Orica Limited (ORI) AI Stock Analysis

• Market Cap: AU$12.11B
• Dividend Yield: 2.28%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 77.4
• Beta (1Y): 0.67
• Revenue Growth: 6.29%
• EPS Growth: -69.95%
• Country: AU
• Employees: 14,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.59
• Shares Outstanding: 466,739,140
• 10 Day Avg. Volume: 2,486,296
• 30 Day Avg. Volume: 2,283,487
• PEG Ratio: 0.24
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 23.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$26.41
• Price Target Upside: 1.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: AU$28.00 ▲(7.53% Upside)

Orica Limited's overall stock score is driven primarily by its solid financial performance and positive technical indicators. However, the high P/E ratio suggests potential overvaluation, which weighs down the overall score. The absence of earnings call data and notable corporate events means these factors did not influence the score.

Positive Factors

Market position & customer base

Orica's leading global position and deep relationships with major mining customers create durable recurring revenue and contract visibility across mining, quarrying and infrastructure. This scale supports long-term bargaining power, route-to-market breadth and resilient demand exposure.

Strong gross margins

A sustained gross margin above 50% indicates structural cost advantages from manufacturing scale, product mix and input management. High gross margins provide a buffer for commodity swings and fund reinvestment in R&D and digital blasting capabilities that reinforce competitive differentiation.

Improving cash generation

Double-digit FCF growth signals improving ability to self-fund capex, service debt and return capital. Consistent cash generation enhances financial flexibility to invest in safety, innovation and long-term contracts, and supports balance-sheet strengthening over multiple quarters.

Negative Factors

Weak net profitability

A sub-2% net margin reflects persistent pressure below the operating line—potentially from rising overhead, finance costs or non-operating items—which limits retained earnings and long-term shareholder returns unless operational efficiencies or cost reductions are achieved.

Low cash conversion

A 0.40 cash-to-earnings conversion rate suggests earnings are not translating efficiently into cash, increasing sensitivity to working-capital swings and reducing available internal funding for capex, dividends or debt repayment during cyclical downturns.

Declining return on equity

A falling ROE indicates the company is generating less profit per dollar of equity, signalling reduced capital efficiency. Persistently lower ROE can constrain long-term shareholder value creation unless management improves margins, asset turns or capital allocation.

Orica Limited Business Overview & Revenue Model

Company Description

Orica Limited manufactures, distributes, and sells commercial blasting systems, mining and tunnelling support systems, and various chemical products and services in Australia, Peru, the United States, and internationally. The company provides 4D bulk explosives systems, packaged explosives, initiating systems, boosters, and seismic explosive ranges; technical services and solutions; and supplementary services. It also offers automation solutions, including Avatel, a machine equipped with underground development charging system; and secondary breakage and hang up blasting, a tele-remote blasting solution. In addition, the company provides mining chemical products, such as cyanide sparges, emulsifiers, and sodium cyanide, as well as PRO services; digitally enabled benchmarks and insights at various stages of the blasting process; and nitrogen fertilizers, which includes urea ammonium nitrate and ammonia. Further, it offers resources to explore the use of chemical energy in blasting, blasting fundamentals, and properties of explosives and blasting principles; training courses; and geotechnical deformation and convergence monitoring solutions. The company serves surface coal, surface metal, iron ore, quarrying, underground mining and construction, construction, civil infrastructure, oil and gas, and agriculture markets. Orica Limited was founded in 1874 and is headquartered in East Melbourne, Australia.

How the Company Makes Money

Orica generates revenue primarily through the sale of explosives and blasting systems to the mining and construction sectors. Its key revenue streams include the manufacturing and distribution of ammonium nitrate, bulk explosives, and packaged explosives, complemented by technical services and consulting. The company has established significant partnerships with major mining companies, which provide a stable customer base and recurring revenue through long-term contracts. Additionally, Orica's focus on innovation and sustainability, including advancements in digital blasting technologies, further enhances its competitive edge and contributes to its financial performance.

Orica Limited Financial Statement Overview

Summary

Orica Limited demonstrates a strong financial position with robust profitability and revenue growth metrics. The balance sheet is solid with moderate leverage and efficient equity utilization, though attention to debt management is advised. Cash flows are stable, but the decline in free cash flow growth suggests monitoring of liquidity levels.

Income Statement

Orica Limited has shown strong financial performance with a notable gross profit margin of 53.1% and a significant improvement in net profit margin to 6.8% for 2024. The EBIT and EBITDA margins are also robust at 9.6% and 17.7%, respectively. The revenue growth rate for 2024 was 8.4%, indicating a healthy upward trend in revenue generation. Overall, the company's profitability metrics are solid, with improving margins and growth.

