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Orora
(Sydney:ORA)
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Rating:55Neutral
Price Target:
AU$1.50
▼(-1.32% Downside)
Action:Reiterated
Date:08/17/26
The score is primarily held back by weak earnings quality and volatility (including a large reported loss and weaker free cash flow versus the prior year), despite positive operating cash generation and moderate leverage. Technical signals are mildly supportive in the near term, and valuation is helped by a strong dividend yield, but mixed FY27 guidance—stronger Cans versus weaker Saverglass and lower group EBIT—keeps overall attractiveness around average.
Positive Factors
Cans growth and capacity
Cans is a scalable growth platform with established volume momentum and added capacity. The Rocklea expansion should support customer supply, operating leverage and higher EBIT over several years as the new line ramps.
Negative Factors
Impairment and earnings quality
The impairment signals that expected Glass cash flows and asset recovery values have weakened materially. Although noncash, it highlights reduced earnings visibility, pressured returns on capital and a higher risk of further restructuring.
Read all positive and negative factors
Positive Factors
Negative Factors
Cans growth and capacity
Cans is a scalable growth platform with established volume momentum and added capacity. The Rocklea expansion should support customer supply, operating leverage and higher EBIT over several years as the new line ramps.
Read all positive factors
Orora (ORA) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.81B
Dividend Yield6.04%
Average Volume (3M)3.72M
Price to Earnings (P/E)―
Beta (1Y)0.48
Revenue Growth6.49%
EPS Growth-564.86%
CountryAU
Employees4,512
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)-0.50
Shares Outstanding1,225,342,800
10 Day Avg. Volume3,466,642
30 Day Avg. Volume3,718,794
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.89
Price to Sales (P/S)0.78
P/FCF Ratio21.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.59Price Target Upside4.31% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)0.11
Revenue Forecast (FY)AU$2.23B
Orora Business Overview & Revenue Model
Company Description
Orora Limited, established in Hawthorn, Australia, in 1949, is a prominent provider of comprehensive packaging products and services. The company caters to a wide array of sectors, including grocery, fast-moving consumer goods (FMCG), and industri...
How the Company Makes Money
Orora makes money primarily by manufacturing, sourcing, and supplying packaging products to business customers, earning revenue from the sale of these products under customer contracts and ongoing supply relationships. Key revenue streams include:...
Orora Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong operational performance and cash generation from the Cans business, a solid balance sheet, liquidity improvements and sustainability/safety progress; however, these positives were materially offset by a large noncash impairment at the Glass CGU, continued Saverglass price-and-mix headwinds, RAK disruption from the Middle East conflict, and lower statutory earnings. Management outlined credible remediation plans for Glass (targeting >EUR30m net EBIT run-rate improvement by FY'30) and expects Cans to support cash flow going forward, but near-term group EBIT is guided lower for FY'27. Overall the positives and negatives are roughly balanced.Positive Updates
Strong Cans Performance and Capacity Expansion
Cans revenue increased ~13% to $880m (10.5% excluding aluminum pass-through), FY'26 volume growth 6.3% (H2 +1.7%), EBITDA up 10.5% to $131.2m (adjusted EBITDA +14.7% excluding corporate cost allocation). Rocklea expansion nearing completion (total Rocklea investment ~A$140m) will add ~13% network capacity and the Cans program targets >A$50m annual EBIT by FY'30 with >15% return by year three.
Negative Updates
Large Noncash Impairment of Glass CGU
Orora recognized a noncash impairment of the Glass cash-generating unit of ~EUR 450m (A$742.8m before tax reported), contributing to significant items after tax of ~A$758.8m and statutory NPAT loss of A$616.6m. Management cites U.S. tariffs, Middle East conflict and cost-of-living pressures driving revised recovery timing for Saverglass.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Cans Performance and Capacity Expansion
Cans revenue increased ~13% to $880m (10.5% excluding aluminum pass-through), FY'26 volume growth 6.3% (H2 +1.7%), EBITDA up 10.5% to $131.2m (adjusted EBITDA +14.7% excluding corporate cost allocation). Rocklea expansion nearing completion (total Rocklea investment ~A$140m) will add ~13% network capacity and the Cans program targets >A$50m annual EBIT by FY'30 with >15% return by year three.
