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Orora FY26 earnings: Cans strong, Glass under pressure

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The Orora Ltd (ASX: ORA) share price is in focus after the company reported underlying NPAT of $142.2 million for FY26 with flat underlying EPS at 11.4 cents per share. While the Cans business delivered robust growth, the Glass division faced ongoing challenges, including a €450 million non-cash impairment.

What did Orora report?

  • Revenue: Cans revenue up 13.3% to $880 million; Saverglass revenue up 0.8% to €617.2 million; Gawler revenue flat at $284.5 million
  • Underlying NPAT: $142.2 million, down 6% from FY25
  • EBITDA: $420.3 million, broadly flat year on year
  • Underlying EPS: 11.4 cents, unchanged from prior year
  • Net debt: $481.1 million; cash realisation at 98.3%
  • Share buyback: 56 million shares repurchased for $118 million in FY26

What else do investors need to know?

Orora’s Cans division enjoyed strong demand, with 6.3% volume growth thanks to capacity expansion and ongoing customer preference for cans. The company’s large-scale Rocklea expansion neared completion, adding further production capacity to the network. In contrast, the Glass business—comprising Saverglass and Gawler—continued to face softer consumer demand, disrupted export markets, and adverse price/mix effects.

A key development was the €450 million non-cash impairment of the Glass business, reflecting ongoing geopolitical, trade, and market pressures. Saverglass did achieve volume and market share growth, but this was tilted toward lower-margin products. Gawler’s operational shift from three furnaces to two delivered efficiency gains despite subdued market conditions.

What did Orora management say?

Managing Director & Chief Executive Officer Brian Lowe said:

While FY26 was certainly a challenging year, it demonstrated the strength of our Cans business, the resilience of our people and our willingness to act when performance does not meet expectations. We enter FY27 having largely completed our Cans capacity expansion program and with a clear plan to improve performance in Glass. Our responsibility now is execution: improving safety, delivering consistently for customers and converting our investments and market positions into stronger earnings, cash flow and shareholder returns.

What’s next for Orora?

Looking ahead to FY27, Orora expects continued growth in its Cans business, with volume increases of 4–6% and higher EBIT predicted due to major network expansions. The Glass division is focused on six clear priorities to lift EBIT by over €30 million by FY30, but management warns that Saverglass EBIT will remain under pressure in the short term due to ongoing external challenges.

The company will keep a sharp eye on economic and geopolitical risks, especially US tariffs and Middle East disruptions, with benefits from Glass turnaround initiatives expected to build later in FY27 and beyond. Continued execution of sustainability initiatives and disciplined capital management remain top priorities.

Orora share price snapshot

Over the past 12 months, Orora shares have declined 34%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

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The post Orora FY26 earnings: Cans strong, Glass under pressure appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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