Balance Sheet

The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.57, indicating moderate leverage. The return on equity stands at 11.8%, showcasing efficient management of equity capital. The equity ratio is at 46.5%, suggesting a balanced capital structure. Although the company has managed its liabilities well, the growing total debt and reduced cash reserves over time may pose challenges if not managed prudently.

Cash Flow

Orica Limited's cash flow statement indicates strong cash generation capabilities with an operating cash flow to net income ratio of 1.54, highlighting efficient conversion of income into cash. The free cash flow to net income ratio is 0.67, showing positive but moderate free cash flow generation. However, the free cash flow growth rate has declined by 23.6% compared to the previous year, which may require attention to maintain liquidity and investment capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.95B	8.14B	7.69B	7.95B	7.10B	5.21B
Gross Profit	3.31B	4.44B	4.08B	1.22B	969.80M	2.76B
EBITDA	1.16B	1.12B	1.35B	906.10M	722.90M	276.80M
Net Income	98.10M	162.30M	524.60M	295.70M	60.10M	-173.80M
Balance Sheet
Total Assets	10.03B	9.95B	9.60B	8.88B	8.47B	7.46B
Cash, Cash Equivalents and Short-Term Investments	719.90M	746.70M	580.70M	1.15B	1.26B	551.00M
Total Debt	2.93B	3.00B	2.52B	2.37B	2.46B	2.32B
Total Liabilities	5.43B	5.69B	5.05B	4.72B	4.64B	4.67B
Stockholders Equity	4.52B	4.18B	4.46B	3.99B	3.69B	2.73B
Cash Flow
Free Cash Flow	477.30M	534.70M	372.20M	459.60M	13.00M	295.70M
Operating Cash Flow	862.00M	949.20M	807.50M	898.70M	362.30M	618.90M
Investing Cash Flow	-1.31B	-397.20M	-1.71B	-664.70M	-229.20M	-195.90M
Financing Cash Flow	76.50M	-407.70M	377.40M	-350.90M	515.50M	-748.60M

Orica Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ORI, the sentiment is Positive. The current price of 26.04 is above the 20-day moving average (MA) of 25.22, above the 50-day MA of 24.06, and above the 200-day MA of 20.69, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 67.66 is Neutral, neither overbought nor oversold. The STOCH value of 82.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ORI.

Orica Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORI	67 Neutral	AU$12.11B	77.37	3.61%	2.28%	6.29%	-69.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
DNL	58 Neutral	AU$6.11B	43.75	3.02%	3.60%	-29.71%	―

Orica Limited Corporate Events

Orica Reports Lapse of 223,578 Performance Rights After Vesting Conditions Not Met

Orica Limited has notified the market that 223,578 performance rights (ASX code ORIAB) have lapsed as of 31 December 2025 after the conditions attached to these rights were not met or became incapable of being satisfied. The cessation of these performance rights represents an adjustment to Orica’s issued capital structure and indicates that specific performance or vesting hurdles tied to these rights were not achieved, which can influence management and employee equity incentives as well as dilute fewer existing shareholders than initially anticipated.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$26.00 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Reports Cessation of 5,417 Performance Rights in Routine Capital Update

Orica Limited has notified the market of the cessation of 5,417 performance rights (security code ORIAB) effective 31 December 2025, as disclosed in an Appendix 3H filing to the ASX. The adjustment reflects a minor change in Orica’s issued capital structure and may be related to the expiry, lapse or settlement of incentive securities, signalling routine housekeeping in its equity-based remuneration arrangements rather than a fundamental shift in its capital management strategy.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$26.00 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Issues 1.1 Million New Shares Following Conversion of Unquoted Securities

Orica Limited has notified the market of the issue of 1,094,808 new ordinary fully paid shares following the exercise or conversion of previously unquoted equity securities, effective 31 December 2025. The additional shares modestly expand Orica’s issued capital base, reflecting ongoing utilisation of its equity-based incentive or financing arrangements and resulting in a small dilution for existing shareholders while further aligning stakeholders participating in these instruments with the company’s long-term performance.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$26.00 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Updates Market on Progress of On-Market Share Buy-Back

Orica Limited has provided an update on its on-market share buy-back program for its ordinary fully paid shares, confirming that a total of 20,621,354 shares had been repurchased prior to the most recent trading day, with an additional 143,706 shares bought back on the previous day. The ongoing buy-back, first notified in March 2025 and now reported in a daily update, reflects the company’s continued capital management strategy, which can support earnings per share through a reduced share count and signals confidence in Orica’s financial position to investors.