Read all positive updates
Company Guidance
Orora guided that in FY27 Cans volumes should grow in line with long‑term 4–6% supporting Cans EBIT “higher than FY26”, with the Rocklea 375mL line due to commission by end Q1 (adding ~13% network capacity and a ~12‑month ramp) and the remaining $17m of a planned $30m one‑off cans inventory build to occur in FY27 (>$13m occurred in H2 FY26); Saverglass EBIT is expected to be lower than FY26 as adverse price/mix pressures persist into H1 FY27, though management targets >EUR30m net EBIT run‑rate improvement by FY30 (benefits from H2 2027) supported by a mid‑single‑digit volume ambition, 5‑month NPD time‑to‑market, a 15% reduction in average cost per tonne and 20% SG&A reduction versus the FY26 baseline; RAK is planned to restart restricted volumes from October at ~50% capacity (idling cost ~EUR2m/month until restart) and Ghlin ramp is expected from late Q1; Gawler EBIT is expected to be around $30m in FY27 (first full year of 2‑furnace operation); group FY27 metrics include total CapEx ~$140–145m (base ~$85–90m, decarb ~$5–10m, growth ~$50m), D&A ~$180–185m, net finance costs ~$63–68m, with group EBIT expected below FY26 but free cash flow expected to be higher as CapEx reduces.Orora Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
56
Neutral
Cash Flow
52
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.23B | 2.09B | 4.70B | 4.29B | 4.09B |
| Gross Profit | 475.40M | 482.70M | 915.60M | 799.80M | 772.70M |
| EBITDA | 407.50M | 299.50M | 588.90M | 403.20M | 399.80M |
| Net Income | -616.60M | 973.10M | 185.20M | 184.80M | 184.70M |
Balance Sheet | |||||
| Total Assets | 4.34B | 4.85B | 5.99B | 2.90B | 2.78B |
| Cash, Cash Equivalents and Short-Term Investments | 513.10M | 257.40M | 274.70M | 58.40M | 52.60M |
| Total Debt | 1.16B | 653.30M | 2.42B | 1.06B | 906.10M |
| Total Liabilities | 2.40B | 1.95B | 3.90B | 2.09B | 2.04B |
| Stockholders Equity | 1.93B | 2.90B | 2.09B | 800.20M | 731.70M |
Cash Flow | |||||
| Free Cash Flow | 79.40M | 106.10M | 126.80M | 60.60M | 165.40M |
| Operating Cash Flow | 273.70M | 372.70M | 387.60M | 250.30M | 257.60M |
| Investing Cash Flow | -195.50M | 1.51B | -2.40B | -183.90M | -99.90M |
| Financing Cash Flow | 197.00M | -1.91B | 2.23B | -65.60M | -155.80M |
Orora Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | AU$1.59B | 32.90 | 30.40% | 2.21% | 15.55% | 17.30% | |
68 Neutral | AU$30.29B | 19.46 | 9.45% | 6.23% | 49.11% | 25.55% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | AU$1.81B | -2.90 | -26.21% | 6.72% | 6.49% | -564.86% | |
44 Neutral | AU$3.27M | -0.06 | -49.58% | ― | ― | ― |
* Consumer Cyclical Sector Average
AU:ORA
Orora
1.49
-0.57
-27.63%
AU:PPG
Pro-Pac Packaging Limited
0.02
0.00
0.00%
AU:SNL
Supply Network Limited
35.51
-1.14
-3.12%
AU:MCO
SECOS Group Ltd
0.02
<0.01
46.67%
AU:AMC
Amcor PLC Shs Chess Depository Interests
65.07
3.62
5.89%
Orora Corporate Events
Orora Issues Daily Update on Ongoing On-Market Share Buy-Back
Aug 17, 2026
Orora Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares. The company continues to report daily activity in the program, which is being implemented under its previou...
Orora updates market on progress of ongoing on‑market share buy‑back
Aug 13, 2026
Orora Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares under code ORA. The company reported that a total of 8,441,492 shares had been repurchased prior to the most...
Orora outlines financial reporting framework and cautions on forward‑looking statements
Aug 13, 2026
Orora has released financial information for the years ended 30 June 2025 and 30 June 2026, accompanied by extensive disclosures on the nature of its financial reporting. The company emphasizes that certain figures are presented on a non‑IFR...
Orora Swings to Loss on Glass Impairment as Cans Business Powers Through
Aug 13, 2026
Orora reported a statutory net loss of $616.6m for FY26 driven by a $742.8m non-cash impairment in its glass operations, even as revenue rose 6.5% to $2.23bn and underlying NPAT slipped 5.9% to $142.2m, underscoring divergent conditions between it...
Orora Declares Interim Dividend of AUD 0.04 per Share
Aug 13, 2026
Orora Limited has declared an ordinary interim dividend of AUD 0.04 per fully paid share, relating to the six-month period ended 30 June 2026. The dividend will trade ex-dividend on 28 August, with a record date of 31 August and payment scheduled ...
Orora posts higher revenue but deep loss on major glass impairments and restructuring
Aug 13, 2026
Orora Limited has released its financial results for the year ended 30 June 2026, reporting a 6.5% increase in revenue from continuing operations to A$2.23 billion but a swing to a statutory net loss of A$616.6 million from continuing operations a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.