Orica Limited reported its strongest half-year EBIT in over a decade, driven by robust demand for premium blasting products and technology adoption, alongside significant safety and sustainability achievements.
- 34% increase in EBIT to $472 million, highest in over 10 years
- 40% rise in underlying NPAT to $251 million and EPS up to 25.0 cents
- Industry-leading safety performance with lowest serious injury rate recorded
- Completion of major decarbonisation phase eliminating 1 million tonnes of emissions
- Initiation of $400 million on-market share buy-back and 32% higher interim dividend
Strong Financial Performance Amidst Strategic Execution
Orica Limited has unveiled a standout first half for 2025, posting a 34% surge in earnings before interest and tax (EBIT) to $472 million, marking its strongest half-year result in more than a decade. Underlying net profit after tax (NPAT) rose 40% to $251 million, while earnings per share (EPS) climbed to 25.0 cents, reflecting both operational strength and disciplined capital management.
The company’s Managing Director and CEO, Sanjeev Gandhi, highlighted that this performance was underpinned by robust demand for Orica’s premium blasting products and an accelerating adoption of its advanced blasting technologies across global markets. This growth was complemented by a disciplined commercial approach and portfolio optimisation, which enhanced margins and earnings quality.
Safety and Sustainability at the Forefront
Orica’s commitment to safety remains paramount, with the company achieving its lowest serious injury case rate to date and completing multiple plant turnarounds without major safety or environmental incidents. The Major Hazard Management Program continues to drive fatality prevention efforts.
On the sustainability front, Orica successfully completed Phase I of a major decarbonisation initiative, significantly reducing Scope 1 and Scope 2 emissions. Notably, the Kooragang Island site eliminated one million tonnes of greenhouse gas emissions, underscoring the company’s progress toward its ambitious net zero targets.
Segment and Regional Highlights
All business segments and regions contributed to the earnings uplift. The Blasting Solutions segment grew EBIT by 29%, driven by improved product mix and technology uptake, particularly in Australia Pacific & Asia and North America. Digital Solutions EBIT increased 31%, fueled by strong demand for OREPro and GroundProbe technologies. Specialty Mining Chemicals delivered a remarkable 72% EBIT increase, supported by the Cyanco acquisition and higher production volumes at Yarwun.
Capital Management and Shareholder Returns
Orica maintained a strong balance sheet with leverage within its target range, supported by an uplift in operating cash flow. Capital expenditure focused on sustaining plant turnarounds, growth initiatives including digital solutions, and sustainability projects, with total spend expected to remain broadly in line with 2024 levels.
Reflecting confidence in ongoing performance, Orica declared a 32% increase in its interim dividend to 25 cents per share and commenced an on-market share buy-back program of up to $400 million, signaling a clear commitment to delivering shareholder value.
Outlook and Strategic Priorities
Looking ahead, Orica expects EBIT growth to continue through the remainder of 2025 and beyond, supported by sustained demand for premium products, ongoing technology adoption, and operational efficiencies. The company plans to maintain capital discipline while investing in innovation and expanding its presence in future-facing commodities and emerging markets.
Orica’s strategic focus remains on growing its core blasting business, accelerating digital solutions uptake, optimizing manufacturing and supply chains, and deepening customer connections to drive profitable growth and maximize shareholder returns.
Bottom Line?
Orica’s record half-year performance and strategic momentum set the stage for sustained growth, but investors will watch closely how geopolitical and market risks might temper this trajectory.
Questions in the middle?
- How will Orica navigate potential geopolitical and economic volatility impacting global mining demand?
- What is the expected timeline and impact of the next phases of Orica’s decarbonisation initiatives?
- How aggressively will Orica pursue further acquisitions or portfolio diversification beyond Cyanco?