The most recent analyst rating on (AU:ORI) stock is a Hold with a A$26.00 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Sets Out Key Corporate and Dividend Dates for 2026

Orica Limited has outlined its key corporate dates for the 2026 calendar year, including the release of half-year results on 7 May, interim dividend key dates in May and July, the deadline for director nominations on 14 October, full-year results and annual report release on 12 November, and final dividend and associated dates through November and December. The company also confirmed its 2026 annual general meeting will be held on 16 December and noted that any changes to the timetable will be communicated to the ASX, while its dividend reinvestment plan remains suspended pending a future decision by the board, providing investors and other stakeholders with clear visibility on Orica’s reporting, dividend and governance timetable for the year.

The most recent analyst rating on (AU:ORI) stock is a Hold with a A$26.00 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Cancels 266,973 Shares Following On-Market Buy-Back

Orica Limited has notified the market that 266,973 ordinary fully paid shares have been cancelled following completion of an on-market share buy-back. The reduction in issued capital is part of the company’s active capital management, which may enhance earnings per share and signal confidence in its financial position to investors.

The most recent analyst rating on (AU:ORI) stock is a Hold with a A$26.00 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Provides Daily Update on On‑Market Share Buy-Back Activity

Orica Limited has reported an update on its on‑market share buy-back of ordinary fully paid shares, as disclosed to the ASX. The company has now repurchased a cumulative 20,451,461 shares before the previous trading day and bought back an additional 169,893 shares on the previous day, signalling continued execution of its capital management program and a focus on returning value to shareholders through reducing the number of shares on issue.

The most recent analyst rating on (AU:ORI) stock is a Hold with a A$26.00 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Shareholders Approve Key Resolutions at 2025 AGM

At the 2025 Annual General Meeting, Orica Limited shareholders approved all resolutions, including the election and re-election of directors and the adoption of the Remuneration Report. Key approvals included granting performance rights to the CEO and reinstating proportional takeover provisions for three years, reflecting strong shareholder support and strategic alignment.

The most recent analyst rating on (AU:ORI) stock is a Hold with a A$26.00 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Emphasizes Cultural Respect at 2025 AGM

Orica Limited, during its Annual General Meeting in 2025, acknowledged the Traditional Custodians of the lands and waters where it operates, emphasizing the importance of respecting and preserving cultural traditions. This acknowledgment highlights Orica’s commitment to cultural sensitivity and community engagement, which may positively influence its reputation and stakeholder relations.

The most recent analyst rating on (AU:ORI) stock is a Hold with a A$26.00 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Reports Record Earnings and Advances Sustainability Goals

Orica Limited reported a significant achievement in 2025, with its highest earnings before interest and taxes in 13 years, reflecting a 23% increase from the previous year. The company is also making strides in sustainability, with a 51% reduction in Scope 1 and Scope 2 emissions since 2019, and is on track to achieve a 45% net emissions reduction by 2030. Additionally, Orica is undergoing leadership changes with Vik Bansal set to become the new Chairman, bringing extensive experience in global industrial operations.

The most recent analyst rating on (AU:ORI) stock is a Hold with a A$26.00 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Updates on Share Buy-Back Program

Orica Limited has announced an update on its ongoing share buy-back program, indicating a daily buy-back of 97,080 ordinary fully paid securities, bringing the total number of securities bought back to over 20 million. This buy-back initiative is part of Orica’s strategy to optimize its capital structure and enhance shareholder value, reflecting confidence in its financial position and future prospects.

The most recent analyst rating on (AU:ORI) stock is a Hold with a A$26.00 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Updates on Share Buy-Back Progress

Orica Limited has announced an update regarding its ongoing share buy-back program, with a total of 20,232,113 securities bought back before the previous day and an additional 122,268 securities bought back on the previous day. This buy-back initiative is part of Orica’s strategy to optimize its capital structure and return value to shareholders, potentially enhancing its market position and financial stability.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$25.35 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Updates on Share Buy-Back Program

Orica Limited has announced an update on its ongoing share buy-back program, reporting the acquisition of 64,934 ordinary fully paid securities on the previous day, bringing the total number of shares bought back to 20,167,179. This buy-back initiative is part of Orica’s strategy to optimize its capital structure and deliver value to shareholders, reflecting the company’s confidence in its financial health and future prospects.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$25.35 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Updates on Share Buy-Back Progress

Orica Limited has announced an update on its ongoing share buy-back program, revealing that a total of 20,167,179 ordinary fully paid securities have been repurchased as of December 4, 2025. This buy-back initiative is part of Orica’s strategy to optimize its capital structure and return value to shareholders, potentially impacting its market positioning and shareholder relations positively.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$25.35 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Announces Director’s Share Acquisition

