Melbourne, May 14, 2026, 08:04 AEST
State Street and its subsidiaries have trimmed their stake in Orica Limited to 7.56%, or roughly 35 million shares, down from 8.6%. That’s according to a new substantial-shareholder notice, which comes just days after the explosives manufacturer reported record first-half underlying earnings, drawing attention back to its share register. The ASX released the notice Wednesday morning in Melbourne.
Timing’s crucial here. Orica shares finished the day at A$22.33, rising 0.77%. That puts them 8.19% higher than just a week ago. Now, investors are left to figure out if there’s any juice left after the results rally, with the stock set to go ex-dividend next week.
Policy winds are shifting too. The 2026-27 budget slashed Australia’s Hydrogen Headstart subsidy pool for its second round to A$1 billion. That’s a step down from the A$1.2 billion already allocated in the first round, with two projects funded—Orica’s 50-MW Hunter Valley Hydrogen Hub among them.
Orica logged a net profit after tax before significant items of A$283.1 million for the half-year ended March 31, climbing 8%. EBIT came in at A$512 million, up 5%. The “before significant items” figure strips out major one-offs; on a statutory level, those big-ticket costs totaled A$283.7 million, leaving Orica with a net loss of A$0.6 million. Orica
Orica’s CEO Sanjeev Gandhi pointed to “record earnings in the first half,” emphasizing that “security of supply is a core differentiator for Orica.” Both comments underline one thing: for miners, steady access to explosives and chemicals matters more than bargain pricing. Orica
The board signed off on an unfranked interim dividend of 28.5 cents a share, a 14% increase on last year. Orica also wrapped up a A$500 million on-market buyback. The stock trades ex-dividend on May 21, with a record date set for May 22. Payment lands on July 3.
Hydrogen isn’t grabbing headlines today, but it’s a piece investors can’t overlook. The Hunter Valley project targets emissions from industrial output; meanwhile, a federal funding cut signals that future proposals will be up against stricter scrutiny.
Logan Reese, who heads OECD-Asia power and renewables at S&P Global Energy, pointed out that Australia’s hydrogen policy is sticking with “focused on targeted support,” and said cutting the funding would force “greater selectivity.” For Orica, that shift could actually bump up the value of support it’s already won, though the project itself still needs to be carried out. S&P Global
The company’s been reworking its portfolio, too. It struck a deal to acquire the rest of Nelson Brothers’ North American explosives business, and snapped up the Danafloat product line, a push deeper into copper processing chemicals. Copper processing reagents—those chemicals for pulling copper minerals from ore—are central to that bet.
Orica now faces off more directly with global explosives and mining-services competitors like Dyno Nobel and Enaex, with Morningstar pegging Orica’s share of the worldwide commercial explosives market at roughly 28%. The battleground is moving beyond just blasting volumes—supply chain muscle, tech, and adjacent mining chemicals are becoming the bigger plays.
Still, cracks remain. Orica’s half-year figures revealed sales dropped to A$3.88 billion, down from A$3.94 billion twelve months ago. Basic earnings per share came in at negative 0.1 cent. The company also booked a A$247.3 million settlement payable related to the CF Industries litigation in North America.
Orica expects underlying EBIT for the full year to climb in every segment and region—assuming no unexpected setbacks. Still, management isn’t ignoring the risks: they pointed to geopolitical uncertainty, currency swings, and a forecast for weaker operating cash flow compared to 2025.
Next up, it’s a straightforward check: Does the dividend date help shore up the share price? Investors are also eyeing State Street’s reduced stake—routine rebalancing, or something more? And after a bumpy statutory half, Orica still has to show it can translate solid demand into actual cash.
