Australia's Orica posts best annual earnings in 13 years, shares hit 6-year high (updated)

ORICA

13/11/2025 01:39

Adds details, background, and shares moves from paragraph 3 onwards

Nov 13 (Reuters) - Australian mining services provider Orica ORI.AX posted its strongest annual earnings in 13 years on Thursday, driven by solid performance across segments, sending its shares to a near six-year high.

For the year ended September, the company reported an earnings before interest and taxes of A$992.2 million ($644.60 million), 23% higher than last year.

Shares of the Melbourne-based firm rose as much as 5% to A$23.950, hitting their highest level since November 29, 2019.

The stock has also logged its biggest intraday percentage gain since May 8.

"In 2025, we delivered our highest EBIT performance in 13 years, reflecting...the growing strength of our business underpinned by the continued demand for our premium products and innovative technology solutions," said CEO Sanjay Gandhi.

The explosives manufacturer attributed the rise in its annual EBIT to growth across all of its key segments.

Orica said its core blasting solutions division, its largest earnings contributor, grew 15%, supported by advanced technologies and a robust global supply chain.

Its specialty mining chemicals unit surged 47%, buoyed by strong gold prices.

"We are encouraged by ORI's FY25 underlying earnings growth momentum," Citi said in a note.

"We expect this (earnings) to be well received by the market today."

Besides strong earnings, Orica also increased its existing share buy-back by up to an additional A$100 million.

Orica, which was founded in 1874, also forecast EBIT growth across all of its segments for 2026.

Citi further echoed the sentiment by saying "continued strength in gold" is expected to boost Orica's specialty mining chemicals division.

For the year, the company reported a 6% rise in sales revenue to A$8.14 billion, which also exceeded Citi's estimates.

The board also declared a final dividend of 32 Australian cents per share.

($1 = 1.5389 Australian dollars)

 (Reporting by Rajasik Mukherjee; Editing by Rashmi Aich)

 ((Rajasik.Mukherjee@thomsonreuters.com;))