Orica Limited (AU:ORI)
ASX:ORI
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Orica Limited
(Sydney:ORI)
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Rating:67Neutral
Price Target:
AU$22.00
▲(7.68% Upside)
Action:ReiteratedDate:12/11/25
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
Recurring B2B Revenue Model
Orica's core B2B model—supplying explosives, initiation systems and on-site services under multi-year and replenishment arrangements—creates predictable, usage-linked revenue tied to mining activity. Embedded site services and long contracts support customer stickiness and stable cash flows over months to years.
Negative Factors
Low Net Profitability
A sub-2% net margin signals limited retained earnings and thin end‑line profitability despite strong gross margins. This constrains the company's ability to absorb cost shocks, invest incrementally or generate shareholder returns, and makes operational improvements necessary for sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring B2B Revenue Model
Orica's core B2B model—supplying explosives, initiation systems and on-site services under multi-year and replenishment arrangements—creates predictable, usage-linked revenue tied to mining activity. Embedded site services and long contracts support customer stickiness and stable cash flows over months to years.
Read all positive factors
Orica Limited (ORI) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$9.56B
Dividend Yield2.28%
Average Volume (3M)2.28M
Price to Earnings (P/E)10.2
Beta (1Y)0.90
Revenue Growth6.29%
EPS Growth-69.95%
CountryAU
Employees14,000
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.59
Shares Outstanding463,360,230
10 Day Avg. Volume2,486,296
30 Day Avg. Volume2,283,487
Financial Highlights & Ratios
PEG Ratio-0.91
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$26.23Price Target Upside28.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)1.22
Revenue Forecast (FY)AU$8.34B
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 b...
How the Company Makes Money
Orica makes money primarily by selling products and services used to drill, blast, and manage rock fragmentation for mining and infrastructure customers. Its revenue model is largely business-to-business and includes: (1) Explosives and blasting s...
Orica Limited Earnings Call Summary
Earnings Call Date:Nov 13, 2024
(Q4-2024)
| % Change Since: |
Next Earnings Date:May 07, 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 | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.14B | 7.69B | 7.95B | 7.10B | 5.21B |
| Gross Profit | 4.44B | 4.08B | 1.22B | 969.80M | 2.76B |
| EBITDA | 1.12B | 1.35B | 906.10M | 722.90M | 276.80M |
| Net Income | 162.30M | 524.60M | 295.70M | 60.10M | -173.80M |
Balance Sheet | |||||
| Total Assets | 9.95B | 9.60B | 8.88B | 8.47B | 7.46B |
| Cash, Cash Equivalents and Short-Term Investments | 746.70M | 580.70M | 1.15B | 1.26B | 551.00M |
| Total Debt | 3.00B | 2.52B | 2.37B | 2.46B | 2.32B |
| Total Liabilities | 5.69B | 5.05B | 4.72B | 4.64B | 4.67B |
| Stockholders Equity | 4.18B | 4.46B | 3.99B | 3.69B | 2.73B |
Cash Flow | |||||
| Free Cash Flow | 534.70M | 372.20M | 459.60M | 13.00M | 295.70M |
| Operating Cash Flow | 949.20M | 807.50M | 898.70M | 362.30M | 618.90M |
| Investing Cash Flow | -397.20M | -1.71B | -664.70M | -229.20M | -195.90M |
| Financing Cash Flow | -407.70M | 377.40M | -350.90M | 515.50M | -748.60M |
Orica Limited Technical Analysis
Negative
20.43
Price Trends
22.30
Negative
23.56
Negative
22.41
Negative
Market Momentum
-0.31
Negative
43.84
Neutral
15.10
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ORI, the sentiment is Negative. The current price of 20.43 is above the 20-day moving average (MA) of 20.32, below the 50-day MA of 22.30, and below the 200-day MA of 22.41, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 43.84 is Neutral, neither overbought nor oversold. The STOCH value of 15.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ORI.
Orica Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | AU$9.56B | 10.20 | 3.73% | 2.28% | 6.29% | -69.95% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | AU$5.62B | 39.53 | 3.14% | 3.60% | -29.71% | ― | |
55 Neutral | AU$32.93M | -2.92 | -82.31% | ― | 7.08% | 33.70% | |
50 Neutral | AU$34.22M | -10.44 | -6.05% | ― | -5.37% | -140.00% | |
45 Neutral | AU$473.80M | -5.06 | -99.54% | ― | 36.97% | -25.00% | |
44 Neutral | AU$129.43M | -1.24 | -73.16% | ― | 16.47% | 29.53% |
* Basic Materials Sector Average
AU:ORI
Orica Limited
20.43
5.23
34.41%
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0.31
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0.19
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-51.32%
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Calix Ltd.
