Origin Energy FY26 Profit Up 6% to $1.57 Billion with Stable Dividends
Origin Energy reported a 6% increase in FY26 profit to $1.57 billion despite a 10% revenue drop, advancing renewable projects and extending Eraring Power Station operations, while managing a customer data breach.
- 6% profit increase to $1.57 billion
- 10% revenue decline to $15.57 billion
- Stable fully franked dividend of 60 cents per share
- Energy Markets EBITDA up $298 million, Integrated Gas down $582 million
- Data security incident disclosed with ongoing investigation
Profit Growth Despite Revenue Pressure
Origin Energy (ASX:ORG) closed FY26 with a 6% rise in statutory profit to $1.574 billion, even as total group revenue fell 10% to $15.57 billion. The company’s ability to grow earnings amid a challenging market landscape highlights resilience, supported by strong performance in its Energy Markets segment, which delivered an underlying EBITDA of $1.701 billion, up $298 million from FY25.
However, the Integrated Gas segment, anchored by Origin’s 27.5% stake in Australia Pacific LNG (APLNG), saw a $582 million decline in underlying EBITDA, reflecting lower oil-linked earnings and production declines. This was anticipated and partially offset by cost efficiencies and optimisation initiatives.
Dividend Stability and Capital Discipline
Origin declared a fully franked final dividend of 30 cents per share, maintaining total dividends at 60 cents per share for FY26, unchanged from FY25. The dividend payout represents 50% of adjusted free cash flow, which rose $867 million to $2.074 billion, driven by robust cash flows from Energy Markets and APLNG distributions.
Capital expenditure was trimmed to $969 million, down $504 million, as the company nears completion of its battery investment program. Origin’s balance sheet remains solid with an adjusted net debt to adjusted underlying EBITDA ratio of 1.6x, below its target range, reflecting prudent capital management.
Renewables and Energy Transition Progress
Origin advanced its renewable energy portfolio, with 1.3 GW of its 1.8 GW battery projects operational by August 2026. The Yanco Delta Wind Farm project progressed towards a final investment decision, despite challenging economics even with government support through the Capacity Investment Scheme. The company also extended operations of the Eraring Power Station to April 2029, supporting NSW energy security during the transition.
Origin Loop, the company’s virtual power plant, grew to 1,589 MW across 409,000 connected services, reflecting growing customer adoption of distributed energy resources. The company’s customer base expanded by 243,000 accounts to nearly 5 million, boosted by acquisitions and organic growth.
Octopus Energy and Kraken Technologies Update
Origin’s 22.7% stakes in UK-based Octopus Energy and Kraken Technologies showed improvement, with the combined underlying EBITDA loss narrowing to $8 million from $88 million in FY25. Octopus Energy grew its UK customer base by over 800,000 accounts to 14.8 million and expanded non-UK accounts by 52% to 4.1 million, investing heavily in smart tariffs and electrification assets.
Kraken Technologies increased contracted customer accounts by 28% to 95 million, signing a major licensing deal with Saudi Energy. Origin’s direct economic interest in Kraken rose to 19.6% following a $210 million investment and waiver of platform exclusivity in Australia.
Data Security Incident and Governance
In July 2026, Origin disclosed a data security incident involving unauthorised access to some customer information. The company has engaged independent cyber experts and is cooperating with Australian authorities including the Cyber Security Centre and Federal Police. Remediation efforts include credit and identity monitoring services for affected customers.
The Board has taken accountability seriously, applying remuneration adjustments to executive incentives related to the incident. Two new independent directors joined the Board during FY26, strengthening governance as Origin navigates operational challenges and the energy transition.
FY27 Outlook and What to Watch
Looking ahead, Origin expects Energy Markets EBITDA of $1.55 billion to $1.85 billion, reflecting battery portfolio ramp-up offset by lower wholesale electricity prices. Capital expenditure guidance is $450 million to $650 million, excluding a $210 million Kraken investment made post-year end.
Investors will be watching how Origin manages ongoing regulatory uncertainties, project cost pressures, and the pace of the energy transition, particularly the economics of large renewable projects like Yanco Delta. The resolution of the data breach investigation and any further impacts remain uncertain.
Bottom Line?
Origin’s FY26 results balance profit growth and dividend stability with clear challenges in gas earnings and cybersecurity, setting the stage for a pivotal year in its energy transition journey.
Questions in the middle?
- How will the data security incident impact Origin’s customer trust and regulatory scrutiny going forward?
- Will the Yanco Delta Wind Farm and other renewable projects overcome cost and approval hurdles to meet 2030 targets?
- How will Origin’s balance between thermal generation and renewables evolve amid shifting market and policy dynamics?
