Orica Limited Overview
The company describes its workforce as "14,000+" in FY2025 and 1H FY2026, after it added the Terra Insights and Cyanco workforces in FY2024.
Orica is the world's largest supplier of commercial explosives and blasting systems. It has repositioned itself as a "mining and infrastructure solutions" company built on three segments. Blasting Solutions (86% of FY2025 revenue) supplies ammonium-nitrate-based bulk and packaged explosives, initiating systems (including the proprietary WebGen™ wireless system) and on-bench services. Digital Solutions (5%) sells orebody intelligence, blast design and measurement software and sensors, and geotechnical monitoring under the Axis, GroundProbe and Terra Insights brands. Specialty Mining Chemicals (9%) is, after the 2024 Cyanco acquisition, the world's largest mining-dedicated sodium cyanide producer, and it also sells emulsifiers and flotation reagents. Orica's moat combines vertically integrated ammonia, ammonium nitrate and cyanide manufacturing, a global logistics network serving customers in 100+ countries, and a large installed base of blast data. Revenue is exposed to gold (26%), copper (22%) and coal (23% combined). FY2025 EBIT of A$992m was the company's highest in 13 years.
Company's own description (AR25)
Orica states its purpose as "to sustainably mobilise the earth's resources." Its vision is to be "the world's leading mining and infrastructure solutions company." The strategy rests on three pillars: smarter solutions, optimised operations, and partnering for progress. AR25 describes three segments that together form "a distinctive, integrated offering that is unmatched globally": Blasting Solutions, Digital Solutions and Specialty Mining Chemicals. These serve surface and underground mines, quarries, construction and tunnelling, and oil and gas operations.
What the company actually does (independent characterisation)
Orica is in practice a vertically integrated industrial-chemicals and services business whose earnings come mainly from selling ammonium nitrate (AN) and AN-emulsion explosives under multi-year mine-site supply contracts. Around those contracts it sells:
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Higher-margin initiation technology. Electronic and wireless detonators (WebGen™) shift the product mix away from commodity AN.
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Delivery services and on-bench labour. Mobile manufacturing units (MMUs) load blast holes at customer sites, and "Blasting-as-a-Service" type arrangements extend this.
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Software, sensors and monitoring (Digital Solutions). This is the fastest-growing segment, with recurring revenue from subscriptions, rentals and monitoring services.
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Specialty chemicals for mineral processing (sodium cyanide for gold leaching, emulsifiers, and from 2026 copper/zinc flotation collectors via Danafloat™).
Business and revenue model
| Revenue type | Description | Estimated weight |
|---|---|---|
| Product sales — commodity/semi-commodity | Bulk AN, ANFO, emulsions sold per tonne, often with input-cost (ammonia/gas) pass-through clauses | Majority of Blasting Solutions revenue (exact split not disclosed) |
| Product sales — premium/technology | Electronic and wireless initiating systems, premium bulk systems (4D™, Fortis™ Protect), packaged explosives | Not separately disclosed; management cites rising adoption as the main margin driver |
| Services | Down-the-hole loading, blast-hole services, drill-and-blast optimisation, technical services | Bundled into Blasting Solutions contracts; not separately disclosed |
| Subscription / recurring digital | Software (blast design, measurement), instrument rental (Axis gyros), radar and sensor monitoring (GroundProbe, Terra Insights) | Within Digital Solutions (~5% of group revenue, FY2025); recurring share not disclosed |
| Chemicals | Sodium cyanide (solid/liquid), emulsifiers, mineral processing reagents | Specialty Mining Chemicals (~9%) |
| Licensing | Not a material disclosed revenue line | — |
Value chain position
Orica sits mid-stream between natural gas/ammonia feedstock suppliers and miners:
Upstream (partly integrated): It produces ammonia at Kooragang Island (NSW). It buys natural gas and some ammonia. AN is made in its own continuous-process plants (Kooragang Island, Yarwun, Carseland, Bontang) and bought from third parties (in North America previously CF Industries; now a mix of US producers, Carseland and the global network).
Midstream: Emulsion and packaged-explosives plants, initiating-system assembly plants, and sodium cyanide plants (Yarwun in Australia; Winnemucca, Nevada and Alvin, Texas via Cyanco).
Downstream: Last-mile delivery to mine sites, on-bench loading, and digital tools that optimise fragmentation and recovery. Through Specialty Mining Chemicals and Digital Solutions it also reaches the processing plant, which extends Orica's reach "from orebody to recovery."
Customer types and end-markets
Customers are global and mid-tier miners, quarry and construction contractors, tunnelling contractors, and some oil and gas operators. Revenue by commodity, FY2025 (external sales excluding Digital Solutions, AR25 p.10):
Analyst note: The 2024 acquisitions changed the commodity mix. Gold rose to roughly a quarter of revenue (the Feb 2024 Cyanco announcement projected ~25% gold exposure pro forma). This leaves Orica more leveraged to gold and copper and less dependent on coal: thermal and metallurgical coal together are now 23%.
