Key Highlights

  • Orora Group (ASX:ORA) reported FY26 Revenue of $2.23 billion, up 6.5%, while underlying EBITDA increased 0.3% to $420.3 million.
  • Cans volumes increased 6.3%, with Cans EBITDA rising 10.5% to $131.2 million and EBIT increasing 7.3% to $111.4 million.
  • Global Glass EBITDA declined 3.7% to $289.1 million, with Saverglass EBIT falling 18.2% amid pricing, product-mix and market pressures.
  • Statutory NPAT was a $616.6 million loss following a $758.8 million after-tax significant item expense, including a $728.2 million after-tax non-cash Glass impairment.

Orora Group (ASX:ORA) reported FY26 revenue of $2.23 billion for the year ended 30 June 2026, representing an increase of 6.5% from the previous financial year. Underlying EBITDA was broadly unchanged at $420.3 million, while EBIT declined 5.3% to $248.2 million.

Underlying NPAT decreased 5.9% to $142.2 million, while Earnings Per Share remained at 11.4 cents. The result included the impact of different operating conditions across Orora’s Cans and Glass businesses.

Cans revenue increased 13.3% to $880 million, supported by higher aluminium pricing, improved mix and a 6.3% increase in volumes. Excluding the aluminium price pass-through effect, Cans revenue increased 10.5%.

Cans Business Records Further Volume Growth

The Cans division continued to record higher volumes during FY26, with Demand supported by the ongoing shift towards aluminium and growth across newer beverage categories.

Cans EBITDA increased 10.5% to $131.2 million, while EBIT rose 7.3% to $111.4 million. The result included higher Depreciation and Amortisation associated with recent capacity investments, as well as increased transport costs.

The new 375ml Cans line at Rocklea remains scheduled for commissioning by the end of the first quarter of FY27. The project represents an Investment of approximately $140 million and is expected to add around 13% to network capacity over time.

For FY27, Orora expects Cans volume growth to remain consistent with its Long-term Growth range of approximately 4% to 6%, with EBIT expected to be higher than FY26.

Glass Earnings Reflect Challenging Conditions

The Global Glass business generated revenue of $1.35 billion, up 2.5%, while EBITDA declined 3.7% to $289.1 million and EBIT fell 13.6% to $136.8 million.

Saverglass revenue increased 3.3% to $1.06 billion, reflecting a 5.9% increase in volumes. However, changes in product and category mix reduced average selling prices and margins. Saverglass EBITDA declined 6.8% to $226.8 million, while EBIT fell 18.2% to $108.7 million.

Gawler delivered a different earnings outcome. Revenue declined marginally by 0.3% to $284.5 million, while EBITDA increased 9.5% to $62.3 million and EBIT rose 10.5% to $28.1 million. The improvement reflected operational benefits from its two-furnace configuration.

Impairment Drives Statutory Loss

Orora reported a statutory NPAT loss of $616.6 million, compared with a profit of $973.1 million in FY25. The statutory result included a $758.8 million after-tax significant item expense.

The largest component was a $742.8 million Impairment relating to the Glass business, including Saverglass Goodwill and other assets. Other significant items included costs associated with the Le Havre F4 furnace closure, corporate restructuring and the idling of the RAK production Facility following the Middle East conflict.

Orora said the reassessment of the Glass business reflected changes in its expectations for the timing of recovery in consumer demand and Saverglass earnings.

Cash Flow, Capital Management and FY27 Outlook

Underlying operating Cash Flow was $290.7 million, down 12.8%, while cash realisation remained at 98.3%. Net Debt including finance leases increased to $481.1 million at 30 June 2026, with Leverage at 1.2 times EBITDA.

The company bought back approximately 56 million shares during FY26 for $117.6 million. Orora plans to recommence its on-market buyback following the FY26 results.

The Board declared a final Dividend of 4.0 cents per share, taking total FY26 dividends to 9.0 cents per share. The final dividend is scheduled to have an ex-dividend date of 28 August 2026 and payment date of 6 October 2026.

For FY27, Orora expects Cans EBIT to increase, while Saverglass EBIT in euro terms is expected to decline from FY26 as pricing and mix pressures continue. Group EBIT is expected to be lower than FY26, reflecting higher depreciation and amortisation and lower Saverglass EBIT.

Conclusion

Orora’s FY26 results show differing operating trajectories across its portfolio, with Cans delivering higher volumes and earnings while Glass faced weaker market conditions, product-mix pressures and a substantial non-cash impairment. Group revenue increased despite the contrasting divisional outcomes, while underlying EBITDA remained broadly stable and operating cash generation remained material. The FY27 outlook points to continued earnings contribution from Cans capacity expansion, alongside further pressure on Saverglass during the first half. Capital Expenditure has moved through a major investment phase, while dividends and the share buyback remain components of the company’s capital management program.