Orica (ORI) H2 2024 earnings summary

Executive summary

• Achieved highest EBIT in a decade, with underlying earnings up 15% to AUD 806 million and net profit up 11% to AUD 409 million year-over-year, driven by premium products, digital solutions, and disciplined execution.

• Integration of Cyanco and Terra Insights contributed to segment performance and expanded technology and services portfolio.

• All major scheduled plant turnarounds completed safely, supporting operational reliability.

• Employee engagement reached 89%, and diversity and community investment targets are on track, with AUD 14 million contributed since 2021.

• Zero significant environmental incidents and a 43% reduction in Scope 1 and 2 emissions from 2019 baseline, achieving 2026 targets ahead of schedule.

Financial highlights

• EBIT rose 15% to AUD 806 million, highest in a decade; statutory net profit after tax increased 77% to AUD 525 million, including AUD 115 million from significant items.

• Earnings per share pre-significant items increased to AUD 0.864; total dividends for the year up 9% to AUD 0.47 per share.

• Operating cash flow remained robust at AUD 808 million; return on net assets improved to 12.8% from 12.6%.

• Trade working capital improved by AUD 98 million (15%) excluding acquisitions; gearing reduced to 18.6% from 19.7% in FY2023.

• EBITDA grew 14% to AUD 1,238 million; sales revenue declined 4% to AUD 7,663 million.

Outlook and guidance

• FY 2025 EBIT expected to increase, with growth across all segments and regions; full-year contributions from Cyanco and Terra Insights anticipated.

• Capital expenditure, including acquisitions, to be broadly in line with FY 2024; excluding acquisitions, CapEx projected to be lower.

• Depreciation and amortization forecasted at AUD 490–510 million; net finance costs at AUD 190–200 million; effective tax rate to remain stable.

• Three-year average RONA expected in the range of 13.0% to 15.0%.

• Strategic focus on organic growth, technology adoption, and supply chain optimization to drive future performance.