Orica (ORI) H1 2025 earnings summary

Executive summary

• Achieved record half-year EBIT, the highest in over a decade, driven by premium product demand, technology adoption, and disciplined commercial execution across all segments and regions.

• Safety performance improved significantly, with the lowest serious injury case rate to date and no major incidents during major turnarounds.

• Completed Phase I of decarbonisation, eliminating one million tonnes of greenhouse gas emissions at Kooragang Island.

• Integration of Terra Insights and Cyanco acquisitions contributed to earnings and market leadership in sodium cyanide production.

• Up to $400 million on-market share buy-back commenced, with continued value delivery to shareholders.

Financial highlights

• Sales revenue rose 7.7% year-on-year to $3,940.5 million; EBIT up 34% to $472 million; EBITDA up 29% to $716 million.

• Net profit after tax (pre-significant items) up 40% to $251 million; statutory net loss after tax of $89 million due to $340 million in significant items, mainly non-cash impairments and restructuring in Latin America and EMEA.

• Earnings per share (pre-significant items) increased to 51.5 cents; interim dividend up 32% to 25.0 cents per share.

• Net operating cash flow increased 29% to $245 million.

• Net debt at $1,618 million; available liquidity at $1,920 million; leverage at 1.45x, within target range.

Outlook and guidance

• EBIT for FY 2025 expected to increase, with robust growth anticipated across all segments and regions.

• Capital expenditure for FY 2025 to be in line with 2024, with growth capex weighted to the second half.

• Net financing costs expected at $190–200 million for FY2025; effective tax rate to remain broadly in line with 2024.

• On-market share buy-back to recommence post-1H2025; three-year average RONA expected in 13–15% range.

• Continued demand for premium products and technology, strong gold sector outlook, and focus on cost management amid geopolitical risks.