Orica (ASX:ORI) said its earnings before interest and taxes (EBIT) is expected to be slightly higher in the first half of the year than the half-year in the prior corresponding period, according to a Tuesday Australian bourse filing.

It expects its cost savings program to deliver at least AU$100 million of annualized cost savings, realized across the next three years.

Net operating cash flow for the half and full year is expected to be lower than in 2025, due to movements in foreign exchange rates, litigation costs in the US, and the impact of the CF Industries plant outage in North America. Meanwhile, depreciation and amortization for the full year is expected to be at the lower end of the AU$520 million to AU$540 million guidance range, skewed to the second half.

Its litigation costs, the CF Industries supply disruption, and restructuring costs are expected to lead to between AU$45 million and AU$60 million reduction in statutory net profit after tax.

Its shares fell 2% in recent trading on Tuesday.