Strategy
Stated strategy (AR25 themes)
Purpose: "Sustainably mobilise the earth's resources."
Vision: "To be the world's leading mining and infrastructure solutions company."
Pillars: Smarter solutions; Optimised operations; Partnering for progress.
Priority initiatives (AR25 p.8): 1. Continue diversifying the portfolio, increasing exposure to key emerging markets and future-facing commodities, and growing Digital Solutions and SMC.
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Strengthen presence in key emerging markets.
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Optimise and build resilience into the global manufacturing and supply chain network.
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Accelerate development of blasting technologies and premium products (WebGen™, 4D™).
Strategic initiatives, last 24 months
| Initiative | Date | Detail | Status |
|---|---|---|---|
| Refreshed capital management framework | FY2025 | Leverage target 1.25–2.00x; dividend payout 40–70%; surplus capital returned via buy-backs | In place |
| On-market buy-back A$400m, then increased to A$500m | Nov 2024 / Nov 2025 | Began 28 Mar 2025; increased by A$100m at FY2025 results | Completed in full (1H FY2026) |
| Organisation-wide cost reduction program | 1H FY2026 | At least A$100m enduring reduction in cost base; most benefits from FY2027 onward; restructuring SI A$15.0m pre-tax in 1H FY2026 | Under way |
| North American supply diversification | Nov 2025 – Sep 2026 | After CF force majeure: CF settlement, Nelson Brothers acquisition, FY2027 AN sourced from US producers, Carseland and global network | FY2027 supply secured (28 Sep 2026) |
| Expansion of SMC into copper processing | 1H FY2026 | Danafloat™ acquisition from FMC | Integrated |
| Digital scaling and cross-sell | Ongoing | Multi-country agreement with a global miner (FY2025, North America); partnership with a large regional driller in LatAm (1H FY2026) | Ongoing |
| AI program | Since 2020 | AI Centre of Excellence, AI Council, agentic AI; ServiceNow global AI Pacesetter Innovation Award 2025 | Ongoing |
| Decarbonisation phase two | FY2025– | Renewable electricity PPAs (Australia, Canada); 60% renewable electricity by 2030, 100% by 2040 | 22% renewable coverage in FY2025 |
| Hunter Valley Hydrogen Hub | Ongoing | Commercial-scale renewable hydrogen evaluation at Newcastle | Evaluation (no FID disclosed) |
| Carbon capture partnership with MCi Carbon; Alpha HPA partnership | Ongoing | Circular-economy and CCU projects | Development |
| Surplus land monetisation | FY2024– | Deer Park Stage 1 and Yarraville sold FY2024; Deer Park Stage 2 delayed beyond FY2026 | Pending |
| Safety: Moonshot Fatality Free | FY2025 | Aspiration of 10 consecutive fatality-free years | Reset by 1H FY2026 fatality |
Medium-term targets (FY2025 results; reaffirmed at 1H FY2026)
| Target | Guidance |
|---|---|
| Blasting Solutions EBIT growth | "GDP plus" through the mining cycle |
| Digital Solutions EBIT growth | Raised from low-double-digit to mid-teens over the medium term |
| SMC EBIT growth | Raised from mid-single-digit to high-single-digit over the medium term |
| Three-year average RONA (FY2026–FY2028) | 13.5%–15.5% (previously 13%–15% for FY2025–FY2027) |
| Leverage | 1.25x–2.00x |
| Dividend payout | 40%–70% of underlying earnings, weighted to the final |
FY2026 guidance (as at 7 May 2026)
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Underlying EBIT expected to rise across all segments and all regions, subject to no new unforeseen factors.
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D&A at the low end of A$520–540m.
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Net finance costs slightly above FY2025.
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ETR slightly below FY2025.
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Existing-business capex broadly in line with FY2025 (about A$460m).
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OCF lower than FY2025.
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No immediate material constraints from the Middle East conflict; Orica's inputs are generally not shipped through the Strait of Hormuz.
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FX sensitivity: each A$0.01 move in AUD/USD changes annualised EBIT translation by about A$4–5m.
Products & Services
Pricing models are not publicly disclosed for any individual product. Explosives are typically priced per tonne under multi-year contracts with input-cost rise-and-fall clauses; digital products are sold as licences, subscriptions, rentals or monitoring contracts. Launch years are given only where verified.
