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Orica Limited (ASX:ORI) announcement today highlights the company’s strong earnings momentum in the first half of 2025. The Net Profit After Tax pre significant items (NPAT pre-SI) reached $250.8 million, a 40% increase from the prior corresponding period. However, the Statutory Net Loss After Tax was $89.0 million, which includes $339.8 million of significant items after tax.
EBIT increased by 34% to $472.3 million compared to the prior corresponding period. The company reported increased earnings across all regions and segments, driven by strong customer demand, increased contributions from advanced technology offerings, and continued commercial discipline.
Orica also demonstrated strong cash generation, with net operating cash flow of $244.9 million, up 29% from the prior corresponding period. Earnings per share (pre-SI) rose to 51.5 cents, a 33% increase. An interim dividend of 25 cents per share was declared, representing a payout ratio of 49%.
The company’s leverage (excluding leases) is 1.45x, which is within the target range of 1.25x-2.00x. Return on Net Assets (RONA) stands at 12.9%. Orica announced that it will recommence its on-market share buy-back of up to $400 million post the results announcement.
Orica’s Managing Director and CEO, Sanjeev Gandhi, emphasized the company’s commitment to safety, noting that while they achieved their lowest serious injury case rate to date, their focus remains on ensuring the safety of their employees. The company also reported significant progress towards its climate targets, including a milestone of eliminating one million tonnes of greenhouse gas emissions following the deployment of tertiary abatement technology at the Kooragang Island site.
Orica’s core business in Blasting Solutions continues to deliver strong results. The company highlighted its competitive advantages, including its global network, technology, and comprehensive manufacturing and supply chain. Orica is positioning itself as a global leader in geotechnical and structural monitoring and specialty mining chemicals through strategic acquisitions.
Looking ahead, Orica expects FY2025 EBIT to increase compared to the prior corresponding period, with improved earnings across all regions and segments.
About Orica:
Orica Limited is an Australia-based mining and infrastructure solutions provider. The Company is engaged in the production and supply of explosives, blasting systems, mining chemicals and geotechnical monitoring to its cutting-edge digital solutions. The Company operates through six segments: Australia Pacific and Asia (APA); North America; Latin America; Europe, Middle East, and Africa (EMEA); Global Support and Digital Solutions. Its products and services include 4D bulk systems, bulk systems, packaged explosives, initiating systems, boosters, digital solutions, blasting services, automation, training, mining chemicals, slope stability, and fertilizer. The Company serves various markets, such as surface coal, surface metal, iron ore, quarrying, underground mining, underground construction, construction, civil infrastructure, oil and gas, and agriculture.
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