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Orora
(Sydney:ORA)
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Rating:57Neutral
Price Target:
AU$1.50
▲(2.74% Upside)
Action:Reiterated
Date:05/01/26
Overall score reflects mixed financial performance (profitability and low leverage offset by sharp revenue and free-cash-flow weakness) and bearish technicals. This is partly balanced by reasonable valuation with a high dividend yield and a generally constructive earnings outlook that maintains guidance and highlights improving cash flow, despite near-term cost and depreciation headwinds.
Positive Factors
Conservative balance sheet
Orora's low reported debt-to-equity (0.23) and strong equity base provide durable financial resilience. Conservative leverage gives management flexibility to fund capex, absorb cyclical demand shocks, support buybacks/dividends and pursue strategic investments without immediate refinancing risk.
Negative Factors
Sharp revenue and free cash flow deterioration
A very large fall in free cash flow and steep revenue decline point to structural demand, margin mix or conversion issues. Even with recent cash recovery, persistent revenue weakness and low free-cash conversion reduce capacity for organic reinvestment and make profits more sensitive to cyclical swings.
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Positive Factors
Negative Factors
Conservative balance sheet
Orora's low reported debt-to-equity (0.23) and strong equity base provide durable financial resilience. Conservative leverage gives management flexibility to fund capex, absorb cyclical demand shocks, support buybacks/dividends and pursue strategic investments without immediate refinancing risk.
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Orora (ORA) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.78B
Dividend Yield6.69%
Average Volume (3M)3.72M
Price to Earnings (P/E)14.9
Beta (1Y)0.74
Revenue Growth-38.96%
EPS Growth-32.39%
CountryAU
Employees4,371
SectorConsumer Cyclical
Sector Strength84
IndustryPackaging & Containers
Share Statistics
EPS (TTM)0.10
Shares Outstanding1,225,342,800
10 Day Avg. Volume3,466,642
30 Day Avg. Volume3,718,794
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.86
Price to Sales (P/S)1.20
P/FCF Ratio23.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$1.56Price Target Upside6.96% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.11
Revenue Forecast (FY)AU$2.16B
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 by selling packaging products and related services to businesses, with revenue primarily generated from (1) manufacturing and selling fibre-based packaging and converting services (e.g., producing corrugated packaging and cartons...
Orora Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial update: strong group EBITDA growth, significant operating cash flow improvement, robust Cans volume and revenue expansion, balance sheet strength and active shareholder returns. These positives are tempered by ongoing challenges at Saverglass (revenue/mix pressure, higher depreciation and near-term restructuring/closure costs), some softness in Gawler volumes, higher D&A that constrains EBIT growth, and short-term working capital and freight pressures. Management has announced targeted actions (Saverglass restructuring, capacity investments, inventory normalization) and the outlook for FY'26 was maintained with expectations of EBITDA and cash flow growth across businesses, suggesting confidence in recovery and future leverage from completed investments.Positive Updates
Group EBITDA, EBIT and NPAT Growth
Group EBITDA of $218 million, up 14.4% year-on-year; EBIT of $131 million, up 8.5%; underlying NPAT of $77.8-78 million, up ~32% — driven by broad-based EBITDA growth across all divisions and lower net finance costs.
Negative Updates
Saverglass Revenue and Profitability Pressure
Saverglass revenue declined 2.6% to €298 million despite volume growth of 2.6%; EBITDA up only ~0.9% to €69.1 million while EBIT fell ~9% to €34.9 million due to a ~24.7% rise in group D&A and a $3.9m increase in D&A at Saverglass.
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Q2-2026 Updates
Positive
Negative
Group EBITDA, EBIT and NPAT Growth
Group EBITDA of $218 million, up 14.4% year-on-year; EBIT of $131 million, up 8.5%; underlying NPAT of $77.8-78 million, up ~32% — driven by broad-based EBITDA growth across all divisions and lower net finance costs.
