Orica (ORI) H2 2024 earnings summary

Executive summary

• EBIT increased 15% to AUD 806 million, the highest in a decade, with underlying earnings and NPAT up 11% to AUD 409 million, and statutory NPAT up 77% to AUD 525 million, driven by premium products, technology adoption, and disciplined execution.

• All segments and regions reported earnings growth, supported by successful integration of Terra Insights and Cyanco acquisitions, which expanded technology and services portfolios.

• Major scheduled plant turnarounds were completed safely, supporting operational reliability and post-turnaround performance.

• Employee engagement reached 89%, diversity and community investment targets are on track, and AUD 14 million has been contributed since 2021.

• Sustainability progress included a 43% reduction in Scope 1 and 2 emissions from the 2019 baseline, zero significant environmental incidents, and recognition as a sustainability leader.

Financial highlights

• EBIT rose 15% to AUD 806 million; statutory NPAT increased 77% to AUD 525 million, including AUD 115 million from significant items; EBITDA grew 14% to AUD 1,238 million.

• Earnings per share (pre-significant items) increased to AUD 0.864; total dividends for the year up 9% to AUD 0.47 per share, with a final unfranked dividend of 28.0 cps and payout ratio of 56%.

• Operating cash flow was robust at AUD 808 million, though down 10% year-over-year due to acquisition costs and higher interest.

• Trade working capital improved by 15% to AUD 545 million, excluding acquisitions; gearing at 26.2%, below the 30–40% target range.

• Return on net assets improved to 12.8% from 12.6%; three-year average RONA target upgraded to 13–15%.

Outlook and guidance

• FY2025 EBIT is expected to increase, supported by continued demand for premium products, full-year contributions from Cyanco and Terra Insights, and strong digital adoption.

• Capital expenditure, including acquisitions, to remain broadly in line with FY2024; depreciation and amortisation forecast at AUD 490–510 million; net finance costs at AUD 190–200 million.

• Effective tax rate to remain stable; three-year average RONA expected in the range of 13–15%.

• Strategic focus on organic growth, technology adoption, and supply chain optimization to drive future performance.

• Inflation, higher energy costs, and geopolitical risks remain ongoing challenges.