Blasting Solutions
| Product / brand | Description & capabilities | Target customer | Status / notes |
|---|---|---|---|
| WebGen™ (wireless initiating system) | Patented through-the-earth wireless initiation. Removes surface and downline wiring, enables pre-charging and sleeping blasts, and supports blasting in hazardous/remote zones, block caves and sublevel stoping. A core margin and IP driver | Underground and open-pit mines (premium) | First commercialised in the late 2010s (WebGen™ 100 then 200 generations); AR25 cites "accelerating global demand." Subject of IP litigation (see Sections 18–19) |
| 4D™ bulk system | Patented system that varies explosive energy hole-by-hole and within holes to match rock properties, improving fragmentation and lowering cost and emissions per tonne | Large open-pit mines | Rising adoption in Latin America and APA (AR25) |
| Fortis™ Protect | Bulk emulsion formulated to reduce NOx/fume generation and protect sensitive environments | Coal and metals mines near communities | Cited in AR25 as a low-carbon/low-fume innovation |
| Exel™ / Exel™ Neo | Non-electric shock-tube initiating systems; Exel Neo is a lower-impact/next-generation variant | Mines, quarries | Exel Neo cited in AR25 sustainability section |
| Electronic blasting systems (i-kon™ family and related) | Programmable electronic detonators for precise timing | Large mines, quarries | — |
| Bulk explosives (ANFO, heavy ANFO, emulsions) | Commodity and semi-premium bulk products delivered by MMU | All surface mines | Core volume driver |
| Packaged explosives & boosters | Cartridged emulsions, cast boosters | Underground, quarries, construction | Includes Nelson Brothers-supplied lines in the US from FY2026 |
| Subtek™ (underground bulk delivery) | Underground bulk emulsion charging systems | Underground mines | Legacy flagship |
| Cyclo™ | Lower-carbon blasting product (cited in AR25 as an innovation helping customers decarbonise) | Mines with ESG targets | — |
| Services | Down-the-hole services, shot-firing, blast optimisation, Moonshot Fatality Free safety program, AI Vision Safety System for on-bench collision prevention | All customers | AI Vision Safety System is proprietary (AR25) |
| Nelson Brothers US business (acquired 2H FY2026) | Four emulsion plants, initiating-system magazines, MMU fleet | US quarries and construction | US$25m plus US$48m debt retirement; integration complete (28 Sep 2026) |
Digital Solutions (three product categories)
| Category | Product | Description |
|---|---|---|
| Orebody Intelligence | Axis instruments (gyro survey tools, core orientation, borehole navigation) | Drill-hole survey and orientation instruments, often rented; demand tracks exploration drilling (AR25: "accelerating demand for Axis products") |
| Orebody Intelligence | OREPro™ / OREPro™ 3D | Models blast-induced ore movement to cut dilution and ore loss; strong uptake among gold and copper customers (AR25, 1H FY2026) |
| Orebody Intelligence | RHINO™ | Drill-rig sensor that measures rock strength in real time and feeds blast design. Minera Antucoya case: 9% reduction in explosive use (AR25) |
| Orebody Intelligence | Hopper/RIG geophysics (logging-while-drilling) | Acquired Nov 2021; integrated into orebody offering |
| Blast Design & Execution | BlastIQ™ / SHOTPlus™ | Cloud blast-design and execution platform (well-known Orica platform) |
| Blast Design & Execution | FRAGTrack™ | AI-based fragmentation measurement; strong uptake in North America (AR25) |
| Blast Design & Execution | BlastVision™ | AI plus high-speed drone footage to analyse blasts; described by Orica as a "world-first" (AR25) |
| Geosolutions | GroundProbe radars | Slope-stability radar monitoring for open-pit walls; radar sales and services growing in EMEA and LatAm |
| Geosolutions | Terra Insights (acquired Feb 2024) | Geotechnical and structural monitoring instruments, software and data services for mines, tailings dams, heap-leach pads and infrastructure. North American demand for tailings-dam and heap-leach monitoring is rising (1H FY2026) |
Specialty Mining Chemicals
| Product | Description | Notes |
|---|---|---|
| Sodium cyanide (solid briquettes and liquid) | Lixiviant for gold/silver leaching; produced at Yarwun (QLD), Winnemucca (NV) and Alvin (TX) | World's largest mining-dedicated producer (AR25). Solids-plant safety upgrades at Winnemucca completed 1H FY2026 |
| Cyantific™ | Automated cyanide process analysers and technical services that optimise consumption and recovery | Uptake noted in Latin America |
| OPTEX® emulsifiers incl. Low Carbon Emulsifiers | Emulsifiers for AN emulsion manufacture; the low-carbon versions use biogenic carbon and cut emulsifier emissions by 70–85% (cradle-to-gate LCA by Intertek Assuris, ISO 14040/44) | Launched FY2025 |
| OptiOre™ range | Mineral processing reagents | Introduced FY2025; "early sales momentum" in 1H FY2026 |
| Danafloat™ | Flotation collectors for copper and zinc, acquired from FMC in 1H FY2026 | Moves SMC into copper processing chemistry; integration complete (Sep 2026) |
| In-place / underground leaching R&D | CRC-P project with University of Adelaide, BHP and Core Resources | Pre-commercial |
Financial Narrative
Income statement
Notes: FY2022 total EBIT including Minova (discontinued) was A$578.5m. FY2024 SI after tax was a net gain of A$115.2m, mainly property sales (Deer Park Stage 1, Yarraville).