Orica Limited announced a change in the director’s interest, with Sanjiv Kumar Gandhi acquiring an additional 55,744 ordinary shares as part of the Orica Short Term Incentive Plan. This change reflects the company’s ongoing commitment to aligning executive interests with shareholder value, potentially impacting stakeholder confidence and market perception positively.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$25.35 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Updates on Share Buy-Back Progress

Orica Limited has announced an update on its ongoing share buy-back program, reporting the purchase of 155,850 ordinary fully paid securities on the previous day, bringing the total number of securities bought back to 19,796,568. This buy-back initiative is part of Orica’s strategy to optimize its capital structure and enhance shareholder value, reflecting confidence in its financial position and future growth prospects.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$25.35 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Addresses Administrative Oversight in Director’s Interest Notice

Orica Limited announced a change in director’s interest notice for Mr. Sanjeev Gandhi and a notification regarding unquoted securities for key management personnel. The late lodgement of these notices was due to an administrative error, which has been addressed by updating the company’s reporting and notification processes to ensure future compliance with ASX listing rules.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$26.00 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Announces Director’s Acquisition of Shares

Orica Limited has announced a change in the director’s interest, with Vikas Bansal acquiring 4,366 ordinary shares through an on-market trade. This transaction reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and aligning with Orica’s ongoing commitment to strengthening its leadership and market position.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$26.00 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Releases 2025 Corporate Governance Statement

Orica Limited has released its corporate governance statement for the financial year ending September 30, 2025, which is now available on their website. The statement, approved by the board, outlines the company’s adherence to the ASX Corporate Governance Council’s recommendations, highlighting their commitment to transparency and accountability. This announcement reinforces Orica’s dedication to maintaining high governance standards, potentially impacting its reputation positively among stakeholders and aligning with industry expectations.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$25.50 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Upholds Strong Corporate Governance and Ethical Standards

Orica Limited has released its Corporate Governance Statement for the year ending September 30, 2025, highlighting its adherence to the ASX Corporate Governance Principles and Recommendations. The company emphasizes its values of integrity, safety, and excellence, supported by a robust code of conduct and ethics that guide its operations and ensure compliance with global best practices. The governance framework is designed to maintain transparency and accountability, reinforcing Orica’s commitment to ethical business practices and stakeholder trust.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$25.50 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Reports Strong Financial Performance for FY 2025

Orica Limited reported a strong financial performance for the year ending September 2025, with total sales reaching $8,144.5 million, driven by its Blasting Solutions segment. The company’s EBITDA increased to $1,491.1 million, reflecting robust operational efficiency. Despite facing litigation costs, Orica maintained a healthy EBIT margin and improved its net cash flow from operating activities to $949.2 million. The company’s strategic focus on digital solutions and specialty chemicals has positioned it well for future growth, although it continues to manage challenges related to significant items impacting net profit.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$25.50 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Announces 2025 Full Year Results

Orica Limited has released its 2025 Full Year Results, highlighting the company’s performance and strategic initiatives. The announcement provides insights into Orica’s financial standing and operational strategies, which are crucial for stakeholders to understand the company’s market positioning and future prospects.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$25.50 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Reports Highest Earnings in 13 Years Amid Strategic Success

Orica Limited announced its highest earnings in 13 years, driven by strong demand for premium products and advanced technology solutions. The company reported a 32% increase in Net Profit After Tax pre significant items and a 23% rise in EBIT. Orica’s strategic focus on safety, sustainability, and innovation has led to significant achievements, including a 51% reduction in emissions since 2019 and a robust performance across all business segments. The successful integration of Terra Insights and Cyanco has strengthened Orica’s position as a global leader in digital solutions and specialty mining chemicals. The company also completed a substantial share buy-back program, reflecting its commitment to delivering shareholder value.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$25.50 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.

Orica Limited Reports Mixed Financial Results for 2025

Orica Limited’s 2025 financial results reveal a 6% increase in revenue to $8,144.5 million, though profit after tax attributable to shareholders fell by 69% to $162.3 million. Despite this, the net profit before significant items rose by 32% to $541.1 million, indicating underlying business strength. The company announced a final dividend of 32 cents per share, with a payment date set for December 22, 2025. These results highlight Orica’s resilience in a challenging market, though the decline in net profit may concern stakeholders.

The most recent analyst rating on (AU:ORI) stock is a Buy with a A$25.50 price target. To see the full list of analyst forecasts on Orica Limited stock, see the AU:ORI Stock Forecast page.