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Orica Limited
(Sydney:ORI)
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Rating:70Outperform
Price Target:
AU$26.00
▲(11.97% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by solid (but mixed) financial performance—improving gross margin, better leverage, and growing free cash flow are tempered by weak net margin and softer ROE/cash conversion. Technicals add support with a clear uptrend above major moving averages and positive momentum. Valuation is the main drag due to a high P/E relative to the moderate dividend yield.
Positive Factors
Improved gross margin
The higher gross margin indicates stronger cost management and provides more contribution from each dollar of revenue. If sustained, this can support investment in blasting technology, customer services, and resilience against input-cost pressure.
Negative Factors
Very low net profitability
A 1.99% net margin leaves limited room for execution errors, input-cost inflation, or weaker mining activity. Persistently thin profitability could constrain reinvestment and make earnings more vulnerable despite improving gross margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved gross margin
The higher gross margin indicates stronger cost management and provides more contribution from each dollar of revenue. If sustained, this can support investment in blasting technology, customer services, and resilience against input-cost pressure.
Read all positive factors
Orica Limited (ORI) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$10.27B
Dividend Yield2.73%
Average Volume (3M)2.28M
Price to Earnings (P/E)42.7
Beta (1Y)0.84
Revenue Growth1.79%
EPS Growth156.48%
CountryAU
Employees14,000
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.52
Shares Outstanding463,542,500
10 Day Avg. Volume2,486,296
30 Day Avg. Volume2,283,487
Financial Highlights & Ratios
PEG Ratio-0.90
Price to Book (P/B)2.45
Price to Sales (P/S)1.26
P/FCF Ratio19.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$26.43Price Target Upside13.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.24
Revenue Forecast (FY)AU$8.23B
Orica Limited Business Overview & Revenue Model
Company Description
Orica Limited (ORI) is an Australia-based provider of mining and infrastructure services, best known for supplying commercial explosives and blasting systems to customers in surface and underground mining, quarrying, and civil construction. The co...
How the Company Makes Money
Orica makes money primarily by selling products and services that support the drilling-and-blasting and mineral processing value chain. A major revenue stream is its Explosives business, where it earns revenue from (1) manufacturing and selling bu...
Orica Limited Earnings Call Summary
Earnings Call Date:Nov 13, 2024
(Q4-2024)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, strategic acquisitions, and significant progress in sustainability and digital solutions. However, it also addressed challenges in manufacturing and safety incidents. Despite these challenges, the overall outlook remains positive with continued growth expected in 2025.Positive Updates
Record-Breaking Financial Performance
Highest EBIT in a decade, reaching $806 million, a 15% increase from the previous year. Statutory net profit increased by 77% to $525 million.
Negative Updates
Fatality Incident in India
A colleague was lost in a traffic accident involving an Orica vehicle, highlighting ongoing safety challenges.
Read all updates
Q4-2024 Updates
Positive
Negative
Record-Breaking Financial Performance
Highest EBIT in a decade, reaching $806 million, a 15% increase from the previous year. Statutory net profit increased by 77% to $525 million.