Per-share data
1H FY2026: EPS pre-SI 60.7c (+12%); interim DPS 28.5c (+14%); payout ratio 47%. All FY2023–FY2026 dividends were unfranked.
Margins and growth (derived)
FY2022 growth rates mix bases (continuing FY2022 vs. reported FY2021) and are indicative only.
CAGRs (derived): Revenue CAGR FY2021–FY2025 ≈ 9.4% (mixed basis). Revenue CAGR FY2022–FY2025 (continuing) ≈ 4.7%. EBIT CAGR FY2022–FY2025 (continuing) ≈ 20.7%. NPAT pre-SI CAGR FY2022–FY2025 ≈ 19.5%.
Gross profit: Orica does not report a gross profit line under its nature-of-expense presentation; recorded as not disclosed.
Balance sheet
Sources: AR25 (debt, cash, leverage, net assets); Market Index/Morningstar (current assets, PP&E, intangibles, inventories, receivables, investments).
Debt composition at 30 Sep 2025: A$2,556.9m US Private Placement bonds and A$111.3m drawn bank facilities. Average tenor of drawn debt 5.5 years (FY2024: 4.7 years). In FY2025 Orica issued US$390m-equivalent of USPP notes, refinanced A$461m of bank facilities and added a new A$90m facility.
1H FY2026 (31 Mar 2026): Interest-bearing liabilities A$2,927.7m (A$2,335.0m fixed-rate bonds; A$592.7m bank). Cash A$768.7m. Net debt A$2,159.0m (A$2,472.1m including leases). Leverage 1.53x. Net assets A$3,819.5m. Total assets A$9,678.3m. Orica also put in place a new A$500m Asian Term Loan facility (A$225m five-year RCF and A$275m seven-year term loan) and refinanced A$359m of bank facilities.
Goodwill: The goodwill balance is not captured above. The FY2025 balance includes goodwill from the Terra Insights and Cyanco acquisitions, less the Latin America CGU impairment (A$288.4m in 1H FY2025).
Trade working capital: Rose A$16m in FY2025 (+A$30m FX, −A$14m underlying) and A$56.8m in 1H FY2026, driven by a strategic inventory build ahead of the Carseland turnaround and to mitigate supply risk.
Cash flow
1H FY2026: Operating cash flow A$230.6m (1H FY2025: A$244.9m). Capex A$164.7m (sustenance A$104.7m; growth A$59.8m). Buy-back A$121.4m. Dividends A$149.5m. Net debt proceeds A$354.1m.
Ratios
RONA history: FY2021 8.1%; FY2022 11.4%; FY2023 12.6%; FY2024 12.8%; FY2025 13.8%; 1H FY2026 (rolling 12-month) 14.7%, the highest in 13 years. ROIC is not separately disclosed by Orica; RONA is the closest company metric. A cash conversion cycle is not disclosed; inventory turnover of ~8.7x implies roughly 42 days of inventory (derived).
Commentary on trends, inflections and drivers
Revenue. Group revenue rose from about A$5.7bn (FY2021, COVID-affected) to A$8.1bn (FY2025). Volume and price recovery in FY2022–FY2023 drove most of the increase. The FY2024 dip (−3.6%) despite 15% EBIT growth matters: it reflects lower ammonia/AN input prices passed through under rise-and-fall contracts. Headline revenue therefore overstates commodity exposure and understates underlying margin progress. FY2025 revenue grew 6.3%, including full-year contributions from Cyanco and Terra Insights. 1H FY2026 revenue fell 1% on FX translation and lower Indonesian coal quotas, while EBIT still rose 5%.
Margin inflection. EBIT margin expanded from about 7.9% (FY2022) to 12.2% (FY2025), and 1H FY2026 implies about 13.2% (512.0/3,884.2, derived). Management attributes this to (i) mix shift toward premium products and technology (WebGen™, 4D™), (ii) commercial discipline and re-contracting at better terms in Australia, (iii) high-margin Digital (~23%) and SMC earnings (record gold prices), and (iv) manufacturing reliability, including the non-repeat of the FY2024 Kooragang Island turnaround. One-off items flatter the margin: the A$15m carbon credit sale in 1H FY2025 and lower Global Support costs, partly because litigation costs were reclassified to SI.
