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  • Orora FY26 earnings: Cans strong, Glass under pressure

    A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her

    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.

  • How much passive income can I earn off a $700,000 superannuation balance?

    Couple on their laptop in their home kitchen.

    A $700,000 superannuation balance is a great starting point. 

    It sits above the $630,000 balance that the Association of Superannuation Funds of Australia (ASFA) thinks every Australian needs for a comfortable retirement, and below the asset cut-off point for a part Age Pension payment.

    This amount of money means you’ll be able to live well when you decide to stop working. But if you invest that money wisely, it could also generate an additional passive income that’ll turn a comfortable retirement lifestyle into an affluent one. 

    Think frequent travel, luxury property, and flexible discretionary spending.

    So, how much passive income can you earn off a $700,000 superannuation balance?

    And what ASX shares could you invest in?

    Let’s take a look.

    The calculation

    There is a straightforward calculation to work out what passive income a $700,000 passive income could generate.

    If you multiply your total superannuation balance by the overall dividend yield of your portfolio, it’ll give you the passive income you could generate.

    The answer changes depending on your dividend yield, which helps you identify what you need to invest in to earn the income you want. 

    Generally, as your yield goes up, the passive income you can earn off the same balance also increases.

    How much could I earn off a 2% to 3% yielding superannuation portfolio?

    A 2% yielding portfolio is at the lowest end of the scale. Off a $700,000 superannuation balance, you’d generate around $14,000 in passive income. That’s because $700,000 x 2% = $14,000 in dividend payments.

    It’s not a huge amount, but the benefit of a super low yielding portfolio is that this would generally be focused on traditional and reliable blue-chip shares rather than towards high-growth ASX stocks.

    Think Woolworths Group Ltd (ASX: WOW), Macquarie Group Ltd (ASX: MQG), and even CSL Ltd (ASX: CSL). These shares are each huge in scale, have a long history of paying dividends to shareholders, and they yield somewhere in the 2% to 2.5% range, at the time of writing.

    On a 3% yielding portfolio, you could earn a little more, at closer to $21,000 per year in dividend income, off the same balance.

    Stocks around the 3% level typically offer investors a balance between a moderate, reliable passive income, and some capital growth potential.

    Think Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and Wesfarmers Ltd (ASX: WES). These powerhouses all offer a yield of around 3% to 3.5% at the time of writing.

    What about a 4% to 5% yielding superannuation portfolio?

    If your superannuation portfolio yields closer to 4% or 5%, you could earn even more, at closer to $28,000 or $35,000 per year in passive income, respectively.

    This is often considered by investors as the “sweet spot” between stability and growth. Companies in this bracket are typically large-scale blue chips, major banks, or defensive infrastructure shares. 

    For example, Rio Tinto Ltd (ASX: RIO), Medibank Private Ltd (ASX: MPL), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC), Deterra Royalties Ltd (ASX: DRR), Transurban Group (ASX: TCL), and Telstra Group Ltd (ASX: TLS) all yield around this bracket, at the time of writing.

    What about higher yielding ASX shares, around the 6% to 8% level?

    It’s possible to earn even more if your superannuation investment portfolio is high yield, but this comes with a lot more risk. Investors would need to accept lower growth, or potentially even share price declines, in place of a higher passive income.

    There are still plenty of options around this level, though.

    Some examples are Harvey Norman Holdings Ltd (ASX: HVN), Premier Investments Ltd (ASX: PMV), or Nick Scali Ltd (ASX: NCK). 

    Real Estate Investment Trusts (REITS) also typically offer a higher yield thanks to their predictable rental income. Such as, Charter Hall Long WALE REIT (ASX: CLW), Waypoint REIT Ltd (ASX: WPR), and HomeCo Daily Needs REIT (ASX: HDN).

    The post How much passive income can I earn off a $700,000 superannuation balance? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Samantha Menzies has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended BHP Group, CSL, HomeCo Daily Needs REIT, Macquarie Group, Nick Scali, Premier Investments, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Fletcher Building posts higher volumes in Q1 FY27, residential lags

    Three people at a building site discussing a plan whilst eating.

    The Fletcher Building Ltd (ASX: FBU) share price is in focus today as the company released its first quarter FY27 volume report, highlighting overall sales volumes ahead of the same period last year in most business units and strong momentum in several key segments.

    What did Fletcher Building report?

    • Core business sales volumes in Q1 FY27 were higher than Q1 FY26 in most units
    • Comfortech glass wool sales up 9.0% year on year
    • Fletcher Insulation sales volumes rose 13.6% compared to Q1 FY26
    • Winstone Wallboards domestic board volumes up 7.7% year on year
    • Di mond local volumes grew strongly, up 18.2%
    • Residential units taken to profit declined 38.6% compared to Q1 FY26

    What else do investors need to know?

    While most of Fletcher Building’s core businesses experienced growth, the residential and development division continued to face tough conditions, particularly in the Auckland market. This segment contributed minimally to the group’s half-year results.

    The company noted that Pipeline volumes were lower as customers used stock bought ahead of prior price increases. Seasonal trading patterns broadly matched expectations in other businesses after the end of FY26.

    Ongoing uncertainty around inflation and interest rates continues to cloud the short-term outlook for new construction projects, both commercial and residential.

    What’s next for Fletcher Building?

    Fletcher Building management remains alert to current economic headwinds. The company signaled that forward-looking activity is difficult to predict, citing cautious customers and subdued project pipelines across some markets.

    Fletcher Building expects its Residential & Development business will continue to face challenges, while the core building products businesses remain focused on optimising performance and delivering value to shareholders.

    Fletcher Building share price snapshot

    Over the past 12 months, Fletcher Building shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

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    The post Fletcher Building posts higher volumes in Q1 FY27, residential lags 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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