How much higher can this explosive ASX stock go?

The share price of this ASX-listed stock has increased by 44% this year. That makes Orica Ltd (ASX: ORI) one of the top-performing shares on the S&P/ASX 200 Index (ASX: XJO) in 2025.

For some context, the ASX 200 is up 1.4% over the same period.

The rise of the shares in the mining and infrastructure solutions provider has been a consistent one. In the past six months, the ASX stock added 27% value to the share price, while in the past month, it has gained another 7.2%.

Shares in the ASX 200 stock trade for $23.92 apiece at the time of writing.

Strategic chemicals acquisitions

All the signals seem to be on green for Orica. The $11 billion ASX stock is a global mining services company and operates in more than 100 countries. It specialises in the manufacture and supply of commercial explosives, (digital) blasting systems, mining chemicals, and mine optimisation technologies.

The Melbourne-based business has shifted from being a pure explosives supplier to a broader, more diversified provider. Strategic acquisitions in specialty chemicals businesses and the roll-out of digital blasting platforms are generating higher-margin, repeatable revenue rather than one-off explosives sales.

On 13 November, the mining services company reported its highest profit in 13 years, reporting EBIT of $992 million and strong growth across all segments. In FY 2026, the ASX stock expects further EBIT growth across the three divisions. The Orica board is focusing on margin, product mix, and commercial discipline in Blasting, while anticipating higher adoption and recurring revenue in Digital Solutions.

Record dividend payout

Another reason why this ASX stock has been popular this year is its improving dividend policy. Orica recently rewarded shareholders with a final dividend of 32 cents per share, taking the full-year payout to 57 cents. That’s up 21% from last year’s 47 cents. This total payout yields a dividend of 2.2% for the ASX stock.

That’s the highest annual dividend since 2012 and a sign that management is confident in the company’s cash generation and outlook. Management also increased the ongoing share buy-back program by $100 million, bringing the total value of the program to $500 million.

Broadly bullish

Analyst sentiment is broadly bullish on the ASX stock. According to aggregated estimates, the 12-month price target range spans roughly from $22.30 to $29.80.

Broker Ord Minnett recently upgraded its price target to $26 and raised EPS estimates. This updated price target indicates an upside of 9.1%. 

It has also maintained its buy recommendation. Ord Minnett notes: 

Post the result, we have raised our EPS estimates by 2.1%, 2.3% and 8.5% for FY26, FY27 and FY28, respectively, to incorporate higher earnings assumptions for the specialty chemicals and blasting solutions divisions, which leads us to raise our target price to $26.00 from $23.00.

The post How much higher can this explosive ASX stock go? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.