Australia's Orica surges on earnings beat, dividend boost (updated)

ORICA

08/05/2025 05:09

Updates from paragraph 3 onwards

By Nikita Maria Jino

May 8 (Reuters) - Shares of Orica ORI.AX rose the most in three years on Thursday, after the Australian explosives giant posted stronger-than-expected first-half earnings, lifted its interim dividend and restarted a share buyback.

The company's shares rose as much as 9.2% to A$18.31 to be one of the top percent gainers on the benchmark ASX 200 index .AXJO.

Orica reaffirmed its confidence in navigating global headwinds, including renewed trade tensions following U.S. President Donald Trump’s tariffs.

    "Despite trade uncertainties and geopolitical risks, our strong performance highlights our resilience and ability to adapt and optimise. Our global manufacturing and supply chain network remains a significant competitive advantage,” said CEO Sanjay Gandhi.

The company reported earnings before interest and tax (EBIT) of A$472.3 million ($305 million) for the first half of fiscal year 2025, a near 34% year-on-year increase and well ahead of the A$448 million consensus estimate compiled by Visible Alpha.

Orica’s core blasting solutions division, which contributes roughly 80% of its EBIT, powered the result with a 29% rise in earnings.

The company cited robust demand across its markets, particularly the Asia-Pacific region, where earnings jumped 40%.

It plans to recommence its share buyback plan of up to A$400 million, which was announced in March.

The board declared an interim dividend of 25 Australian cents per share, up from 19 cents a year ago.

Analysts at Citi expect no slowdown in demand beyond the near term, with Orica likely well-placed to benefit from cross-selling and an uplift in blasting activities supported by strong demand for gold, copper, met coal and iron ore.

($1 = 1.5487 Australian dollars)

 (Reporting by Nikita Maria Jino in Bengaluru; Editing by Rashmi Aich and Mrigank Dhaniwala)

 ((Nikita.Jino@thomsonreuters.com;))