Read all positive updates
Company Guidance
During the Q4 2024 earnings call for Orica (ORI.AX), executives highlighted multiple metrics reflecting the company's strong performance and strategic direction. Orica achieved its highest EBIT in a decade, increasing by 15% to $806 million, while net profit rose by 11% to $409 million. The company's return on net assets improved by 20 basis points to 12.8%, and earnings per share pre-significant items rose by $0.052 to $0.864. Orica has also made significant progress in sustainability, reducing Scope 1 and 2 emissions by 43% from the 2019 baseline. Furthermore, their employee engagement score reached 89%, and they are on track to meet their community investment target of $15 million by 2025. The company has also seen a 24% compound annual growth rate in EBIT since 2021 and increased dividends from $0.24 to $0.47 per share. Looking ahead, Orica anticipates continued EBIT growth across all segments in 2025, with capital expenditure expected to align with 2024 levels.Orica Limited Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
68
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.09B | 8.14B | 7.69B | 7.95B | 7.10B | 5.21B |
| Gross Profit | 1.55B | 4.44B | 4.08B | 1.22B | 969.80M | 2.76B |
| EBITDA | 1.40B | 1.12B | 1.35B | 906.10M | 722.90M | 276.80M |
| Net Income | 250.70M | 162.30M | 524.60M | 295.70M | 60.10M | -173.80M |
Balance Sheet | ||||||
| Total Assets | 9.68B | 9.95B | 9.60B | 8.88B | 8.47B | 7.46B |
| Cash, Cash Equivalents and Short-Term Investments | 768.70M | 746.70M | 580.70M | 1.15B | 1.26B | 551.00M |
| Total Debt | 3.24B | 3.00B | 2.52B | 2.37B | 2.46B | 2.32B |
| Total Liabilities | 5.86B | 5.69B | 5.05B | 4.72B | 4.64B | 4.67B |
| Stockholders Equity | 3.73B | 4.18B | 4.46B | 3.99B | 3.69B | 2.73B |
Cash Flow | ||||||
| Free Cash Flow | 497.80M | 534.70M | 372.20M | 459.60M | 13.00M | 295.70M |
| Operating Cash Flow | 934.90M | 949.20M | 807.50M | 898.70M | 362.30M | 618.90M |
| Investing Cash Flow | -446.20M | -397.20M | -1.71B | -664.70M | -229.20M | -195.90M |
| Financing Cash Flow | -402.20M | -407.70M | 377.40M | -350.90M | 515.50M | -748.60M |
Orica Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$10.27B | 42.72 | 6.34% | 2.61% | 1.79% | 156.48% | |
64 Neutral | AU$6.50B | 40.26 | 3.99% | 3.78% | -16.59% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | AU$32.32M | -10.26 | -6.05% | ― | -6.98% | -243.52% | |
50 Neutral | AU$30.33M | -4.46 | -82.31% | ― | 23.44% | 42.80% | |
46 Neutral | AU$63.70M | -1.25 | -73.16% | ― | 21.36% | -70.37% | |
42 Neutral | AU$273.28M | -6.96 | -74.68% | ― | 13.94% | -84.03% |
* Basic Materials Sector Average
AU:ORI
Orica Limited
22.16
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Orica Limited Corporate Events
Orica Issues Additional Performance Rights Under Employee Incentive Scheme
Jul 13, 2026
Orica Limited has notified the market of the issue of 476 unquoted performance rights under its employee incentive scheme, effective 30 June 2026. The new rights, which are not intended to be quoted on the ASX, form part of the company’s ong...
Orica Seeks ASX Quotation for New Dividend Plan Shares
Jul 2, 2026
Orica Limited is an Australian-listed company on the ASX under the ticker ORI, operating in the chemicals and mining services sector with a focus on supplying products and services to resource and industrial markets. The company’s ordinary f...
Orica Greenlights Hunter Valley Hydrogen Hub to Cut Gas Use and Boost Low-Carbon Ammonia
Jul 1, 2026
Orica has approved a final investment decision to develop the Hunter Valley Hydrogen Hub, a commercial-scale renewable hydrogen facility integrated with its existing ammonia plant at Kooragang Island in New South Wales. Using recycled water and re...
Orica Updates Dividend Reinvestment Details for Half‑Year Distribution
Jun 4, 2026
Orica Limited has updated its previously announced dividend details for ordinary fully paid shares, relating to the six‑month period ended 31 March 2026. The notice, dated 5 June 2026, confirms revised information including the dividend rein...
Orica Strengthens Board with Appointment of Mark G. Johnson as Independent Director
Jun 3, 2026
Orica Limited has appointed Mark G. Johnson as an Independent Non-executive Director, effective 1 July 2026, as part of its ongoing board succession planning. Chair Vik Bansal said Johnson’s extensive expertise in finance, audit, risk manage...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.