Quality of earnings. The persistent gap between underlying and statutory profit is the main analytical issue. Over FY2022–1H FY2026, cumulative after-tax SI were about −A$877m (−256.9 − 73.3 + 115.2 − 378.8 − 283.7, derived) against cumulative NPAT pre-SI of about A$1.92bn. The recurring categories are restructuring and exits (Russia, Türkiye, Venezuela, EMEA), the Latin America impairment, and the CF Industries/IP litigation (A$257.1m after tax in 1H FY2026, including the settlement). Some of these are genuinely non-recurring, but investors should haircut "underlying" earnings for a run-rate of restructuring cost.
Cash. Operating cash flow rose 18% in FY2025 to A$949m, implying EBITDA-to-OCF conversion of about 64% (derived). For FY2026, management guides OCF lower than FY2025 because of FX, the US$169.5m CF settlement (payable 2H FY2026) and CF supply-disruption costs.
Balance sheet. Leverage stayed within the 1.25–2.00x target band through two major acquisitions (A$1.7bn of FY2024 investing outflows), an A$500m buy-back and the CF settlement. The balance sheet is a source of strategic flexibility, but net debt has risen from A$1.62bn (FY2024) to A$2.16bn (1H FY2026).
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Income Statement
| Metric (AUD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Sales revenue | 5,682 | 7,096.4 | 7,945.3 | 7,662.8 | 8,144.5 |
EBITDA (underlying) | — | — | — | 1,237.5 | 1,491.1 |
EBIT (underlying, continuing) | 426 | 563.8 | 698.1 | 805.6 | 992.2 |
Net financing costs | — | — | — | 177.2 | 199.7 |
Tax expense before SI | — | 154.0 | 166.2 | 184.8 | 224.3 |
NPAT pre-SI (attributable) | 209 | 317.0 | 369.0 | 409.4 | 541.1 |
Individually significant items after tax | — | -256.9 | -73.3 | 115.2 | -378.8 |
Statutory NPAT (attributable) | -173.8 | 60.1 | 295.7 | 524.6 | 162.3 |
Per-Share Data and Returns & Leverage Ratios (%)
| Metric (A$ cents per share) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
EPS basic pre-SI | — | — | — | 86.4 | 111.8 |
EPS basic statutory | — | — | — | 109.4 | 33.2 |
Dividends per share (total) | 24.0 | 35.0 | 43.0 | 47.0 | 57.0 |
Interim DPS | 7.5 | 13.0 | 18.0 | 19.0 | 25.0 |
Final DPS | 16.5 | 22.0 | 25.0 | 28.0 | 32.0 |
Payout ratio on NPAT pre-SI (%) | — | — | 53 | 56 | 50 |
Margin (%)
| Margin (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
EBITDA margin | — | — | — | 16.1 | 18.3 |
EBIT margin | 7.5 | 7.9 | 8.8 | 10.5 | 12.2 |
NPAT pre-SI margin | 3.7 | 4.5 | 4.6 | 5.3 | 6.6 |
Statutory NPAT margin | -3.1 | 0.8 | 3.7 | 6.8 | 2.0 |
Growth metric (%)
| Growth metric (%) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Revenue growth YoY | 24.9 | 12.0 | -3.6 | 6.3 |
EBIT growth YoY | 32.4 | 23.8 | 15.4 | 23.2 |
NPAT pre-SI growth YoY | 51.7 | 16.4 | 10.9 | 32.2 |
Balance Sheet
| Metric (AUD Mn) | FY2024 | FY2025 |
|---|---|---|
Total current assets | 2,534.3 | 2,908.0 |
Cash and cash equivalents | 580.7 | 746.7 |
Interest-bearing liabilities excl. leases | 2,198.4 | 2,668.2 |
Lease liabilities | 322.6 | 336.6 |
Net debt excl. leases | 1,617.7 | 1,921.5 |
Net debt incl. leases | 1,940.3 | 2,258.1 |
Net assets (total equity incl. NCI) | 4,548 | 4,256 |
Property, plant & equipment | 3,627.4 | 3,722.5 |
Intangibles excl. goodwill | 419.5 | 392.0 |
Inventories | 868.9 | 933.9 |
Trade and other receivables (current) | 914.2 | 1,026.6 |
Equity-accounted investments | 320.7 | 364.6 |
Leverage (net debt / EBITDA, pre-IFRS16, x) | 1.43 | 1.39 |
Cash Flow
| Metric (AUD Mn) | FY2024 | FY2025 |
|---|---|---|
Net operating cash flow | 807.5 | 949.2 |
Capital expenditure (accrual basis) | 456 | 460 |
Free cash flow (OCF − capex, derived) | 351.5 | 489.2 |
Net investing cash flows | -1,712.6 | -397.2 |
Dividends paid to Orica shareholders | 170.0 | 250.9 |
