The Orica Ltd (ASX: ORI) share price is in focus today after the mining services company posted its highest earnings in 13 years, with EBIT up 23% and net operating cash flow rising by 18% to $949 million.
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What did Orica report?
- Sales revenue of $8,144.5 million, up 6% from last year
- EBIT of $992 million, the strongest since 2012, up 23% on the prior period
- NPAT before significant items of $541 million, up 32%
- Final dividend of 32.0 cents per share, with a full year dividend of 57.0 cents, up 21%
- Net operating cash flow of $949 million, up 18%
- Leverage at 1.39x, at the lower end of the company's target range
What else do investors need to know?
Orica's earnings increased across all business segments, driven by strong global demand for its premium products, advanced technology, and ongoing commercial discipline. The company successfully integrated recent acquisitions Terra Insights and Cyanco, strengthening its leadership in digital solutions and specialty mining chemicals.
The on-market share buy-back, originally set at $400 million, has been increased to a total program of up to $500 million. By 30 September, $399 million worth of shares had already been bought back, representing 4.1% of issued capital. Orica continues to prioritise sustainability, achieving gross Scope 1 and 2 emissions reductions of 51% from 2019 levels.
What did Orica management say?
Managing Director and CEO Sanjeev Gandhi said:
In 2025, we delivered our highest EBIT performance in 13 years, reflecting the successful execution of our strategy, the collective efforts of our people and the growing strength of our business underpinned by the continued demand for our premium products and innovative technology solutions.
What's next for Orica?
Looking ahead, Orica expects further EBIT growth across its Blasting Solutions, Digital Solutions, and Specialty Mining Chemicals segments in FY2026. The company is focusing on margin, product mix, and commercial discipline in Blasting, while anticipating higher adoption and recurring revenue in Digital Solutions.
Cost management remains a priority, with capital expenditure and net finance costs expected to remain broadly in line with FY2025. Plans are in place to continue the increased share buy-back up to $100 million by March 2026. Orica also expects to leverage its global network to manage any impacts from the recent supply disruption notice from CF Industries.
Orica share price snapshot
Orica shares have risen 32% over the past 12 months, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.