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Company Guidance
Orora left FY‑26 guidance broadly unchanged: at a group level management expects EBITDA and cash‑flow growth across all businesses but FY‑26 EBIT will be partly offset by an extra ~A$7m of corporate costs and higher depreciation; group net finance costs guidance is ~A$55–60m (assumes a 10% on‑market buyback), FY‑26 total CapEx ~A$200m (base CapEx A$70–95m pa thereafter; Saverglass decarbonisation A$15–25m pa; total post‑FY26 A$85–120m pa), and D&A is expected to be ~A$180–185m for the year. Segment guidance: Cans — EBIT is expected to be higher with volumes “consistent with long‑term projected growth” (management cites long‑term growth of ~4–6% and models ~5% p.a. capacity support to 2030), a one‑off H2 raw‑material/finished‑goods inventory build of ~A$30m, Rocklea will add ~13% network capacity and commission in H1 FY‑27 as part of ~A$360m of Cans investments expected to deliver >A$50m incremental EBIT when ramped; Saverglass — FY‑26 EBIT is expected to be broadly in line with FY‑25 in euros (H1: volumes +2.6%, revenue −2.6%, EBITDA €69.1m; order intake +18% average monthly for Jul–Jan; customer‑owned inventory −18% at Dec, −15% at Jan), Saverglass restructuring incurs A$7.8m after‑tax costs to deliver ~A$6m annual EBIT from late FY‑26 and Le Havre closure has an incremental after‑tax cost of EUR2.8m with an annualised benefit of EUR9m EBIT from Feb‑2026; Gawler — focus on delivering ~A$30m EBIT in FY‑26 (G3 furnace delivering ~31% energy efficiency improvement). Balance sheet/dividends: net debt ~A$386–387m, leverage ~0.9x EBITDA, liquidity >A$1.2bn, interim dividend A$0.05 per share (79% payout) and a new on‑market buyback up to ~A$270m (10% of shares).Orora Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
60
Neutral
Cash Flow
50
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.19B | 2.09B | 4.70B | 4.29B | 4.09B | 3.54B |
| Gross Profit | 554.60M | 482.70M | 915.60M | 799.80M | 772.70M | 674.20M |
| EBITDA | 408.90M | 299.50M | 588.90M | 403.20M | 399.80M | 320.40M |
| Net Income | 124.40M | 973.10M | 185.20M | 184.80M | 184.70M | 135.80M |
Balance Sheet | ||||||
| Total Assets | 4.79B | 4.85B | 5.99B | 2.90B | 2.78B | 2.39B |
| Cash, Cash Equivalents and Short-Term Investments | 283.50M | 257.40M | 274.70M | 58.40M | 52.60M | 50.60M |
| Total Debt | 931.30M | 653.30M | 2.42B | 1.06B | 906.10M | 756.30M |
| Total Liabilities | 2.02B | 1.95B | 3.90B | 2.09B | 2.04B | 1.62B |
| Stockholders Equity | 2.77B | 2.90B | 2.09B | 800.20M | 731.70M | 768.60M |
Cash Flow | ||||||
| Free Cash Flow | 211.60M | 106.10M | 126.80M | 60.60M | 165.40M | 213.50M |
| Operating Cash Flow | 412.50M | 372.70M | 387.60M | 250.30M | 257.60M | 270.60M |
| Investing Cash Flow | -198.40M | 1.51B | -2.40B | -183.90M | -99.90M | -36.50M |
| Financing Cash Flow | -190.20M | -1.91B | 2.23B | -65.60M | -155.80M | -286.20M |
Orora Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$1.48B | 34.15 | 29.62% | 2.21% | 15.03% | 11.75% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | AU$29.51B | 31.38 | 5.80% | 6.23% | 62.34% | -49.53% | |
57 Neutral | AU$1.78B | 14.91 | 4.39% | 6.72% | -38.96% | -32.39% | |
44 Neutral | AU$3.27M | -0.06 | -49.58% | ― | ― | ― |
* Consumer Cyclical Sector Average
AU:ORA
Orora
1.54
-0.49
-24.12%
AU:PPG
Pro-Pac Packaging Limited
0.02
>-0.01
-5.26%
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Supply Network Limited
35.70
-0.03
-0.10%
AU:MCO
SECOS Group Ltd
0.02
<0.01
46.67%
AU:AMC
Amcor PLC Shs Chess Depository Interests
67.16
-2.90
-4.14%
Orora Corporate Events
United Super exits substantial holder position in Orora
May 6, 2026
United Super Pty Ltd has notified Orora Limited that it has ceased to be a substantial holder in the company as of 30 April 2026. The change reflects a reduction in United Super’s relevant voting interest below the substantial holding thresh...
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.