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Highlights

  • Orica posts 40% increase in NPAT (pre-significant items) to $250.8 million, driven by customer demand.

  • Statutory net loss of $89 million due to $339.8 million in post-tax significant items.

  • Company resumes $400 million share buy-back and reports milestone climate achievements.

Orica Limited (ASX:ORI) has reported a robust financial performance for the first half of FY25, with growth across all regions and segments, reinforcing its position as a leading global provider of commercial explosives and blasting systems.

The company’s Net Profit After Tax (pre-significant items) rose by 40% year-on-year to $250.8 million, driven by high customer demand, strong earnings contributions from advanced technologies, and consistent commercial discipline. Earnings Before Interest and Tax (EBIT) climbed 34% to $472.3 million compared to the same period last year.

Orica has reported a statutory net loss after tax of $89.0 million, primarily due to $339.8 million in significant items after tax. 

Operating cash flow also improved, reaching $244.9 million—a 29% increase from the previous corresponding period. Earnings per share (pre-significant items) rose by 33% to 51.5 cents, further highlighting the improved profitability. Orica declared an interim dividend of 25 cents per share, representing a payout ratio of 49%.

With leverage excluding leases at 1.45x, Orica remains well within its target gearing range of 1.25x to 2.00x. The company reported a Return on Net Assets (RONA) of 12.9%, reinforcing its disciplined approach to capital management. In a move to return value to shareholders, Orica announced the recommencement of its on-market share buy-back of up to $400 million.

The company’s Blasting Solutions division benefits from its integrated global network, proprietary technologies, and streamlined supply chain capabilities. Orica also made significant strides in its strategic diversification, advancing its leadership in geotechnical monitoring and specialty mining chemicals through recent acquisitions.

Sustainability also remains a key pillar of Orica’s strategy. The company reported the lowest serious injury case rate to date. Additionally, it reached a climate milestone by eliminating one million tonnes of greenhouse gas emissions following the deployment of tertiary abatement technology at its Kooragang Island facility. 

Looking ahead, Orica expects to continue its earnings growth trajectory, projecting higher EBIT for the full FY25 year compared to the previous year.