense. Excellent. Thank you. Appreciate your time.