Orica Limited has delivered its strongest financial performance in over a decade, driven by premium product demand and digital innovation, while advancing ambitious sustainability targets. The company signals continued growth for 2026 despite emerging supply chain challenges.
- Record A$992 million EBIT, highest in 13 years
- Revenue climbs to A$8.1 billion, supported by premium products and technology adoption
- Significant progress on net zero emissions targets with 41% net reduction in scope 1 and 2 emissions
- Substantial share buy-back program nearing completion, with an additional $100 million planned
- 2026 outlook anticipates EBIT growth across all segments amid cost management and supply risks
Strong Financial Performance
Orica Limited has reported a landmark full-year result for 2025, posting earnings before interest and tax (EBIT) of A$992 million, the highest in 13 years, on revenue of A$8.1 billion. This performance reflects a 23% EBIT increase over the prior year, driven by robust demand for premium blasting products, accelerated adoption of digital solutions, and disciplined commercial execution across all regions.
The company’s diversified portfolio, spanning Blasting Solutions, Digital Solutions, and Specialty Mining Chemicals, has benefited from favourable gold and copper market fundamentals, as well as growing exposure to future-facing commodities. Notably, Orica’s digital offerings, including WebGen and OREPro technologies, have seen strong uptake, contributing to a 32% EBIT increase in the Digital Solutions segment.
Sustainability and Operational Excellence
Orica continues to advance its sustainability agenda, reporting a 41% net reduction in scope 1 and 2 greenhouse gas emissions since the 2019 baseline, surpassing interim targets. The company has eliminated over one million tonnes of CO2-equivalent emissions at its Kooragang Island site and achieved its first full year of tertiary abatement at Yarwun. Renewable electricity now accounts for 22% of total consumption, with ambitious goals to reach 60% by 2030 and 100% by 2040.
Safety metrics remain a priority, with a serious injury case rate improving to 0.093 and zero fatalities recorded in 2025. Orica’s commitment to community investment also exceeded targets, with $16.7 million contributed over the 2021–2025 period.
Capital Management and Shareholder Returns
The company’s capital discipline is evident in its ongoing share buy-back program, which has nearly completed a $400 million buy-back and announced an additional $100 million to be executed by March 2026. Dividend payments rose 21% to 57 cents per share, maintaining a payout ratio within the targeted 40% to 70% range.
Capital expenditure remained steady at approximately $460 million, balancing sustenance, growth, and sustainability investments. Orica’s leverage ratio stands at a conservative 1.39x, supporting a strong balance sheet and investment-grade credit rating.
Outlook and Emerging Risks
Looking ahead to 2026, Orica expects continued EBIT growth across all business segments, supported by improved product mix, contract renewals, and rising exploration activity. The company plans to maintain capital expenditure levels and intensify cost management efforts.
However, Orica disclosed a recent force majeure notice from CF Industries, a key supplier of industrial ammonium nitrate, which may disrupt supply and contractual obligations. The company is actively assessing the situation and intends to leverage its global manufacturing network to mitigate potential impacts.
Orica’s medium-term strategy remains focused on innovation, expanding recurring revenue streams, and deepening its presence in future-facing commodities and emerging markets, positioning it well for sustained growth beyond 2026.
Bottom Line?
Orica’s record 2025 results and sustainability progress set a strong foundation, but supply chain uncertainties warrant close investor attention.
Questions in the middle?
- How will the CF Industries force majeure notice affect Orica’s ammonium nitrate supply and customer contracts?
- What new digital products and technologies will drive Orica’s recurring revenue growth in 2026 and beyond?
- Can Orica sustain its ambitious emissions reduction targets amid ongoing operational expansion?