Orica Limited

FY 2025 revenue was $8.1 billion, up 6% year on year. EBIT rose 23% to $992 million, net profit before significant items increased 32% to $541 million, and EPS rose 29% to $1.118. Statutory net profit after tax was $162 million after $379 million of significant items, and net operating cash flow increased 18% to $949 million. Return on net assets improved to 13.8% from 12.8%. Segment EBIT was $868 million for Blasting Solutions (+15%), $92 million for Digital Solutions (+32%), and $101 million for Specialty Mining Chemicals (+47%). For FY 2026, management expects EBIT growth across all three segments, D&A of $520 million to $540 million, net finance cost, tax rate and capital expenditure broadly in line with FY 2025, and litigation costs of around $50 million to $60 million. The $500 million buyback is expected to be completed by March 2026.

Sanjeev Gandhi framed FY 2025 as proof that Orica’s strategy is working, emphasizing safety, sustainability, and a shift toward more resilient, future-facing commodities. He highlighted zero fatalities, a record-low serious injury rate of 0.093, and 51% lower gross Scope 1 and 2 emissions versus 2019, saying the company is ahead of schedule on its decarbonization goals. His tone was confident and expansionary, pointing to digital adoption, acquisitions, and product innovation as the drivers of continued growth. He also stressed that the business is moving beyond blasting while still growing the core blasting franchise.

Jamie Crough focused on the financial quality of the result: sales revenue up 6% to $8.1 billion, EBIT up 23% to $992 million, net profit before significant items up 32% to $541 million, and EPS up 29% to $1.118. He noted $379 million of significant items after tax, including about $235 million noncash, and said statutory NPAT was $162 million. He also emphasized cash and balance sheet strength, including $949 million of operating cash flow, $620 million of trade working capital, $747 million of cash, $1.6 billion of undrawn committed facilities, net debt of $1.9 billion, and leverage of 1.39x within the 1.25x to 2x target range. On capital allocation, he pointed to $460 million of capex, a final dividend of $0.32 per share, full-year dividend of $0.57 per share, and the expanded buyback to $500 million.

Analysts pressed management on thermal coal headwinds in the U.S. and Indonesia, and Sanjeev said U.S. coal demand is structurally challenged but that any data-center-driven power demand could help later; for FY 2026 the company is assuming continued gradual decline in U.S. coal output and has seen recent Indonesian coal export softness. On CF Industries’ force majeure notice, management said the issue is very recent, that not all 800,000 tonnes are necessarily at risk because nominations are flexible, and that Orica is mobilizing its global supply network to avoid customer disruption. Questions also focused on exploration momentum and Axis, and management said exploration has recovered after a multi-year decline, is strong in gold and now copper, and that Axis is being expanded into production drilling, which would roughly double the addressable market. On the buyback, management said the extra $100 million is meant to complete the original roughly 5% target by March 2026 and preserve credibility in capital allocation.