0.62
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Carbonxt Group Ltd.
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0.03
50.91%
Orica Limited Corporate Events
Orica shores up ammonia supplies after Western Australia plant outage
Apr 15, 2026
Orica has moved to secure alternative ammonia and ammonium nitrate supplies after an outage at a third-party ammonia plant in Western Australia, drawing on existing inventory and its diversified global manufacturing and supply network. The company...
Orica Reports Lapse of 104,887 Performance Rights After Unmet Conditions
Apr 7, 2026
Orica Limited has notified the market that 104,887 performance rights, trading under the ASX code ORIAB, have lapsed after the conditions attached to those rights were not met or became incapable of being satisfied as of 31 March 2026. The cessati...
Orica issues 1.2 million unquoted performance rights under incentive scheme
Apr 7, 2026
Orica Limited has notified the market of the issue of 1,207,966 unquoted performance rights under its employee incentive scheme, with an issue date of 2 April 2026. The new performance rights, which are not intended to be quoted on the ASX, form p...
Orica Cancels 1.34 Million Shares in On-Market Buy-Back
Mar 27, 2026
Orica Limited has reduced its issued capital through the cancellation of 1,344,290 ordinary fully paid shares following completion of an on-market share buy-back. The move, effective from 13 March 2026, marginally tightens the company’s capi...
Orica downplays financial impact of ammonia supply disruptions
Mar 23, 2026
Orica has moved to clarify media reports about an outage at one of its ammonia suppliers in Western Australia, stressing that it is drawing on existing inventories and its diversified global manufacturing and supply network to secure alternative f...
Orica Completes A$500m On‑Market Share Buy-Back
Mar 23, 2026
Orica Limited has completed an on‑market share buy-back of its ordinary fully paid shares, as disclosed in its final buy-back notification to the ASX. The program, first notified in March 2025, underscores the company’s ongoing use of ...
Orica Updates Market on Progress of On‑Market Share Buy-Back
Mar 23, 2026
Orica Limited has provided an updated notification to the ASX regarding its ongoing on‑market share buy-back of ordinary fully paid shares. The latest daily report, dated 24 March 2026, confirms that the company bought back 97,733 shares on ...
Orica provides daily update on ongoing on‑market share buy-back
Mar 22, 2026
Orica Limited has continued its on‑market share buy-back program for its ordinary fully paid shares, providing an updated notification to the ASX dated 23 March 2026. The filing reports that a total of 23,762,370 shares had been repurchased ...
Norges Bank Exits Substantial Holder Position in Orica
Mar 22, 2026
Norges Bank has notified Orica Limited that it has ceased to be a substantial shareholder in the company, following the return of collateral shares and a consequent reduction in its voting interest. The move, involving the return of more than 5.8 ...
AustralianSuper exits substantial holder status in Orica after major share selldown
Mar 18, 2026
AustralianSuper Pty Ltd has notified Orica Ltd that it has ceased to be a substantial shareholder in the company as of 16 March 2026, in line with Australian Corporations Act disclosure requirements. The change follows a series of on-market trades...
Orica Updates ASX on Progress of On-Market Share Buy-Back
Mar 10, 2026
Orica Limited has issued an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares. The latest filing confirms that the company has repurchased a cumulative total of 23,360,077 shares prior to ...
Orica lifts underlying earnings, launches $100m cost-cut drive amid one-off charges
Mar 9, 2026
Orica reported that momentum from its strong 2025 performance has carried into the first five months of the 2026 financial year, with group EBIT expected to come in slightly above the prior corresponding period despite currency headwinds and softe...
Orica Updates Market on Progress of On‑Market Share Buy‑Back
Mar 5, 2026
Orica Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares. The company reported that a cumulative 23,225,537 shares had been repurchased prior to the latest trading d...
Orica Updates Market on Progress of On-Market Share Buy-Back
Mar 3, 2026
Orica Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares, originally announced in March 2025. The latest filing, dated 4 March 2026, confirms that the company repurc...