Dividends paid to NCI | 12.0 | 15.7 |
Share buy-back payments | 0 | 378.6 |
On-market purchases for employee plans | — | 39.2 |
Equity raised (placement + SPP, net) | 455.1 | 0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2024 | FY2025 |
|---|---|---|
ROE (%, Morningstar basis) | 13.29 | 12.96 |
ROE on NPAT pre-SI / avg equity (%, derived) | — | 12.3 |
ROA (%, Morningstar basis) | 7.73 | 7.00 |
RONA (%, Orica definition) | 12.8 | 13.8 |
Current ratio (x) | 1.19 | 1.22 |
Quick ratio (x) | 0.79 | 0.83 |
Debt (excl. leases) / equity (x, derived) | 0.48 | 0.63 |
Net debt incl. leases / EBITDA (x, derived) | 1.57 | 1.51 |
Leverage, company definition (x) | 1.43 | 1.39 |
EBIT / net financing costs (x, derived) | 4.55 | 4.97 |
Asset turnover (x, Morningstar) | 0.80 | 0.82 |
Inventory turnover (x, Morningstar) | 8.85 | 8.72 |
Effective tax rate pre-SI (%) | 29.4 | 28.3 |
Regional EBIT (AUD Mn)
| Regional EBIT (AUD Mn) | FY2024 | FY2025 |
|---|---|---|
Australia Pacific & Asia | 537.2 | 658.4 |
North America | 184.4 | 212.2 |
Europe, Middle East & Africa | 85.4 | 100.5 |
Latin America | 86.9 | 90.4 |
Regional EBIT growth (%)
| Regional EBIT growth (%) | FY2025 | 1H2026 vs 1H2025 |
|---|---|---|
Australia Pacific & Asia | 23 | 0 |
North America | 15 | 18 |
Europe, Middle East & Africa | 18 | 3 |
Latin America | 4 | 1 |
Regional share of regional EBIT total FY2025 (%, derived) | FY2025 | — |
Australia Pacific & Asia | 61.5 | — |
North America | 19.8 | — |
Europe, Middle East & Africa | 9.4 | — |
Latin America | 8.4 | — |
Share Price
| Metric (AUD) | Sep-2024 | Sep-2025 | Sep-2026 |
|---|---|---|---|
Share price at or near fiscal year end | 18.55 | 21.14 | 23.28 |
Return metric (%)
| Return metric (%) | Value |
|---|---|
1-year price return (Sep-2025 to late Sep-2026, derived) | 10.1 |
2-year price return (Sep-2024 to late Sep-2026, derived) | 25.5 |
FY2025 total shareholder return (Market Index) | 17.3 |
FY2024 total shareholder return (Market Index) | 22.1 |
Valuation Snapshot
| Multiple | Value | Basis |
|---|---|---|
Market cap | ~A$10.8bn | Derived |
Enterprise value | ~A$13.3bn | Market cap + net debt incl. leases A$2.47bn (31 Mar 2026); NCI not added |
P/E (LTM NPAT pre-SI A$561.2m) | ~19.2x | Derived |
P/E (FY2025 EPS pre-SI 111.8c) | ~20.8x | Derived |
EV/EBITDA (LTM EBITDA A$1,520.9m) | ~8.7x | Derived |
EV/EBIT (LTM EBIT A$1,016.1m) | ~13.1x | Derived |
EV/Sales (LTM revenue A$8,088.2m) | ~1.6x | Derived |
P/B (net assets A$3,819.5m) | ~2.8x | Derived |
Dividend yield (FY2025 DPS 57c) | ~2.4% unfranked | Derived |
Dividend (A$ cents per share)
| Dividend (A$ cents per share) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total DPS | 24.0 | 35.0 | 43.0 | 47.0 | 57.0 |
Credit Ratings
| Agency | Rating | Outlook | Date |
|---|---|---|---|
S&P Global Ratings | BBB | Stable | Reaffirmed 15 Dec 2025 (and 11 Dec 2024) |
Analyst Conclusions
Management guidance (latest, 7 May 2026; supplemented 28 Sep 2026)
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FY2026 underlying EBIT to rise across all segments and all regions vs FY2025 (A$992.2m). The 1H FY2026 run-rate (+5%) and typical second-half weighting imply FY2026 EBIT modestly above A$1.0bn; this is an analyst inference, not company guidance.
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D&A at the low end of A$520–540m. Finance costs slightly higher. ETR slightly lower. Capex in line (~A$460m). OCF lower than FY2025.
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FY2027: NA AN supply secured with no material margin impact expected; full outlook due at the November 2026 results.
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Medium term: Blasting "GDP plus"; Digital mid-teens; SMC high-single-digit EBIT growth; FY2026–FY2028 average RONA 13.5–15.5%.
