A plasma arc torch that includes a torch body having a nozzle mounted relative to a composite electrode in the body to define a plasma chamber. The torch body includes a plasma flow path for directing a plasma gas to the plasma chamber in which a plasma arc is formed. The nozzle includes a hollow, body portion and a substantially solid, head portion defining an exit orifice. The composite electrode can be made of a metallic material (e.g., silver) with high thermal conductivity in the forward portion electrode body adjacent the emitting surface, and the aft portion of the electrode body is made of a second low cost, metallic material with good thermal and electrical conductivity. This composite electrode configuration produces an electrode with reduced electrode wear or pitting comparable to a silver electrode, for a price comparable to that of a copper electrode.