Orica (ORI) H2 2025 earnings summary

Executive summary

• Achieved highest EBIT in 13 years at AUD 992 million, up 23% year-over-year, driven by strong demand for premium products, technology adoption, and disciplined execution.

• All business segments and regions contributed to earnings growth, supported by successful integration of acquisitions and technology deployment.

• Safety performance reached record levels with zero fatalities and lowest-ever serious injury rate; no significant environmental incidents recorded.

• Sustainability initiatives led to a 51% reduction in gross Scope 1 and 2 emissions from 2019 levels and 41% net reduction, with 22% renewable electricity coverage.

• Strong cash generation with net operating cash flow of AUD 949 million, up 18% from the prior year.

Financial highlights

• EBIT rose 23% year-over-year to AUD 992 million; EBITDA up 20% to AUD 1,491 million; NPAT before significant items up 32% to AUD 541 million.

• Statutory net profit after tax was AUD 162 million after AUD 379 million in significant items, mainly non-cash impairments and litigation costs.

• Earnings per share (pre-significant items) rose 29% to AUD 1.118; net operating cash flow up 18% to AUD 949 million.

• Final dividend of AUD 0.32 per share, full-year dividend up 21% to AUD 0.57 per share (50% payout ratio).

• Leverage ratio at 1.39x EBITDA, within target range; net debt at AUD 1.9 billion.

Outlook and guidance

• EBIT growth expected across all segments in FY 2026, with Blasting Solutions supported by improved mix and margin, Digital Solutions by recurring revenue, and Specialty Mining Chemicals by strong gold outlook.

• Depreciation and amortisation forecasted at AUD 520–540 million; capital expenditure to remain in line with prior year.

• Ongoing litigation costs forecast at AUD 50–60 million in FY 2026.

• Additional AUD 100 million share buy-back to be completed by March 2026; sale of surplus land at Deer Park expected in 2026.

• Long-term targets include RONA of 13.5–15.5% and leverage ratio of 1.25x–2.00x.