Orica Updates Market on Progress of On‑Market Share Buy‑Back
Mar 2, 2026
Orica Limited has provided an updated notification on its ongoing on-market share buy-back program for its ordinary fully paid shares listed on the ASX under the code ORI. The latest filing confirms that the company repurchased 56,001 shares on th...
Orica Cancels 1.33 Million Shares Under On-Market Buy-Back
Mar 2, 2026
Orica Limited has adjusted its issued capital following the cancellation of 1,329,074 ordinary fully paid shares. The shares ceased on 27 February 2026 under an on-market buy-back program, marginally reducing the company’s share count and in...
Orica Issues Daily Update on Ongoing On-Market Share Buy-Back
Feb 25, 2026
Orica Limited has provided an updated notification to the ASX on the progress of its on-market share buy-back, confirming that it continues to repurchase its ordinary fully paid shares under a program first announced in March 2025. As of 26 Februa...
Orica Updates Market on Progress of Ongoing On‑Market Share Buy‑Back
Feb 24, 2026
Orica Limited has provided an updated notification to the ASX confirming the ongoing execution of its on-market share buy-back program for its ordinary fully paid shares. The latest filing states that as of 25 February 2026 the company had repurch...
Orica updates market on progress of on‑market share buy‑back
Feb 23, 2026
Orica Limited has provided an updated notification to the ASX regarding its on‑market share buy‑back of ordinary fully paid shares under code ORI. The company reported that, as of the previous day, it had repurchased a cumulative total...
Orica Director Vikas Bansal Lifts Indirect Shareholding via On-Market Purchase
Feb 23, 2026
Orica has disclosed a change in the equity interests of director Vikas Bansal, indicating an increase in his indirect shareholding in the company. Through Ariana Vernon Holdings Pty Ltd, Bansal acquired 16,750 ordinary shares in an on-market trade...
Orica Director Sanjiv Gandhi Reduces Shareholding via On‑Market Trade
Feb 19, 2026
Orica has disclosed a change in the holdings of director Sanjiv Kumar Gandhi, who sold 40,000 ordinary shares in the company in an on‑market trade on 19 February 2026 at $26.17 per share. Following the transaction, Gandhi retains 744,716 ord...
Orica Updates Market on Progress of On‑Market Share Buy‑Back
Feb 9, 2026
Orica Limited has an ongoing on‑market share buy‑back program involving its ordinary fully paid shares traded under the ASX code ORI. The company has been progressively reducing its share count through this program as part of its broad...
Orica Updates Market on Progress of Ongoing On‑Market Share Buy‑Back
Feb 8, 2026
Orica Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for ordinary fully paid shares under code ORI. The update, dated 9 February 2026, reports that a total of 20,923,663 shares had be...
Orica Awards Additional Performance Rights to Director Under 2026 Incentive Plan
Feb 6, 2026
Orica Limited has disclosed a change in the interests of director Sanjiv Kumar Gandhi, who received an allocation of 156,302 performance rights under the company’s 2026 Long Term Incentive Plan at a valuation of $23.80 per right. Following t...
Orica Issues 292,335 Unquoted Performance Rights Under Employee Incentive Plan
Feb 6, 2026
Orica Limited has notified the market that it will issue 292,335 unquoted performance rights under its employee incentive scheme, with the securities not intended to be quoted on the ASX. The new performance rights grant forms part of Orica’...
Orica Updates Market on Progress of On‑Market Share Buy-Back
Feb 5, 2026
Orica Limited has provided an update on its on-market share buy-back program, lodging a daily buy-back notification with the ASX for its ordinary fully paid shares. As of this latest update on 6 February 2026, the company has repurchased a cumulat...
Orica Cancels 243,847 Shares Under On‑Market Buy‑Back
Jan 27, 2026
Orica Limited has cancelled 243,847 fully paid ordinary shares as part of an on-market share buy-back, effective 23 January 2026. The reduction in issued capital marginally increases the ownership stake of remaining shareholders and reflects ongoi...
Orica Updates Market on Progress of On‑Market Share Buy-Back
Jan 20, 2026
Orica Limited has provided an updated daily notification to the ASX on the progress of its on‑market share buy-back program for its ordinary fully paid shares. As of 21 January 2026, the company reported that it had repurchased a cumulative ...
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.