Bull case
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Mix-driven margin expansion continues. EBIT margin has risen about 430bp in three years (7.9% to 12.2%). Digital (~23% margin, mid-teens growth) and SMC (gold-levered, high-single-digit growth) keep lifting group returns toward the top of the 13.5–15.5% RONA range.
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North America becomes a profit engine. NA EBIT grew 18% in 1H FY2026 even before the Nelson Brothers/CF synergies (~A$35m p.a.), higher Winnemucca output and the ≥A$100m cost program (mainly FY2027).
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Capital discipline supports per-share growth. A$500m was returned via buy-back (shares down ~5% from 487m), EPS pre-SI grew 29% in FY2025 and 12% in 1H FY2026, and leverage stays in the lower half of target.
Bear case
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"Underlying" overstates economic earnings. About A$662m of after-tax SI in FY2025–1H FY2026 versus about A$824m of NPAT pre-SI over the same 18 months (derived). Recurring restructuring, impairments and litigation suggest normalised earnings are materially lower.
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Supply and cost risk in North America. Losing CF as a low-cost AN source means structurally higher FY2027 sourcing costs; management relies on pass-through and logistics to protect margins.
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Cyclical peak risk. Gold (26% of revenue) and copper (22%) are at or near record prices; SMC and Digital growth (exploration-linked) could reverse sharply. Coal (23%) is in secular decline, and Indonesia quotas already cut 1H FY2026 Blasting growth to 3%.
Catalysts and monitorables (next 12 months)
| Timing | Catalyst / monitorable |
|---|---|
| Mid-Nov 2026 | FY2026 results: EBIT vs ~A$1.0bn+, final dividend, FY2027 outlook, cost-program quantification, any new capital return |
| Nov 2026 – 2027 | Run-rate synergies from Nelson Brothers and CF settlement (~A$35m p.a. target) |
| 2H FY2026 – FY2027 | Carseland turnaround execution; CF Yazoo City restart timing (earliest Q4 CY2026, per press) |
| FY2027 | FY2027 NA AN sourcing costs vs pass-through; gross margin in North America |
| Ongoing | IP litigation costs (A$50–60m guide) and any outcomes |
| Ongoing | Deer Park Stage 2 land sale timing and proceeds |
| Dec 2026 | AGM under Chairman Bansal: possible strategy or capital-allocation signals |
| 2026–2027 | First mandatory ASRS climate disclosures; progress on the 2030 target (−45% net) |
| Ongoing | Gold and copper prices; Indonesian coal quotas; AUD/USD |
| Ongoing | Latin America turnaround after the FY2025 impairment |
Analyst verdict
Orica enters FY2027 as a structurally better business than five years ago. EBIT has more than doubled from the COVID-hit FY2021 base (about A$426m) to A$992m in FY2025. RONA has risen from 8% to nearly 15%. The portfolio now has two higher-growth, higher-margin adjacencies — Digital Solutions and Specialty Mining Chemicals — that competitors cannot easily replicate. The 2024 Cyanco and Terra Insights acquisitions were well timed into a record gold price and rising tailings-safety regulation. Management's response to the November 2025 CF Industries supply shock also showed what the integrated network is worth: it settled the long-running litigation, bought out the Nelson Brothers JV and secured FY2027 supply without guiding to margin damage.
The investment debate centres on earnings quality and cyclicality rather than franchise strength. Significant items have consumed a large share of underlying profit in each of the last six reporting periods. Statutory profitability (FY2025 NPAT A$162m; 1H FY2026 a small loss) therefore lags the "record" headlines. Investors should apply a recurring-cost haircut to underlying EPS. Revenue is also concentrated in gold and copper at elevated prices, and the coal book is shrinking.
At roughly 19–21x trailing underlying earnings and about 8.7x LTM EV/EBITDA (derived), the shares already price in continued mix-driven margin expansion. With the stock at ~A$23 in late September 2026, after the strong 1H FY2026 re-rating, the near-term risk/reward looks balanced: upside depends on the November 2026 result showing that the ≥A$100m cost program and the North American restructuring offset higher AN sourcing costs while statutory and underlying earnings converge. We would view clean FY2026 delivery (EBIT above A$1.0bn with significant items fading in FY2027) as the trigger for a more constructive stance. Repeated SI or North American margin slippage would argue for caution. Overall assessment: high-quality global leader, fairly valued, execution-dependent.
