Orica (ORI) H1 2025 earnings summary

Executive summary

• Achieved record half-year EBIT, the highest in over a decade, driven by premium product demand, technology adoption, and disciplined commercial execution across all segments and regions.

• NPAT before significant items rose 40% year-over-year to $250.8 million, while statutory net loss after tax was $89.0 million due to $339.8 million in significant items after tax, mainly from Latin America and EMEA impairments.

• Strong cash generation with net operating cash flow up 29% to $244.9 million; interim dividend of 25 cents per share declared, up 32% year-over-year.

• Safety performance improved significantly, with the serious injury case rate reduced by more than half since FY 2021 and no major incidents during turnarounds.

• Major decarbonisation milestone achieved, eliminating one million tonnes of greenhouse gas emissions at Kooragang Island.

Financial highlights

• Sales revenue grew 8% year-over-year to $3,940.5 million; EBIT up 34% to $472.3 million; EBITDA up 29% to $715.8 million.

• NPAT before significant items up 40% to $250.8 million; statutory net loss after tax of $89 million due to $340 million in significant items.

• Earnings per share (pre-significant items) increased by 33% to 51.5 cents; interim dividend up 32% to 25 cents per share.

• Net operating cash flow increased 29% to $244.9 million.

• Significant items included $308.3 million impairment and restructuring in Latin America and $181.5 million profit on sale of Deer Park land.

Outlook and guidance

• FY2025 EBIT expected to increase year-over-year, with robust growth anticipated across all segments and regions.

• Capital expenditure (including acquisitions) to be broadly in line with 2024, with growth capex weighted to the second half; D&A expected at the lower end of $490–510 million.

• Net financing costs anticipated at $190–200 million for FY2025; effective tax rate to remain broadly in line with 2024.

• On-market share buy-back of up to $400 million underway, expected to complete within 12 months.

• Continued demand for premium products and technology, strong gold sector outlook, and focus on cost management amid geopolitical risks.