Orica has delivered record first half earnings with EBIT reaching $512.0 million, representing a 5% increase from the prior corresponding period and the highest level in more than 20 years. Net profit after tax (excluding significant items) came in at $283.1 million, up 8%, while earnings per share rose 12% to 60.7 cents. The strong performance reflects continued demand for the company’s premium products and advanced technology offerings, supported by robust gold and copper markets and disciplined commercial execution across its diversified portfolio.
Beyond operational performance, Orica made significant strategic progress during the half through two key acquisitions. The company agreed to acquire Nelson Brothers’ explosives business in North America, expanding its exposure to US quarries and construction sectors while establishing direct market channels. Concurrently, Orica acquired the Danafloat product range, broadening its specialty mining chemicals portfolio into copper processing, an attractive and growing market segment. These moves strengthen Orica’s competitive positioning in premium products and increase geographic diversification.
Return on Net Assets reached 14.7%, the highest level in 13 years, demonstrating improved capital efficiency across the business. The company increased its interim dividend by 14% to 28.5 cents per share, maintaining a conservative payout ratio of 47% despite the dividend growth. Orica also completed a $500 million on-market share buy-back in full and maintained leverage at 1.53 times net debt to EBITDA, comfortably within its target range of 1.25x to 2.00x. This capital allocation reflects management confidence in the business trajectory.
A cost reduction program is underway to deliver at least $100 million in enduring reductions to the cost base, complementing the earnings growth already achieved. The company demonstrated strong supply chain resilience during the half by securing alternative ammonia and ammonium nitrate supply following an outage at a supplier’s facility in Western Australia, highlighting the strategic value of Orica’s global manufacturing and supply network as a competitive differentiator.
Management’s outlook remains positive, with the CEO attributing performance to the company’s diversified portfolio and responsive supply network. Investors should monitor progress on the cost reduction program, integration of the Nelson Brothers acquisition, and market dynamics in gold and copper. Cash flow generation, though slightly below the prior year at $230.6 million, continues to support dividends and capital programs. This announcement is price sensitive and has been identified as material by the ASX.
View the full ASX announcement (PDF)
About Orica Limited (ASX: ORI)
Orica Limited is a leading global manufacturer and supplier of explosives and chemicals, primarily serving the mining industry. The company operates in approximately 50 countries across six continents and holds roughly 28 percent of the global commercial explosives market. Orica provides blasting solutions, mining-related chemicals including sodium cyanide, and related services to mining operations worldwide.
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