Figures marked "derived" are analyst calculations. This document does not constitute financial advice.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | In role since | Background (where verified) |
|---|---|---|---|
Sanjeev Gandhi | Managing Director & CEO | 1 Apr 2021 | Former senior executive at BASF (Asia Pacific/intermediates leadership roles). |
James Crough | Chief Financial Officer | 3 Jun 2024 | — |
Leah Barlow | President – Safety, Health, Environment & Security; Discrete Manufacturing & Supply | 1 Jul 2022 | — |
Angus Melbourne | President – Digital Solutions and Chief Technology Officer | 1 Apr 2021 | — |
Board of Directors
| Name | Role | Appointed | Country | Notes |
|---|---|---|---|---|
Vik Bansal | Independent Non-executive Chairman (Chair-Elect from 15 Aug 2025; Chairman from Dec 2025 AGM) | 15 Aug 2025 | Australia | — |
Sanjeev Gandhi | Managing Director & CEO | 1 Apr 2021 | Australia | Executive director |
John Beevers | Independent NED | 1 Feb 2020 | Australia | — |
Mark Garrett | Independent NED | 15 Jan 2023 | Switzerland | — |
Denise Gibson | Independent NED | 1 Jan 2018 | USA | — |
Dr Vanessa Guthrie | Independent NED; Chair, People & Remuneration Committee | 1 Feb 2023 | Australia | — |
Karen Moses | Independent NED | 1 Jul 2016 | Australia | Re-elected Dec 2025 |
Gordon Naylor | Independent NED | 1 Apr 2022 | Australia | Re-elected Dec 2025 |
Malcolm Broomhead | Chairman (retired at Dec 2025 AGM) | 1 Dec 2015 | Australia | CEO 2001–2005; Chairman 2016–2025 |
Major Shareholders
| Holder | Latest disclosed stake | Date | Source |
|---|---|---|---|
State Street Corporation & subsidiaries | 7.31% | 28 Jul 2026 notice | Substantial holder notice (via Kalkine) |
BlackRock Group | Ceased to be substantial holder (<5%) | — | TipRanks summary of ASX notice |
Other substantial holders | — | Mar–May 2026 | ASX announcements list |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | HQ | Ownership | Positioning vs Orica |
|---|---|---|---|---|
Blasting | Dyno Nobel Ltd (formerly Incitec Pivot) | Brisbane, Australia | ASX-listed | Main global rival; #1/#2 in North America and Australia; transformed into a pure-play explosives company in 2025; strong in US quarries |
Blasting | Enaex (Sigdo Koppers group) | Santiago, Chile | Listed (Chile) | LatAm leader (Chile/Peru); expanding into Africa and Europe (owns Davey Bickford); main reason for Orica's LatAm pressure |
Blasting | MAXAM | Madrid, Spain | Private (Rhône Capital majority) | Strong in Europe, Africa, LatAm |
Blasting | Austin Powder | Cleveland, USA | Private | US quarry and construction |
Blasting | BME (Omnia Holdings) | Johannesburg, South Africa | JSE-listed parent | Southern Africa, Australia, Indonesia; electronic detonators |
Blasting | AECI Mining (AEL) | Johannesburg, South Africa | JSE-listed parent | Africa, Indonesia, Australia |
Blasting | Solar Industries | Nagpur, India | NSE/BSE-listed | Low-cost producer expanding globally (Africa, Turkey, Australia) |
Blasting | Sasol Dyno Nobel JV / Sasol Explosives | South Africa | JV | Southern Africa |
Blasting | Yara / Yara Pilbara (AN supply) | Norway / Australia | Listed | AN supplier/competitor in Western Australia |
Blasting | CSBP (Wesfarmers Chemicals, Energy & Fertilisers) | Perth, Australia | ASX (via Wesfarmers) | Western Australian AN producer |
Digital – Geosolutions | IDS GeoRadar (Hexagon), Reutech Mining, Geokon, Sixense, Worldsensing | Various | Various | Radar, geotechnical sensors and monitoring |
Digital – Orebody/Blast | Hexagon Mining, Datamine, Reflex (IMDEX), Strayos, Motion Metrics, Dyno Nobel digital (DynoConsult/Nobel Insights) | Various | Various | Drill survey (IMDEX/Reflex vs Axis); fragmentation analytics |
SMC – cyanide | Chemours (Mining Solutions), Draslovka, Australian Gold Reagents (AGR, Wesfarmers/Coogee), Chinese producers (e.g., Hebei Chengxin) | Various | Various | Orica (with Cyanco) is now the largest mining-dedicated producer |
SMC – flotation | Solvay/Syensqo, Clariant, Nouryon, Orica-Danafloat (new entrant), Chinese reagent makers | Various | Various | Orica is a sub-scale entrant via Danafloat |
Peer Comparison FY2026
| Metric | Orica (FY2025, A$) | Dyno Nobel Ltd (FY2025, A$) |
|---|---|---|
Revenue | A$8,144.5m | A$5,345m (incl. fertilisers) |
EBIT (underlying) | A$992.2m | A$714m group; Explosives A$434m |
EBIT growth YoY | +23% | +23% group; +16% explosives (underlying) |
EBIT margin | 12.2% | 13.4% group (derived) |
FY2026 explosives EBIT guidance | EBIT growth across all segments | A$460–500m explosives EBIT after corporate costs |
