Orora Posts 23% Revenue Growth and 19% EBITDA Rise in FY25
Orora Limited reported solid FY25 financial results driven by strong performance in its Cans business and the Saverglass acquisition, alongside key capacity expansions and glass network optimizations. The company’s robust balance sheet supports ongoing shareholder returns and a positive outlook for FY26.
- Revenue up 23.4% to $2.09 billion, driven by Cans growth and Saverglass acquisition
- EBIT growth of 9.5% to $418.8 million excluding significant items
- Completed major capacity expansions in Cans with Revesby and Rocklea projects
- Glass network optimization includes furnace rebuilds and closures in Europe and Australia
- Strong cash flow generation with 115% cash realisation and low leverage ratio of 0.7x
Solid Financial Performance Amid Strategic Expansion
Orora Limited has reported a robust set of financial results for the year ended 30 June 2025, showcasing resilience across its diversified beverage packaging portfolio. The company achieved a 23.4% increase in revenue to $2.09 billion, underpinned by strong volume growth in its Cans segment and the full-year contribution from the Saverglass acquisition. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 19.4% to $418.8 million, while EBIT increased 9.5% to $333.6 million on an adjusted basis, excluding significant items.
The Cans business delivered a 6% volume growth, supported by capacity expansions at Revesby and ongoing investment at Rocklea, positioning Orora to capitalise on shifting consumer preferences towards aluminium packaging. Meanwhile, Saverglass experienced a temporary volume decline due to global de-stocking but showed signs of recovery with a 9% volume increase in the second half of FY25.
Operational Highlights and Network Optimisation
Orora’s glass operations underwent significant transformation during FY25. The company completed the G3 furnace rebuild in Australia, enhancing efficiency and reducing energy consumption by 30%. Concurrently, the closure of the G1 furnace is on track for completion by September 2025, with surplus volumes being transferred to the RAK furnace in the UAE. In Europe, consolidation efforts continue with the phased rebuild of the Ghlin furnace and the planned closure of the Le Havre F4 furnace, representing 13% of European capacity, to streamline operations and improve cost structures.
These strategic moves are expected to yield operational efficiencies and position Orora’s glass network for sustainable growth, despite near-term challenges such as tariff uncertainties and softer demand in certain markets.
Strong Balance Sheet and Shareholder Returns
Orora’s financial discipline is evident in its strong balance sheet metrics. The company reported a net debt to EBITDA leverage ratio of just 0.7x, well below its target range of 1.5x to 2.5x, supported by $1.38 billion in available liquidity. Operating cash flow surged 46.4% to $333.6 million, reflecting effective working capital management and robust cash realisation of 115%.
Shareholder returns remain a priority, with a final dividend of 5.0 cents per share declared, representing a 69% payout ratio consistent with company targets. Additionally, Orora has executed an on-market buyback program, repurchasing 4.6% of issued shares to date, enhancing shareholder value.
Sustainability and Safety Progress
Orora continues to advance its sustainability agenda, reporting increased recycled content across its product lines and improved carbon emissions metrics. The company set ambitious targets for recycled content, aiming for 68% in colour glass by FY35 and 80% in cans by FY30. Safety performance also improved, with lost time injury frequency rates decreasing by 35%, reflecting the successful implementation of its Global Health & Safety Strategy.
Outlook for FY26 and Beyond
Looking ahead, Orora anticipates continued EBITDA and cash flow growth in FY26, driven by volume growth, cost reduction initiatives, and the full impact of recent capacity expansions. EBIT is expected to remain broadly stable due to higher depreciation charges from completed projects. The company plans to reduce capital expenditure to approximately $190–210 million in FY26, focusing primarily on completing the Rocklea expansion.
Orora’s disciplined capital allocation framework, strong balance sheet, and strategic focus on value-added beverage packaging position it well to deliver sustainable growth and shareholder returns in the coming years.
Bottom Line?
Orora’s FY25 results and strategic investments set the stage for sustained growth, but market dynamics and tariff developments warrant close investor attention.
Questions in the middle?
- How will evolving tariff policies impact Orora’s European glass operations and premium product demand?
- What is the timeline and expected financial impact of the Ghlin furnace modernization phases?
- How will Orora balance growth capex and shareholder returns amid shifting market conditions post-FY26?