Market Wants More Detail on Orica's North American Supply Arrangements

Dow Jones08:31

0031 GMT - Investors will be focused on Orica's North American ammonium nitrate supply arrangements beyond FY 2027 when the explosives maker reports its FY 2026 results on Nov. 12, UBS says. "The medium-term strategic approach is of particular interest, given the company has confirmed U.S. supply arrangements without a material margin headwind for FY27," says the bank. It says a recent trading update indicated Orica is tracking in line with guidance for FY 2026 EBIT to increase across all segments and regions. UBS forecasts EBIT of 1.027 billion Australian dollars versus consensus of A$1.039 billion. It expects Orica to provide qualitative outlook commentary and forecasts FY 2027 EBIT growth of 5% versus consensus at 8%. UBS has a buy rating and A$27/share target on Orica. The stock is up 3.4% at A$22.79.

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