Orora Limited

Revenue increased 6.5% to AUD 2.2 billion. EBITDA was $420.3 million, broadly flat year over year; EBIT was $248.2 million, down $13.2 million or 5.3%; underlying NPAT was $142.2 million, down 5.9%; and underlying EPS was flat at $0.114 per share. Operating cash flow was $290.7 million with cash realization of 98.3%, net debt was $481 million, and leverage was 1.2x EBITDA. The group recorded a non-cash Glass CGU impairment of EUR 449.7 million before tax / $742.8 million before tax, with significant items after tax of $758.8 million. For FY27, management expects Cans EBIT to be higher than FY26, Saverglass EBIT to be lower than FY26, Gawler EBIT to be around $30 million, group EBIT to be lower than FY26, and total CapEx to fall to around $140 million to $145 million, supporting higher free cash flow.

Brian Lowe framed the year as one of clear divergence: Cans is benefiting from capacity investments and substrate shift, while glass remains under pressure from weak demand, price/mix, tariffs, and the Middle East conflict. He emphasized that the company is now a more focused beverage packaging business, with Saverglass executing six priorities aimed at more than EUR 30 million of net EBIT run-rate improvement by FY30. His tone was constructive on Cans and disciplined but cautious on glass, repeatedly signaling that pricing and mix pressure may persist through FY27.

Shaun Hughes highlighted the main financial bridge: revenue up 6.5% to AUD 2.2 billion, EBITDA slightly higher at $420.3 million, but EBIT down 5.3% because of higher D&A and weaker Saverglass earnings. He detailed the Glass CGU impairment at EUR 449.7 million, noted FY26 significant items after tax of $758.8 million, and said FY27 tax rate should be about 26.5% to 27.5%. He also pointed to strong cash conversion, net debt of $481 million, liquidity of about $986 million, FY27 CapEx of around $140 million to $145 million, and FY27 net finance costs of $63 million to $68 million before the buyback resumes.

Analysts focused on whether Saverglass mix and pricing pressure is now the new normal, and management said the adverse price/mix seen in 2H26 is likely to persist at least through 1H27 and probably through FY27, with any recovery dependent on market conditions. Questions also probed the glass capacity strategy and whether Orora might shut more furnaces to protect margins; management said that is under ongoing review, but there is nothing immediate to change. On Cans, management said the 4% to 6% long-run growth target still looks reasonable, helped by Rocklea and a better site balance, while extra freight/storage costs should ease in FY27. Analysts also asked about the impairment assumptions, and Shaun said the model now uses the FY26 exit run rate, FY27 forecast, and a long-term volume growth rate of 3.7% versus about 5.6% previously.