Orica Limited

For FY 2025, Orica reported sales revenue of $8.1 billion, up 6%; EBIT of $992 million, up 23%; net profit before significant items of $541 million, up 32%; EPS of $1.118, up 29%; and net operating cash flow of $949 million, up 18%. By segment, Blasting Solutions EBIT was $868 million (+15%), Digital Solutions $92 million (+32%), Specialty Mining Chemicals $101 million (+47%), APA EBIT was $658 million (+23%), North America $212 million (+15%), EMEA $101 million (+18%), and LatAm $90 million (+4%). Statutory net profit after tax was $162 million after $379 million of significant items, including about $235 million noncash. FY 2026 guidance includes continued EBIT growth across all 3 segments, D&A of $520 million to $540 million, capex broadly in line with FY 2025, and litigation costs of around $50 million to $60 million. The company also expects to complete the expanded share buyback of up to $500 million by March 2026.

Sanjeev Gandhi struck an upbeat but disciplined tone, framing FY 2025 as evidence that Orica’s strategy is working across blasting, digital, and chemicals. He emphasized resilience, technology adoption, and portfolio diversification away from thermal coal toward gold, copper, and critical minerals. He also highlighted that the company is on track with safety and emissions targets, including 0 fatalities and gross Scope 1 and 2 emissions 51% below 2019 levels.

Jamie Crough focused on the quality of earnings, cash generation, and capital discipline. He pointed to revenue of $8.1 billion, EBIT of $992 million, net profit before significant items of $541 million, EPS of $1.118, and net operating cash flow of $949 million; he also noted $379 million of significant items, including about $235 million noncash. On the balance sheet, he cited net debt of $1.9 billion, leverage of 1.39x EBITDA, $747 million of cash, and $1.6 billion of undrawn facilities, plus the extension/refinancing of $461 million of bank debt, a new $90 million facility, and the USD 390 million private placement. He also detailed the buyback, saying $399 million had been repurchased to date, representing 4.1% of issued capital, with an additional $100 million approved to bring the total to up to $500 million.

Analysts pressed management on the FY 2026 impact of thermal coal weakness in Indonesia and the U.S., the CF Industries force majeure, exploration trends, and whether the buyback increase was too conservative. Management said U.S. coal decline remains a structural issue, Indonesia volumes have recently fallen about 10% in exports to China and India, and FY 2026 forecasts already reflect lower Permian coal output; on CF Industries, Orica said the notice is very recent, the full 800,000-tonne annual offtake is not at risk because nominations depend on needs, and the company is mobilizing alternative global supply to avoid customer disruption. On exploration, Sanjeev said activity has been rising for 18 months, especially in gold and now copper, and that Axis is positioned to benefit as it moves toward production drilling. On the buyback, management said the original 12-month program is nearly complete, the goal was about 5% of market cap, and the extra $100 million is intended to bridge to the March planning cycle.